New Delhi, Jul 10 (IANS): India and Iran have signed an agreement on air services that will increase the number of flights between the two countries and add two more cities to the schedule.

The memorandum of understanding was signed Friday on the sidelines of the India-Iran Joint Commission meeting chaired by Indian External Affairs Minister S.M. Krishna and Iranian Minister for Economic Affairs and Finance Seyed Shamseddin Hosseini.

A press release issued here said that the agreement will add two more additional points of calls in each country that will be decided later.

Besides, the deal will include facilitation of code sharing and cooperative marketing arrangement.

The new agreement will supersede the earlier one signed in April 1980.

"It has the potential to spur greater trade investment, tourism and strengthening the cultural exchange between the two countries besides bringing it in tune with the developments in the international civil aviation scenario," said the press release.