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U.S. Department of State

Diplomacy in Action

U.S.-Russian Air Transport Agreement of January 14, 1994


January 14, 1994

   
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AIR TRANSPORT AGREEMENT

BETWEEN THE GOVERNMENT OF

THE UNITED STATES OF AMERICA

AND

THE GOVERNMENT of

TUE RUSSIAN FEDERATION

The Government of the United States of America and the Government

of the Russian Federation hereinafter- referred to as the Parties

DESIRING to facilitate the expansion of international air

transport opportunities

DESIRING to ensure the highest degree of safety and security

in international air transport and reaffirming. 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;

ZZW ~Parties to the Convention on International Civil

Aviation, opened ,for signature at Chicago oa -Ppoe0ber 7,3944 ;

and

DE fE .to pozmc#an.. Agreement

the purpose of

&LV-,A,!rVLCq8 between and beyond their respective

territories ;

HAVE AGREED AS FOLLOWS :

AIR TRLUSPORT AGPXZIWXT

13ETWEER TEE GOVERNMENT F

THE UNITED ST11TES OF AMERICA

AND

THE GOVERNMENT of

TUE RUSSIAN FEDERATION

The Government of the United States of America and the Government

of the Russian Federation hereinafter- referred to as the

DESIRING to facilitate the expansion of international air

transport opportun-itiezi

DESIRING to ensure the highest degree of safety and security

in international air transport and reaffirming-tJmIx. 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;

ZZW ~Parties to the Convention on International Civil

Aviation, opened ,for signature at Chicago oa -Ppoe0ber 7,3944 ;

and

DE fE .to pozmc#an.. Agreement

the purpose of

&LV-,A,!rVLCq8 between and beyond their respective

i4 t) ,

list W,~~

2

JLRTZCrjZ I

Definitions

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

--term:

a : 'Aeronautical. authorities* means, in the case of the

United States, the -Department of Transportation, or-its

successor, and in the case of the Russian Federation, the Air-

Transport Department of the Ministry of Transport, or their

b . 'Agreement means this Agreement, its Annexes, which

shall bean integral part of the Agreement,' and any amend#nents

thereto ;

c . - *Air transportation* means any operation (including- both

scheduled: and charter services) 1performed by aircraft for the

public carriage of . traffic 'in

mail, separately or in combination, for rommerationn or hire ;

d . .-Convention• means .the Convention on"international Civil

Aviation, opened for iivnai, i'at Chicago on'' 64iRor- 7, i94-4,

and includes :

16

(i) any amendment which - has entered into force under

Article 94(a) of the Convention and has "been ratified by both

states ; 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 ;

I

e . `Designated .eiriine' means. an airline'_ designated and

authorized in aLcQoxdWce with Article . I of . this Agreement ;

f . "Full cost! means the cost of providing service plus a

reasonable charge. for administrative overhead;

g . "around handling* means . "-e processing, loading and

-unloading of passen

.

gers, baggage, cargo, mail and aircraft

stores, : .

aircraft _aleaning, and other rabVside and airport .

terminal acti-Vitte.0 's.-

X7 "

h . lnttrutil6nal air. transportation`.. rears . air .

transportation which passes through . the airspace over the

territory of more,%.bam' .one State;

"'Price" means any fare, rate or . charge for the . carriage

of passengers "(and . , their baggage) and/dr,:cargo (excluding . mail)

in air transportation charged by airlines, including their

agents, and the conditions governing the avaiilability •of such . ,

fare, rate or charge ;

j . 'Stop fOr non=traffic purposes' means a landing for any

purpose other than taking . on or discharging passengers r baggage,

: .cargo and/or mail'in air transportation ; and

k. *User -charge-m means a . charge- made:- -to- rlirres . .f r: the

provision of:-:ei rt, 'air navigation o- eViaU Qom. . &x tty _ .

facilities and services .

ARTICLL" 2

grant of Rlphts;

1 . Subject to . the provisions of Annex 4 . each Party- grants

-.t* the other Party the following rights for the conduct of`

international air transportation by airlines authorized to'

operate under - the laws aid-regulations .of - the. .oth*r': Party:

a . the right to fly across its �territory..-without .`:.-

landing ;

b, the :'right to make stops' in- its 'territory-for

I

non-traffic purposes,

c . the right to carry out international air

transportation on routes specified in Annex 1 ;

d. the right to carry out . international air

transportation between. points specified in Annex I and points in

third countries, through- points in the territory of the Party of

which the. airline

& :national ; and

e . the rights otherwise specified in this- Agreement,

inaluding those rights specified in .Annex 2..'

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

airline or airlinesofy the - other Tarty the rights to A& on.

board, in the territory of the other Party, passengers, their

baggage, cargo, or mail for compensation and destined for another

point in. the .tevritovy- of that . ocher. Party :. (sabotage) .

DesLanation ate. Anthortration

two

the ppIF.

Annex 2, each.

Party shall have. the right -to designate airlia" .to .ponduct .

16

- 6 -

international air transportation in accordance with this

Agreement and to withdraw or alter. such designations . Such

designations shall . be transmitted -to the other- Party in . writing

through diplomatic channels, and . shill' identify whether thee

airline is authorized. to conduct the type of air transportation

specified in. Annex 1, or in Annex 2, or both .

2 . on.

teceip. -t of such a designation, and. of .-applications

from the designated airline, in the fbrrn end manner: prescribed

for operating-authorizations and technical permissions, the other

Party . shall :grant. appropriate vqWoQz'atLQVM

permissions: with

minimum procedural- delay, provided

ai substantial-ownership and effective -control of that

airline are vested in the Party designating the airline,

nationals

.

of that Party, or both:

bi

the designated

:airline is_ qtt&Uf46&-'"tP meet_ the

conditions prescribed, under the -laws and regulations normally

aXQWWhd to the operation of international air transportation by

the Party considering thezappliett46i'or~4pplications ;,,an4d

c . the Party designatingg the airline is maintaining and

. (Safety)' and

Article 7 (Aviation -SebuAty)4f : thLVXWr*emenW

4.

3 .. When an airline has been so designated and. authorized,

it may begin .to operate the agreed services for which it is

designated,

ARTZC= 4 -

Revocationof-Ruthoyizat en

Each Party may - revoke,, suspend! or limit the . operating

aurhoti'zatL.6ns!or tealm-i-call permissions - of an .airlin dOVi

- Onated

a . substantial ownership and effective control of that

airline are not vested in . the other 'Party, the other Party's

b . that airline has failed to comply with the laws and

regulations referred to in Article S . (Application-of Laws) of

this Agreement)

c . the other Party is-,nnot--maintaining- .and, ..a6duisteri-ng.

the! standard;;s as set forth in Article 6 (Safety) of this

8111-dd to-- fulfill ,

the conditions under

`the--tights are granted' in accordance :

I

with - this Agreement .

2 . Unless 'immediate action is essential to prevent further

non-compliance with subparagraphs lb, ic, or id of this Article,

the rights established b:i this Article shall be exercised only

after consultation with the* other Party.

3 . This* Article does not limit the rights of . either Party

to suspend' ..lisait, or condition air services in .acco ce with= .

the' provisions of Article 7 . (Aviation Security!) of. thii

Agreement .

.ARTICLE-5

AvDliaation of Laws

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

Party, its laws and regulations relating. to the operation . and

gation of aircraft shall be complied with by the other

Pay' s airlines . .

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

Patty, its laws and . regulations relating to the admission to or

departure :-from its : territtory :of _passengers, .,crew;.. ;cargo., or

aircraft (including regulations relating to entry, clearance,

4

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, cargo, or

aircraft of-the other Party's airlines .

3 . The . Parties shall grant, without limitation, In advance,

and with a validity .of at least twenty four months , visas for all

aircraft crews and,, cabin crew0of each designated airline

operating the scheduled- services . These -ViBaiVAhall be- valid. . for . .

any number of- flights into-.and out of the territory of Via- other. .

Party during the period of their validity.

periodd dt tbdir

4 . The Parties shall grant in advance visas of appropriate

duration aixd scope for thet airtrift crews and cabin crews o f each

designated airline operating-charter air services .

5 . The - Parties shrill- -grant, without limitation, in advance,

and

.

with A.-VidWty of'at' least :=twelve-mouths f .,-Visas. -for .

agreed, iciut"~ 'vLLtWn:' .t-b-t-'.~t*r-r-Ite3ty-.'Af;-. ..the -. :other':~ lNmttir-, ntaAct4e

government *-ifiv

-

Lal-s-

the VChor

.

Party involved in civil`

z

aviation .' These visas shall be valid for any number of visits

into and 0061 Sit

Par-tV.'; ,

$t-- 1he

i

6 . Each Party shalll assist the other in obtaining copies of

the relevant laws and regulations referred to-in this Article .

AATrCLL 6

Safety

1 . The Parties shall take alll necessary_ saeasures' to ensure

safe and"-effective operation of the .air .transportAtiQn:.Goverea_by:_.

this. :Agre

.

2 . Each- Party shall recognize as . valid, for the purpose - of

.operating the air transportation ..pxovide& 'for in thisiAgreempnt, .

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 standar4s :which may be

established- pursuant to . .the Convention. Bich Party may, -however,

refuse to recognize oa • valid -for the purpose of . flight s ; above, ts; ,

o territory, certificates of competency and ;,licenses licenses granted

to, or validated for,its -,own nationals by -the ' ;other. . :Party..

3. The_- 24of-,this. ;Article shall . not,.

be.- considered . as precluding such particular deviations from."the

specified requirements as may be agreed between Parties .

k

4 . Each Party may request consultations concerning the

safety standards maintained by the other Party relating to

aeronautical facilities, air crew, 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 standitrds: and. requirements in . these areas :that

at least equal the- mini==-standard's which may be established

pursuant to the Convention, or .. in accordance- with paragraph 3 of

this Article, the---.other• Part;-Shall,

be notified-- of such findings

and the steps considered: necessary to: con�or fl with epee. n imam

.standards ; and the. other :-,Party. : steall take appropriate .corrective

action . Each Party reserves. the right te -•withhold,,-revoke, or

..limit the operating authorization or technical Permission of an

airline or airlines designated by the other Party in the event

the other. Party does not take. such appropriate. .correc.tive action

within a .,reasonable time.

i . I 1as :accords tce-='ta& . weir: rights a d o ; :g4~t$ons undrr

# ntert~a do a : law;-•,

a

s>. zea iom t .t~;

� gatfon to .

.

protect, 'yin their mutual. rrelationship: .the .asecurity :of civil

aviation :against acts of 'unlawful . interference forms '•an integral.

part of this Agreement .

2 . The Parties shall provide upont reczuest all necessary

assistance to each other to prevent acts .of unlawful seizure .of

to

=aircraft and other unlawful acts- against the safety of

crew, aircraft; Orporti gqtd. air navigation

facilities, and any other threat to aviation security:

3 .' 'live Parties shall' act in conformityy with the. provisionsof

the -Convention on 0' ffeitses"and Certain - Other beta dommitted: an -

signed at To*o-drr 14: September

CorrtientLbp- for, the - Suppression of Unlawful secure :of MrcraN,

signed aat The Rag

I

rue. on -16 December 1.470. the (AMMOMMUonAor -the .

Suppression -of Unlawful. - Acts against the. Safety of- Civil

Aviation, signed at MontrOal' on 2-3 -September' 1971, - and other

-conventions in this field which have entered into force for both

-Parties .

-4 . The Parties shall, . in their-mutual relations; act in

conformity with the

established by

. the . International Civil. Aviation organization and designated as

Annexes "=b4 "tee -C6dv6nVL,4u`On International :Civil )~yko--tfOn,, they

shill iewit4-_,tAtd-t .0jelrata-is

aL Or t--j*f.--.-the&r-Ve iatry

6-vjabusiness -or"permanent

residence "in-, their •territory :rind operators of airports in their

I

-1;17

- 13 r

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 territoryy of .that

other Party and to take :adequate measures to. protect- aircraft- and

to inspect -passengers, crew, their carry-ton items, as well as

-cargo-and aircraft stores prior to and during boarding or

loading . Each Party shall also give positive consideration to any

speciao :.request from the Other Party fob ;

ali,~peciiv-Awty measures to

.meet a .particular threat .

<6 . When en incident or threat of- an inic-ident .of =lawful

seizure of aircraft . or other -unlawful . acts against the safety ofpassengers,

crew, aircraft, airports, and air navigation

facilities occurs, the .Parties-shall assist each other by.

facilitating cps~.Lcati*ns and of hwr :appropriate. measures.

untended to ~terminate, rapidly

thereof ..

7 . ' 'When - a Party has reasonable

40.,

other Party has. departed fromthe aviation security provisions of

request immediate - `eoniuttat-L*3w.VM- tAcrotiautio-al ;4uthot-iiies,

the other Party' .:.--Failure to.=reach �a satisfactory :agreement::-

AU,

within 15 days from the date of such request will constitute

grounds for a decision to withhold, revoke, . limit or impose

conditions on the operating authorization or technical permissi on

of an airline or airlines of the other. Party.; When required by

-an emertrency, a Party may take interim action prior :to the - expiry

HAi days .

Subject .to Annex 4(11), the designated airlines of one

Party :MmUaqV 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 la*9 and regulations- -of the other--Party relating-to

;wry;-'resldeaice- and-?employment -bring 1A and- :maintain in - - the--

-

ao;Ti-epry of the other- Party managerial� tales, technical,

UP.

or* ional, and other. specialist staff required for the

pr oviqion :of :..itir.ttun*portnolan. ,

its oft.

Party .: .

("self-handmiftniq Y:;-.,or, - ,at .-its Option . 'Select among .c~mpetiri ,eo~petiri

- is - 4

-agents for such services in whole or in part . These rights shall

be subject only to physical - constraints resulting-from

considerations of airport safety . Where such considerations

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

equal* basis to all airlines ; charges shall bee based on the costs

-i

ompa, of services provided; and' such sere ces

be

a2 le to--

the kind and -quality of services if-..self-handling were possible .

4 . Subliot to..Anne* 3 i , the, designated airlines ;Off each

.Patty -my engage in the ..'sale- of

transportation documents in the . territory of the other Party

directly' and,, att the sairline s distretion,- thpaugIL-It _goat

-4excep.t_ as --may ,be specifically .provided by the .charter reulations

Of the country -in which theJhaxte-r .originates"that relate to

national security or to thCproteapion .Of. parse ge Efupds and

'passenger cancellation and refund rights . Subject to Annex 3,

each designated airline may sell such transportation, and any

person sha -2:-

the_ be free' lux . purchtseuNop4mouranap;

eurrencyy of .that

:laws and regulations

in.

such currency) . or in freely convertible currencies ..

't o; jtQ L ..

00MVS

. siibjOct to AOUMC

to its country ; in freely convertible currencies,

demand, local

revenues-in excess of sums locally disburseQ . Conversion and

remittance shall be permitted promptly without restrictions or .

taxation in respect thereof at the -market rate- of exchange

applicable on the date of application for remittance .. .

6 . Subject to* Annex 3, the airlines of one Party shall be .

permitted to pay 'for local expenses, including purchases of fuel,

iii the territory of t#e other Party iti -local currency.

their

discretion, the airlines of one . Party may pay for-such expenses

in the territory -of the other Party in freely, aonver-bible

currenoLaw .according - to local. -duiarencr-reghul&tLQAs

hm

7 . Subject -to . Annex .3, the -designated airlines- of,. -one- .Party

Me

the territory of the other Party, in -the currency of either

Party, or in any freely convertible currency, at the 'airline s

option . :

S . Passengers; interaw %to -undertake - p: .trlp, regardless- .:Of .

their citizenship, shall- -be'. free A;* choose .the airline, or.

9 . The provisions of this Article 'shall . be applicable to

I

14,01 ANKSM - :

e

- 17

.ARTICLE 9

.Customs Duties and graeff

1 . .On arriving in the territory of one . Party, aircraft -

operated in international. air transportation by the designated

airlines of the other Party,

equipment, fuel, lubricants, consumable technical-supplies .,. spare

parts (including. engines), . air-craft - stores. (-izicludtng,' . Out not

limited to,- shah" items of -fcLO4,. :bewxtg*s- .*U_d liquor, tobacco,

:and othetr products 'destined ''for sale 'to or use y passengers in

limited quantities `during- flight) -•aid other . items'. intended for 'or

used solely in connection with the operation or'servicing of

-:aircraft -engaged- in international air transportation shal3. be

exempts on the basis of reciorocity, from all invor

restrictions ; property taxes, And capital levies, . . customs duties,

excise taxes, And similar fees and charges imposed by the

national authorities and not based -on the cost -of - .services

provided, provided such equipment: aand--:_'PUPP

the . Aiircraf t .

!=win

2 . `here- `shall

be we"XVePMt,, on the. basis-of reciprocity.;

from the taxes, duties .,

paragraph I of this Article, with the excep"Onn of charges based

on the Co t : 0f thin"itfeL*Loi

i

46

a . aircraft stores introduced into or supplied in . the

territory of one Party and -taken on board, with-in reasonable

limits, for use on. outbound aircraft of an airline of the other

- Party engaged. in international

.

air transportation ; even when

these stores are to be used- on. a part of the journey performed

Ovrr ,:A the territory of the Party in which they are taken 9 board ;

.q:- :

b. ground equipment and spare parts (.including .engines)

introduced' into the"`territory' of a Party... for. the ..-servicing,

Maintenance, O;C .*revi air of. aircraft of . an- &WILM6 170 the other

Pattyy used. In international air tr arksvmrtat.lowi... an4

C .- fuel,' lubricants, and consumable* technics supplies

introduced. intoo or supplied in -the territory of a . Party for 'use

in an aircraft lof an airline of the other-Party engaged- in

international :air. transportation, even. when these* supplies are to

be used on a part of - the. Journey perfo

over 'the . territory of

the Party

1 _n *

3 . Equipment and supoXiess referred to in paragraphs I' and 2

of' this'-Article may required .to be ;kept

or' control of the . appropriate is a

ri.

.4 . The 'exemptions provided b t

available where the'" airlines of one Partyy have Contracted with

- 19 -

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 paragraphs 1 and 2 of this

Article.

5 . Each 'Party shall-. 'ensure the provision-,at a ,reasonable

price or facilitate the' :iuOortatLon- into - .its . •territory of. an

adequate quantfty .-of aviation - fuel-of .required. grade, quality,

speciftcaUi--onst

for the irlines 'of the other Party in .

.accordance with the request of such airlines .

6.. The- designated - airlines of one Party may, in accordance. .

With he' laws and regulations off the other .R110ty relating to

'customs arid: duties, bring in _and

at each of* the.. points

on the- .agreed routes within the territory of. the, other Party

material and, *quipment requiredby those airlines for the

provision and ,promotion 'of" a.i services . Printed -catalogues, .

price lists, trade. notices or tourist and other literature

(including ~posters) - --shalli be:*.Omitted duty . ;free..

e

zn.

- 20 -

JLATrcul 10

206CChAWAS

1 . Consistent with the provisions of this Article, charges

for the use of.'air. navigation facilities, communication

t0cilitLis and services, as well

any charges for the use of

)dh--airport, .including its installations, technical and other

facilities . and-, services. . ("user charqess), shall be made , in

accordance with the- riiteos and. tariffs. established. by,_ each.: Party.

2 . User charges which may be. imposed by the competent

charging authorities or bodies of. each. Party on thwaWinear of

the other Party shall bOjust, : reasonable, Aes7discoi-minatory andequitably

Apportioned Among categories of users . In any event,

user charges -shall be assessed on all airlines of each Party on .

terms- not less - favorable than the most -favorable terms available

to any other- airline at the . time the charges are' ass

.

esse&..

3 . User charges &Oqsed n- jig airlines of the other i Party .

mvWxaflect, but shall not exceed, an equitable portion.- of the

full cost, . to -the competent - charging authorities . or bpAiqa, of

providing the appropriate airport, air navigation, and aviation

security fac4litLea and services, and 'in the case of airport

charges, !may provide-' for a reasonable rate of return-, after

depreciation . Facilities and services for which charges are made

- 21 -

shall be provided . on an efficient and economic basis . Reasonable :

notice shall. be given prior- to changes in user charges .

4 . 'Each .. Party- shall. encourage . consultations between th e

competent charging authorities or bodies in its territory and

airlines using the . services and- facilities,. : and . shall .,eqqou,:rage

the competent - 6h argirm" authorities : or bodies-: andt-the_, air4qes to

exchange such information as may be ..necessaxy for an accurate

review of the. 'reasonableness -of- 'the charges in - light of the

-principles of paragraphs (2) and (3) of .this Article.

. ARTXOLZ 11

Fair Corm-atit.im

Each Party shall allow a fair and ~equal opportunity for

the designated airlines of -~both Parties-to,ompdte in the

international air- tfthapoet-:6t.Lon cov4red.'--by- -.-.tbisag-reeme;tt .

2 . Each - Party shall take all

JIFfor

.

ms .of_ .discrimination .-or unfair

CeMetitive. .pract- Ices ~adversely affecting : thee competitive

position of th-i` :-alilizidie.

3 . Neither Party, nor its designated airlines, shall Amploose,

I

e

I- -

- 22 -

%

on the other Party's designated airlines a first refusal

requirement, uplift 'ratid, .no-objection fee, or- .any other

requirement with respect to the capacity, frequency, or traffic

which would be inconsistint-Vithe the purposes of this Agreement .

4 . ln.opekat'haq the * 4greed - servidesi, the designated

airlines of one Party' shall take into account the, interests of

the designated airlines of the other Party - so as not . to . affect

unduly the services whichh the Igtterr provides. .on the whole or any ..

part of the same routes .

ARTICIN 12

IMILLOMALas

shall be limited-tot

I .- Each Party shall, allow prices for air- . transportation to

be , established by each

.

designated airline. -based upon commercial

'considerations -In the marketplace . .-Intervention by the Parties

a . prevention : of discriminatory: priqe.ss ort practices ;

b . protection of ~,ccwryWMMmOW*;rz .--fr=7p iceo . hnt.; are, . .

unreasonably high or riq,:tActiv*'ftO to the abuse Ofa dominant

- 23 -.

c . protection of airlines from prices that are

artificially low because of director_ indirect governmental

subsidy or : support ; and

d . protection of airlines from prices that. are

artificially low and, offered with .. the- intent of eliminating

competition.

2 . Each. Party may.: requIrL4. .nO- ification to or I U-ingh with its

aeronautical-.--aut-b-oti-tift :of p3;iqgj-._prop - ;ed -to . b:.& charged t or

Mom .i4a territory -by :airlines .of-,the -,other Party . Notification

or -f*-IJ=o by the . airlines-- .of .bath 'Parties may be . reg4re-d; no more

than 30 days before the proposed date of effectiveness .. In

individual cases, notification or filing May be permitted on

shorter notice thin .normally required . Neither Party shallrequire

the

-

notification or filing by airlines of 'the other Party

of prices charged -by charterers : py .the public, except as may be

required on.- a non-discriminatory .basis for'information . purposes

.

3 . Neither Part - shall

transportation between~_02&

j or

an, j

for internationallyto $rar*A#p'*vt;L4on betftfM~4i

the' territory bf .the v- zhel-r_ .:-Party and 'any-:other count,ry., including.. .

o f� the request, and the Parties shall cooperate in secur4bg . 7-~

.

- 24 - 46

in both cases transportation on an interline or intraline basis .

if either Party believes that any such .' price is

,

Anconsistent with

the considerations set forth in paragraph. 1 of this Article, it

shall request consultations and notify the other Party of . the - .

reasons for its dissatisfaction as soon - as possible . . These

Consultatibns shall be held not later than .30 days after receipt

information necessary for reasoned resolution of the-issue . 2f

the Parties reach .44iii

a price.) for. which a

notice 'of - diissat sfarction tiara bean 'given, each Party . shall use

its best efforts' to

that Agreldebt into Cffel?-~Mthoui suchh

mutual -agreement, ` the price shall: go. into, effect' or continue• in

effect.

JWMXCWV13

Consultations

Either Perty may, at any time, request consultations between

such c6noultation'.-ShAlix: beginAAthiaj60ndays_ •.el the receipt of .n

the- request 1*

-of-:

'by :

Stairs 6fi Vh-~-ipu4ssiara

Pede rati on:' respectively: 'Iniha- -event ".,that agreement.s..-iv .-reached

-35-

concerning the amendment - of this Agreement, these . amendments

shall come into force upon confirmation by an exchange of

diplomatic notes .

ARTICLE

, e Clement oft Disputes

1 . Any :dispute acising under- this-Agreement . except those

which may- arise under, paragraph ,3 of Article - 12 ('Pricing) --.of this

'Agreement, should be- resolved-by consultations or by::other

communications between..:the- appropriate outh,Wvi!1ieS Of the

Parties . If the dispute is not resolved by such consultations or

communications, it may be referred by agreement . of the Parties

for -decision to some person-or body . . .

-2 . If the Parties do not so -agree, the dispute shall at the

request of -either -PavtY-- '-be -in accordance

-with, the 'procedures : 06-i- lotth below.

.3'A;ibitr.ttipn.',-"Oh;pvll - be'by.-an ad hoc,.r tribunal. of three .,

arbitrators I:io'~.-be-"~donsit.itftteo- `

a within .36 days after the re6elpt 7 of a request for

arbitration,' 4Adh'APaQj '#&Wbamv one 'arbitrator . Within :60

26 -

1.

days after these two arbitrators have been named, they shall by

agreement appoint a third arbitrator, . who shall. * act as President

of the arbitral tribiwal ;

b . if either Party fails to name an arbitrator, or if

the. third arbitrator is not appointed in accordance with

su paragraph (a) a f this parpgrpI either . Party may request the pl* ?

President of the council of the InternationafCivil Aviation

A

Organization to appoint' the . necessary arbitrator-or . arbiurabmrs

within - 30 days .' If the President of the' Council, Isa the same.

nationality as

.

val of the Parties, : the most senior .'Vice President

who is not disqualified on that ground shall make.- .the:

appointment

4 . Except as otherwise agreedi; the arbitrall tribunal shall

determine the limits of its jurisdiction in accordance with this

Agreement and shall -establish its own procedures . The tribunal,

pending its final determination. At the . direction .of the

Is jobusal or at the request of either of the Parties a conference s t

to determine - the precaise issues to be arbitrated and,. the .:. specific

.procedures to be followed shall-.bd* held no .liter • than

after the tribunal 'is fully - constituted ._

I -

.

.

Except as: otherwise ..agreed or, directed .by t:he tribunal,

once Permed, Shall have he'- -Jurisdiction . to :grant: interim relief :

1!

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 .

6 . The tribunal shall attempt`. to render.'a; .written_ ,de6*sion

withifl .30 days :After- coVle_tion of the -hearing or, ifr: no hearing .

is held, after the ' date bah regt es . 'a":: .su~tted: TOW decision

of the ma'jOrity of the 'tribunal- shall prevail.'

7 . The Parties may submit requests . for elhr fidaei A o�-.'the

decision within 15 days . after it is rendered and any

clarification :given shall be issued within' 15 days. of such

request .

8 . Each Party shall, consistent with its national law, give

full effect to any decision or award . of the :arbitral .tribunal .

9 . The . expenses of the arbitra ~~tri idnal, inclurli ig -the fees

and expenses. of the arbl,trtors shall be shared equally by the

,, .. . >

:=e =pressii ant' of . tiez coufl it F~sstias.: ~~ .' e~enses ~ed~.

s

of

e ec on

with the procedures of

y,f~

agr

1.~.'Tr.: ~ ~ r2t

•~

1,}

1~~~

'a V

i

. ".1 ..~.;.pa t raph

'`4Le" IW i tlik ehe1

considered to- be. 'part 'of the :'e

yes of the arbi;$rai is 9u aal

-28-

ARTICLE 15

SusoenaLor

1 . Flights of the . airlines of both Parties on the agreed

route or routes shall be suspended upon thirty (30) days' notice

.g en by one Party to the other if it finds that its designatedairlines

are pxevented.- frgta eperatn$ . fli .4"'.0n. the a eed .routte. .

ar rot}t:e .> .~s

the,coa

l -'-94-tthe,-

ifirst. Party. Such flig3 ts, aay,l

ed3 1 edii te,].

lah y

-Party. if . extraordinA y circumstances arise which are beyond the

.con"h o4._th

a.

e

.the,

a is r~

A

2 . Servicecan ther-eefter be reir}s tated .

through an exchange of notes'between the Parties' -and shall-be

curried oil in accordance with' .the terms of this Agreement-.

ARTICLE 16

:

:?erm~iaxj oq

E tbeer . .Party may,.., at . any : ti +te, give notice , in writing to the

other Party:.Qf:ti~ts.,deaisioa .to terminate. t.hiA.

eement . . 'Such

rM

notice shall rbe sent:y skmultaneously to,:,t*e. -International . Civil j

r .

Aviation .;Crganizatiqu .; . .This Agreement,. Shall terminate, twelve

S

12) months after the date -of receipt of the notice by the other

Party, unless the notictis withdrawn by agreement of the Parties

before the end of this. . period.

XROCUC 17

Romixtrathon with XCA_O

-jjwijami!mts thereto shallbia

registered 'with the International Civil AV**6P*-*fl -ft_'90ni atio ,

- 29 -

ARTICLE 18

y into Force

This Agreement shall enter into force on the date of

signature .

Upon-entry into force, this Agreement - shall supersede, in

relations between , the United states of America annd%the ~-:Russian

Federation, the June 1, 2,990 -Air-Transport Agreement between the

Government of the United States of America and the . Government of

the Union of soviet Socialist :ReVub1L-cs, as amended, and the

Supplementary Agreement 'of

.

November 4, 1966, as'amendtd .

S

, j -

I

FOR THE GOVERNMEN. -OF:

FOR THETHE.

UNITED STA' - OF -,=+ •

THE RUSSIAN

P)

.

- 30 -

in witness whereof, thee undersigned, being duly authorized

by their respective Governments, have signed the present

Agreement'.

DONE- in duplicate at Moscow in the English and the Russian

. 1anQuages, this 14th day , of January, 1994, both texts being

e''qjially authentic .

ANNEX I

Scheduled Air Services

Section 1

A. Notwithstanding the provisions of the first sentence of paragraph 1 of Article

3 of the Agreement, until, April 11, 2004, the United States of America shall have the

right to designate up. to six combination (passenger/cargo) airlines and three all-cargo

carriers, and the Russian Federation shall have the right to designate up to nine

combination or all-cargo airlines, to .operate services on the routes specified in Section

2 of this Annex.

B . Not more than three U.S. combination and two U .S . all-cargo and not more

than three Russian combination and .. two Russian all-cargo airlines may operate

between any city pair on the specified routes .

Section 2

Airlines designated, under this Annex shall, in accordance with .the terms of their

designation and subject to the provisions of Section 1 of Annex IV of the Agreement,

be entitled to perform scheduled international air transportation : (1) between points on

the following routes, and (2) between points on such routes and any points in third

countries through points in the territory of the Party which has designated the airlines .

A. Routes for airlines designated by the Government of the . United States of

America: From a point or points in the United States of America via intermediate

points' 2 to Moscow, St. Petersburg, Magadan, .Khabarovsk, Vladivostok,

Petropavlovsk-Kamchatski, Yuzhno-Sakhalinsk and Nizhniy Novgorod, and beyond to

China (including Hong Kong), the Republic of Korea, Singapore, Taiwan and the

Philippines .

Att . 1, pg . 7

Appendix B

1 . Without traffic rights between points in Latvia, Lithuania, Estonia, Belarus,

Moldova, Ukraine, Georgia, Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan,

Tajikistan, Turkmenistan and Uzbekistan and mentioned points in the Russian

Federation ;

2. Without traffic rights between any _points in Europe and points in the. Russian

Federation until April 11, 2004, unless the Parties agree otherwise . The Parties will

consult prior to April 11, 2003 concerning this restriction .

e_2~7

_~N~

Att . 1, pg . 8

B . Routes for the airline or airlines designated by the Government of the

Russian Federation : From a point or points in . the Russian Federation via intermediate

points to Atlanta, Bangor, Boston, New York, Washington, Chicago, Dallas/Fort

Worth, Anchorage, Seattle, Portland (Oregon), San Francisco, Los Angeles, Orlando,

Honolulu, Miami, Columbus (Ohio), Houston and two points to be named by the

Russian Federation, and beyond to fifteen points in the Western Hemisphere and Asia

to be named by the Russian Federation .

Section 3

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

A. operate flights in either or both directions ;

B . combine different flight numbers within .one aircraft . operation;

C. serve points on the. routes in any combination `and in any order, which may

include serving intermediate points as beyond points and beyond points as intermediate

points;

D. a nit stops,at,any .point. or points=

E. serve a number of points in the. =territory of, the other Party by one aircraft

operation, provided that it excludes cabotage ;

F. transfer traffic (including its own stopover traffic) from any of its aircraft to

any of its other aircraft at any point on the routes ;

G. operate combination and all cargo services to any third-country point not

specified in Section 2 of this Annex, without traffic rights between the territory of the

other Party and such unspecified point ;

without directional. or geographic limitation and without loss of any right to carry

traffic otherwise permissible under the Agreement ; provided that the service operates

via a point, or points in the territory of the Party designating the airline .

,~~

Section 4

A. Until April 11, 2004, the- U .S. airlines designated for combination service

May operate up to 63 round-trip frequencies per week between points in the United

States of America and points in the Russian Federation . Until April 11, 2004, U .S .

airlines designated for all-cargo service may operate up to 23 round-trip frequencies

per week, between points in the United States of America and points in the Russian

Federation .

B . Until April 11, 2004, Russian designated airlines may operate up to 86

round-trip frequencies per -week between points in the Russian Federation and points

in the United States . of America .

C. The frequencies mentioned above may be increased in accordance with

Article 13 of the Agreement . Extra section flights, operated by designated . airlines on

the above-specified routes of one Party shall not be counted as a frequency, but must

be approved in advance by the aeronautical -authorities of the other Party.

D. The designated airlines of one Party while operating services in accordance

with this Annex in the territory of the other Party may utilize any type of subsonic

aircraft with a capacity of fewer than 500 . seats that is in accordance with the laws and

regulations of the other Party. Each Party may request the assistance of the other Party,

on. behalf ,of its airline or-airlines, concerning restrictions that may be 'imposed by state

or local governments or authorities . In response to such a request, the other Party shall

bring the views of the requesting Party to the attention of the relevant governmental

unit. or authQrity .and.urge, that those views be :given appropriate consideration .

Section 5

On any segment or segments of the routes above ; a designated airline may

perform international air transportation without any limitation as to change, at any

point on the route, in type; ior.;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 that has designated , the airline and, in the

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

airline is a continuation of the transportation beyond such point .

C~_C

4,-/

Att . 1, pg . 9

Section 6

Notwithstanding any other provision of the Agreement, airlines of both Parties

shall be permitted, without restriction, to employ in connection with international air

transportation any surface transportation company which has appropriate permission

from the respective authorities to engage -in surface transportation of cargo to or from

any points in the territories of the Parties or in third countries, including transport to

and from all airports with customs facilities, and including, where applicable, the . right

to transport cargo in bond under applicable law and regulations . Such cargo, whether

moving by . surface or by :.* : 'shall have, pursuant 'to_ relevant non-discriminatory

procedures and regulations, access to- airport customs processing and facilities .

Designated airlines may elect to perform their own surface transportation or to provide

it through arrangements, with other surface carriers, - including surface transportation

operated by other airlines and indirect providers of cargo transportation `pursuant to the .

condition that any surface carrier shall have the appropriate permission to engage 'in

surface transportation of cargo . Such intermodal -cargo services: may be offered at a

single through price for the .:air and surface transportation combined, . provided that

shippers are not misled as to the facts concerning such transportation .

-Section 7

An airline of one Party authorized to operate scheduled service and an airline of

the other Party may establish joint ventures to the extent consistent with this

Agreement and other applicable laws of the Parties .

Section 8

This Annex shall expire one April 11, 2004 ; unless otherwise agreed prior to . that

date. The. Parties agree to consult not later than six months in advance of the expiration

date to determine whether the provisions of this' Annex should. be continued or

modified. This Section does not modify any other provision of the Agreement

regarding consultations or termination .

I~

"I_

Att . 1, pg . 10

ANNEX II

Charter Air;Services

Section 1

A. Airlines of one Party designated under this Annex, in accordance with the

terms of their . designation, and subject to the provisions of this Annex and Section . 4 of

Annex IV of the Agreement, may carry . international charter traffic of passengers (and

their. accompanying baggage) _and/or cargo (including ; -but not limited to, freight

forwarder, ,split and combination (passenger/cargo) charters) between any point . Or

points in. the. territory of the . Party that has designated the- airline and - any point or

points sin. the-territory of the other Party .

B. In the performance of services covered by .this Annex, airlines of one Party

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

points whether within or outside of the territory of either Party, (2) to carry .transit

traffic through the other Party's territory pursuant to conditions and limitations

mentioned in Annex IV of the Agreement; and (3) to combine on the same aircraft

traffic originating in one Party's territery .with traffic that originated in the other Party's

territory.

Section 2

A. On the North Atlantic route, the total number of such roundtrip flights for the

airlines of each Party shall not exceed: --(a) for passenger and combination charters -

150 per year; and (b) for cargo charters - 80 per year . Charter flights over the number

mentioned above shall receive positive consideration by the aeronautical authorities of

the respective Party on the ; basis of comity and reciprocity .. The above quota may be

changed by agreement of the Parties .

B . On the Transeast/North Pacific route, the total number , of such roundtrip

flights for the airlines of each Party shall not exceed: . (a) for passenger and

combinations charters - 150 per year ; and (b) for cargo charters - 80 per year . Charter

flights over the number mentioned above shall receive positive consideration by the

aeronautical authorities of the respective Parties on the basis of comity and reciprocity .

The above quota may be changed by agreement of the Parties .

Att . 1, pg . 11

Att . 1, pg . 12

. C . Subject to advance approval of routings and points in compliance with entry,

transit, customs and immigration' laws% and regulations, and in accordance with the

safety and national security requirements of the receiving Party, decisions on charter

applications shall be made within 10 working days of receipt of the application . In the

event of denial of an application, the denial shall specify which of the following

reasons'apply:

1 . reciprocity

2 . safety

3 . national security considerations .

Applications filed on short notice shall' receive sympathetic consideration, in the

shortest possible time .

D. Charter flights shall be operated ; in accordance with the' charter rules of the

country, in which the charter . traffic. originates . If a Party applies different rules,

regulations, terms conditions; or limitations toone �or more of its airlines, .~or to airlines

of different countries, each designated airline shall be subject :to'the least restrictive of

such criteria. However, nothing in this subsection shall limit the rights of one Party to

require the designatedairline or airlines of the other Party to adhere to requirements

relating to national security or protection of passenger funds and passenger

cancellation and refund rights .

Section 3

Humanitarian charters, if recognized by each of the Parties as such, shall not be

included in the numerical limitation set forth in Section 2 of this Annex .

Section 4

An airline of one Party authorized to operate charter services and an airline of

the other Party may establish joint ventures to the extent consistent with the .

Agreement and other applicable laws of the Parties .

10

I

h

Section 5

The designated airlines of one Party while operating services in accordance with

this Annex in the territory-of the other Party may utilize any type of subsonic aircraft

with a capacity of fewer than 500 seats that is in accordance with the laws and

regulations of the other Party . Each Party may request the assistance of the other Party,

on behalf of its airline or airlines, concerning restrictions that may be imposed by state

or local governments or authorities . In response to such a request, the other Party shall

bring the views of the requesting Party to the attention of the relevant. governmental

unit or authority and urge that those views be given appropriate consideration .

Section 6

This Annex shall expire on April 11, 2004, unless otherwise agreed prior to• that

date. The Parties agree to consult not later than six months in advance of the expiration

date to. determine whether the provisions of this Annex - ,should be, continued or

modified: This Section does not modify any . other ,provision .-of the Agreement

regarding consultations or, termination .

Att . 1, pg . 13

ANNEX.111

Commercial Opportunities

Section 1

A. Prior to such time as the Parties agree that designated airlines of the Parties

may exercise fully. all rights specified in paragraph 3 of Article 8 of the Agreement, the

designated airlines of one Party shall have the right to select agents authorized in

accordance with national laws : and regulations for ground handling and fuel supply

services in the territory of the other Party ; provided that pending such agreement,

designated airlines of one Party may exercise in the territory of the other Party all

rights specified in : paragraph 3 of Article 8 of the Agreement to the maximum extent

permitted , by the law of such other Party, and in any_ event to the maximum extent

permitted to any other airline of any nationality other than the national airlines of such

other Party.

Att . 1, pg . 14

B . The Parties agree that the availabilityy of .ground handling : and fuel services to

the airlines of both Parties shall be on a non-discriminatory basis . Each Party may

request the assistance of the other Party, on behalf of its . airline or airlines, concerning

regulations which may be imposed by state or local governments or authorities. In

response to such a request, the other Party shall bring the views of the requesting Party

to the attention of the relevant governmental unit or authority and urge that those views

be given appropriate consideration .

Section 2

A. Prior to such time as the Parties agree that U .S . designated airlines are

permitted under Russian law to exercise fully all rights specified in Paragraphs 4-7 of

Article 8 of the Agreement, the provisions of this Section shall apply in lieu of those

paragraphs, provided that, pending such agreement, U .S. designated airlines may

exercise all such rights in the Russian Federation to the maximum extent permitted by

Russian law, and in any event to the maximum extent permitted to any other airline of

any nationality other than the national, airlines of the Russian Federation.

B . Notwithstanding the provisions of paragraph I of Article 8 of the Agreement,

the airdines of one party designated for scheduled services may establish offices in the

territory of the other Party only at the cities specified on the routes set forth in Section

2 of Annex I of the Agreement.

J~

3$

Att . 1, pg . .15

I

C . The airlines of one Partyyy designated in accordance with Annex I of the

Agreement and pursuant to the terms of their designation shall be permitted to sell

freely passenger and cargo air transportation in the territory of other Party . on their own

transportation documents at their own offices and through travel agents of that Party,

as. well as to appoint agents at their discretion, subject to generally applicable law of

that Party .

Section .3

A. The prc ?,!isigns- : of this Annex shall be applicable to cargo as well as

passenger transportation.

-B . This Annex shall expire on April 11, 2004, unless otherwise agreed prior to

that :date . ,The-Parties agree, to consult .not later than six months in advance of the

expiration.. date to determine whether the provisions of this Annex should be continued

or modified. This Section does not modify any other . provision of the Agreement

regarding consultations or termination.

JZ~

.

ANNEX IV

Over ig is

. ~ Section 1

. Notwithstanding the provisions-of Art

*

icle 2 of the Agreement, the- right of the

airlines of one Party to fly across the territory of the other Party ; the right of airlines of

one Party to make stops in the territory of the other Party for non-traffic purposes ; and

the air transportation rights granted ::;in the Agreement shall be exercised only in

accordance with the Air Traffic Services (ATS) routings for aircraft and the points for

crossing national : boundaries established by each Party 1 within its. territory for the

purposes of the Agreement, taking into . account'security considerations .

Section 2

A. Until April 11, 2004, airlines of the United States of America may overfly

and stop for non-traffic . purposes on. 42 flights per week . (21 flights eastbound and 21

flights westbound) between points, in : Europe: and the Indian subcontinent on ATS

routings approved for international services' . U.S . .-authorities shall notify . Russian

Federation authorities of the allocation of such rights .

B . Until April 11, 2004, airlines of the United States of America may overfly

and stop for non-traffic purposes on' 28 : flights per week (14 flights eastbound and 14

flights westbound) between points in Europe and points in the countries of Southeast

Asia on the ATS routings over the. Tashkent :area approved for international services .

U.S . authorities shall notify Russian Federation authorities of the allocation of such

rights.

C . Until April 11, 2004, airlines of .the .United States of America may operate on

the Transeast ATS routings network approved for international services 600 . flights per

week (200 flights eastbound and 400 flights westbound) between points in the United

States of America and points in the Far East - and in the Asia-Pacific region, provided

that traffic handling capability on these ATS routings is adequate .

A Q

Att . 1, pg . 16

1 This number of flights will remain in effect until April 11, 2004, unless the Parties

agree otherwise . The-Parties will consult prior to April 11, 2003, on this matter .

~C

J~~

el~'

Att . 1, pg . 17

D. Until April 11, 2004, airlines of the United States of America may overfly

and stop for non-traffic purposes on the Crosspolar ATS routings network approved

for international services 70 flights per week (35 flights northbound and 35 flights

southbound) between points in the United States of America and points in Asia and the

Pacific region, provided that traffic handling capability on these ATS routings is

adequate, and in accordance with the conditions published in the AIP of the Russian

Federation. Flights that use the Crosspolar ATS routings network as well as the

Transeast ATS!routings network shall lie counted . only as flights under paragraph C.

Section 3.

The designated airlines of one Party while : operating services in accordance with

this Annex ..may utilize any type of subsonic aircraft with a capacity of fewer `.than 500

seats that is in accordance, with the laws and regulations of the other Party .

Section 4

I .L :

_

.-. 7 1

The-Parties shall ; provide the necessary air traffic services and weather services

within : their... respective~ FlightInfonnation: :Regions so -=that airlines and other civil

aircraft : operators ,_of :either .: Party- .111ay .operate: fli is in . accordance with the

Agreement .

T

_~, -.Section .5

-The appropriate UUSs authorities shall make available to Russian airlines and

other civil aircraft operators : all U.S. airspace : entry and exit points thatt are available to

any non-U.S . airline . Subject to appropriate U .S. internal procedures, the U.S .

authorities shall provide access to published common ATS routings to/from each entry

and exit point .for each. :destinatiow.authorized for scheduled :and charter services

pursuant to the Agreement, or try the . optimal ATS routing where no common ATS

routing is published . Russian airlines' and other civil aircraft operators shall provide

two weeks' advance notification of the specific entry point and exit point, and one

alternate entry point and one alternate exit point, and ATS routing to be used for each

destination to the Federal Aviation Administration (FAA) Office of International

Aviation, Wash'nngton, D. C. Entry and -exit-points and ATS routings may be changed_

by the Russian airlines and other civil aircraft operators at any time with at least two

weeks notice to FAA . The U.S. authorities reserve the right to modify the ATS . routing

a}e

Att . 1, pg . 18 •

for security reasons, but shall attempt to keep the routing as close to optimum as

possible .

Section 6

This Annex shall expire on' April 11, 2004, unless otherwise agreed prior to that

date. The Parties agree to consult not later than six months in advance of the expiration

date . to determine whether the ; - provisions - of 'this Annek should be continued or

modified. This Section does not modify any 'other provision of the Agreement

regarding consultations or . termination.

J~

* Third country code-share services with airlines of the Federal Republic of Germany

shall not be permitted until the provisions in the bilateral _air transport _agreement, or in

a related understanding, between the Federal Republic of Germany and the Russian

Federation prohibiting third country code-share services to the Russian Federation is

eliminated .

e~!i

. ANNEX V

Co-operative Marketing Arrangements

Section, I

A. Subject to the provisions of subsections B and C of this Section, each Party

may authorize its airlines to enter . into co-operative marketing arrangements such as

block space, code-sharing, or leasing arrangements, and hold . out service on aircraft

operated by :

1 . an airline or airlines of either Party, for services on any of the agreed routes ;

2.- an airline of a third country, for services between points authorized in the

territories of the Parties, pursuant to Section 2 of Annex I of the Agreement, via :

a. for airlines of the United States, intermediate points in Europe

b. for airlines of Russia, intermediate points in Europe or Latvia, Lithuania,

Estonia, Belarus, Moldova, Ukraine, Georgia, Armenia, Azerbaijan, . Kazakhstan,

Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan .

B . Each Part may authorize up to five code-sharing arrangements on services

operated by airlines of third countries, in accordance with subsection A of this Section .

1 . Each code-sharing arrangement involving an airline of a third country may

serve the territories of the Parties via no more than one intermediate point . Such an

intermediate point shall be chosen by each Party on behalf of its airline.

2. A Party may select the same airline to exercise more than one of the five

arrangements provided for in subsection B of this Section . An airline selected to

exercise more than one arrangement may use the allocation with the same partners or

different partners, subject to the limitation that no more than daily service may be

provided to the same city pair .

3 . Each code-sharing arrangement shall be limited to 14 weekly operations, with

no more than daily service being provided to the same city-pair .

C. Co-operative arrangements shall be subject to the requirements that all

airlines in such arrangements : (1) hold the appropriate authority and (2) meet the

requirements normally applied by each Party to such arrangements .

Att . 1, pg . 19

Section 2 -

A. For purposes of the frequency limitations on services stated in Section 4 of

Annex I of the Agreement, code-share services operated between the territories of the

Parties authorized under this Annex shall . count for one-half of one frequency with

respect to the non-operating airline of a Party pnd one full frequency for an operating

airline of a. Party.

B . An airline authorized . to provide scheduled. services under this Annex may

hold out fifth freedom services on such . operations, if the airline has also been

designated under Annex I of the Agreement .

.- Section 3

This Annex shall expire on April 11, unless .otherWise:.agreed prior to that

date . The Parties agree to consult not later ,than six months in advance of the expiration

.date to determine whether the provisions of :-this . Annex should be continued or

modified. This Section . does not modify any other provision of the Agreement

regarding consultations or termination. .

Att . 1, pg . 20 .

ANNEX VI

.

Special Provisions For Services To And Via Alaska

Section 1

Scheduled Service

A.- Code-Share, Servic-es,For Airlines Designated by the Government of the

Russian Federation :

The Government of the Russian Federation shall have the right to designate any

number of airlines, which shall be entitled, in conjunction with flights operated to or

via a point in Alaska, to hold out their services on services operated by airlines of

either Party between . any point or points in the territory of the Russian Federation and

any-powt ,or,.,points in the territory of the United States of America, subject to the

following provisions :

All airlines - engaged, in code-share operations must have the appropriate

authority . JI,

"

2 . All , code-share arrangements must meet the requirements normally applied to

such arrangements .

3 . Code-share operations under subsection A of this Section shall not be

counted against frequency limits set forth in Section 4 of Annex I of the Agreement

applicable to operations by airlines designated by the Parties for any of the airlines

involved.

4 . Airlines designated solely to exercise the rights provided for in subsection A

of this Section ' shall not be counted against the limits on designation set forth in

Section 1 of Annex I of the Agreement applicable to the Parties .

B.

Own-Aircraft Services by Airlines Designated by the Government of the

Russian Federation:

1 . The Government of the Russian Federation shall have the right to designate

any number of airlines to operate any number of frequencies on routes between any

point or points in the Russian Federation and any point or points in the United States

of America, provided that the operation serves a point in Alaska .

2 . Frequencies operated under paragraph I of subsection B of this Section shall

_not __be__=unted__ against --limits--on - -frequencies--opplinable-looperations--

by--airlines-designated by the Government of the Russian Federation set forth in subsection B of

Section 4 of Annex I of the Agreement . Airlines designated solely to exercise rights

provided for in paragraph 1 of this subsection shall not be counted against the limit on

1 15)

Att . 1, .pg . 21

Att .1, pg . 22

designations applicable to the Government of the Russian Federation set forth in

Section 1 of Annex I of the Agreement.

C. Own-Aircraft Services by Airlines . Designated by the Government of the

United States of America:

2

.

.

. . 1 .

1 .

In addition to the route rights provided, in Annex I, Section 2A, airlines

designated by the Government of the United States of America shall be entitled to

perform scheduled international air transportation between any point or points in

Alaska and Anadyr,- -Prorvidemya, and LaNTeptiya, subject to Russian government

internal regulations applicable for utilization of these airports, which will be applied on

a. non-discriminatory basis to international air services . . .

'Siecti9ii 2 :

Charier Service

The Government of the Russian Federation shall be entitled to designate any

number of Airlines'

,

topperatq- any number of charter services between Alaska and the

Russian Far East.

Section 3

This Annex .shallexpirq I or,.April. l, 2004, ,iWe$s ...gth~,Tynscagreed. prior tothat

date ; TO Parties agree to consult notan later..JAWsixm9,nths in. Advance, of the expiration

date to , determine whether. the: provisions- , of -this' ~ Annex : should - be continued or

modified. This~ Section : does- not, modify; -any--other provision ; of the Agreement

regarding consultations or termination.

PROTOCOL

BETWEEN

THE GOVERNMENT OF THE UNITED STATES OF AMERICA

AND

THE GOVERNMENT OF THE RUSSIAN FEDERATION

TO AMEND THE JANUARY 14,1994 AIR TRANSPORT AGREEMENT

BETWEEN

THE GOVERNMENT OF THE UNITED STATES OF AMERICA

AND

THE GOVERNMENT OF THE RUSSIAN FEDERATION

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

Russian Federation, hereinafter referred to as "the Parties" ;

Proceeding from the Air Transport Agreement between the Government of the

United States of America and the Government of the Russian Federation, signed at

Moscow on January 14, 1994, hereinafter referred to as "the Agreement";

Striving to further develop relations and cooperation between the two countries in

the area of civil aviation; and

Desiring to amend the Agreement to replace the Annexes thereto that expired on

January 22, 2001 ;

Have agreed as follows :

Article 1

The Annexes of this Protocol shall be integral parts of the Agreement, and shall

govern scheduled air services (Annex I), charter air services (Annex II), commercial

Appendix B

opportunities (Annex III), overflights (Annex IV), cooperative marketing arrangements

(Annex V) and special provisions for services to and via Alaska (Annex VI) .

Article 2

This Protocol shall enter into force upon signature and shall remain in force until

March 25, 2007, unless the Parties agree otherwise in writing .

IN WITNESS WHEREOF the undersigned, being duly authorized by their

Governments, have signed the present Protocol .

DONE at this

day of , in duplicate, in the

Russian and English languages, each text being equally authentic .

FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF THE

UNITED STATES OF AMERICA :

RUSSIAN FEDERATION:

ANNEX I

Scheduled Air Services

Section 1

A. Notwithstanding the provisions of the first sentence of paragraph 1 of

Article 3 of the Agreement, until March 25, 2007, the United States of America shall

have the right to designate up to six combination (passenger/cargo) airlines and three

all-cargo carriers, and the Russian Federation shall have the right to designate up to

nine combination or all-cargo airlines, to operate services on the routes specified in

Section 2 of this Annex .

B . Not more than three U .S . combination and two U .S . all-cargo and not more

than three Russian combination and two Russian all-cargo airlines may operate

between any city pair on the specified routes .

Section 2

Airlines designated under this Annex shall, in accordance with the terms of

their designation, and subject to the provisions of Section 1 of Annex IV of the

Agreement, be entitled to perform scheduled international air transportation : (1)

between points on the following routes, and (2) between points on such routes and

any points in third countries through points in the territory of the Party which has

designated the airlines .

A. Routes for airlines designated by the Government of the United States of

America: From a point or points in the United States of America via intermediate

points 1,2 to Moscow, St. Petersburg, Magadan, Khabarovsk, Vladivostok,

Petropavlovsk-Kamchatski, Yuzhno-Sakhalinsk and Nizhniy Novgorod, and to . five

additional points in the Russian Federation to be named by the United States of

1 . Without traffic rights between points in Latvia, Lithuania, Estonia, Belarus, Moldova,

Ukraine, Georgia, Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan

and Uzbekistan and mentioned points in the Russian Federation ;

2. Without traffic rights between any points in Europe and points in the Russian Federation

until March 25, 2007, unless the Parties agree otherwise .

A%

America for marketing services on a code-share only basis, and beyond to China

(including Hong Kong), the Republic of Korea, Singapore, Taiwan and the

Philippines .

B . Routes for the airline or airlines designated by the Government of the

Russian Federation : From a point or points in the Russian Federation via

intermediate points to Atlanta, Bangor, Boston, New York, Washington, Chicago,

Dallas/Fort Worth, Anchorage, Seattle, Portland (Oregon), San Francisco, Los

Angeles, Orlando, Honolulu, Miami, Columbus (Ohio), Houston and two points to

be named by the Russian Federation, and to five additional points in the United

States to be named by the Russian Federation for marketing services on a code-share

only basis, and beyond to fifteen points in the Western Hemisphere and Asia to be

named by the Russian Federation.

Section 3

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

A. operate flights in either or both directions ;

B . combine different flight numbers within one aircraft operation ;

C . serve points on the routes in any combination and in any order, which may

include serving intermediate points as beyond points and beyond points as

intermediate points;

D. omit stops at any point or points ;

E. serve a number of points in the territory of the other Party by one aircraft

operation, provided that it excludes cabotage ;

F. transfer traffic (including its own stopover traffic) from any of its aircraft to

any of its other aircraft at any point on the routes ;

G. operate combination and all-cargo services to any third-country point not

specified in Section 2 of this Annex, without traffic rights between the territory of

the other Party and such unspecified point;

without directional or geographic limitation and without loss of any right to carry

traffic otherwise permissible under the Agreement ; provided that the service operates

via a point or points in the territory of the Party designating the airline .

D

Section 4

A. Until March 25, 2007, the U .S . airlines designated for combination service

may operate up to 63 round-trip frequencies per week between points in the United

States of America and points in the Russian Federation . Until March 25, 2007, U.S.

airlines designated for all-cargo service may operate up to 23 round-trip frequencies

per week, between points in the United States of America and points in the Russian

Federation .

B. Until March 25, 2007, Russian designated airlines may operate up to 86

round-trip frequencies per week between points in the Russian Federation and points

in the United States of America.

C. The frequencies mentioned above may be increased in accordance with

Article 13 of the Agreement. Extra-section flights operated by designated airlines on

the above-specified routes of one Party shall not be counted as a frequency, but must

be approved in advance by the aeronautical authorities of the other Party.

D. The designated airlines of one Party while operating services in accordance

with this Annex in the territory of the other Party may utilize any type of subsonic

aircraft with a capacity of fewer than 500 seats that is in accordance with the laws

and regulations of the other Party. Each Party may request the assistance of the other

Party, on behalf of its airline or airlines, concerning restrictions that may be imposed

by state or local governments or authorities . In response to such a request, the other

Party shall bring the views of the requesting Party to the attention of the relevant

governmental unit or authority and urge that those views be given appropriate

consideration .

Section 5

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

perform international air transportation without any limitation 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 that has designated the airline and, in

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

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

Section 6

Notwithstanding any other provision of the Agreement, airlines of both Parties

shall be permitted, without restriction, to employ in connection with international air

transportation any surface transportation company which has appropriate permission

from the respective authorities to engage in surface transportation of cargo to or from

any points in the territories of the Parties or in third countries, including transport to

and from all airports with customs facilities, and including, where applicable, the

right to transport cargo in bond under applicable law and regulations . Such cargo,

whether moving by surface or by air, shall have, pursuant to relevant nondiscriminatory

procedures and regulations, access to airport customs processing and

facilities . Designated airlines may elect to perform their own surface transportation

or to provide it through arrangements with other surface carriers, including surface

transportation operated by other airlines and indirect providers of cargo

transportation pursuant to the condition that any surface carrier shall have the

appropriate permission to engage in surface transportation of cargo. Such intermodal

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

transportation combined, provided that shippers are not misled as to the facts

concerning such transportation .

Section 7

An airline of one Party authorized to operate scheduled service and an airline

of the other Party may establish joint ventures to the extent consistent with this

Agreement and other applicable laws of the Parties .

Section 8

This Annex shall expire on March 25, 2007, unless otherwise agreed prior to

that date. The Parties agree to consult not later than six months in advance of the

expiration date to determine whether the provisions of this Annex should be

continued or modified . This Section does not modify any other provision of the

Agreement regarding consultations or termination .

Z`

"I

6a

ANNEX II

Charter Air Services

Section 1

A. Airlines of one Party designated under this Annex, in accordance with the

terms of their designation, and subject to the provisions of this Annex and Section 1

of Annex IV of the Agreement, may carry international charter traffic of passengers

(and their accompanying baggage) and/or cargo (including, but not limited to, freight

forwarder, split and combination (passenger/cargo) charters) between any point or

points in the territory of the Party that has designated the airline and any point or

points in the territory of the other Party .

B . In the performance of services covered by this Annex, airlines of one Party

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

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

traffic through the other Party's territory pursuant to conditions and limitations

mentioned in Annex IV of the Agreement ; and (3) to combine on the same aircraft

traffic originating in one Party's territory with traffic that originated in the other

Party's territory .

Section 2

A. On the North Atlantic route, the total number of such roundtrip flights for

the airlines of each Party shall not exceed : (a) for passenger and combination

charters - 150 per year; and (b) for cargo charters - 80 per year . Charter flights over

the number mentioned above shall receive positive consideration by the aeronautical

authorities of the respective Party on the basis of comity and reciprocity . The above

quota may be changed by agreement of the Parties .

B . On the Transeast/North Pacific route, the total number of such roundtrip

flights for the airlines of each Party shall not exceed : (a) for passenger and

combinations charters - 150 per year; and (b) for cargo charters - 80 per year. Charter

flights over the number mentioned above shall receive positive consideration by the

aeronautical authorities of the respective Parties on the basis of comity and

reciprocity . The above quota may be changed by agreement of the Parties .

G

C . Subject to advance approval of routings and points in compliance with

entry, transit, customs and immigration laws and regulations, and in accordance with

the safety and national security requirements of the receiving Party, decisions on

charter applications shall be made within 10 working days of receipt of the

application. In the event of denial of an application, the denial shall specify which of

the following reasons apply:

1 . reciprocity

2. safety

3. national security considerations .

Applications filed on short notice shall receive sympathetic consideration, in the

shortest possible time.

D. Charter flights shall be operated in accordance with the charter rules of the

country in which the charter traffic originates . If a Party applies different 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

restrictive of such criteria . However, nothing in this subsection shall limit the rights

of one Party to require the designated airline or airlines of the other Party to adhere

to requirements relating to national security or protection of passenger funds and

passenger cancellation and refund rights .

Section 3

Humanitarian charters, if recognized by each of the Parties as such, shall not

be included in the numerical limitation set forth in Section 2 of this Annex .

Section 4

An airline of one Party authorized to operate charter services and an airline of

the other Party may establish joint ventures to the extent consistent with the

Agreement and other applicable laws of the Parties .

J~~

Section 5

The designated airlines of one Party while operating services in accordance

with this Annex in the territory of the other Party may utilize any type of subsonic

aircraft with a capacity of fewer than 500 seats that is in accordance with the laws

and regulations of the other Party . Each Party may request the assistance of the other

Party, on behalf of its airline or airlines, concerning restrictions that may be imposed

by state or local governments or authorities . In response to such a request, the other

Party shall bring the views of the requesting Party to the attention of the relevant

governmental unit or authority and urge that those views be given appropriate

consideration .

Section 6

This Annex shall expire on March 25, 2007, unless otherwise agreed prior to

that date. The Parties agree to consult not later than six months in advance of the

expiration date to determine whether the provisions of this Annex should be

continued or modified . This Section does not modify any other provision of the

Agreement regarding consultations or termination .

ANNEX III

Commercial Opportunities

Section 1

A. Prior to such time as the Parties agree that designated airlines of the Parties

may exercise fully all rights specified in paragraph 3 of Article 8 of the Agreement,

the designated airlines of one Party shall have the right to select agents authorized in

accordance with national laws and regulations for ground handling and fuel supply

services in the territory of the other Party; provided that pending such agreement,

designated airlines of one Party may exercise in the territory of the other Party all

rights specified in paragraph 3 of Article 8 of the Agreement to the maximum extent

permitted by the law of such other Party, and in any event to the maximum extent

permitted to any other airline of any nationality other than the national airlines of

such other Party .

B . The Parties agree that the availability of ground handling and fuel services

to the airlines of both Parties shall be on a non-discriminatory basis . Each Party may

request the assistance of the other Party, on behalf of its airline or airlines,

concerning regulations which may be imposed by state or local governments or

authorities . In response to such a request, the other Party shall bring the views of the

requesting Party to the attention of the relevant governmental unit or authority and

urge that those views be given appropriate consideration .

Section 2

A. Prior to such time as the Parties agree that U .S . designated airlines are

permitted under Russian law to exercise fully all rights specified in Paragraphs 4-7 of

Article 8 of the Agreement, the provisions of this Section shall apply in lieu of those

paragraphs, provided that, pending such agreement, U .S . designated airlines may

exercise all such rights in the Russian Federation to the maximum extent permitted

by Russian law, and in any event to the maximum extent permitted to any other

airline of any nationality other than the national airlines of the Russian Federation .

B. Notwithstanding the provisions of paragraph 1 of Article 8 of the

Agreement, the airlines of one Party designated for scheduled services may establish

offices in the territory of the other Party only at the cities specified on the routes set

forth in Section 2 of Annex I of the Agreement .

C . The airlines of one Party designated in accordance with Annex I of the

Agreement and pursuant to the terms of their designation shall be permitted to sell

freely passenger and cargo air transportation in the territory of other Party on their

own transportation documents at their own offices and through travel agents of that

Party, as well as to appoint agents at their discretion, subject to generally applicable

law of that Party .

Section 3

A. The provisions of this Annex shall be applicable to cargo as well as

passenger transportation.

B . This Annex shall expire on March 25, 2007, unless otherwise agreed prior

to that date . The Parties agree to consult not later than six months in advance of the

expiration date to determine whether the provisions of this Annex should be

continued or modified . This Section does not modify any other provision of the

Agreement regarding consultations or termination .

l JZ`

ANNEX IV

Overflights

Section 1

Notwithstanding the provisions of Article 2 of the Agreement, the right of the

airlines of one Party to fly across the territory of the other Party ; the right of airlines

of one Party to make stops in the territory of the other Party for non-traffic purposes ;

and the air transportation rights granted in the Agreement shall be exercised only in

accordance with Air Traffic Services (ATS) routings for aircraft and the points for

crossing national boundaries established by each Party within its territory for the

purposes of the Agreement, taking into account security considerations .

Section 2

A. Until March 25, 2007, airlines of the United States of America may overfly

and stop for non-traffic purposes on 52 flights per week (26 flights eastbound and 26

flights westbound) between the United States and the Indian subcontinent either nonstop

via European airspace or via points in Europe on ATS routings approved for

international services . U.S . authorities shall notify Russian Federation authorities of

the allocation of such rights .

B. Until October 28, 2006, airlines of the United States of America when

operating all-cargo flights may overfly and stop for non-traffic purposes on 56 flights

per week (28 flights eastbound and 28 flights westbound) between points in Europe

and points in China (including Hong Kong), Philippines, Kazakhstan, India,

Republic of Korea and Japan on ATS routings approved for international services .

From October 29, 2006 until March 25, 2007, airlines of the United States of

America when operating all-cargo flights may overfly and stop for non-traffic

purposes on 62 flights per week (31 flights eastbound and 31 flights westbound)

between points in Europe and points in China (including Hong Kong), Philippines,

Kazakhstan, India, Republic of Korea and Japan on ATS routings approved for

international services . Such flights shall be subject to the following conditions :

1. Flights that have entered or will depart the airspace of states of the

former Soviet Union at points south of REVKI as well as flights

originating or terminating in Kazakhstan may use the most direct

J~~

ATS routings between BAEVO and GUTAN/ARISA and ATS

routings to the south thereof

2. Flights that have entered or will depart the airspace of states of the

former Soviet Union at REVKI or points north thereof may use the

most direct ATS routings between BAEVO and GUTAN/ARISA and

ATS routings to the south thereof, provided such flights operate over

a point in the Tashkent Flight Information Region .

U.S. authorities shall notify Russian Federation authorities of the allocation of such

rights .

C. Until March 25, 2007, airlines of the United States of America may operate

on the Transeast ATS routings network approved for international services 600

flights per week (200 flights eastbound and 400 flights westbound) between points in

the United States of America and points in the Far East and in the Asia-Pacific

region, provided that traffic handling capability on these ATS routings is adequate .

D. Until October 28, 2006, airlines of the United States of America may

overfly and stop for non-traffic purposes on the Crosspolar ATS routings network

approved for international services 104 flights per week (52 flights northbound and

52 flights southbound) between points in the United States of America and points in

Asia and the Pacific region. From October 29, 2006 until March 25, 2007, airlines of

the United States of America may overfly and stop for non-traffic purposes on the

Crosspolar ATS routings network approved for international services 126 flights per

week (63 flights northbound and 63 flights southbound) between points in the United

States of America and points in Asia and the Pacific region . Such flights may be

operated provided that traffic handling capability on these ATS routings is adequate,

and in accordance with the conditions published in the AIP of the Russian

Federation . Flights that use the Crosspolar ATS routings network as well as the

Transeast ATS routings network shall be counted only as flights under paragraph C .

Section 3

The designated airlines of one Party while operating services in accordance

with this Annex may utilize any type of subsonic aircraft with a capacity of fewer

than 500 seats that is in accordance with the laws and regulations of the other Party .

Section 4

The Parties shall provide the necessary air traffic services and weather services

within their respective Flight Information Regions so that airlines and other civil

aircraft operators of either Party may operate flights in accordance with the

Agreement .

Section 5

The appropriate U .S. authorities shall make available to Russian airlines and

other civil aircraft operators all U .S. airspace entry and exit points that are available

to any non-U.S . airline . Subject to appropriate U .S . internal procedures, the U.S .

authorities shall provide access to published common ATS routings to/from each

entry and exit point for each destination authorized for scheduled and charter

services pursuant to the Agreement, or to the optimal ATS routing where no common

ATS routing is published. Russian airlines and other civil aircraft operators shall

provide two weeks' advance notification of the specific entry point and exit point,

and one alternate entry point and one alternate exit point, and ATS routing to be used

for each destination to the Federal Aviation Administration (FAA) Office of

International Aviation, Washington, D . C. Entry and exit points and ATS routings

may be changed by the Russian airlines and other civil aircraft operators at any time

with at least two weeks notice to FAA . The U.S. authorities reserve the right to

modify the ATS routing for security reasons, but shall attempt to keep the routing as

close to optimum as possible .

Section 6

This Annex shall expire on March 25, 2007, unless otherwise agreed prior to

that date . The Parties agree to consult not later than six months in advance of the

expiration date to determine whether the provisions of this Annex should be

continued or modified . This Section does not modify any other provision of the

Agreement regarding consultations or termination .

ANNEX V

Co-operative Marketing Arrangements

Section 1

A. Subject to the provisions of subsections B and C of this Section, each Party

may authorize its airlines to enter into co-operative marketing arrangements such as

block space, code-sharing, or leasing arrangements, and hold out service on aircraft

operated by :

1 . an airline or airlines of either Party, for services on any of the agreed routes

including between points in the territory of each Party for international traffic ;

2 . an airline of a third country, for services between points authorized in the

territories of the Parties, pursuant to Section 2 of Annex I of the Agreement, via :

a. for airlines of the United States, intermediate points in Europe

b. for airlines of Russia, intermediate points in Europe (including Latvia,

Lithuania, Estonia, Belarus, Moldova, and Ukraine), and Georgia, Armenia,

Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan .

B. Each Party may authorize up to five code-sharing arrangements on services

operated by airlines of third countries, in accordance with subsection A of this

Section.

1 . Each code-sharing arrangement involving an airline of a third country may

serve the territories of the Parties via no more than one intermediate point . Such an

intermediate point shall be chosen by each Party on behalf of its airline .

2. A Party may select the same airline to exercise more than one of the five

arrangements provided for in subsection B of this Section . An airline selected to

exercise more than one arrangement may use the allocation with the same partners or

different partners, subject to the limitation that no more than daily service may be

provided to the same city pair .

3 . Each code-sharing arrangement shall be limited to 14 weekly operations,

with no more than daily service being provided to the same city-pair .

C. Co-operative arrangements shall be subject to the requirements that all

airlines in such arrangements : (1) hold the appropriate authority and (2) meet the

requirements normally applied by each Party to such arrangements .

Section 2

A. For purposes of the frequency limitations on services stated in Section 4 of

Annex I of the Agreement, code-share services operated between the territories of

the Parties authorized under this Annex shall count for one-half of one frequency

with respect to the non-operating airline of a Party and one full frequency for an

operating airline of a Party .

B . An airline authorized to provide scheduled services under this Annex may

hold out fifth freedom services on such operations, if the airline has also been

designated under Annex I of the Agreement .

Section 3

This Annex shall expire on March 25, 2007, unless otherwise agreed prior to

that date. The Parties agree to consult not later than six months in advance of the

expiration date to determine whether the provisions of this Annex should be

continued or modified . This Section does not modify any other provision of the

Agreement regarding consultations or termination .

Jam\

ANNEX VI

Special Provisions For Services To And Via Alaska

Section 1

Scheduled Service

A. Code-Share Services For Airlines Designated by the Government of the

Russian Federation :

The Government of the Russian Federation shall have the right to designate

any number of airlines, which shall be entitled, in conjunction with flights operated

to or via a point in Alaska, to hold out their services on services operated by airlines

of either Party between any point or points in the territory of the Russian Federation

and any point or points in the territory of the United States of America, subject to the

following provisions :

1 . All airlines engaged in code-share operations must have the appropriate

authority .

2. All code-share arrangements must meet the requirements normally applied

to such arrangements .

3 . Code-share operations under subsection A of this Section shall not be

counted against frequency limits set forth in Section 4 of Annex I of the Agreement

applicable to operations by airlines designated by the Parties for any of the airlines

involved.

4. Airlines designated solely to exercise the rights provided for in subsection A

of this Section shall not be counted against the limits on designation set forth in

Section 1 of Annex I of the Agreement applicable to the Parties .

B .

Own-Aircraft Services by Airlines Designated by the Government of the

Russian Federation :

1 . The Government of the Russian Federation shall have the right to designate

any number of airlines to operate any number of frequencies on routes between any

point or points in the Russian Federation and any point or points in the United States

of America, provided that the operation serves a point in Alaska .

2. Frequencies operated under paragraph 1 of subsection B of this Section

shall not be counted against limits on frequencies applicable to operations by airlines

designated by the Government of the Russian Federation set forth in subsection B of

Section 4 of Annex I of the Agreement . Airlines designated solely to exercise rights

provided for in paragraph 1 of this subsection shall not be counted against the limit

on designations applicable to the Government of the Russian Federation set forth in

Section 1 of Annex I of the Agreement .

C. Own-Aircraft Services by Airlines Designated by the Government of the

United States of America :

In addition to the route rights provided in Annex I, Section 2A, airlines

designated by, the, Government of the United States of America shall be entitled to

perform scheduled international air transportation between any point or points in

Alaska and Anadyr, Provideniya, and Lavrentiya, subject to Russian Government

internal regulations applicable for utilization of these airports, which will be applied

on a non-discriminatory basis to international air services .

Section 2

Charter Service

The Government of the Russian Federation shall be entitled to designate any

number of airlines to operate any number of charter services between Alaska and the

Russian Far East .

Section 3

This Annex shall expire on March 25, 2007, unless otherwise agreed prior to

that date . The Parties agree to consult not later than six months in advance of the

expiration date to determine whether the provisions of this Annex should be

continued or modified . This Section does not modify any other provision of the

Agreement regarding consultations or termination .

UNCLASSIFIED



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