Swiss International Airlines has denied claims from the Indian government that it 'violated' a vital clause called the substantial ownership and effective control, mandated under the bilateral air services agreement between the two countries. India has moved to stop all services to and from India operated by Swiss, saying that the airlines, held by Air Trust, is incorporated under the laws of the Western European country and run mostly by its own nationals. Under the SOEC clause, the government has the right to designate one or more airlines. However, its substantial ownership and effective control should be vested in the party designating the airline (in this case, the Swiss government) or its citizens (the Swiss people). In the case of Swiss, a majority stake is with Lufthansa. A Swiss International Airlines spokesperson said the bilateral air services agreements were in accordance with the regulatory administrations of each country. “Swiss International Airlines Ltd is a stockholder company established under the laws of the Swiss Confederation with its legal domicile in Switzerland." The airline, he said, operates under an operating permit and air operator certificate of the Swiss Foca (Federal Office for Civil Aviation). Foca has the regulatory oversight authority over the airline. "It is a designated Swiss carrier under existing bilateral agreements between Switzerland and third countries, including India, and exercises respective traffic rights.
Swiss rejects India’s move to ban its services
