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Tuesday, April 12, 2005 - Page updated at 12:00 a.m.

Pact could fuel boom in air travel

Bloomberg News

China and India signed a civil-aviation accord aimed at boosting flights between the two Asian nations that are together home to about 2.4 billion people.

Designated airlines of the two nations will be able to undertake 42 weekly flights in the 2006 summer season, the Indian government said in a statement issued in New Delhi yesterday. The two countries agreed on 14 weekly flights in the 2005 summer season and 28 weekly flights in the 2005 winter season.

The accord was signed during a visit by Chinese Premier Wen Jiabao to India. Wen, 62, arrived in New Delhi Sunday from India's technology hub Bangalore, where he called for closer ties between the Indian software and Chinese hardware industries.

China's passenger traffic is forecast to grow 7.3 percent a year until 2023, compared with a global average of 5.2 percent, Boeing said in October.

China's airlines are expanding their fleets to meet rising demand. Shanghai-based China Eastern said last month it will pay less than $200 million for five Airbus A319 planes — its second order from Toulouse, France-based Airbus in five months.

Dinesh Keskar, Boeing's sales chief for India, told The Seattle Times recently it has high hopes to be part of the largest commercial-airplane order ever placed from India, which will be awarded shortly.

Keskar expressed confidence that Boeing was poised to win the first segment — a deal for 23 planes and options totaling $5 billion at list prices.

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