TREATIES AND OTHER INTERNATIONAL ACTS SERIES 4021
AIR TRANSPORT SERVICES
Agreement Between the UNITED STATES OF AMERICA and IRAN
Signed at Tehran January 16, 1957
Air Transport Services
Agreement signed at Tehran January 16, 1957;
Entered into force April 17, 1958 .
Air Transport Agreement Between The Government of The United
States of America and The Imperial Government of Iran
THE IMPERIAL GOVERNMENT OF IRAN and THE GOVERNMENT
OF THE UNITED STATES OF AMERICA
Being equally desirous to conclude an Agreement for the purpose
of establishing and operating commercial air services between
their respective territories have accordingly appointed their
plenipotentiaries for this purpose as follows :
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
The Honorable Selden Chapin, Ambassador of the United States
THE IMPERIAL GOVERNMENT OF IRAN
His Excellency Dr . Ali-Gholi Ardalan, Minister of Foreign Affairs
Who having exhibited and exchanged their full powers and found
them to be in due form have agreed upon the following articles :
For the purposes of the present Agreement:
(A) The term "aeronautical authorities" shall mean in the case
of the United States of America, the Civil Aeronautics Board and
any person or agency authorized to perform the functions exercised
at the present time by the Civil Aeronautics Board and, in
the case of Iran, the Department of Civil Aviation and any person
or agency authorized to perform the functions exercised at present
by the said Department of Civil Aviation .
(B) The term "designated airline" shall mean an airline that
one contracting party has notified the other contracting party,
in writing, to be the airline which will operate a specific route or
routes listed in the Schedule of this Agreement.
Post, p. 10 .
(C) The term "territory" in relation to a State shall mean the
land areas and territorial waters adjacent thereto under the sovereignty,
suzerainty, protection, mandate or trusteeship of that
(D) The term "air service" shall mean any scheduled air service
performed by aircraft for the public transport of passengers, mail
(E) The term "international air service" shall mean an air
service which passes through the air space over the territory of
more than one State.
(F) The term "stop for non-traffic purposes" shall mean a
landing for any purpose other than taking on or discharging
passengers, cargo or mail.
(A) Each contracting party grants to the other contracting
party rights necessary for the conduct of air services by the designated
airlines, as follows : the rights of transit, of stops for nontraffic
purposes, and of commercial entry and departure for international
traffic in passengers, cargo, and mail at the points
in its territory named on each of the routes specified in the appropriate
paragraph of the Schedule annexed to the present
(B) It is further provided that in areas of hostilities or military
occupation, or areas affected thereby, the operation of such
services shall be subject to the approval of the competent military
Air service on a specified route may be inaugurated by an
airline or airlines of one contracting party at any time after that
contracting party has designated such airline or airlines for that
route and the other contracting party has given the appropriate
operating permission . Such other party shall, subject to Article
4, be bound to give this permission without undue delay provided
that the designated airline or airlines may be required to qualify
before the competent aeronautical authorities of that party,
under the laws and regulations normally applied by these authorities,
before being permitted to engage in the operations contemplated
by this Agreement .
Each contracting party reserves the right to withhold or to
revoke the operating permission provided for in Article 3 of this
Agreement from an airline designated by the other contracting
party, or to impose such conditions as it may deem necessary on
the exercise of an airline or airlines of those rights, in the event
that it is not satisfied that substantial ownership and effective
control of such airline are vested in nationals of the other contracting
party, or in case of failure by such airline to comply
with the laws and regulations referred to in Article 5 hereof, or
in case of the failure of the airline or the Government designating
it otherwise to perform its obligations hereunder, or to fulfill the
conditions under which the rights are granted in accordance
with this Agreement, provided that conditions shall not be imposed
without prior consultation with the other party .
(A) The laws and regulations of one contracting party relating
to the admission to or departure from its territory of aircraft
engaged in international air navigation, or to the operation and
navigation of such aircraft while within its territory, shall be
applied to the aircraft of the airline or airlines designated by the
other contracting party, and shall be complied with by such aircraft
upon entering or departing from, and while within the territory
of the first contracting party .
(B) The laws and regulations of one contracting party relating
to the admission to or departure from its territory of passengers,
crew, or cargo of aircraft, such as regulations relating to entry,
clearance, immigration, passports, customs, and quarantine shall
be complied with by or on behalf of such passengers, crew or cargo
of the other contracting party upon entrance into or departure
from, and while within the territory of the first contracting party .
Nothing in the provisions of the present Agreement shall be
construed or regarded as conferring sole and exclusive rights on the
other contracting party or its airlines or as excluding or discriminating
against the airlines of any other country .
Nothing in the provisions of the present Agreement shall be
construed or regarded as conferring on the airlines designated by
one of the contracting parties the right to take up, in the territory
of the other contracting party, passengers cargo or mail carried for
hire or reward and destined for another point in the same territory .
There shall be fair and equal opportunity for the designated
airline or airlines of both contracting parties to operate the
agreed services on the specified routes between their respective
In the operation by the airlines of either contracting party of the
trunk services described in this Agreement, the interest of the airlines
of the other contracting party shall be taken into consideration
so as not to affect unduly the services which the latter
provides on all or part of the same routes .
Certificates of airworthiness, certificates of competency and
licenses issued or rendered valid by one contracting party, and
still in force, shall be recognized as valid by the other contracting
party for the purpose of operating the routes and services provided
for in this Agreement, provided that the requirements under which
such certificates or licenses were issued or rendered valid are equal
to or above the minimum standards which may be established
pursuant to the Convention on International Civil Aviation .
Each contracting party reserves the right, however, to refuse to
recognize, for the purpose of flight above its own territory, certificates
of competency and licenses granted to its own nationals by
another State .
In order to prevent discriminatory practices and to assure equality
of treatment, both contracting parties agree that :
(a) Each of the contracting parties may impose or permit to
be imposed just and reasonable charges for the use of public airports
and other facilities under its control . Each of the contracting
parties agrees, however, that these charges shall not be higher
than would be paid for the use of such airports and facilities by its
national aircraft engaged in similar international services .
(b) Fuel, lubricating oils, consumable technical supplies, spare
parts, regular equipment, and stores introduced into the territory
of one contracting party by the other contracting party or its
nationals, and intended solely for use by aircraft of such contracting
party shall be exempt on a basis of reciprocity from customs
duties, inspection fees and other national duties or charges .
(c) Fuel, lubricating oils, other consumable technical supplies,
spare parts, regular equipment, and stores retained on board aircraft
of the. airlines of one contracting party authorized to operate
the routes and services provided for in this Agreement shall, upon
arriving in or leaving the territory of the other contracting party,
be exempt on a basis of reciprocity from customs duties, inspection
fees and other national duties or charges, even though such supplies
be used or consumed by such aircraft on flights in that
(d) Fuel, lubricating oils, otherconsumable technical supplies,
spare parts, regular equipment, and stores taken on board aircraft
of the airlines of one contracting party in the territory of the other
and used in international services shall be exempt on a basis of
reciprocity from customs duties, excise taxes, inspection fees and
other national duties or charges .
The air services made available to the public by the airlines
operating under this Agreement shall bear a close relationship to
the requirements of the public for such services .
It is the understanding of both contracting parties that services
provided by a designated airline under the present Agreement
shall retain as their primary objective the provision of capacity
adequate to the traffic demands between the country of which
such airline is a national and the countries of ultimate destination
of the traffic . The right to embark or disembark on such
services international traffic destined for and coming from third
countries at a point or points on the routes specified in this Agreement
shall be applied in accordance with the general principles of
orderly development to which both contracting parties subscribe
and shall be subject to the general principle that capacity should
(a) to traffic requirements between the country of origin and the
countries of ultimate destination of the traffic ;
(b) to the requirements of through airline operation ; and,
(c) to the traffic requirements of the area through which the
airline passes after taking account of local and regional services .
Rates to be charged on the routes provided for in this Agreement
shall be reasonable, due regard being paid to all relevant
factors, such as cost of operation, reasonable profit, and the rates
charged by any other carriers, as well as the characteristics of
each service, and shall be determined in accordance with the following
(A) The rates to be charged by the airlines of either contracting
party between points in the territory of the United States and
points in the territory of Iran referred to in the annexed Schedule
shall, consistent with the provisions of the present Agreement, be
subject to the approval of the aeronautical authorities of the con-
tracting parties, who shall act in accordance with their obligations
under this Agreement, within the limits of their legal powers .
(B) Any rate proposed by an airline of either contracting party
shall be filed with the aeronautical authorities of both contracting
parties at least thirty (30) days before the proposed date of introduction
; provided that this period of thirty (30) days may be reduced
in particular cases if so agreed by the aeronautical authorities of
each contracting party .
(C) During any period for which the Civil Aeronautics Board
of the United States has approved the traffic conference procedures
of the International Air Transport Association (hereinafter called
IATA), any rate agreements concluded through these procedures
and involving United States airlines will be subject to approval
of the Board . Rate agreements concluded through this machinery
may also be required to be subject to the approval of the aeronautical
authorities of the Government of Iran pursuant to the
principles enunciated in paragraph (A) above .
(D) The contracting parties agree that the procedure described
in paragraphs (E), (F) and (G) of this Article shall apply :
1. If, during the period of the approval by both contracting
parties of the IATA traffic conference procedure, either, any
specific rate agreement is not approved within a reasonable
time by either contracting party, or, a conference of IATA is
unable to agree on a rate, or
2. At any time no IATA procedure is applicable, or
3 . If either contracting party at any time withdraws or fails
to renew its approval of that part of the IATA traffic conference
procedure relevant to this Article.
(E) In the event that power is conferred by law upon the aeronautical
authorities of the United States to fix fair and economic
rates for the transport of persons and property by air on international
services and to suspend proposed rates in a manner comparable
to that in which the Civil Aeronautics Board at present is
empowered to act with respect to such rates for the transport of
persons and property by air within the United States, each of the
contracting parties shall thereafter exercise its authority in such
manner as to prevent any rate or rates proposed by one of its
airlines for services from the territory of one contracting party
to a point or points in the territory of the other contracting party
from becoming effective, if in the judgment of the aeronautical
authorities of the, contracting party whose airline or airlines is or
are proposing such rate, that rate is unfair or uneconomic . If
one of the contracting parties on receipt of the notification referred
ferred to in paragraph (B) above is dissatisfied with the rate proposed
by the airline or airlines of the other contracting party, it
shall so notify the other contracting party prior to the expiry of
the first fifteen (15) of the thirty (30) days referred to, and the
contracting parties shall endeavor to reach' agreement on the
In the event that such agreement is reached, each contracting
party will exercise its best efforts to put such rate into effect as
regards its airline or airlines .
If agreement has not been reached at the end of the thirty (30)
day period referred to in paragraph (B) above, the proposed rate
may, unless the aeronautical authorities of the country of the air
carrier concerned see fit to suspend its application, go into effect
provisionally pending the settlement of any dispute in accordance
with the procedure outlined in paragraph (G) below .
(F) Prior to the time when such power may be conferred upon
the aeronautical authorities of the United States, if one of the
contracting parties is dissatisfied with any rate proposed by the
airline or airlines of either contracting party for services from the
territory of one contracting party to a point or points in the
territory of the other contracting party, it shall so notify the other
prior to the expiry of the first fifteen (15) of the thirty (30) day
period referred to in paragraph (B) above, and the contracting
parties shall endeavor to reach agreement on the appropriate rate .
In the event that such agreement is reached, each contracting
party will use its best efforts to cause such agreed rate to be put
into effect by its airline or airlines .
It is recognized that if no such agreement can be reached prior
to the expiry of such thirty (30) days, the contracting party
raising the objection to the rate may take such steps as it may
consider necessary to prevent the inauguration or continuation of
the service in question at the rate complained of .
(G) When in any case under paragraphs (E) or (F) of this
Article the aeronautical authorities of the two contracting parties
cannot agree within a reasonable time upon the appropriate rate
after consultation initiated by the complaint of one contracting
party concerning the proposed rate or an existing rate of the airline
or airlines of the other contracting party, upon the request of
either, the terms of Article 16 of this Agreement shall apply .
The aeronautical authorities of either contracting party shall
supply to the aeronautical authorities of the other contracting
party, at their request, such information and statistics relating
to traffic carried on the agreed services by the designated airline
or airlines of the first contracting party to and from the territory
of the other contracting party as may normally be prepared and
submitted by the designated airline or airlines to their national
aeronautical authorities for publication. Any additional statistical
traffic data which the aeronautical authorities of one contracting
party may desire from the aeronautical authorities of the
other contracting party, shall, upon request, be a subject of mutual
discussion and agreement between the two contracting parties .
(a) If either of the contracting parties considers it desirable
to modify the terms of this Agreement, it may request consultation
between the competent authorities of the two contracting
parties, and such consultation shall begin within a period of sixty
days from the date of the request . A similar procedure shall
also be applicable in the event either of the contracting parties
desires to consult concerning the application or interpretation
of the terms of the Agreement . When the aforesaid authorities
mutually agree to the modification of the present Agreement, the
said modification shall come into force after it has been confirmed
by an exchange of notes through diplomatic channels and shall
forthwith be communicated to the Council of the International
Civil Aviation Organization .
(b) Changes made by either contracting party in the specified
air routes, except the change of points served by the designated
airline or airlines in the territory of the other contracting party,
shall not be considered as modifications of this Agreement . The
aeronautical authorities of either contracting party may therefore,
proceed unilaterally to make such changes provided however that
notice of any change shall be given without delay to the aeronautical
authorities of the other contracting party .
In the event of any dispute arising between the two contracting
parties relating to the interpretation or application of the present
Agreement and its Schedule, the contracting parties shall, in the
first instance, endeavor to settle it by direct negotiation between
themselves . If they fail to reach a settlement by negotiation,
they shall refer the dispute for an advisory report to some other
person or body designated by mutual agreement between the
contracting parties, or to a tribunal of three arbitrators, one
to be named by each contracting party, and the third to be agreed
upon by the two arbitrators so chosen, provided that such third
arbitrator shall not be a national of either contracting party .
Each of the contracting parties shall designate an arbitrator
within two months of the date of delivery by either party to the
other party of a diplomatic note requesting arbitration of a dispute ;
and the third arbitrator shall be agreed upon within one month
after such period of two months .
If either of the contracting parties fails to designate its own
arbitrator within two months, or if the third arbitrator is not
agreed upon within the time limit indicated, either party may
request the President of the International Court of Justice to make
the necessary appointment or appointments by choosing the
arbitrator or arbitrators.
The contracting parties will use their best efforts within the
limits of the constitutional powers available to them to put into
effect the opinion expressed in any such advisory report . The
expenses of the arbitral tribunal shall be shared equally by the
two contracting parties .
If a general multilateral convention or Agreement on traffic
rights for scheduled international air services comes into force in
respect of both contracting parties, the present Agreement shall
be amended so as to conform with the provisions of such Convention
or Agreement .
This Agreement, all amendments thereto, and contracts connected
therewith shall be registered with the International Civil
Aviation Organization .
Either of the contracting parties may at any time notify the
other of its intention to terminate the present Agreement . Such
a notice shall be sent simultaneously to the International Civil
Aviation Organization . In the event such communication is
made, this Agreement shall terminate one year after the date of its
receipt, unless by agreement between the contracting parties the
notice of intention to terminate is withdrawn before the expiration
of that time. If the other contracting party fails to acknowledge
receipt, notice shall be deemed as having been received fourteen
days after its receipt by the International Civil Aviation Organization
This Agreement shall enter into force [ 1 ] on the date of receipt
by the Government of the United States of America of a notification
by the Government of Iran of its ratification of this Agreement .
In witness whereof, the undersigned plenipotentiaries being
duly authorized by these respective Governments, have -signed
the present Agreement and have affixed their seals thereto .
Done at Tehran, in duplicate, this sixteenth day of January,
1957, in Persian and English languages, both texts being equally
For the Government of the For the Government of Iran
United States of America
1. An airline or airlines designated by the Government of the
United States of America shall be entitled to operate air
services on each of the air routes specified via intermediate
points, in both directions, and to make scheduled landings in
Iran at the points specified in this paragraph :
From the United States of America to Tehran and or
Abadan and points beyond, via intermediate points .
2. An airline or airlines designated by the Government of Iran
shall be entitled to operate air services via intermediate points,
in both directions, and to make scheduled landings in the
territory of the United States of America on a route to be
determined at a later date .
3. Points on the specified routes may, at the option of the designated
airline or airlines, be omitted on any or all flights .
1 Apr. 17, 1958