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U.S.-Denmark/Norway/Sweden Air Transport Agreement of June 16, 1995


June 16, 1995

   
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ROYAL DANISH EMBASSY
WASHINGTON, DC

File No. 93.E.2 .

Washington, D.C., June 16, 1995

Mr . Secretary,

I have the honor to acknowledge the receipt of your note of June 16, 1995, which reads as follows :

"I have the honor to refer to discussions held by representatives of our two governments in Washington April 24-26, 1995, concerning theAgreement between the Government of the United States of America and the Government of Denmark Relating to Air Transport Services, with Annex,effected by exchange of notes at Washington December 16, 1944, asamended, (hereinafter the Agreement) .

In light of the understandings reached in those discussions, I have the honor to propose, on behalf of the Government of the United States of America, that the Agreement be further amended as follows :

 1. Article 1 shall be amended to read as follows:

"Article 1

Grant of Riqhts

 (a) Each Contracting Party grants to the other Contracting Partythe following rights for the conduct of international airtransportation by the airlines of the other Contracting Party :

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

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

3 . the rights otherwise specified in this Agreement .

 (b) Nothing in this Agreement shall be deemed to confer on theairline or airlines of one Contracting Party the rights to take on board, in the territory of the other Contracting Party, passengers,their baggage, cargo, or mail carried for compensation and destinedfor another point in the territory of that other Contracting Party ."

2 . Article 2 shall be amended as follows : (a) add the title "CarrierDesignation" ; (b) delete the designation "(a)" ; (c) replace the word"shall" with the word "may" in the first sentence ; (d) place a periodafter "concerned" and delete the rest of the paragraph ; and (d) delete subparagraph (b) .

3 . Article 2 bis shall be added to the Agreement and shall read asfollows :

The Honorable Warren Christopher

Secretary of State

Washington, D.C .
 

"Article 2 bis

Desiqnation and Authorization

(a) Each Contracting Party shall have the right to designate asmany 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 Contracting Party in writing through diplomatic channels, and shall identify whether the airline is authorized toconduct the type of air transportation specified in Annex I or in Annex II or both .

(b) On receipt of such a designation, and of applications from thedesignated airline, in the form and manner prescribed for operatingauthorizations and technical permissions, notwithstanding Article2, the other Contracting Party shall grant appropriate authorizations and permissions with minimum procedural delay,provided :

1 . all requirements set forth in Article 2 above and Article6 below are met ;

2 . the designated airline is qualified to meet the conditionsprescribed under the laws and regulations normally applied to the operation of international air transportation by theContracting Party considering the application or applications ; and

3 . the Contracting Party designating the airline is maintaining and administering the standards set forth in Article 4 (Safety) and Article 8 (Aviation Security) ."

4. Article 3 shall be amended to read as follows :

"Article 3

Definitions

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

(a) "Aeronautical authorities" means, in the case of theUnited States, the Department of Transportation, or its successor, and in the case of Denmark, the Ministry ofTransport and any person or agency authorized to perform thefunctions exercised by the said Ministry of Transport ;

(b) "Agreement" means this Agreement, its Annexes, and anyamendments thereto ;

(c) "Air transportation" means the public carriage byaircraft of passengers, baggage, cargo, and mail, separately or in combination, for remuneration or hire ;

(d) "Convention" means the Convention on International CivilAviation, opened for signature at Chicago on December 7, 1944,and includes : (1) any amendment that has entered into force underArticle 94(a) of the Convention and has been ratified by both Parties, and (2) any Annex or any amendment thereto adopted underArticle 90 of the Convention, insofar as such Annex or amendment is at any given time effective for both Parties ;

(e) "Designated airline" means an airline designated and authorized in accordance with Articles 2 and 2 bis of this Agreement ;

(f) "Full cost" means the cost of providing service plus a reasonable charge for administrative overhead ;

 (g) "International air transportation" means air transportation that passes through the airspace over the territory of more than one State ;

(h) "Price" means any fare, rate or charge for the carriageof passengers (and their baggage) and/or cargo (excludingmail) in air transportation charged by airlines, includingtheir agents, and the conditions governing the availability ofsuch fare, rate or charge ;

(i) "Stop for non-traffic purposes" means a landing for anypurpose other than taking on or discharging passengers,baggage, cargo and/or mail in air transportation ;

 (j) "Territory" means the land areas under the sovereignty,jurisdiction, protection, or trusteeship of a ContractingParty, and the territorial waters adjacent thereto ; and

(k) "User charge" means a charge imposed on airlines for theprovision of airport, air navigation, or aviation security facilities or services including related services andfacilities ."

5. Article 4 shall be amended as follows :

 (a) add the title "Safety" ;

(b) designate the paragraph"(a)" ;

(c) pluralize the word "Annex" inthe first sentence ;

(d) add the words "and still in force" after"other Contracting Party," ;

(e) change the period at the end of thefirst sentence to a comma and add the following : ", provided that therequirements for such certificates or licenses at least equal theminimum standards that may be established pursuant to the Convention ." ; and

(f) add the following additional paragraph :

"(b) Either Contracting Party may request consultations concerningthe safety standards maintained by the other Contracting Party relating to aeronautical facilities, aircrews, aircraft, andoperation of the designated airlines . If, following suchconsultations, one Contracting Party finds that the other Contracting Party does not effectively maintain and administersafety standards and requirements in these areas that at leastequal the minimum standards that may be established pursuant to the Convention, the other Contracting Party shall be notified of suchfindings and the steps considered necessary to conform with theseminimum standards, and the other Contracting Party shall takeappropriate corrective action. Each Contracting Party reserves theright to withhold, revoke, or limit the operating authorization ortechnical permission of an airline or airlines designated by the other Contracting Party in the event the other Contracting Partydoes not take such appropriate corrective action within areasonable time ."

 6. Article 5 shall be amended as follows: (a) add the title"Application of Laws" ;

(b) in paragraph (b), add the words "aviation security" after the word "customs" ; and

(c) add the words "or, in thecase of mail, postal regulations" after the word "quarantine" inparagraph (b) .

 7. Article 6 shall be amended as follows: (a) add the title"Revocation of Authority" ;

(b) designate the paragraph as "(a)" ;

 (c)insert a period after the word "hereof," and delete the words "or toperform its obligations under this Agreement" ; and (d) add the followingadditional paragraph :

"(b) Unless immediate action is essential to prevent furthernoncompliance with Articles 4 or 5, the rights established by this Article shall be exercised only after consultation with the otherContracting Party ."

 8 (A) . The existing Article 7 shall become Article 16 and be amended as
4 follows : (a) add the title "RegistrationwithICAO" ;

(b) delete the word "contracts connected therewith" and substitute the words "amendments thereto" ;

 and (c) delete the word "Provisional ."

 8(B) . The following shall be inserted as Article 7 :

 "Article 7

UserCharges

 (a) User charges that may be imposed by the competent chargingauthorities or bodies of each Contracting Party on the airlines of the other Contracting Party shall be just, reasonable, not unjustlydiscriminatory, and equitably apportioned among categories of users . In any event, any such user charges shall be assessed on the airlines of the other Contracting Party on terms not lessfavorable than the most favorable terms available to any otherairline at the time the charges are assessed .

(b) User charges imposed on the airlines of the other ContractingParty may reflect, but shall not exceed, the full cost to thecompetent charging authorities or bodies of providing theappropriate airport, airport environmental, air navigation, and aviation security facilities and services at the airport or withinthe airport system . Such full cost may include a reasonable returnon assets, after depreciation . Facilities and services for which charges are made shall be provided on an efficient and economicbasis .

 (c) Each Contracting Party shall encourage consultations betweenthe competent charging authorities or bodies in its territory andthe airlines using the services and facilities, and shall encourage the competent charging authorities or bodies and the airlines toexchange such information as may be necessary to permit an accurate review of the reasonableness of the charges in accordance with theprinciples of paragraphs (a) and (b) of this Article . Each Contracting Party shall encourage the competent charging authorities to provide users with reasonable notice of any proposalfor changes in user charges to enable users to express their viewsbefore changes are made .

(d) Neither Contracting Party shall be held, in dispute resolutionprocedures pursuant to Article 15, to be in breach of a provisionof this Article, unless (1) it fails to undertake a review of the charge or practice that is the subject of complaint by the otherContracting Party within a reasonable amount of time ; or (2)following such a review it fails to take all steps within its powerto remedy any charge or practice that is inconsistent with thisArticle .

 " 9(A) . The existing Article 8 shall become Article 17 and be amended byadding the title "Termination .

" 9(B) . The following shall be inserted as Article 9 : '

"Article 9 Pricinq (a) Each Contracting Party shall allow prices for airtransportation to be established by each designated airline basedupon commercial considerations in the marketplace . Intervention bythe Contracting Parties shall be limited to :

1 . prevention of unreasonably discriminatory prices orpractices ;

2 . protection of consumers from prices that are unreasonablyhigh or restrictive due to the abuse of a dominant position ; and

3 . protection of airlines from prices that are artificially low due to direct or indirect governmental subsidy or support .

(b) Each Contracting Party may require notification to or filingwith its aeronautical authorities of prices to be charged to or from its territory by airlines of the other Contracting Party . Notification or filing by the airlines of both Contracting Parties may be required no more than 30 days before the proposed date of effectiveness . In individual cases, notification or filing may be permitted on shorter notice than normally required . Neither Contracting Party shall require the notification or filing byairlines of the other Contracting Party of prices charged by charterers to the public .

 (c) Neither Contracting Party shall take unilateral action toprevent the inauguration or continuation of a price proposed to becharged or charged by (1) an airline of either Contracting Party for international air transportation between the territories of theContracting Parties, or (2) an airline of one Contracting Party for international air transportation between the territory of the otherContracting Party and any other country, including in both casestransportation on an interline or intraline basis, provided that,in the case of services to or from third countries to which Council Resolution (EEC) no. 2409/92 of 23 July 1992 applies on the datethese Amendments enter into force, such price is not specifically prohibited under that Regulation . If either Contracting Party believes that any such price is inconsistent with theconsiderations set forth in paragraph (a) of this Article, it shall request consultations and notify the other Contracting Party of thereasons for its dissatisfaction as soon as possible . These consultations shall be held not later than 30 days after receipt of the request, and the Contracting Parties shall cooperate insecuring information necessary for reasoned resolution of the issue . If the Contracting Parties reach agreement with respect to a price for which a notice of dissatisfaction has been given, eachContracting Party shall use its best efforts to put that agreement into effect . Without such mutual agreement, the price shall gointo effect or continue in effect . (d) Notwithstanding paragraphs (a) through (c) above, eachdesignated airline has the right to match any price offered in themarketplace ."

10 . Article 8 shall be amended to read as follows :

 "Article 8

 Aviation Security

(a) Consistent with their rights and obligations underinternational law, the Contracting Parties reaffirm that their obligation to each other to protect the security of civil aviationagainst acts of unlawful interference forms an integral part oftheir civil air transport relations . Without limiting the generality of their rights and obligations under international law,the Contracting Parties shall in particular act in conformity with the provisions of the Convention on Offenses and Certain Other ActsCommitted on Board Aircraft, signed at Tokyo on September 14, 1963,the Convention for the Suppression of Unlawful Seizure of Aircraft, signed at The Hague on December 16, 1970, the Convention for theSuppression of Unlawful Acts against the Safety of Civil Aviation,signed at Montreal on September 23, 1971 and the Protocol for the Suppression of Unlawful Acts of Violence at Airports ServingInternational Aviation, signed at Montreal, February 22, 1988 .

(b) The Contracting Parties shall provide upon request allnecessary assistance to each other to prevent acts of unlawful seizure of aircraft and other unlawful acts against the safety ofsuch aircraft, their passengers and crew, airports and air navigation facilities, and any other threat to the security ofcivil aviation .

(c) The Contracting Parties shall, in their mutual relations, act 6 in conformity with all security standards and appropriate recommended practices established by the International Civil Aviation Organization and designated as Annexes to the Convention ; they shall require that operators of aircraft of their registry oroperators of aircraft who have their principal place of business or permanent residence in their territory and the operators ofairports in their territory act in conformity with such aviation security provisions .

(d) Each Contracting Party agrees to observe the security provisions required by the other Contracting Party for entry into,departure from, or while within, the territory of that other Contracting Party . Each Contracting Party shall ensure thatadequate measures are effectively applied within its territory to protect the aircraft and to inspect passengers, crew, carry-onitems, baggage, cargo and aircraft stores, prior to and during boarding or loading. Each Contracting Party shall also give positive consideration to any request from the other ContractingParty for special security measures to meet a particular threat .

(e) When an incident or threat of an incident of unlawful seizureof civil aircraft or other unlawful acts against the safety of suchaircraft, their passengers and crew, airports or air navigation facilities occurs, the Contracting Parties shall assist each otherby facilitating communications and other appropriate measuresintended to terminate rapidly and safely such incident or threat thereof .

(f) When a Contracting Party has reasonable grounds to believethat the other Contracting Party has departed from the aviation security provisions of this Article, that Contracting Party mayrequest immediate consultations with the other Contracting Party . Inability to reach a satisfactory agreement within 15 days from thedate of receipt of such request for consultation shall constitute grounds to withhold, revoke, limit, or impose conditions on theoperating authorization and technical permissions of an airline or airlines of that Contracting Party . Notwithstanding any other provision of this Agreement and only when required by an emergency,a Contracting Party may take interim action prior to the expiry of 15 days ."

 11 . Article 10 shall be amended as follows :

(a) add the title "Fair Competition" ;

(b) designate the paragraph as "(a)" ;

(c) replace the words "operate on any route covered" with the words "compete inproviding the international air transportation governed" ; and

(d) addthe following additional paragraphs :

 "(b) Each Contracting Party shall allow each designated airline todetermine the frequency and capacity of the international air transportation it offers based upon commercial considerations inthe marketplace . Consistent with this right, neither ContractingParty shall unilaterally limit the volume of traffic, frequency or regularity of service, or the aircraft type or types operated bythe designated airlines of the other Contracting Party, except as may be required for customs, technical, operational, orenvironmental reasons under uniform conditions consistent with Article 15 of the Convention .

 (c) Neither Contracting Party shall impose on the otherContracting Party's designated airlines a first-refusal requirement, uplift ratio, no-objection fee, or any otherrequirement with respect to capacity, frequency or traffic that would be inconsistent with the purposes of this Agreement .

 (d) Neither Contracting Party shall require the filing of schedules, programs for charter flights, or operational plans byairlines of the other Contracting Party for approval, except as maybe required on a non-discriminatory basis to enforce the uniform conditions foreseen by paragraph (b) of this Article or as may bespecifically authorized in an Annex to this Agreement. If a Contracting Party requires filings for information purposes, it shall minimize the administrative burdens of filing requirementsand procedures on air transportation intermediaries and on 7 designated airlines of the other Contracting Party ."

12 . Article 11 shall be amended to read as follows :

"Article 11

 Commercial Opportunities

(a) The airlines of each Contracting Party shall have the right to establish offices in the territory of the other Contracting Partyfor the promotion and sale of air transportation .

(b) The designated airlines of each Contracting Party shall beentitled, in accordance with the laws and regulations of the other Contracting Party relating to entry, residence, and employment, tobring in and maintain in the territory of the other ContractingParty managerial, sales, technical, operational, and other specialist staff required for the provision of air transportation .

(c) Each designated airline shall have the right to perform itsown ground-handling in the territory of the other Contracting Party("self-handling") or, at its option, select among competing agents for such services in whole or in part . These rights shall be subject only to physical constraints resulting from considerationsof airport safety. Where such considerations preclude self-handling, ground services shall be available on an equal basisto all airlines; charges shall be based on the costs of servicesprovided; and such services shall be comparable to the kind and quality of services as if self-handling were possible .

(d) Any airline of each Contracting Party may engage in the saleof air transportation in the territory of the other ContractingParty directly and, at the airline's discretion, through its agents, except as may be specifically provided by the charterregulations of the country in which the charter originates thatrelate to the protection of passenger funds, and passenger cancellation and refund rights . Each airline shall have the rightto sell such transportation, and any person shall be free topurchase such transportation, in the currency of that territory orin freely convertible currencies .

(e) Each airline shall have the right to convert and remit to itscountry, on demand, local revenues in excess of sums locallydisbursed. Conversion and remittance shall be permitted promptlywithout restrictions or taxation in respect thereof at the rate of exchange applicable to current transactions and remittance on thedate the carrier makes the initial application for remittance .

 (f) The airlines of each Contracting Party shall be permitted topay for local expenses, including purchases of fuel, in the territory of the other Contracting Party in local currency . At their discretion, the airlines of each Contracting Party may payfor such expenses in the territory of the other Contracting Partyin freely convertible currencies according to local currency regulation .

 (g) In operating or holding out the authorized services on theagreed routes, provided that all airlines in such arrangements

 1)hold the appropriate authority and

2) meet the requirements normally applied to such arrangements, any designated airline ofone Contracting Party may enter into cooperative marketingarrangements such as blocked-space, code-sharing or other arrangements, with A) an airline or airlines of either Contracting Party; and B) an airline or airlines of a third country, provided that such third country authorizes or allows comparablearrangements between the airlines of the other Contracting Party and other airlines on services to, from and via suchthird country . Notwithstanding the proviso of (B) above, if an airline of one Contracting Party holds out service between a point in the other Contracting Party and a point in a third country by means of a code-share arrangement on any segment of that service with an airline of the other Contracting Party, the first Contracting Party must authorize or allow any airline of the other Contracting Partyto code share with any airline on any segment of services between that third country and the other Contracting Party via a point orpoints in the first Contracting Party .

" 13 . Article 12 shall be amended to read as follows :

"Article 12

Customs Duties and Charqes

 (a) On arriving in the territory of one Contracting Party,aircraft operated in international air transportation by thedesignated airlines of the other Contracting Party, their regular equipment, ground equipment, fuel, lubricants, consumable technicalsupplies, spare parts (including engines), aircraft stores(including but not limited to such items as food, beverages and liquor, tobacco and other products destined for sale to or use bypassengers in limited quantities during flight), and other itemsintended for or used solely in connection with the operation or servicing of aircraft engaged in international air transportationshall be exempt, on the basis of reciprocity, from all import restrictions, property taxes and capital levies, customs duties,excise taxes, and similar fees and charges that are (1) imposed bythe national authorities, and (2) not based on the cost of services provided, provided that such equipment and supplies remain on boardthe aircraft .

(b) There shall also be exempt, on the basis of reciprocity, from the taxes, levies, duties, fees and charges referred to in paragraph (a) of this Article, with the exception of charges basedon the cost of the service provided :

 1. aircraft stores introduced into or supplied in theterritory of a Contracting Party and taken on board, withinreasonable limits, for use on outbound aircraft of an airline of the other Contracting Party engaged in international air transportation, even when these stores are to be used on apart of the journey performed over the territory of theContracting Party in which they are taken on board ;

2 . ground equipment and spare parts (including engines)introduced into the territory of a Contracting Party for the servicing, maintenance, or repair of aircraft of an airline ofthe other Contracting Party used in international airtransportation ;

3 . fuel, lubricants and consumable technical supplies introduced into or supplied in the territory of a ContractingParty for use in an aircraft of an airline of the otherContracting Party engaged in international air transportation, even when these supplies are to be used on a part of thejourney performed over the territory of the Contracting Partyin which they are taken on board ; and

4. promotional and advertising materials introduced into orsupplied in the territory of one Contracting Party and taken on board, within reasonable limits, for use on outbound aircraft of an airline of the other Contracting Party engaged in international air transportation, even when these storesare to be used on a part of the journey performed over the territory of the Contracting Party in which they are taken onboard .

(c) Equipment and supplies referred to in paragraphs (a) and (b)of this Article may be required to be kept under the supervision orcontrol of the appropriate authorities .

 (d) The exemptions provided by this Article shall also be available where the designated airlines of one Contracting Party have contracted with another airline, which similarly enjoys such exemptions from the other Contracting Party, for the loan or transfer in the territory of the other Party of the items specified in paragraphs (a) and (b) of this Article .

" 14 . Article 13 shall be amended to read as follows :

 "Article 13

Intermodal Services

Notwithstanding any other provision of this Agreement, airlines and in direct providers of cargo transportation of both Contracting Parties shall be permitted, without restriction, to employ in connection with international air transportation any surfacetransportation for cargo to or from any points in the territories of the Contracting Parties or in third countries, includingtransport to and from all airports with customs facilities, andincluding, where 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 processing and facilities . Airlines may elect to perform their own surface transportation or to provide it through arrangements withother surface carriers, including surface transportation operated by other airlines and indirect providers of cargo airtransportation. Such intermodal cargo services may be offered ata single, through price for the air and surface transportationcombined, provided that shippers are not misled as to the facts concerning such transportation ."

15 . Article 14 shall be amended as follows :

(a) add the title "Consultations" ; and

 (b) pluralize all references to "Annex .

" 16. Article 15 shall be amended as follows: (a) add the title "Settlement of Disputes" ; and (b) replace the phrase "InternationalCourt of Justice" in the second paragraph with the phrase "InternationalCivil Aviation Organization .

" 17 . The Annex to the Agreement shall be replaced in its entirety with Annexes I, II and III, which shall read as follows : 

"ANNEX I

Scheduled Air Transportation

Section 1 Routes

Airlines of each Contracting Party designated under this Annexshall, in accordance with the terms of their designation, be entitled to perform scheduled international air transportationbetween points on the following routes :

 A . Routes for the airline or airlines designated by theGovernment of the United States of America : From points behind the United States via the UnitedStates and intermediate points to a point or points inDenmark and beyond .

B . Routes for the airline or airlines designated by theGovernment of Denmark : From points behind Denmark via Denmark and intermediatepoints to a point or points in the United States and beyond .

 Section 2

 Operational Flexibility

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

1 . operate flights in either orboth directions;

2 . combine different flight numbers within one aircraft operation;

3 . serve behind, intermediate, and beyond points and points in the territories of the Contracting Parties on the routes inany combination and in any order;

4. omit stops at any point or points ;

5. transfer traffic from any of its aircraft to any of its other aircraft at any point on the routes ; and

6. serve points behind any point in its territory with or without change of aircraft or flight number and may hold outand advertise such services to the public as through services : without directional or geographic limitation and without loss ofany right to carry traffic otherwise permissible under thisAgreement ; provided that the service serves a point in theterritory of the Contracting Party designating the airline .

Section 3

Chanqe of Gauge

On any segment or segments of the routes above, any designatedairline may perform international air transportation without any limitation as to change, at any point on the route, in type ornumber of aircraft operated; provided that, in the outbounddirection, the transportation beyond such point is a continuation of the transportation from the territory of the Contracting Partythat has designated the airline and, in the inbound direction, thetransportation to the territory of the Contracting Party that hasdesignated the airline is a continuation of the transportation frombeyond such point .

ANNEX II

Charter Air Transportation

Section 1

Airlines of each Contracting Party designated under this Annex shall, in accordance with the terms of their designation, have theright to carry international charter traffic of passengers (and their accompanying baggage) and/or cargo (including, but notlimited to, freight forwarder, split, and combination(passenger/cargo) charters) : Between any point or points in the territory of the Contracting Party that has designated the airline and anypoint or points in the territory of the other Party; and Between any point or points in the territory of the otherContracting Party and any point or points in a third countryor countries, provided that such service constitutes part ofa continuous operation, with or without a change of aircraft, that includes service to the homeland for the purpose of carrying local traffic between the homeland and the territoryof the other Contracting Party .
11 In the performance of services covered by this Annex, airlines of each Contracting Party designated under this Annex shall also havethe right :

(1) to make stopovers at any points whether within or outside of the territory of either Contracting Party ;

(2) to carrytransit traffic through the other Contracting Party's territory ; and

(3) to combine on the same aircraft traffic originating in one Contracting Party's territory, traffic originating in the otherContracting Party's territory, and traffic originating in third countries . Each Contracting Party shall extend favorable consideration toapplications by airlines of the other Contracting Party to carrytraffic not covered by this Annex on the basis of comity andreciprocity .

Section 2

Any airline designated by either Contracting Party performing international charter air transportation originating in theterritory of either Contracting Party, whether on a one-way orround-trip basis, shall have the option of complying with the charter laws, regulations, and rules either of its homeland or ofthe other Contracting Party. If a Contracting Party appliesdifferent rules, regulations, terms, conditions, or limitations to one or more of its airlines, or to airlines of different countries, each designated airline shall be subject to the least restrictiveof such criteria . However, nothing contained in the above paragraph shall limit the rights of either Contracting Party to require airlines designatedunder this Annex by either Contracting Party to adhere torequirements relating to the protection of passenger funds andpassenger cancellation and refund rights .

 Section 3

 Except with respect to the consumer protection rules referred to inthe preceding paragraph above, neither Contracting Party shall require an airline designated under this Annex by the otherContracting Party, in respect of the carriage of traffic from theterritory of that other Contracting Party or of a third country ona one-way or round-trip basis, to submit more than a declaration of conformity with the applicable laws, regulations and rules referredto under section 2 of this Annex or of a waiver of these laws, regulations, or rules granted by the applicable aeronauticalauthorities .

ANNEX III

Principles of Non-Discrimination Within and Competition among Computer Reservations Systems

Recognizing that Article 10 (Fair Competition) of the U .S .-Denmark Agreement guarantees the airlines of both Contracting Parties "afair and equal opportunity to compete," Considering that one of the most important aspects of the abilityof an airline to compete is its ability to inform the public of its services in a fair and impartial manner, and that, therefore, thequality of information about airline services available to travel agents who directly distribute such information to the travelingpublic and the ability of an airline to offer those agentscompetitive computer reservations systems (CRSs) represent the foundation for an airline's competitive opportunities, and Considering that it is equally necessary to ensure that theinterests of the consumers of air transport products are protectedfrom any misuse of such information and its misleading presentation and that airlines and travel agents have access to effectively competitive computer reservations systems :

1 . The Contracting Parties agree that CRSs shall have integrated primary displays for which :

 a. Information regarding international air services,including the construction of connections on those services, shall be edited and displayed based onnon-discriminatory and objective criteria that are notinfluenced, directly or indirectly, by airline or market identity . Such criteria shall apply uniformly to allparticipating airlines .

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 and change-of-gauge flights and flights with stops should beclearly identified as having those characteristics .

d . All CRSs that are available to travel agents whodirectly distribute information about airline services to the traveling public in either Contracting Party'sterritory shall not only be obligated to, but shall also be entitled to, operate in conformance with the CRS rules that apply in the territory where the CRS is being operated .

 e. Travel agents shall be allowed to use any of thesecondary displays available through the CRS so long as the travel agent makes a specific request for thatdisplay .

2 . A Contracting Party shall require that each CRS vendor operating in its territory allow all airlines willing to payany applicable non-discriminatory fee to participate in its CRS . A Contracting Party shall require that all distributionfacilities that a system vendor provides shall be offered ona non-discriminatory basis to participating airlines. A Contracting Party shall require that CRS vendors display, on a non-discriminatory, objective, carrier-neutral andmarket-neutral basis, the international air services of participating airlines in all markets in which they wish tosell those services. Upon request, a CRS vendor shall disclose details of its data base update and storage procedures, its criteria for editing and ranking information,the weight given to such criteria, and the criteria used forselection of connect points and inclusion of connectingflights .

3 . CRS vendors operating in the territory of one Contracting Party shall be entitled to bring in, maintain, and make freelyavailable their CRSs to travel agencies or travel companieswhose principal business is the distribution of travel-related products in the territory of the other Contracting Party, ifthe CRS complies with these principles .

4. Neither Contracting Party shall, in its territory, impose or permit to be imposed on the CRS vendors of the other Contracting Party more stringent requirements with respect toaccess 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 ownCRS vendors .

5. Neither Contracting Party shall, in its territory, imposeor permit to be imposed on the CRS vendors of the other Contracting Party more restrictive requirements with respectto 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 Contracting Party thatcomply with these principles and other relevant non-discriminatory regulatory, technical, and securitystandards shall be entitled to effective and unimpaired access in the territory of the other Contracting Party . One aspectof this is that a designated airline shall participate in such a system as fully in its homeland territory as it does in anysystem offered to travel agents in the territory of the other Contracting Party . Owners/operators of CRSs of one Contracting Party shall have the same opportunity toown/operate CRSs that conform to these principles within theterritory of the other Contracting Party as do owners/operators of that Contracting Party . Each ContractingParty shall ensure that its airlines and its CRS vendors do not discriminate against travel agents in their homelandterritory because of their use or possession of a CRS alsooperated in the territory of the other Contracting Party ."

18 . Upon the entry into force of these Amendments, The Arrangement Relating to Air Navigation between the United States and Denmark,effected by an exchange of notes dated March 12 and 24, 1934, shall be superseded . If these proposals are acceptable to the Government of Denmark, I have the further honor to propose that this note and Your Excellency's notein reply shall constitute an agreement between our two governments,which shall enter into force on the date of Your Excellency's note in reply ." Acting upon instructions from my Government, I have the honor to inform you that the proposals for amendment as set forth above are acceptable to the Government of Denmark and that my Government will consider these amendments as entering into force as of the present date . I avail myself of this opportunity to renew to you, Mr . Secretary, the assurances of my highest consideration .



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