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U.S. Department of State

Diplomacy in Action

U.S.-Ecuador Air Transport Agreement of September 26, 1986


September 26, 1986

   
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AIR TRANSPORT AGREEMENT


BETWEEN THE GOVERNMENT OF THE
UNITED STATES OF AMERICA
AND
THE GOVERNMENT OF
THE REPUBLIC OF ECUADOR
The Government of the United States of America and the
Government of the Republic of Ecuador,
Desiring to promote an international air transport system
based on fair competition among airlines in the marketplace ;
Desiring to facilitate the expansion of fair international
air transport opportunities in the public interest;
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 of
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 ;
Being Parties to the Convention of International Civil
Aviation opened for signature at Chicago on December 7, 1944 ;
and
Desiring to conclude a new agreement to replace the Air
Transport Agreement concluded between them and signed at Quito
on January 8, 1947 ;
Have agreed as follows :
ARTICLE 1
Definitions
For the purpose of this Agreement, unless otherwise stated :
(a) "Aeronautical authorities" means, in the case of the
United States, the Department of Transportation, or its
successor agency, and in the case of the Republic of Ecuador,
the National Civil. Aviation Council and/or the General Civil
Aviation Bureau, whichever of the two has jurisdiction, or
their successor agencies ;
(b) "Agreement" means this Agreement, its Annexes, and any
amendments thereto ;
(c) "Air Transportation" means any operation performed by
aircraft for the public carriage of traffic in passengers,
baggage, cargo and mail, separately or in combination, for
remuneration or hire ;
(d) "Convention" means the Convention on International
Civil Aviation, opened for signature at Chicago on December 7,
1944, and includes :
(i) any amendment which has entered into force
under Article 94(a) of the Convention and has
been ratified by both parties, and
(ii) any Annex or any amendment thereto adopted
under Article 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 which has been
designated and authorized in accordance with Article 3 of this
Agreement ;
(f)
"Price" means :
(i)
any fare, rate or price to be charged by
airlines, including their agents, and the
conditions governing the availability of such
fare, rate or price ;
(ii) the charges and conditions for services
ancillary to carriage of traffic which are
offered by airlines ; and
(iii) amounts charged by airlines to air
transportation intermediaries ;
for carriage of passengers and their baggage and/or cargo
(excluding mail) in air transportation ;
(g) "Stop for non-traffic purposes" means a landing for
any purpose other than taking on or discharging passengers,
baggage, cargo and mail in air transportation ;
(h) "Territory" means the land areas under the sovereignty,
jurisdiction, protection, or trusteeship of a Party, and the
territorial waters adjacent thereto ;
(i) "User charge" means a charge made to airlines for the
provision of airport, air navigation or aviation security
property or facilities ;
(j) "Full. economic costs" means the direct cost of
providing service plus a reasonable charge for administrative
overhead ;
(k) "International air transportation" means an air
transportation which passes through the air space over the
territory of more than one state ; and
(1) "Cabotage" means the taking on, in the territory of
one Party, by the airlines of the other Party, passengers,
cargo or mail carried for renumeration or hire originating and
destined for another point in the territory of the first Party .
ARTICLE2
Grant of Rights
(1) Each Party grants to the other Party the following
rights for the conduct of 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 ;
(c) the rights otherwise specified in this Agreement .
(2) Nothing in paragraph (1) of this article shall be
deemed to grant the right of cabotage for either Party's
airlines .
ARTICLE3
DesignationandAuthorization
(1) Each Party shall have the right to designate an
airline or airlines, consistent with its domestic laws and
policies, to conduct international air transportation in
accordance with this Agreement and to withdraw, alter, or
substitute such designations . Such designations, in accordance
with that specified in Annex I, shall be transmitted to the
other Party in writing through diplomatic channels, and shall
identify whether the airline or airlines are authorized to
conduct the type of air transportation specified in Annex I or
in Annex II or in both .
(2) On receipt of such a designation and of applications
from the designated airline(s) in the form and manner
prescribed in their respective laws and regulations for
operating authorizations or permissions and technical
permissions (pilot licenses, airworthiness certificates or
similar technical certificates), the other Party shall grant
appropriate authorizations and permissions with a minimum of
procedural delay provided :
(a) substantial ownership and effective control of that
airline are vested in the Party designating the
airline, nationals of that Party, or both ;
(b) the designated airlines are qualified to meet the
conditions prescribed under the laws and regulations
normally applied to the operation of international air
transportation by the Party considering the
application or applications ; and
(c) the Party designating the airline is maintaining and
administering the standards set forth in Article 6
(Safety) and Article 7 (Security) .
ARTICLE 4
RevocationandLimitationofAuthorization
(1) Each Party reserves the right to revoke, suspend or
limit the operating authorizations or permissions or technical
permissions (pilot licenses, airworthiness certificates or
similar technical permissions) issued by each Party to the
designated airlines of the other Party where :
(a) substantial ownership and effective control of that
airline are not vested in the other Party or the other
Party's nationals ;
(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 standards set forth in Article 6 (Safety) .
(2) Unless immediate action is essential to prevent
further non-compliance with subparagraphs (1) (b) or (1) (c) of
this Article, the rights established by this Article shall be
exercised only after consultation with the other Party .
(3) The Article does not limit the rights of either Party
to suspend, limit or condition air transportation in accordance
with the provisions of Article 7 (Aviation Security) .
ARTICLE5
ApplicationofLaws
(1) While entering, within or leaving the territory of one
Party, its laws and regulations relating to the operation and
navigation of aircraft shall be complied with by the other
Party's airlines .
(2) While entering, within or leaving the territory of one
Party, its laws and regulations relating to the admission to or
departure from its territory of passengers, crew or cargo on
aircraft (including regulations relating to entry, clearance,
aviation security, immigration, passports, customs and
quarantine or, in the case of mail, postal regulations) shall
be complied with by or on behalf of such passengers, crew or
cargo of the other Party's airlines .
ARTICLE6
Safety
(1) Each Party shall recognize as valid, for the purpose
of operating the air transportation provided for in this
Agreement, certificates of airworthiness, certificates 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
which may be established pursuant to the Convention . Each
Party may, however, refuse to recognize as valid for the
purpose of flight above its own territory, certificates of
competency and licenses granted to or validated for its own
nationals by the other Party .
(2) Each Party may request consultations concerning the
safety standards maintained by the other Party relating to
aeronautical facilities, aircrew, aircraft, and operation of
the designated airlines . If, following such consultations, one
Party finds that the other Party does not effectively maintain
and administer safety standards and requirements in these areas
that at least equal the minimum standards which may be
established pursuant 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 Party
shall take appropriate corrective action . Each Party reserves
the right to withhold, revoke or limit the operating
authorization or permissions or technical permission (pilot
licenses, airworthiness certificates or similar certificates)
of an airline or airlines designated by the other Party in the
event the other Party does not take appropriate action to meet
the other Party's concerns within a reasonable time .
I

ARTICLE7
Aviation' Security
(1) In accordance with their rights and obligations under
international law, the Parties reaffirm that their obligation
to protect, in their mutual relationship, the security of civil
aviation against acts of unlawful interference forms an
integral part of this Agreement .
(2) The Parties shall provide upon request all necessary
assistance to each other to prevent acts of unlawful seizure of
aircraft and other unlawful acts against the safety of
passengers, crew, aircraft, airports and air navigation
facilities and any other threat to aviation security .
(3) The Parties shall act in conformity with the
provisions of the Convention on Offenses and Certain Other Acts
Committed on Board Aircraft, signed at Tokyo on 14 September
1963, the Convention for the Suppression of Unlawful Seizure of
Aircraft, signed at the Hague on 16 December 1970 and the
Convention for the Suppression of Unlawful Acts Against the
Safety of Civil Aviation signed at Montreal on 23 September
1971 .
(4) The Parties shall, in their mutual relations, act in
conformity with the aviation security provisions established by
the International Civil Aviation organization and designated as
Annexes to the Convention on International Civil Aviation ; they
shall require that operators of aircraft of their registry or
1

operators who have their principal place of business or
permanent residence in their territory and the operators of
airports in their territory act in conformity with such
aviation security provisions .
(5) Each Party agrees to observe the security provisions
required by the other Party for entry into the territory of
that other Party and to take adequate measures to protect
aircraft and to inspect passengers, crew, their carry-on items
as well as cargo and aircraft stores prior to and during
boarding 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 .
(6) When an incident or threat of an incident of unlawful
seizure of aircraft or other unlawful acts against the safety
of passengers, crew, aircraft, airports and air navigation
facilities occurs, the Parties shall assist each other by
facilitating communications and other appropriate measures
intended to terminate rapidly and safely such incident or
threat thereof .
(7) When a Party has reasonable grounds to believe that
the other Party has departed from the aviation security
provisions of this article, the aeronautical authorities of
that Party may request immediate consultations with the
aeronautical authorities of the other Party . Failure to reach
a satisfactory agreement within 15 days from the date of such
request will constitute grounds to withhold, revoke, limit or
impose conditions on the operating authorization or permissions
or technical permission (pilot licenses, airworthiness
certificates or similar certificates) of an airline or airlines
designated by the other Party . When required by an emergency,
a Party may take interim action prior to the expiry of 15
days .
ARTICLE8
CommercialOpportunities
(1) The airlines of one Party may establish offices in the
territory of the other Party for the promotion and sale of air
transportation .-
(2) The designated airlines of one Party may, in
accordance with the laws and regulations of the other Party
relating to entry, residence and employment, bring in and
maintain in the territory of the other Party managerial, sales,
technical, operational and other specialist staff required for
the provision of air transportation .
(3) Each airline of one Party may engage in the sale of
air transportation in the territory of the other Party directly
and, at its discretion, through its agents . If it wishes to
sell charter flights, it shall be subject to the charter
regulations of the country in which the charter originates .
Each airline may sell air transportation, and any person shall
be free to purchase such transportation, in the currency of
that territory or in freely convertible currencies .
(4) Each airline of one Party may convert and remit to its
country, on demand, local revenues in excess of sums locally
disbursed . Conversion and remittance shall be permitted
promptly without restrictions or taxation . If either Party
requires the airlines of the other Party to obtain governmental
permission before being allowed to remit, the rate of exchange
for such remittances shall be the rate of exchange in effect on
the date of application for conversion and remittance . Either
Party may require that funds to be converted and remitted be
deposited with the appropriate national authority
simultaneously with the application for conversion and
remittance .
ARTICLE9
CustomsDutiesandTaxes
(1) Each Party shall on a basis of reciprocity exempt the
designated airline or airlines of the other Party to the
fullest extent possible under its national law from import
restrictions, customs duties, excise taxes, property taxes,
capital levies, inspection fees and other national duties and
charges on aircraft, fuel, lubricating oils, consumable
technical supplies, spare parts including engines, regular
aircraft equipment, aircraft stores (including but not limited
to liquor, tobacco and other products destined for sale to
passengers in limited quantities during the flight) and other
items intended for use or used solely in connection with the :_
operation or servicing of aircraft of the designated airline or
airlines of such other Party operating the agreed services, as
well as printed ticket stock, air waybills, any printed
material which bears the insignia of the company printed
thereon and usual promotional material distributed without
charge by those designated airlines . The designated airlines
shall be allowed to import, under bond, carrier support
equipment, such as communications equipment, and computer
hardware and software .
(2) The exemptions granted by this Article shall apply to
the items referred to in paragraph 1 of this Article as follows :
(a) introduced into the territory of one Party by .or on
behalf of the designated airline or airlines of the
other Party ;
(b) retained onboard aircraft of the designated airline
or airlines of one Party upon arriving in or leaving
the territory of the other Party ;
(c) taken on board aircraft of the designated airline or
airlines of one Party in the territory of the other
Party and intended for use in operating the agreed
services ;
(d) imported under bond solely for the purpose of
supporting a designated airline's or airlines' service ;
whether or not such items are used or consumed wholly within
the territory of the Party granting the exemption provided such
items are not alienated in the territory of the said Party .
(3) The regular airborne equipment, as well as the
materials and supplies normally retained on board the aircraft
of the designated airline or airlines of either Party may be
unloaded in
approval of
territory .
supervision
re-exported
regulations .
the territory of the other Party only with the
the Customs or other designated authorities of that
In such case, they may be placed under the
of the said authorities up to such time as they are
or otherwise disposed of in accordance with Customs
(4) The exemptions provided for by this Article shall also
be available where the designated airlines of one Party have
contracted with another airline, which similarly enjoys such
exemptions from the other Party, for the loan or transfer in
the territory of the other Party of the items specified in
paragraph (1) and (2) of this Article .
(5) Each Party shall use its best efforts to secure for
the designated airlines of the other Party, on the basis of
reciprocity, an exemption from taxes, charges and fees imposed
by state, regional and local authorities on the items specified
in paragraphs (1) and (2) of this Article in the circumstance
described in this Article, except to the extent that the
charges are based on the actual cost of providing the service .
(6) Both Parties agree that they will fully implement ,
their obligations under Annex 9 of the Convention with the
objective of maximum facilitation of transit passengers and air
freight .
ARTICLE10
UserCharges
(1) User charges imposed by the competent authorities on
the airlines of the other Party shall be just, reasonable and
nondiscriminatory .
(2) User charges imposed on the airlines of the other
Party may reflect an equitable portion of the full economic
cost to the competent charging authorities of providing the
airport, air navigation, and aviation security facilities and
services . Facilities and services for which charges are made
shall be provided on an efficient and economic basis .
Reasonable notice shall be given prior to changes in user
charges . Each Party shall encourage the
authorities and the airlines to exchange such information as
may be necessary to permit an accurate review of the proposed
charges .
competent charging
I

ARTICLE11
FairCompetition
(1) There shall be a fair and equal opportunity for the
designated airlines of both Parties to compete in .the
international air transportation covered by this Agreement .
(2) Each Party shall take all appropriate action within
its jurisdiction to eliminate all forms of discrimination or
unfair practices adversely affecting the competitive position
,

of the airlines of the other Party so as to achieve equality of
opportunity .
(3) With the exception of that stipulated in the
respective Annexes, neither Party shall unilaterally limit the
volume of traffic, frequency or regularity of service, or the
aircraft type or types operated by the designated airline or
airlines of the other Party, except as may be required for
customs, technical, operational or environmental reasons under
uniform conditions consistent with Article 15 of the Convention .
(4) Services on the agreed routes shall be provided in
accordance with Annex I .
(5) Neither Party shall impose on the other Party's
designated airlines a first refusal requirement, uplift ratio,
no-objections fee, or any other requirement with respect to the
capacity, frequency or traffic which would be inconsistent with
the purposes of this Agreement .
ARTICLE12
Pricing
(1) Prices charged for air transportation of passengers
and cargo shall be established in accordance with the domestic
laws of the country in which the passengers or cargo
originate . Compliance with this provision shall be evident
from the ticket or air waybill which authorizes the air
transportation .
(2) Each Party may require filing with its aeronautical
authorities of prices charged, or proposed to be charged, to or
from its territory by the designated airlines of the other
Party .
(3) Neither Party may take unilateral action to prevent
the introduction or continuation of premium class (business or
first class) service levels and conditions proposed for air
transportation to or from its territory by any designated
airline of the other Party .
(4) Each Party shall allow any airline of the other Party
to meet any scheduled price, including combination of prices,
charged in the marketplace for international air transportation'
to or from its territory and (a) the territory of the other
.Party; or (b) and third country .
ARTICLE13,
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 Party receives the request unless otherwise agreed .
Each Party shall prepare and present during such consultations
relevant evidence in support of its position in order to
facilitate informed, rational and economic decisions .
ARTICLE14
SettlementofDisputes
(1) Any dispute arising under this Agreement which is not
resolved by a first round of formal consultations, except those
which may arise under paragraph 1 of Article 12 (Pricing), 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 below .
(2) 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 one arbitrator . Within 60
days after having been named, these two arbitrators shall by
agreement appoint a third arbitrator, who shall act as
President of the arbitral tribunal ;
(b) if either Party fails to name an arbitrator, or if
the third arbitrator 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 appoint the necessary arbitrator or
arbitrators within 30 days . If the President is of the same
nationality as one of the Parties, the most senior Vice
President who is not disqualified on that ground shall make the
appointment .
1

(3) Except as otherwise agreed, the arbitral tribunal
shall determine the limits of its jurisdiction in accordance
with this Agreement and shall establish its own procedure . 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 specific procedures to be followed shall be
held no later than 30 days after the tribunal is fully
constituted
(4) Except as otherwise agreed, 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 either Party or at its
discretion within 15 days after replies are due .
(5) The tribunal shall attempt to render a written
decision within 30 days after completion of the hearing or, if
no hearing is held, after the date both replies are submitted,
whichever is sooner . The decision of the majority of the
tribunal shall prevail .
(6) The Parties may submit requests for clarification of
the decision within 15 days after it is rendered and any
clarification given shall be issued with 15 days of such
request .
(7) Each Party shall, consistent with its national law,
give full effect to any decision or award of the arbitral
tribunal .
r

(8) The expenses of the arbitral tribunal, including the
fees and expenses off 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
connection with the procedures of paragraph (2)(b) of this
Article shall be considered to be part of the expenses of the
arbitral tribunal .
ARTICLE15
Termination
Either Party may at any given time give notice in writing
to the other Party of its decision to terminate this Agreement .
Such notice shall be sent simultaneously to the International
Civil Aviation Organization . This Agreement shall terminate at
midnight (at the place of receipt of 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 by agreement before the end of this period .
ARTICLE 16
MultilateralAgreement
If a multilateral agreement, accepted by both Parties,
concerning any matter covered by this Agreement enters into
force, this Agreement shall be amended so as to conform with
the provisions of the multilateral agreement .
ARTICLE17
RegistrationwithICAO
This Agreement and all amendments thereto shall be
registered with the International Civil Aviation organization .
ARTICLE18
Entry IntoForce
The competent authorities of the United States of America
and the Republic of Ecuador will permit operations in
accordance with the terms of the Agreement upon signature . The
Agreement will enter into force on a date to be determined in
an exchange of diplomatic notes indicating that all necessary
internal procedures for entry into force of the Agreement have
been completed by both Parties . Upon entry into force, this
Agreement shall terminate and replace the Air Transport
Agreement signed at Quito on January 8, 1947, as amended .
IN WITNESS WHEREOF the undersigned, being duly authorized
by their respective Governments, have signed the present
Agreement .
DONE at Washington, D .C . this twenty-sixth day of
September, 1986, in duplicate in the English and Spanish
languages, each of which shall be of equal authenticity .
For the Government of
The United States of America :
For the Government of
Th
epublic of Ecuador :
Allen Wa is
Edgar T
ran
Under Secretary of State
Minist
oreign Affairs
for Economic Affairs
ANNEXI -SCHEDULED SERVICES
Section I- Designations
The total number of airlines designated by each Party shall
be in accordance with Article (3) of this Agreement .
Section II - Routes
EC,L- a~eP Q Le) "Nl-)L S
- 3 1
(1) Airlines of one Party whose designation identifies
this Annex shall, in accordance with the terms of their
designation, be entitled to perform international air
transportation (a) between the points on the following routes
and (b) between points on such routes and points in third
countries through points in the territory of the Party which
has designated the airline .Il
A .
Routes for the airline or airlines designated by the
Government of the United States :
From the United States via the intermediate points Mexico
City, Mexico ; Guatemala City, Guatemala ; San Salvador, El
Salvador ; San Pedro Sula and Tegucigalpa, Honduras ; Panama
City, Panama ; Cali, Bogota and Medellin, Colombia ; to the
coterminal poin `(~u'ito
d Guayaquii, Ecuador ; and beyond
Ecuador to Lima, eru ; Santiago, Chile ; Buenos Aires,
Argentina ; La Paz and Santa Cruz, Bolivia ; Asuncion,
Paraguay ; and Rio de Janeiro and Sao Paulo, Brazil .
B .
Routes for the airline or airlines designated by the
Government of the Republic of Ecuador :
From the Republic of Ecuador via the intermediate points
Cali, Bogota and Medellin, Colombia ; Panama City, Panama ;
San Pedro Sula and Tegucigalpa, Honduras ; San Salvador, El
Salvador ; Guatemala City, Guatemala ; Mexico City, Mexico ;
and one point in the Caribbean 1/ ; to the coterminal points
of iami(' 6rlandoWashington `2/c, New York, hicago-)2/,
(Los Angeles, two points 3/, and one addition
point 4 . in
the-United States a d beyond Miami to Madrid, n ; and
beyond either New Yor or Chicago 5/ to Montr
and
1/ This point-shall be selected by the Government of the
Republic of Ecuador and notified to the Government of the
United States by diplomatic note . The point chosen must be in
a country with which both Parties have diplomatic relations .
2/ Washington, Chicago and Orlando may be served by the
designated airlines of the Republic of Ecuador for combination
services only .
3/ These points shall be selected by the Government of the
Republic of Ecuador and notified to the Government of the
United States by diplomatic note and may be served by the
designated airlines of the Republic of Ecuador for all-cargo
services only .
4/ This point shall be selected by the Government of the
Republic of Ecuador and notified to the Government of the
United States by diplomatic note and may be served by the
designated airlines of the Republic of Ecuador for all-cargo
services only . This point may be changed at intervals of not
less than six months upon notification through diplomatic
channels .
5/ The Government of Ecuador shall select either New York or
Chicago as the point over which Montreal and Toronto shall be
operated and shall inform the Government of the United States
of its selection through diplomatic channels
- 3 3
(2) Each designated airline may, on any or all flights and
at its option, operate flights in either or both directions and
without directional or geographic limitation, serve points on
the routes in any order, and omit stops at any point or points
outside the territory of the Party which has designated that
airline without loss of any right to carry traffic otherwise
permissible under this Agreement .
(3) On any international segment or segments of the routes
above, each designated airline may perform international air
transportation without any limitation as to the use of dual
flight numbers and as to change, at any point on the route, in
type or number of aircraft operated, provided that in the
outbound direction the transportation beyond such point is a
continuation of the transportation from the territory of the
Party which has designated the airline and, in the inbound
direction, the transportation to the territory of the Party
which has designated the airline is a continuation of the
transportation beyond such point .
c.,.%
- 3 4
designated airlines of each Party may operate a maximum number
of round trip combination frequencies per week over the routes
specified in Section II of this Annex using narrow-body
aircraft or their wide-body equivalent as follows :
Between a point or points in Ecuador and the following
gateways in the United States :
For the purpose of counting these frequencies, t~term gateway
is understood to mean the first point of entry into or the last
point of departure from the territory of either Party .
1/ Other gateways permitted under Section II of this Annex
excluding Miami, New York and Los Angeles .
2/ For the purposes of this Section, Peak season shall be
defined as June 1 through September 15, and December 1 through
January 15 of the following year . Low season shall be defined
as January 16 through May 31, and September 16 through November
(~,~,, 3,0 .10
- 35
Section III - Capacity
(1) From July 1 of each of the years specified below, the
1986
1987 1988 1989
Los Angeles 4 .5 6 8 10 .5
Other Points 1/ 6 7 .5 9 10 .5
For the Peak Season 2/
1986
1987 1988 19-8~J
Miami 18 18 19 .5 21 J,
New York 18 18 19 .5 21
For the Low Season 2/
198 1986
1987 1988
Miami 15
16 .5 18 .5
New York 15
16 .5 18 9 .51
(2) The airlines of each Party designated for all-cargo
service may operate a maximum of 15 round trip all-cargo
frequencies per week over the routes specified in Section II of
this Annex using narrow-body aircraft or their wide-body
equivalent .
(3) Narrow-body aircraft may be substituted, at the
exclusive discretion of the designated airline, by wide-body
aircraft at the following rates of conversion : One wide-body
aircraft (L-1011, DC-10, A-300, B-747SP, B-767 or similar
aircraft) shall be equivalent to 1 .5 narrow-body aircraft
(DC-8, B-707, B-727, B-737, B-757, MD-80 or similar aircraft),
except that one B-747-100 or similar aircraft will be
equivalent to two narrow-body aircraft, and one B-747 Combi
(with main deck cargo) shall be equivalent to 1 .5 narrow-body
passenger aircraft and one narrow body all-cargo aircraft .
- 3 6
(4) The aeronautical authorities of each Party shall have
the right to distribute these frequencies among its designated
airlines .
(5) Any unused frequencies from the corresponding seasons,
as defined in paragraph 1 of this Section, of the previous
twelve months may be accumulated by the combination airlines of
either Party and used, at the discretion of the aeronautical
authorities of that Party, as additional flights during the
corresponding season in which they were not used . If all
frequencies are utilized, and no accumulated frequencies are
available, a reasonable number of extra sections for the
designated airlines of each Party shall be authorized by the
aeronautical authorities of the other Party .
(6) After December 31, 1986, each Party will permit the
combination airlines of the other Party to operate scheduled
services in addition to those set forth in paragraph 1 of this
Section, in the same percentage as the growth of traffic
experienced in each city pair market . For the purpose of
determining the growth of the passenger traffic in each market,
United States data will be used for all passengers arriving in
the United States and Ecuador data for all passengers arriving
in Ecuador transported by United States, Ecuadorean and third
country carriers . The United States and Ecuador data will be
combined to determine the total growth of the traffic . An
n airline that wishes to increase the number of its gateway.(
- 3 7
frequencies in accordance with this paragraph will apply to the
aeronautical authorites of its own country . Those authorities
will evaluate this request based on the pertinent - information .
If, in the opinion of those authorities, the request is
justified, the request will be transmitted to the other
via diplomatic channels . In the event of disagreement,
provisions of Article 13 shall apply .
(7) Each airline will submit its schedules for approval to
the aeronautical authorities of the other Party at least thirty
days in advance of the effective date of the schedule . The
aeronautical authorities will approve all submitted schedules
and such schedules will become effective on the proposed date
of effectiveness, provided they conform with the terms of this
Annex . Schedules may be filed in less than thirty days, with
special permission, particularly if they involve changes such
as changes in the day or hour of operations .
Section IV -Termination
Unless otherwise agreed, this Annex will expire on June 30,
38
Party
the



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