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U.S. Department of State

Diplomacy in Action

U.S.-Burkina Faso Air Transport Agreement of July 27, 2000


July 27, 2000

   
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AIR TRANSPORT AGREEMENT

BETWEEN

THE GOVERNMENT OF

THE UNITED STATES OF AMERICA

AND

THE GOVERNMENT OF

BURKINA FASO

The Government of the United States of America and the Government of Burkina Faso

(hereinafter, "the . Parties") ;

Desiring to promote an international aviation system based on competition among airlines in

the marketplace with minimum government interference and regulation !

Desiring to facilitate the expansion of international air transport opportunities ;

Desiring to make it possible for airlines to offer the traveling and shippipg public a variety

of service options at the lowest prices that are not discriminatory and do,, not represent abuse

of a dominant position, and wishing to encourage individual airlines to develop and

implement innovative and competitive prices ;

Desiring to ensure the highest degree of safety and security in international air transport and

reaffirming their grave concern about acts or threats against the security jof aircraft, which

jeopardize the safety of persons or property, adversely affect the operation of air

transportation, and undermine public confidence in the safety of civil aviation ; and

Being Parties to the Convention on International Civil Aviation, opened jfor signature at

Chicago on December 7, 1944 ;

Have agreed as follows :

2

Article 1

Definitions

For the purposes of this Agreement, unless otherwise stated, the term :

1 . "Aeronautical authorities" means, in the case of the United State

Transportation, or its successor, and in the case of Burkina Faso, the Mi

civil aviation, and any person or agency authorized to perform functions

said Ministry;

s, the Department of

nistry in charge of

exercised by the

"Agreement" means this Agreement, its Annexes, and any ame meats thereto; the

Annexes are considered to be an integral part of the said Agreement ;

3 .

"Air transportation" means the public carriage by aircraft of passengers, baggage,

cargo, and mail, separately or in combination, for remuneration or hire ;

4 .

"Convention" means the Convention on International Civil Avi

signature at Chicago on December 7, 1944, and includes :

'on, opened for

a . any amendment that has entered into force under Article 94(aa of the Convention

and has been ratified by both Parties, and

b. any Annex or any amendment thereto adopted under Article 40 of the

Convention, insofar as such Annex or amendment is at any given time e''fective for both

Parties ;

5 .

"Designated airline" means an airline designated and authorized in accordance with

Article 3 of this Agreement ;

6 .

"Full cost" means the cost of providing service plus a reasonable charge for

administrative overhead;

7 .

"International air transportation" means air transportation that passes through the

airspace over the territory of more than one State ;

8 .

"Price" means any fare, rate or charge for the carriage of passengers (and their

baggage) and/or cargo (excluding mail) in air transportation charged by airlines, including

their agents, and the conditions governing the availability of such fare, rate or charge ;

9 .

"Stop for non-traffic purposes" means a landing for any purpose other than taking on

or discharging passengers, baggage, cargo and/or mail in air transportation ;

10 .

"Territory" means the land areas under the sovereignty, jurisdicti

trusteeship of a Party, and the territorial waters adjacent thereto ; and

n, protection, or

Designation and Authorization

I

1 .

Each Party shall have the right to designate as many airlines as it wishes to conduct

international air transportation in accordance with this Agreement and to withdraw or alter

such designations . Such designations shall be transmitted to the other P- in writing

through diplomatic channels, and shall identify whether the airline is authorized to conduct

the type of air transportation specified in Annex I or in Annex II or both .

2 . On receipt of such a designation, and of applications from the designated airline, in

the form and manner prescribed for operating authorizations and technical permissions, the

other Party shall grant appropriate authorizations and permissions with rr inimum procedural

delay, provided :

a. substantial ownership and effective control of that airline are

designating the airline, nationals of that Party, or both ;

sted in the Party

I

b . the designated airline is qualified to meet the conditions presc bed under the laws

and regulations normally applied to the operation of international air transportation by the

Party considering the application or applications ; and

3

11 .

"User charge" means a charge imposed on airlines for the provic

navigation, or aviation security facilities or services including related s

Article 2

Grant of Rights

1 .

Each Party grants to the other Party the following rights for the

international air transportation by the airlines of the other Party :

a . the right to fly across its territory without landing ;

b. the right to make stops in its territory for non-traffic purposes and

c . the rights otherwise specified in this Agreement .

2. Nothing in this Article shall be deemed to confer on the airline o

Party the rights to take on board, in the territory of the other Party, pass

baggage, cargo, or mail carried for compensation and destined for anoth

territory of that other Party .

Article 3

ion of airport, air

rvices and facilities .

nduct of

airlines of one

gers, their

r point in the

4

c. the Party designating the airline is maintaining and administ ng the standards set

forth in Article 6 (Safety) and Article 7 (Aviation Security) .

Article 4

Revocation of Authorization

1 .

Either Party may revoke, suspend or limit the operating authori tions or technical

permissions of an airline designated by the other Party where :

a. substantial ownership and effective control of that airline are t`ot vested in the

other Party, the Party's nationals, or both;

b . that airline has failed to comply with the laws and regulations! referred to in

Article 5 (Application of Laws) of this Agreement; or

c . the other Party is not maintaining and administering the standrds as set forth in

Article 6 (Safety) .

2 . Unless immediate action is essential to prevent further noncompliance with

subparagraphs lb or lc of this Article, the rights established by this Arti le shall be

exercised only after consultation with the other Party .

3 .

This Article does not limit the rights of either Party to withhold, evoke, limit or

impose conditions on the operating authorization or technical permission of an airline or

airlines of the other Party in accordance with the provisions of Article 7 (Aviation Security).

Article 5

Application of Laws

1 . While entering, within, or leaving the territory of one Party, its la

relating to the operation and navigation of aircraft shall be complied wi

Party's airlines .

2 . While entering, within, or leaving the territory of one Party, its la

relating to the admission to or departure from its territory of passengers,

aircraft (including regulations relating to entry, clearance, aviation securi

passports, customs and quarantine or, in the case of mail, postal regulatio

complied with by, or on behalf of, such passengers, crew or cargo of the

airlines .

s and regulations

by the other

s and regulations

rew or cargo on

immigration,

shall be

,ther Party's

I

5

Article 6

Safety

I

1 .

Each Party shall recognize as valid, for the purpose of operating lthe air transportation

provided for in this Agreement, certificates of airworthiness, certificate of competency, and

licenses issued or validated by the other Party and still in force, provided that the

requirements for such certificates or licenses at least equal the minimum standards that may

be established pursuant to the Convention . Each Party may, however, r I fuse to recognize as

valid for the purpose of flight above its own territory, certificates of co petency and

licenses granted to or validated for its own nationals by the other Party .

2 .

Either Party may request consultations concerning the safety s dards maintained by

the other Party relating to aeronautical facilities, aircrews, aircraft, and operation of the

designated airlines . If, following such consultations, one Party finds th the other Party

does not effectively maintain and administer safety standards and requir ments in these areas

that at least equal the minimum standards that may be established pursu nt to the

Convention, the other Party shall be notified of such findings and the steps considered

necessary to conform with these minimum standards, and the other

shall take

appropriate corrective action. Each Party reserves the right to withhold, revoke, or limit the

operating authorization or technical permission of an airline or airlines . - signated by the

other Party in the event the other Party does not take such appropriate corrective action

within a reasonable time.

Article 7

Aviation Security

1 . In accordance with their rights and obligations under internation I

reaffirm that their obligation to each other to protect the security of civil

of unlawful interference forms an integral part of this Agreement . With

generality of their rights and obligations under international law, the P

particular act in conformity with the provisions of the Convention on 0

Other Acts Committed on Board Aircraft, done at Tokyo September 14,

Convention for the Suppression of Unlawful Seizure of Aircraft, done at

December 16, 1970, the Convention for the Suppression of Unlawful Ac

of Civil Aviation, done at Montreal September 23, 1971, and the Protoc

Suppression of Unlawful Acts of Violence at Airports Serving Internatio

done at Montreal February 24, 1988 .

2.

The Parties shall provide upon request all necessary assistance to ach other to

prevent acts of unlawful seizure of civil aircraft and other unlawful acts ainst the safety of

such aircraft, of their passengers and crew, and of airports and air naviga "on facilities, and

to address any other threat to the security of civil air navigation .

law, the Parties

viation against acts

ut limiting the

. es shall in

enses and Certain

963, the

e Hague

against the Safety

for the

al Civil Aviation,

6

3 .

The Parties shall, in their mutual relations, act in conformity with the aviation

security standards and appropriate recommended practices established y the International

Civil Aviation Organization and designated as Annexes to the Conventi n ; they shall require

that operators of aircraft of their registry, operators of aircraft who have their principal place

of business or permanent residence in their territory, and the operators o airports in their

territory act in conformity with such aviation security provisions .

4.

Each Party agrees to observe the security provisions required by the other Party for

entry into, for departure from, and while within the territory of that othe Party and to take

adequate measures to protect aircraft and to inspect passengers, crew, and their baggage and

carry-on items, as well as cargo and aircraft stores, prior to and during bearding or loading .

Each Party shall also give positive consideration to any request from the other Party for

special security measures to meet a particular threat .

5 . When an incident or threat of an incident of unlawful seizure of

unlawful acts against the safety of passengers, crew, aircraft, airports or

facilities occurs, the Parties shall assist each other by facilitating comm

appropriate measures intended to terminate rapidly and safely such inci

6. When a Party has reasonable grounds to believe that the other P

from the aviation security provisions of this Article, the aeronautical au

may request immediate consultations with the aeronautical authorities o

Failure to reach a satisfactory agreement within 15 days from the date o

constitute grounds to withhold, revoke, limit, or impose conditions on th

authorization and technical permissions of an airline or airlines of that P

by an emergency, a Party may take interim action prior to the expiry of I

Article 8

Commercial Activities

1 .

The airlines of each Party shall have the right to establish offices in the territory of

the other Party for the promotion and sale of air transportation.

2 . The designated airlines of each Party shall be entitled, in accord

and regulations of the other Party relating to entry, residence, and emplo

and maintain in the territory of the other Party managerial, sales, technic

other specialist staff required for the provision of air transportation .

3 . Each designated airline shall have the right to perform its own gr

the territory of the other Party ("self-handling") or, at its option, select

agents for such services in whole or in part . The rights shall be subject o

constraints resulting from considerations of airport safety. Where such c

ircraft or other

r navigation

cations and other

nt or threat.

has departed

orities of that Party

the other Party .

such request shall

operating

rty . When required

days .

ce with the laws

ment, to bring in

1, operational, and

und-handling in

ong competing

y to physical

nsiderations

7

preclude self-handling, ground services shall be available on an equal b

charges shall be based on the costs of services provided ; and such servi

comparable to the kind and quality of services as if self-handling were

4 . Any airline of each Party may engage in the sale of air transpo

of the other Party directly and, at the airline's discretion, through its age

specifically provided by the charter regulations of the country in which

that relate to the protection of passenger funds, and passenger cancellati

Each airline shall have the right to sell such transportation, and any per

purchase such transportation, in the currency of that territory or in freel

currencies.

5 . Each airline shall have the right to convert and remit to its coun , on demand, local

revenues in excess of sums locally disbursed. Conversion and remittanc shall be permitted

promptly without restrictions or taxation in respect thereof at the rate of xchange applicable

to current transactions and remittance on the date the carrier makes the ' itial application for

remittance .

b.

The airlines of each Party shall be permitted to pay for local expenses, including

purchases of fuel, in the territory of the other Party in local currency . At their discretion, the

airlines of each Party may pay for such expenses in the territory of the other Party in freely

convertible currencies according to local currency regulation .

7 .

In operating or holding out the authorized services on the agreed -outes, any

designated airline of one Party may enter into cooperative marketing arr gements such as

blocked-space, code-sharing or leasing arrangements, with

a) an airline or airlines of either Party ; and

b) an airline or airlines of a third country, provided that such thirc

or allows comparable arrangements between the airlines of the other P

on services to, from and via such third country ;

provided that all airlines in such arrangements (1) hold the appropriate a

meet the requirements normally applied to such arrangements .

sis to all airlines ;

es shall be

ossible.

tion in the territory

ts, except as may be

e charter originates

n and refund rights.

on shall be free to

convertible

8 .

Notwithstanding any other provision of this Agreement, airlines d indirect

providers of cargo transportation of both Parties shall be permitted, without restriction, to

employ in connection with international air transportation any surface P - portation for

cargo to or from any points in the territories of the Parties or in third co tries, including

transport to and from all airports with customs facilities, and including, here applicable,

the right to transport cargo in bond under applicable laws and regulations Such cargo,

whether moving by surface or by air, shall have access to airport customs processmg and

facilities. Airlines may elect to perform their own surface transportation r to provide it

through arrangements with other surface carriers, including surface transportation operated

country authorizes

and other airlines

thority and (2)

8

by other airlines and indirect providers of cargo air transportation . Such intermodal cargo

services may be offered at a single, through price for the air and surface transportation

combined, provided that shippers are not misled as to the facts concerni g such

transportation.

Article 9

Customs Duties and Charges

1 .

On arriving in the territory of one Party, aircraft operated in inte ational air

transportation by the designated airlines of the other Party, their regular uipment, ground

equipment, fuel, lubricants, consumable technical supplies, spare parts (ncluding engines),

aircraft stores (including but not limited to such items of food, beverage and liquor, tobacco

and other products destined for sale to or use by passengers in limited q tities during

flight), and other items intended for or used . solely in connection with th operation or

servicing of aircraft engaged in international air transportation shall be e empt, on the basis

ofreciprocity, from all import restrictions, property taxes and capital lev es, customs duties,

excise taxes, and similar fees and charges that are (1) imposed by the na onal authorities,

and (2) not based on the cost of services provided, provided that such eq ipment and

supplies remain on board the aircraft .

2 .

There shall also be exempt, on the basis of reciprocity, from the taxes, levies, duties,

fees and charges referred to in paragraph 1 of this Article, with the exception of charges

based on the cost of the service provided :

a. aircraft stores introduced into or supplied in the territory of a Party and taken on

board, within reasonable limits, for use on outbound aircraft of an airline of the other Party

engaged in international air transportation, even when these stores are to e used on a part of

the journey performed over the territory of the Party in which they are to en on board;

b . ground equipment and spare parts (including engines) introdu ed into the territory

of a Party for the servicing, maintenance, or repair of aircraft of an airlin of the other Party

used in international air transportation;

c. fuel, lubricants and consumable technical supplies introduced to or supplied in

the territory of a Party for use in an aircraft of an airline of the other P

engaged in

international air transportation, even when these supplies are to be used o a part of the

journey performed over the territory of the Party in which they are taken n board ; and

d . promotional and advertising materials introduced into or suppl~ed in the territory

of one Party and taken on board, within reasonable limits, for use on outbound aircraft of an

airline of the other Party engaged in international air transportation, even when these stores

are to be used on a part of the journey performed over the territory of the 'arty in which they

are taken on board .

9

3 .

Equipment and supplies referred to in paragraphs 1 and 2 of this Article may be

required to be kept under the supervision or control of the appropriate authorities .

4 .

The exemptions provided by this Article shall also be available where the designated

airlines of one Party have contracted with another airline, which similar_y enjoys such

exemptions from the other Party, for the loan or transfer in the territory of the other Party of

the items specified in paragraphs 1 and 2 of this Article .

Article 10

User Charges

1 . User charges that may be imposed by the competent charging au

each Party on the airlines of the other Party shall be just, reasonable, not

discriminatory, and equitably apportioned among categories of users . I

user charges shall be assessed on the airlines of the other Party on terms

than the most favorable terms available to any other airline at the time

assessed.

2 . User charges imposed on the airlines of the other Party may refle

exceed, the full cost to the competent charging authorities or bodies of p

appropriate airport, airport environmental, air navigation, and aviation s

services at the airport or within the airport system . Such charges may in

return on assets, after depreciation . Facilities and services for which ch

be provided on an efficient and economic basis.

e

3. Each Party shall encourage consultations between the competent

or bodies in its territory and the airlines using the services and facilities,

the competent charging authorities or bodies and the airlines to exchang

as may be necessary to permit an accurate review of the reasonableness

accordance with the principles of paragraphs 1 and 2 of this Article . Eac

encourage the competent charging authorities to provide users with reaso

proposal for changes in user charges to enable users to express their vie

are made .

orities or bodies of

unjustly

any event, any such

of less favorable

charges are

t, but shall not

oviding the

curity facilities and

lude a reasonable

ges are made shall

barging authorities

d shall encourage

such information

f the charges in

Party shall

ble notice of any

before changes s

4 . Neither Party shall be held, in dispute resolution procedures purs t to Article 14,

to be in breach of a provision of this Article, unless (1) it fails to undertake a review of the

charge or practice that is the subject of complaint by the other Party within a reasonable

amount of time ; or (2) following such a review it fails to take all steps within its power to

remedy any charge or practice that is inconsistent with this Article .

Article 11

Fair Competition

1 . Each Party shall allow a fair and equal opportunity for the desig

Parties to compete in providing the international air transportation gove

Agreement .

2. Each Party shall allow each designated airline to determine the

capacity of the international air transportation it offers based upon co

considerations in the marketplace . Consistent with this right, neither P

limit the volume of traffic, frequency or regularity of service, or the airc

operated by the designated airlines of the other Party, except as may be

technical, operational, or environmental reasons under uniform conditio

Article 15 of the Convention.

3 . Neither Party shall impose on the other Party's designated airline

requirement, uplift ratio, no-objection fee, or any other requirement wit

frequency or traffic that would be inconsistent with the purposes of this

4 . Neither Party shall require the filing of schedules, programs for

operational plans by airlines of the other Party for approval, except as in

non-discriminatory basis to enforce the uniform conditions foreseen by

Article or as may be specifically authorized in an Annex to this Agreem

requires filings for information purposes, it shall minimize the administr

filing requirements and procedures on air transportation intermediaries

airlines of the other Party .

Article 12

Pricing

I . Each Party shall allow prices for air transportation to be establish

designated airline based upon commercial considerations in the marketpl

by the Parties shall be limited to :

a. prevention of unreasonably discriminatory prices or practices ;

b . protection of consumers from prices that are unreasonably hig

to the abuse of a dominant position ; and

c . protection of airlines from prices that are artificially low due t

governmental subsidy or support .

ated airlines of both

ed by this

equency and

ercial

shall unilaterally

aft type or types

equired for customs,

s consistent with

a first-refusal

respect to capacity,

greement .

arter flights, or

y be required on a

aragraph 2 of this

nt. If a Party

tive burdens of

d on designated

by each

ce. Intervention

or restrictive due

direct or indirect

1 1

2 . Each Party may require notification to or filing with its aeronau

prices to be charged to or from its territory by airlines of the other Part

filing by the airlines of both Parties may be required no more than 30 d

proposed date of effectiveness . In individual cases, notification or filin

on shorter notice than normally required . Neither Party shall require th

filing by airlines of the other Party of prices charged by charterers to th

may be required on a non-discriminatory basis for information purpose

3 .

Neither Party shall take unilateral action to prevent the inaugura ion or continuation

of a price proposed to be charged or charged by (1) an airline of either

y for international

air transportation between the territories of the Parties, or (2) an airline f one Party for

international air transportation between the territory of the other Party and any other country,

including in both cases transportation on an interline or intraline basis . :f either Party

believes that any such price is inconsistent with the considerations set fcrth in paragraph I of

this Article, it shall request consultations and notify the other Party of the reasons for its

dissatisfaction as soon as possible. These consultations shall be held no'. later than 30 days

after receipt of the request, and the Parties shall cooperate in securing in ormation necessary

for reasoned resolution of the issue. If the Parties reach agreement with respect to a price for

which a notice of dissatisfaction has been given, each Party shall use its nest efforts to put

that agreement into effect . Without such mutual agreement, the price sh all go into effect or

continue in effect .

Article 13

Consultations

Either Party may, at any time, request consultations relating to this Agreement . Such

consultations shall begin at the earliest possible date, but not later than 60 days from the date

the other Party receives the request unless otherwise agreed .

Article 14

Settlement of Disputes

1 .

Any dispute arising under this Agreement, except those that may arise under

paragraph 3 of Article 12 (Pricing), that is not resolved by a first round o -formal

consultations may be referred by agreement of the Parties for decision to some person or

body. If the Parties do not so agree, the dispute shall, at the request of either Party, be

submitted to arbitration in accordance with the procedures set forth belo,%~ .

Arbitration shall be by a tribunal of three arbitrators to be constituted as follows :

a . Within 30 days after the receipt of a request for arbitration, each Party shall name

cal authorities of

Notification or

ys before the

may be permitted

notification or

public, except as

1 2

one arbitrator. Within 60 days after these two arbitrators have been

ed, they shall by

agreement appoint a third arbitrator, -who shall act as President of the tral tribunal ;

b . If either Party fails to name an arbitrator, or if the third arbitr for is not appointed

in accordance with subparagraph a of this paragraph, either Party may request the President

of the Council of the International Civil Aviation Organization to appoi it the necessary

arbitrator or arbitrators within 30 days . If the President of the Council is of the same

nationality as one of the Parties, the most senior Vice President who is i of disqualified on

that ground shall make the appointment .

3 .

Except as otherwise agreed, the arbitral tribunal shall determine the limits of its

jurisdiction in accordance with this Agreement and shall establish its ovrn procedural rules.

The tribunal, once formed, may recommend interim relief measures pending its final

determination . At the direction of the tribunal or at the request of either of the Parties, a

conference to determine the precise issues to be arbitrated and the speci_ic procedures to be

followed shall be held not later than 15 days after the tribunal is filly ccnstituted .

4 . Except as otherwise agreed or as directed by the tribunal, each Party shall submit a

-memorandum within 45 days of the time the tribunal is fully constituted . Replies shall be

due 60 days later . The tribunal shall hold a hearing at the request of eitr er Party or on its

own initiative within 15 days after replies are due .

5 .

The tribunal shall attempt to render a written decision within 30 lays after

completion of the hearing or, if no hearing is held, after the date both rel lies are submitted.

The decision of the majority of the tribunal shall prevail .

6 .

The Parties may submit requests for clarification of the decisionjwithin 15 days after

it is rendered and any clarification given shall be issued within 15 days f such request.

7 .

Each Party shall, to the degree consistent with its national law, g ve full effect to any

decision or award of the arbitral tribunal.

8 .

The expenses of the arbitral tribunal, including the fees and expe ises of the

arbitrators, shall be shared equally by the Parties . Any expenses incurred by the President of

the Council of the International Civil Aviation Organization in connecti n with the

procedures of paragraph 2b of this Article shall be considered to be part f the expenses of

the arbitral tribunal .

Article 15

Amendment

1 .

This Agreement may be amended by written agreement of the P ies .

13

2. In the event of the conclusion of any general multilateral conver

transportation to which both the Parties become bound, the Parties shall

whether and to what extent the present Agreement should be amended .

Article 16

Termination

Either Party may, at any time, give notice in writing to the other Party o its decision to

terminate this Agreement . Such notice shall be sent simultaneously to e International Civil

Aviation Organization . This Agreement shall terminate at midnight (at e place of receipt

of the notice to the other Party) immediately before the first anniversary of the date of

receipt of the notice by the other Party, unless the notice is withdrawn b agreement of the

Parties before the end of this period.

Article 17

Registration with ICAO

This Agreement and all amendments thereto shall be registered with the

Aviation Organization .

Article 18

Entry into Force

This Agreement and its Annexes shall enter into force on the date of sig ature .

IN WITNESS WHEREOF, the undersigned, being duly authorized by th it respective

Governments, have signed this Agreement .

DONE at Washington, this twenty-seventh day of July, 2000, in duplicat , in the English

and French languages, each text being equally authentic .

FOR THE GOVERNMENT OF

THE

D STATES OF AMERICA:

BURKINA FASO:

& a

tion concerning air

consult to determine

International Civil

14

ANNEX I

Scheduled Air Transportation

Section 1

Routes

Airlines of each Party designated under this Annex shall, in accordance

their designation, be entitled to perform scheduled international air trap i .ortation

points on the following routes :

'th the terms of

between

Routes for the airline or airlines designated by the Government i

1 .

From points behind the United States via the United States and i 9

f the United States :

termediate points to

a point or points in Burkina Faso and beyond .

For all-cargo service or services, between Burkina Faso and any .oint or points .

Routes for the airline or airlines designated by the Government o Burkina Faso :

1 .

From points behind Burkina Faso via Burkina Faso and interme .

or points in the United States and beyond .

ate points to a point

For all-cargo service or services, between the United States and .

Section 2

Operational Flexibility

Each designated airline may, on any or all flights and at its option :

, y point or points .

operate flights in either or both directions ;

combine different flight numbers within one aircraft operation ;

3 .

serve behind, intermediate, and beyond points and points in the t=rritories of the

Parties on the routes in any combination and in any order ;

omit stops at any point or points ;

5 .

transfer traffic from any of its aircraft to any of its other aircraft a

routes ; and

any point on the

serve points behind any point in its territory with or without chan e of aircraft or

1 5

flight number and may hold out and advertise such services to the publi

without directional or geographic limitation and without loss of any rig

otherwise permissible under this Agreement ; provided that, with the ex

services, the service serves a point in the territory of the Party designati

Section 3

Change of Gauge

On any segment or segments of the routes above, any designated airline

international air transportation without any limitation as to change, at

in type or number of aircraft operated ; provided that, with the exception

services, in the outbound direction, the transportation beyond such poin

the transportation from the territory of the Party that has designated the

inbound direction, the transportation to the territory of the Party that has

airline is a continuation of the transportation from beyond such point.

ANNEX II

Charter Air Transportation

Section 1

Airlines of each Party designated under this Annex shall, in accordance ith the terms of

their designation, have the right to carry international charter traffic of p sengers (and their

accompanying baggage) and/or cargo (including, but not limited to, frei t forwarder, split,

and combination (passenger/cargo) charters) :

Between any point or points in the territory of the Party that has designa

any point or points in the territory of the other Party ; and

Between any point or points in the territory of the other Party and any p

third country or countries, provided that, except with respect to cargo c

constitutes part of a continuous operation, with or without a change of

service to the homeland for the purpose of carrying local traffic between

the territory of the other Party .

In the performance of services covered by this Annex, airlines of each P

under this Annex shall also have the right : (1) to make stopovers at any

within or outside of the territory of either Party ; (2) to carry transit traffi

Party's territory ; (3) to combine on the same aircraft traffic originating in

territory, traffic originating in the other Party's territory, and traffic orig'

countries ; and (4) to perform international air transportation without any

I- I

I I

as through services;

t to carry traffic

ption of all-cargo

g the airline.

ay perform

point on the route,

of all-cargo

is a continuation of

rline and, in the

designated the

the airline and

t or points in a

rs, such service

raft, that includes

e homeland and

designated

oints whether

through the other

one Party's

ting in third

imitation as to

1 6

change, at any point on the route, in type or number of aircraft operated

except with respect to cargo charters, in the outbound direction, the tr

such point is a continuation of the transportation from the territory of tldesignated

the airline and in the inbound direction, the transportation t

Party that has designated the airline is a continuation of the transportati

point.

Each Party shall extend favorable consideration to applications by airy

to carry traffic not covered by this Annex on the basis of comity and re iprocity.

Section 2

Any airline designated by either Party performing international charter it transportation

originating in the territory of either Party, whether on a one-way or ro d-trip basis, shall

have the option of complying with the charter laws, regulations, and rul s either of its

homeland or of the other Party . If a Party applies different rules, regula ions, terms,

conditions, or limitations to one or more of its airlines, or to airlines of ifferent countries,

each designated airline shall be subject to the least restrictive of such cr eria.

However, nothing contained in the above paragraph shall limit the righ of either Party to

require airlines designated under this Annex by either Party to adhere to requirements

relating to the protection of passenger funds and passenger cancellation d refund rights .

Section 3

Except with respect to the consumer protection rules referred to in the p eceding paragraph

above, neither Party shall require an airline designated under this Annex by the other Party,

in respect of the carriage of traffic from the territory of that other Party r of a third country

on a one-way or round-trip basis, to submit more than a declaration of c nformity with the

applicable laws, regulations and rules referred to under section 2 of this

ex or of a

waiver of these laws, regulations, or rules granted by the applicable aero autical authorities .

ANNEX III

Principles of Non-Discrimination Within

and Competition among Computer Reservations Sys ems

Recognizing that Article 11 (Fair Competition) of this Agreement g

tees the airlines of

both Parties "a fair and equal opportunity to compete,"

Considering that one of the most important aspects of the ability of an airline to compete is

its ability to inform the public of its services in a fair and impartial mann r, and that,

therefore, the quality of information about airline services available to tr vel agents who

directly distribute such information to the traveling public and the ability of an airline to

provided that,

portation beyond

e Party that has

the territory of the

n from beyond such

17

offer those agents competitive computer reservations systems (CRSs) represent

foundation for an airline's competitive opportunities, and

the

Considering that it is equally necessary to ensure that the interests oft

transport products are protected from any misuse of such information

presentation and that airlines and travel agents have access to effectivel

computer reservations systems :

1 .

The Parties agree that CRSs will have integrated primary displa

i

a. Information regarding international air services, including th

connections on those services, shall be edited and displayed based on n

and objective criteria that are not influenced, directly or indirectly, by a

identity . Such criteria shall apply uniformly to all participating airlines

consumers of air

d its misleading

competitive

s for which :

construction of

n-discriminatory

rline or market

b. CRS data bases shall be as comprehensive as possible .

c . CRS vendors shall not delete information submitted by participating airlines; such

information shall be accurate and transparent; for example, code-shared

gauge flights and flights with stops should be clearly identified as hav'

characteristics .

d . All CRSs that are available to travel agents who directly di

about airline services to the traveling public in either Party's territory s i

obligated to, but shall also be entitled to, operate in conformance with

apply in the territory where the CRS is being operated .

and change-of-

_ those

'bute information

: 1 not only be

e CRS rules that

e . Travel agents shall be allowed to use any of the secondary di plays available

through the CRS so long as the travel agent makes a specific request for that display .

2 .

A Party shall require that each CRS vendor operating in its territt try allow all airlines

willing to pay any applicable non-discriminatory fee to participate in its CRS. A Party shall

require that all distribution facilities that a system vendor provides shall .e offered on a nondiscriminatory

basis to participating airlines . A Party shall require that RS vendors

display, on a non-discriminatory, objective, carrier-neutral and market-i utral basis, the

international air services of participating airlines in all markets in which they wish to sell

those services . Upon request, a CRS vendor shall disclose details of its I - to base update and

storage procedures, its criteria for editing and ranking information, the eight given to such

criteria, and the criteria used for selection of connect points and inclusio

flights.

of connecting

3 .

CRS vendors operating in the territory of one Party shall be enti ed to bring in,

maintain, and make freely available their CRSs to travel agencies or tra I companies whose

principal business is the distribution of travel-related products in the tern

Party if the CRS complies with these principles .

tory of the other

1 8

4 .

Neither Party shall, in its territory, impose or permit to be imposed on the CRS

vendors of the other Party more stringent requirements with respect to access to and use of

communication facilities, selection and use of technical CRS hardware and software, and the

technical installation of CRS hardware, than those imposed on its own ORS vendors .

5 .

Neither Party shall, in its territory, impose or permit to be imposed on the CRS

vendors of the other Party more restrictive requirements with respect to CRS displays

(including edit and display parameters), operation, or sale than those imposed on its own

CRS vendors .

6 .

CRSs in use in the territory of one Party that comply with these principles and other

relevant non-discriminatory regulatory, technical, and security standard • shall be entitled to

effective and unimpaired access in the territory of the other Party . One pect of this is that

a designated airline shall participate in such a system as fully in its ho and territory as it

does in any system offered to travel agents in the territory of the other

Owners/operators of CRSs of one Party shall have the same opportuni to own/operate

CRSs that conform to these principles within the territory of the other P

as do

owners/operators of that Party . Each Party shall ensure that its airlines d its CRS vendors

do not discriminate against travel agents in their homeland territory bec use of their use or

possession of a CRS also operated in the territory of the other Party .



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