The FAA
reported that the upgrade had come in light of reviews and corrective action taken by the Indian aviation sector. An FAA team visited India in March after reviewing India’s aviation regulator in December.
The upgrade means that Indian airlines can now expand service within the United States and engage in in code-share agreements with U.S. airlines. Currently, Air India and Jet Airways are the only two airlines operating to the US.
The upgrade will come as a boost to the Indian aviation sector, even as there is increased scrutiny on airline safety, in light of recent air crashes, especially the Malaysian Airlines and
German Wings crash.
Domestic air travel in India is also booming, with the International Air Travel Association (IATA),
reporting that India's domestic air travel sector grew by 14.8 percent in February, compared to last year. This was the highest worldwide, compared to an average of 6.8 percent. International air travel expanded by 5.3 percent.
The FAA's upgrade is a major boost to Indian airlines, which will now be able to cater to the market of Indian-origin Americans who travel between the two countries. India is also
a major travel destination for Americans, and both Air India and Jet Airways are loss-making.
