BRUSSELS (BNO NEWS) -- The European Union (EU) on Thursday announced that it had signed an aviation agreement with the Republic of Indonesia on Wednesday to boost future transportation development between both parties.

This "horizontal agreement" will place several provisions in the bilateral air services agreements between 19 EU Member States and Indonesia on a sound legal footing by ensuring compliance with EU legislation.

The agreement will also remove nationality restrictions in bilateral air services agreements between EU Member States and Indonesia, allowing any EU airline to operate flights between Indonesia and any EU Member State in which it is established, where a bilateral agreement between the EU Member State concerned and Indonesia already exists and traffic rights are available.

"The agreement represents an important step towards strengthening aviation relations and enhancing overall cooperation with Indonesia, while encouraging traffic between the EU and Indonesia," the EU said, adding that air transport was crucial for relations between the EU and Indonesia, linking people, cultures and businesses.

On a worldwide basis, the EU currently has 46 such horizontal aviation agreements with partner countries. More than 900 bilateral air services agreements have already been modified by the joint efforts of the European Commission and EU Member States to replace nationality rules with the principle of EU airline designation.

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