Kathmandu, Sept. 29 -- Nepal and Australia are all set to sign an air service agreement on Monday at the ongoing 40th session of the International Civil Aviation Organisation Assembly in Montreal, Canada, permitting domestic code sharing in Nepal and direct flights between the two countries.

Under the domestic code-share agreement, Australian carriers will be free to enter into code-share agreements with Nepali domestic carriers to any point in Nepal. The Cabinet approved the Tourism Ministry's proposal to sign the air service agreement with Australia last Thursday.

The Australian government has expressed willingness to permit seven weekly flights to key cities like Sydney, Melbourne, Brisbane and Perth, said Tourism Under-Secretary Pra...