India and Nepal have signed a memorandum of understanding to revise their air services agreement.
The MOU increases capacity to 30,000 seats per side from 6,000, and is effective immediately, says India's Ministry of Civil Aviation.
Under the agreement, three new points were added for Nepalese carriers: Dehradun, Gorakhpur, and Bagdogra. Indian carriers gained seven additional cities in Nepal, but none are yet capable of international operations. Katmandu is the only Nepalese airport capable of handling international traffic.
Of the 63 weekly services between the two countries, 43 are operated by Indian carriers and 18 by Nepalese carriers, according to Innovata.
Indian Airlines has 22 weekly services, Jet Airways has 20, and Air India Regional has one. On the Nepalese side, Druk Air operates three weekly services and Nepal Air operates 17.