Theindian Ministry of Aviation is questioning the legality of Austrian Airlines and Swiss International Air Lines flying into the nation's airports - two years after Lufthansa gained overall control of the two carriers. The ministry says the operation of both carriers violates the "substantial ownership and effective control clause". Under the Bilateral Air Service Agreements (BASA) that allow these airlines to fly into Indian airports, the ownership of each airline should be with the individual country, ie Austrian Airlines is required to be owned by an Austrian company not a German one. However, the European carriers argue that they continue to fly under their own Air Operator's Certificates, therefore satisfying all BASA legal requirements. Some industry observers find the timing strange given that both Austrian and Swiss have been flying into India for two years since their ownerships changed, while others see it as the Indian Government putting pressure on the Star Alliance to accept national carrier, Air India, into its ranks. It was rejected two years ago due to its then perilous financial position.
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