U.S.-Iran (not in force) Bilateral Air Transport Agreement of April 17, 1958

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UNITED STATES OF AMERICA and

IRAN

Signed at Tehran January 16, 1957

Air Transport Services

Agreement signed at Tehran January 16, 1957;

Entered into force April 17, 1958 .

Air Transport Agreement Between The Government of The United

States of America and The Imperial Government of Iran

THE IMPERIAL GOVERNMENT OF IRAN and THE GOVERNMENT

OF THE UNITED STATES OF AMERICA

Being equally desirous to conclude an Agreement for the purpose

of establishing and operating commercial air services between

their respective territories have accordingly appointed their

plenipotentiaries for this purpose as follows :

The Honorable Selden Chapin, Ambassador of the United States

of America,

His Excellency Dr . Ali-Gholi Ardalan, Minister of Foreign Affairs

Who having exhibited and exchanged their full powers and found

them to be in due form have agreed upon the following articles :

For the purposes of the present Agreement:

(A) The term "aeronautical authorities" shall mean in the case

of the United States of America, the Civil Aeronautics Board and

any person or agency authorized to perform the functions exercised

at the present time by the Civil Aeronautics Board and, in

the case of Iran, the Department of Civil Aviation and any person

or agency authorized to perform the functions exercised at present

by the said Department of Civil Aviation .

(B) The term "designated airline" shall mean an airline that

one contracting party has notified the other contracting party,

in writing, to be the airline which will operate a specific route or

routes listed in the Schedule of this Agreement.

(1)

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(C) The term "territory" in relation to a State shall mean the

land areas and territorial waters adjacent thereto under the sovereignty,

suzerainty, protection, mandate or trusteeship of that

State .

(D) The term "air service" shall mean any scheduled air service

performed by aircraft for the public transport of passengers, mail

or cargo.

(E) The term "international air service" shall mean an air

service which passes through the air space over the territory of

more than one State.

(F) The term "stop for non-traffic purposes" shall mean a

landing for any purpose other than taking on or discharging

passengers, cargo or mail.

(A) Each contracting party grants to the other contracting

party rights necessary for the conduct of air services by the designated

airlines, as follows : the rights of transit, of stops for nontraffic

purposes, and of commercial entry and departure for international

traffic in passengers, cargo, and mail at the points

in its territory named on each of the routes specified in the appropriate

paragraph of the Schedule annexed to the present

Agreement.

(B) It is further provided that in areas of hostilities or military

occupation, or areas affected thereby, the operation of such

services shall be subject to the approval of the competent military

authorities.

Air service on a specified route may be inaugurated by an

airline or airlines of one contracting party at any time after that

contracting party has designated such airline or airlines for that

route and the other contracting party has given the appropriate

operating permission . Such other party shall, subject to Article

4, be bound to give this permission without undue delay provided

that the designated airline or airlines may be required to qualify

before the competent aeronautical authorities of that party,

under the laws and regulations normally applied by these authorities,

before being permitted to engage in the operations contemplated

by this Agreement .

ARTICLE4

Each contracting party reserves the right to withhold or to

revoke the operating permission provided for in Article 3 of this

Agreement from an airline designated by the other contracting

party, or to impose such conditions as it may deem necessary on

the exercise of an airline or airlines of those rights, in the event

that it is not satisfied that substantial ownership and effective

control of such airline are vested in nationals of the other contracting

party, or in case of failure by such airline to comply

with the laws and regulations referred to in Article 5 hereof, or

in case of the failure of the airline or the Government designating

it otherwise to perform its obligations hereunder, or to fulfill the

conditions under which the rights are granted in accordance

with this Agreement, provided that conditions shall not be imposed

without prior consultation with the other party .

ARTICLE5

(A) The laws and regulations of one contracting party relating

to the admission to or departure from its territory of aircraft

engaged in international air navigation, or to the operation and

navigation of such aircraft while within its territory, shall be

applied to the aircraft of the airline or airlines designated by the

other contracting party, and shall be complied with by such aircraft

upon entering or departing from, and while within the territory

of the first contracting party .

(B) The laws and regulations of one contracting party relating

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

crew, or cargo of aircraft, such as regulations relating to entry,

clearance, immigration, passports, customs, and quarantine shall

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

of the other contracting party upon entrance into or departure

from, and while within the territory of the first contracting party .

Nothing in the provisions of the present Agreement shall be

construed or regarded as conferring sole and exclusive rights on the

other contracting party or its airlines or as excluding or discriminating

against the airlines of any other country .

Nothing in the provisions of the present Agreement shall be

construed or regarded as conferring on the airlines designated by

one of the contracting parties the right to take up, in the territory

of the other contracting party, passengers cargo or mail carried for

hire or reward and destined for another point in the same territory .

There shall be fair and equal opportunity for the designated

airline or airlines of both contracting parties to operate the

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agreed services on the specified routes between their respective

territories .

In the operation by the airlines of either contracting party of the

trunk services described in this Agreement, the interest of the airlines

of the other contracting party shall be taken into consideration

so as not to affect unduly the services which the latter

provides on all or part of the same routes .

Certificates of airworthiness, certificates of competency and

licenses issued or rendered valid by one contracting party, and

still in force, shall be recognized as valid by the other contracting

party for the purpose of operating the routes and services provided

for in this Agreement, provided that the requirements under which

such certificates or licenses were issued or rendered valid are equal

to or above the minimum standards which may be established

pursuant to the Convention on International Civil Aviation .

Each contracting party reserves the right, however, to refuse to

recognize, for the purpose of flight above its own territory, certificates

of competency and licenses granted to its own nationals by

another State .

In order to prevent discriminatory practices and to assure equality

of treatment, both contracting parties agree that :

(a) Each of the contracting parties may impose or permit to

be imposed just and reasonable charges for the use of public airports

and other facilities under its control . Each of the contracting

parties agrees, however, that these charges shall not be higher

than would be paid for the use of such airports and facilities by its

national aircraft engaged in similar international services .

(b) Fuel, lubricating oils, consumable technical supplies, spare

parts, regular equipment, and stores introduced into the territory

of one contracting party by the other contracting party or its

nationals, and intended solely for use by aircraft of such contracting

party shall be exempt on a basis of reciprocity from customs

duties, inspection fees and other national duties or charges .

(c) Fuel, lubricating oils, other consumable technical supplies,

spare parts, regular equipment, and stores retained on board aircraft

of the. airlines of one contracting party authorized to operate

the routes and services provided for in this Agreement shall, upon

arriving in or leaving the territory of the other contracting party,

be exempt on a basis of reciprocity from customs duties, inspection

fees and other national duties or charges, even though such supplies

be used or consumed by such aircraft on flights in that

territory .

(d) Fuel, lubricating oils, otherconsumable technical supplies,

spare parts, regular equipment, and stores taken on board aircraft

of the airlines of one contracting party in the territory of the other

and used in international services shall be exempt on a basis of

reciprocity from customs duties, excise taxes, inspection fees and

other national duties or charges .

The air services made available to the public by the airlines

operating under this Agreement shall bear a close relationship to

the requirements of the public for such services .

It is the understanding of both contracting parties that services

provided by a designated airline under the present Agreement

shall retain as their primary objective the provision of capacity

adequate to the traffic demands between the country of which

such airline is a national and the countries of ultimate destination

of the traffic . The right to embark or disembark on such

services international traffic destined for and coming from third

countries at a point or points on the routes specified in this Agreement

shall be applied in accordance with the general principles of

orderly development to which both contracting parties subscribe

and shall be subject to the general principle that capacity should

be related

(a) to traffic requirements between the country of origin and the

countries of ultimate destination of the traffic ;

(b) to the requirements of through airline operation ; and,

(c) to the traffic requirements of the area through which the

airline passes after taking account of local and regional services .

Rates to be charged on the routes provided for in this Agreement

shall be reasonable, due regard being paid to all relevant

factors, such as cost of operation, reasonable profit, and the rates

charged by any other carriers, as well as the characteristics of

each service, and shall be determined in accordance with the following

paragraphs :

(A) The rates to be charged by the airlines of either contracting

party between points in the territory of the United States and

points in the territory of Iran referred to in the annexed Schedule

shall, consistent with the provisions of the present Agreement, be

subject to the approval of the aeronautical authorities of the con-

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tracting parties, who shall act in accordance with their obligations

under this Agreement, within the limits of their legal powers .

(B) Any rate proposed by an airline of either contracting party

shall be filed with the aeronautical authorities of both contracting

parties at least thirty (30) days before the proposed date of introduction

; provided that this period of thirty (30) days may be reduced

in particular cases if so agreed by the aeronautical authorities of

each contracting party .

(C) During any period for which the Civil Aeronautics Board

of the United States has approved the traffic conference procedures

of the International Air Transport Association (hereinafter called

IATA), any rate agreements concluded through these procedures

and involving United States airlines will be subject to approval

of the Board . Rate agreements concluded through this machinery

may also be required to be subject to the approval of the aeronautical

authorities of the Government of Iran pursuant to the

principles enunciated in paragraph (A) above .

(D) The contracting parties agree that the procedure described

in paragraphs (E), (F) and (G) of this Article shall apply :

1. If, during the period of the approval by both contracting

parties of the IATA traffic conference procedure, either, any

specific rate agreement is not approved within a reasonable

time by either contracting party, or, a conference of IATA is

unable to agree on a rate, or

2. At any time no IATA procedure is applicable, or

3 . If either contracting party at any time withdraws or fails

to renew its approval of that part of the IATA traffic conference

procedure relevant to this Article.

(E) In the event that power is conferred by law upon the aeronautical

authorities of the United States to fix fair and economic

rates for the transport of persons and property by air on international

services and to suspend proposed rates in a manner comparable

to that in which the Civil Aeronautics Board at present is

empowered to act with respect to such rates for the transport of

persons and property by air within the United States, each of the

contracting parties shall thereafter exercise its authority in such

manner as to prevent any rate or rates proposed by one of its

airlines for services from the territory of one contracting party

to a point or points in the territory of the other contracting party

from becoming effective, if in the judgment of the aeronautical

authorities of the, contracting party whose airline or airlines is or

are proposing such rate, that rate is unfair or uneconomic . If

one of the contracting parties on receipt of the notification referred

ferred to in paragraph (B) above is dissatisfied with the rate proposed

by the airline or airlines of the other contracting party, it

shall so notify the other contracting party prior to the expiry of

the first fifteen (15) of the thirty (30) days referred to, and the

contracting parties shall endeavor to reach' agreement on the

appropriate rate.

In the event that such agreement is reached, each contracting

party will exercise its best efforts to put such rate into effect as

regards its airline or airlines .

If agreement has not been reached at the end of the thirty (30)

day period referred to in paragraph (B) above, the proposed rate

may, unless the aeronautical authorities of the country of the air

carrier concerned see fit to suspend its application, go into effect

provisionally pending the settlement of any dispute in accordance

with the procedure outlined in paragraph (G) below .

(F) Prior to the time when such power may be conferred upon

the aeronautical authorities of the United States, if one of the

contracting parties is dissatisfied with any rate proposed by the

airline or airlines of either contracting party for services from the

territory of one contracting party to a point or points in the

territory of the other contracting party, it shall so notify the other

prior to the expiry of the first fifteen (15) of the thirty (30) day

period referred to in paragraph (B) above, and the contracting

parties shall endeavor to reach agreement on the appropriate rate .

In the event that such agreement is reached, each contracting

party will use its best efforts to cause such agreed rate to be put

into effect by its airline or airlines .

It is recognized that if no such agreement can be reached prior

to the expiry of such thirty (30) days, the contracting party

raising the objection to the rate may take such steps as it may

consider necessary to prevent the inauguration or continuation of

the service in question at the rate complained of .

(G) When in any case under paragraphs (E) or (F) of this

Article the aeronautical authorities of the two contracting parties

cannot agree within a reasonable time upon the appropriate rate

after consultation initiated by the complaint of one contracting

party concerning the proposed rate or an existing rate of the airline

or airlines of the other contracting party, upon the request of

either, the terms of Article 16 of this Agreement shall apply .

The aeronautical authorities of either contracting party shall

supply to the aeronautical authorities of the other contracting

party, at their request, such information and statistics relating

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to traffic carried on the agreed services by the designated airline

or airlines of the first contracting party to and from the territory

of the other contracting party as may normally be prepared and

submitted by the designated airline or airlines to their national

aeronautical authorities for publication. Any additional statistical

traffic data which the aeronautical authorities of one contracting

party may desire from the aeronautical authorities of the

other contracting party, shall, upon request, be a subject of mutual

discussion and agreement between the two contracting parties .

(a) If either of the contracting parties considers it desirable

to modify the terms of this Agreement, it may request consultation

between the competent authorities of the two contracting

parties, and such consultation shall begin within a period of sixty

days from the date of the request . A similar procedure shall

also be applicable in the event either of the contracting parties

desires to consult concerning the application or interpretation

of the terms of the Agreement . When the aforesaid authorities

mutually agree to the modification of the present Agreement, the

said modification shall come into force after it has been confirmed

by an exchange of notes through diplomatic channels and shall

forthwith be communicated to the Council of the International

Civil Aviation Organization .

(b) Changes made by either contracting party in the specified

air routes, except the change of points served by the designated

airline or airlines in the territory of the other contracting party,

shall not be considered as modifications of this Agreement . The

aeronautical authorities of either contracting party may therefore,

proceed unilaterally to make such changes provided however that

notice of any change shall be given without delay to the aeronautical

authorities of the other contracting party .

In the event of any dispute arising between the two contracting

parties relating to the interpretation or application of the present

Agreement and its Schedule, the contracting parties shall, in the

first instance, endeavor to settle it by direct negotiation between

themselves . If they fail to reach a settlement by negotiation,

they shall refer the dispute for an advisory report to some other

person or body designated by mutual agreement between the

contracting parties, or to a tribunal of three arbitrators, one

to be named by each contracting party, and the third to be agreed

upon by the two arbitrators so chosen, provided that such third

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arbitrator shall not be a national of either contracting party .

Each of the contracting parties shall designate an arbitrator

within two months of the date of delivery by either party to the

other party of a diplomatic note requesting arbitration of a dispute ;

and the third arbitrator shall be agreed upon within one month

after such period of two months .

If either of the contracting parties fails to designate its own

arbitrator within two months, or if the third arbitrator is not

agreed upon within the time limit indicated, either party may

request the President of the International Court of Justice to make

the necessary appointment or appointments by choosing the

arbitrator or arbitrators.

The contracting parties will use their best efforts within the

limits of the constitutional powers available to them to put into

effect the opinion expressed in any such advisory report . The

expenses of the arbitral tribunal shall be shared equally by the

two contracting parties .

If a general multilateral convention or Agreement on traffic

rights for scheduled international air services comes into force in

respect of both contracting parties, the present Agreement shall

be amended so as to conform with the provisions of such Convention

or Agreement .

This Agreement, all amendments thereto, and contracts connected

therewith shall be registered with the International Civil

Aviation Organization .

Either of the contracting parties may at any time notify the

other of its intention to terminate the present Agreement . Such

a notice shall be sent simultaneously to the International Civil

Aviation Organization . In the event such communication is

made, this Agreement shall terminate one year after the date of its

receipt, unless by agreement between the contracting parties the

notice of intention to terminate is withdrawn before the expiration

of that time. If the other contracting party fails to acknowledge

receipt, notice shall be deemed as having been received fourteen

days after its receipt by the International Civil Aviation Organization

.

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ARTICLE 20

This Agreement shall enter into force [ 1 ] on the date of receipt

by the Government of the United States of America of a notification

by the Government of Iran of its ratification of this Agreement .

In witness whereof, the undersigned plenipotentiaries being

duly authorized by these respective Governments, have -signed

the present Agreement and have affixed their seals thereto .

Done at Tehran, in duplicate, this sixteenth day of January,

1957, in Persian and English languages, both texts being equally

authentic.

For the Government of the For the Government of Iran

United States of America

SELDEN CHAPIN

ARDALAN

[SEAL]

[SEAL]

SCHEDULE

1. An airline or airlines designated by the Government of the

United States of America shall be entitled to operate air

services on each of the air routes specified via intermediate

points, in both directions, and to make scheduled landings in

Iran at the points specified in this paragraph :

From the United States of America to Tehran and or

Abadan and points beyond, via intermediate points .

2. An airline or airlines designated by the Government of Iran

shall be entitled to operate air services via intermediate points,

in both directions, and to make scheduled landings in the

territory of the United States of America on a route to be

determined at a later date .

3. Points on the specified routes may, at the option of the designated

airline or airlines, be omitted on any or all flights .

1 Apr. 17, 1958