TREATIES AND OTHER INTERNATIONAL ACTS SERIES 12961
Agreement Between the
UNITED STATES OF AMERICA
Signed at Washington June 9, 1998
NOTE BY THE DEPARTMENT OF STATE
Pursuant to Public Law 89—497, approved July 8, 1966
(80 Stat. 271; 1 U.S.C. 113)—
“. . .the Treaties and Other International Acts Series issued
under the authority of the Secretary of State shall be competent
evidence . . . of the treaties, international agreements other than
treaties, and proclamations by the President of such treaties and
international agreements other than treaties, as the case may be,
therein contained, in all the courts of law and equity and of maritime
jurisdiction, and in all the tribunals and public offices of the
United States, and of the several States, without any further proof
or authentication thereof.”
Aviation: Transport Services
Agreement signed at Washington June 9, 1998;
Entered into force June 9, 1998.
AIR TRANSPORT AGREEMENT
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
THE GOVERNMENT OF THE REPUBLIC OF KOREA
The Government of the United States of America and the Government of the Republic
of Korea (hereinafter, "the Parties") ;
Desiring to promote an international aviation system based on competition among
airlines in the marketplace with minimum government interference and regulation;
Desiring to facilitate the expansion of international air transport opportunities;
Desiring to make it possible for airlines to offer the traveling and shipping public a
variety of service options at the lowest prices that are not discriminatory and do not represent
abuse of a dominant position, and wishing to encourage individual airlines to develop and
implement innovative and competitive prices;
Desiring to ensure the highest degree of safety and security in international air
transport and reaffirming their grave concern about acts or threats against the security of
aircraft, which jeopardize the safety of persons or property, adversely affect the operation of
air transportation, and undermine public confidence in the safety of civil aviation; and
Being Parties to the Convention on International Civil Aviation, opened for signature
at Chicago on December 7, 1944;
Have agreed as follows:
For the purposes of this Agreement, unless otherwise stated, the term:
1. "Aeronautical authorities" means, in the case of the United States, the Department of
Transportation, or its successor, and in the case of the Republic of Korea, the Ministry of
Construction and Transportation and any person or agency authorized to perform the
functions exercised by the said Ministry of Construction and Transportation;
2. "Agreement" means this Agreement, its Annexes, and any amendments thereto;
3. "Air transportation" means the public carriage by aircraft of passengers, baggage, cargo,
and mail, separately or in combination, for remuneration or hire;
4. "Convention" means the Convention on International Civil Aviation, opened for
signature at Chicago on December 7, 1944, and includes:
a) Any amendment that has entered into force under Article 94 (a) of the
Convention and has been ratified by both Parties; and
b) 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
5. "Designated airline" means an airline designated and authorized in accordance with
Article 3 of this Agreement;
6. "Full cost" means the cost of providing service plus a reasonable charge for
7. "International air transportation" means air transportation that passes through the
airspace over the territory of more than one State;
8. "Price" means any fare, rate or charge for the carriage of passengers (and their baggage)
and/or cargo (excluding mail) in air transportation charged by airlines, including their
agents, and the conditions governing the availability of such fare, rate or charge;
9. "Stop for non-traffic purposes" means a landing for any purpose other than taking on or
discharging passengers, baggage, cargo and/or mail in air transportation;
10. "Territory" means the land areas under the sovereignty, jurisdiction, protection, or
trusteeship of a Party, and the territorial waters adjacent thereto; and
11. "User charge" means a charge imposed on airlines for the provision of airport, air
navigation, or aviation security facilities or services including related services and
Grant of Rights
1. Each Party grants to the other Party the following rights for the conduct of international
air transportation by the airlines of the other Party:
a) the right to fly across its territory without landing;
b) the right to make stops in its territory for non-traffic purposes; and
c) the rights otherwise specified in this Agreement.
2. Nothing in this Article shall be deemed to confer on the airline or airlines of one Party
the rights to take on board, in the territory of the other Party, passengers, their baggage,
cargo, or mail carried for compensation and destined for another point in the territory of
that other Party.
Designation and Authorization
1. Each Party shall have the right to designate as many airlines as it wishes to conduct
international air transportation in accordance with this Agreement and to withdraw or
alter such designations. Such designations shall be transmitted to the other Party in
writing through diplomatic channels, and shall identify whether the airline is authorized
to conduct the type of air transportation specified in Annex I or in Annex II or both.
2. On receipt of such a designation, and of applications from the designated airline, in the
form and manner prescribed for operating authorizations and technical permissions, the
other Party shall grant appropriate authorizations and permissions without any undue
a) substantial ownership and effective control of that airline are vested in the Party
designating the airline, nationals of the Party, or both;
b) the designated airline is qualified to meet the conditions prescribed under the laws
and regulations normally applied to the operation of international air transportation
by the Party considering the application or applications; and
c) the Party designating the airline is maintaining and administering the standards set
forth in Article 6 (Safety) and Article 7 (Aviation Security).
Revocation of Authorization
1. Either Party may revoke, suspend or limit the operating authorizations or technical
permissions of an airline designated by the other Party where:
a) substantial ownership and effective control of that airline are not vested in the other
Party, the Party's nationals, or both;
b) that airline has failed to comply with the laws and regulations referred to in
Article 5 (Application of Laws) of this Agreement; or
c) the other Party is not maintaining and administering the standards as set forth in
Article 6 (Safety).
2. Unless immediate action is essential to prevent further noncompliance with subparagraphs
lb or lc of this Article, the rights established by this Article shall be exercised only after
consultation with the other Party.
3. This Article does not limit the rights of either Party to withhold, revoke, limit or impose
conditions on the operating authorization or technical permission of an airline or airlines
of the other Party in accordance with the provisions of Article 7 (Aviation Security).
Application of Laws
1. While entering, within, or leaving the territory of one Party, its laws and regulations
relating to the operation and navigation of aircraft shall be complied with by the other
2. While entering, within, or leaving the territory of one Party, its laws and regulations
relating to the admission to or departure from its territory of passengers, crew or
cargo on aircraft (including regulations relating to entry, clearance, aviation security,
immigration, passports, customs and quarantine or, in the case of mail, postal
regulations) shall be complied with by, or on behalf of, such passengers, crew or cargo
of the other Party's airlines.
1. Each Party shall recognize as valid, for the purpose of operating the air transportation
provided for in this Agreement, certificates of airworthiness, certificates of competency,
and licenses issued or validated by the other Party and still in force, provided that the
requirements for such certificates or licenses at least equal the minimum standards that
may be established pursuant to the Convention. Each Party may, however, refuse to
recognize as valid for the purpose of flight above its own territory, certificates of
competency and licenses granted to or validated for its own nationals by the other Party.
2. Either Party may request consultations concerning the safety standards maintained by the
other Party relating to aeronautical facilities, aircrews, aircraft, and operation of the
designated airlines. If, following such consultations, one Party finds that the other Party
does not effectively maintain and administer safety standards and requirements in these
areas that at least equal the minimum standards that may be established pursuant to the
Convention, the other Party shall be notified of such findings and the steps considered
necessary to conform with these minimum standards, and the other Party shall take
appropriate corrective action. Each Party reserves the right to withhold, revoke, or limit
the operating authorization or technical permission of an airline or airlines designated by
the other Party in the event the other Party does not take such appropriate corrective
action within a reasonable time.
1. In accordance with their rights and obligations under international law, the Parties
reaffirm that their obligation to each other to protect the security of civil aviation against
acts of unlawful interference forms an integral part of this Agreement. Without limiting
the generality of their rights and obligations under international law, the Parties shall in
particular act in conformity with the provisions of the Convention on Offenses and
Certain Other Acts Committed on Board Aircraft, signed at Tokyo on
September 14, 1963, the Convention for the Suppression of Unlawful Seizure of Aircraft,
signed at The Hague on December 16, 1970, and the Convention for the Suppression of
Unlawful Acts against the Safety of Civil Aviation, signed at Montreal on September 23,
1971, and the Protocol for the Suppression of Unlawful Acts of Violence at Airports
Serving International Civil Aviation, done at Montreal on February 24, 1988.
2. The Parties shall provide upon request all necessary assistance to each other to prevent
acts of unlawful seizure of civil aircraft and other unlawful acts against the safety of such
aircraft, of their passengers and crew, and of airports and air navigation facilities, and to
address any other threat to the security of civil air navigation.
3. The Parties shall, in their mutual relations, act in conformity with the aviation security
provisions established by the International Civil Aviation Organization and designated as
Annexes to the Convention; they shall require that operators of aircraft of their registry,
operators of aircraft who have their principal place of business or permanent residence in
their territory, and the operators of airports in their territory act in conformity with such
aviation security provisions.
4. Each Party agrees to observe the security provisions required by the other Party for entry
into, for departure from, and while within the territory of that other Party and to take
adequate measures to protect aircraft and to inspect passengers, crew, and their baggage
and carry-on items, as well as cargo and aircraft stores, prior to and during boarding or
loading. Each Party shall also give positive consideration to any request from the other
Party for special security measures to meet a particular threat.
5. When an incident or threat of an incident of unlawful seizure of aircraft or other unlawful
acts against the safety of passengers, crew, aircraft, airports or air navigation facilities
occurs, the Parties shall assist each other by facilitating communications and other
appropriate measures intended to terminate rapidly and safely such incident or threat.
6. When a Party has reasonable grounds to believe that the other Party has departed from
the aviation security provisions of this Article, the aeronautical authorities of that Party
may request immediate consultations with the aeronautical authorities of the other Party.
Failure to reach a satisfactory agreement within 15 days from the date of such request
shall constitute grounds to withhold, revoke, limit, or impose conditions on the operating
authorization and technical permissions of an airline or airlines of that Party. When
required by an emergency, a Party may take interim action prior to the expiry of 15 days.
1. The airlines of each Party shall have the right to establish offices in the territory of the
other Party for the promotion and sale of air transportation.
2. The designated airlines of each Party shall be entitled, in accordance with the laws and
regulations of the other Party relating to entry, residence, and employment, to bring in
and maintain in the territory of the other Party managerial, sales, technical, operational,
and other specialist staff required for the provision of air transportation.
3. Each designated airline shall have the right to perform its own ground-handling in the
territory of the other Party ("self-handling") and shall have the right to perform such
services on behalf of other airlines of the Parties or of third countries1 or at its option,
select among competing agents for such services in whole or in part. The 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
1The Parties recognize that there may be limitations imposed by local authorities that restrict the rights of
designated airline(s) to perform some third-party ground handling services.
an equal basis to all airlines; charges shall be based on the costs of services provided; and
such services shall be comparable to the kind and quality of services as if self-handling
4. Any airline of each Party may engage in the sale of air transportation in the territory of
the other Party directly and, at the airline's discretion, through its agents, except as may
be specifically provided by the charter regulations of the country in which the charter
originates that relate to the protection of passenger funds, and passenger cancellation and
refund rights. Each airline shall have the right to sell such transportation, and any person
shall be free to purchase such transportation, in the currency of that territory or in freely
5. Each airline shall have the right to convert and remit to its country, on demand, local
revenues in excess of sums locally disbursed. Conversion and remittance shall be
permitted promptly without restrictions or taxation in respect thereof at the rate of
exchange applicable to current transactions and remittance on the date the carrier makes
the initial application for remittance.
6. The airlines of each Party shall be permitted to pay for local expenses, including
purchases of fuel, in the territory of the other Party in local currency. At their
discretion, the airlines of each Party may pay for such expenses in the territory of the
other Party in freely convertible currencies according to local currency regulation.
7. In operating or holding out the authorized services on the agreed routes, any designated
airline of one Party may enter into cooperative marketing arrangements such as blocked-
space, code-sharing or leasing arrangements, with
a) an airline or airlines of either Party; and
b) an airline or airlines of a third country, provided that such third country authorizes
or allows comparable arrangements between the airlines of the other Party and other
airlines on services to, from and via such third country.
provided that all airlines in such arrangements 1) hold the appropriate authority and
2) meet the requirements normally applied to such arrangements.
8. Notwithstanding any other provision of this Agreement, airlines and indirect providers of
cargo transportation of both Parties shall be permitted, without restriction, to employ in
connection with international air transportation any surface transportation for 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 laws and regulations. Such cargo, whether
moving by surface or by air, shall have access to airport customs processing and
facilities. Airlines may elect to perform their own surface transportation or to provide it
through arrangements with other surface carriers, including surface transportation
operated by other airlines and indirect providers of cargo air transportation. 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
Customs Duties and Charges
1. On arriving in the territory of one Party, aircraft operated in international air
transportation by the designated airlines of the other Party, their regular equipment,
ground equipment, fuel, lubricants, consumable technical supplies, spare parts (including
engines), aircraft stores (including but not limited to such items of food, beverages and
liquor, tobacco and other products destined for sale to or use by passengers in limited
quantities during flight), and other items intended for or used solely in connection with
the operation or servicing of aircraft engaged in international air transportation shall be
exempt, on the basis of reciprocity, from all import restrictions, property taxes and
capital levies, customs duties, excise taxes, and similar fees and charges that are (1)
imposed by the national authorities, and (2) not based on the cost of services, provided
that such equipment and supplies remain on board the aircraft.
2. There shall also be exempt, on the basis of reciprocity, from the taxes, levies, duties,
fees and charges referred to in paragraph 1 of this Article, with the exception of charges
based on the cost of the service provided:
a) aircraft stores introduced into or supplied in the territory of a Party and taken on
board, within 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 over the territory of the Party in
which they are taken on board;
b) ground equipment and spare parts (including engines) introduced into the territory
of a Party for the servicing, maintenance, or repair of aircraft of an airline of the
other Party used in international air transportation;
c) fuel, lubricants and consumable technical supplies introduced into or supplied in
the territory of a Party for use in an aircraft of 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 performed over the territory of the Party in which they are
taken on board; and
d) promotional and advertising materials introduced into or supplied in the territory
of one Party and taken on board, within 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 over the
territory of the Party in which they are taken on board.
3. Equipment and supplies referred to in paragraphs 1 and 2 of this Article may be required
to be kept under the supervision or control of the appropriate authorities.
4. The exemptions provided by this Article shall also be available where the designated
airlines of one Party have contracted with another airline, which similarly enjoys such
exemptions from the other Party, for the loan or transfer in the territory of the other
Party of the items specified in paragraphs 1 and 2 of this Article.
1. User charges that may be imposed by the competent charging authorities or bodies of
each Party on the airlines of the other Party shall be just, reasonable, not unjustly
discriminatory, and equitably apportioned among categories of users. In any event, any
such user charges shall be assessed on the airlines of the other Party on terms not less
favorable than the most favorable terms available to any other airline at the time the
charges are assessed.
2. User charges imposed on the airlines of the other Party may reflect, but shall not exceed,
the full cost to the competent charging authorities or bodies of providing the appropriate
airport, airport environmental, air navigation, and aviation security facilities and services
at the airport or within the airport system. Such full cost may include a reasonable return
on assets, after depreciation. Facilities and services for which charges are made shall be
provided on an efficient and economic basis.
3. Each Party shall encourage consultations between the competent charging authorities or
bodies in its territory and the airlines using the services and facilities, and shall encourage
the competent charging authorities or bodies and the airlines to exchange such
information as may be necessary to permit an accurate review of the reasonableness of
the charges in accordance with the principles of paragraphs (1) and (2) of this Article.
Each Party shall encourage the competent charging authorities to provide users with
reasonable notice of any proposal for changes in user charges to enable users to express
their views before changes are made.
4. Neither Party shall be held, in dispute resolution procedures pursuant to Article 14, to be
in breach of a provision of this Article, unless (i) it fails to undertake a review of the
charge or practice that is the subject of complaint by the other Party within a reasonable
amount of time; or (ii) following such a review it fails to take all steps within its power to
remedy any charge or practice that is inconsistent with this Article.
1. Each Party shall allow a fair and equal opportunity for the designated airlines of both
Parties to compete in providing the international air transportation governed by this
2. Each Party shall allow each designated airline to determine the frequency and capacity of
the international air transportation it offers based upon commercial considerations in the
marketplace. Consistent with this right, neither Party shall unilaterally limit the volume
of traffic, frequency or regularity of service, or the aircraft type or types operated by the
designated airlines of the other Party, except as may be required for customs, technical,
operational, or environmental reasons under uniform conditions consistent with Article 15
of the Convention.
3. Neither Party shall impose on the other Party's designated airlines a first-refusal
requirement, uplift ratio, no-objection fee, or any other requirement with respect to
capacity, frequency or traffic that would be inconsistent with the purposes of this
4. Neither Party shall require the filing of schedules, programs for charter flights, or
operational plans by airlines of the other Party for approval, except as may be required
on a non-discriminatory basis to enforce the uniform conditions foreseen by paragraph 2
of this Article or as may be specifically authorized in an Annex to this Agreement. If a
Party requires filings for information purposes, it shall minimize the administrative
burdens of filing requirements and procedures on air transportation intermediaries and on
designated airlines of the other Party.
1. 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 shall be limited to:
a) prevention of unreasonably discriminatory prices or practices;
b) protection of consumers from prices that are unreasonably high or restrictive due to
the abuse of a dominant position; and
c) protection of airlines from prices that are artificially low due to direct or indirect
governmental subsidy or support.
2. Each Party may require notification to or filing with its aeronautical authorities of prices
to be charged to or from its territory by airlines of the other Party. Notification or filing
by the airlines of both Parties may be required no more than 30 days before the proposed
date of effectiveness. In individual cases, notification or filing may be permitted on
shorter notice than normally required. Neither Party shall require the notification or filing
by airlines of the other Party of prices charged by charterers to the public, except as may
be required on a non-discriminatory basis for information purposes.
3. Neither Party shall take unilateral action to prevent the inauguration or continuation of a
price proposed to be charged or charged by (a) an airline of either Party for international
air transportation between the territories of the Parties, or (b) an airline of one Party for
international air transportation between the territory of the other Party and any other
country, including in both cases transportation on an interline or intraline basis. If either
Party believes that any such price is inconsistent 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 consultations shall be held
not later than 30 days after receipt of the request and the Parties shall cooperate in
securing information necessary for reasoned resolution of the issue. If the Parties reach
agreement with respect to a price for which a notice of dissatisfaction has been given,
each Party shall use its best efforts to put that agreement into effect. Without such mutual
agreement, the price shall go into effect or continue in effect.
Either Party may, at any time, request consultations relating to this Agreement. Such
consultations shall begin at the earliest possible date, but not later than 60 days from the date
the other Party receives the request unless otherwise agreed.
Settlement of Disputes
1. Any dispute arising under this Agreement, except those that may arise under
paragraph 3 of Article 12 (Pricing), that is not resolved by a first round of formal
consultations may be referred by agreement of the Parties for decision to some person or
body. If the Parties do not so agree, the dispute shall, at the request of either Party, be
submitted to arbitration in accordance with the procedures set forth below.
2. Arbitration shall be by a tribunal of three arbitrators to be constituted as follows:
a) Within 30 days after the receipt of a request for arbitration, each Party shall name
one arbitrator. Within 60 days after these two arbitrators have been named, they
shall by agreement appoint a third arbitrator, who shall act as President of the
b) If either Party fails to name an arbitrator, or if the third arbitrator is not appointed
in accordance with subparagraph a) of this paragraph, either Party may request the
president of the Council of the International Civil Aviation Organization to appoint
the necessary arbitrator or arbitrators within 30 days. If the President of the
council is of the same nationality as one of the Parties, the most senior Vice
President who is not disqualified on that ground shall make the appointment.
3. Except as otherwise agreed, the arbitral tribunal shall determine the limits of its
jurisdiction in accordance with this Agreement and shall establish its own procedural
rules. The tribunal, once formed, may recommend interim relief measures pending its
final determination. At the direction of the tribunal or at the request of either of the
Parties, a conference to determine the precise issues to be arbitrated and the specific
procedures to be followed shall be held not later than 15 days after the tribunal is fully
4. Except as otherwise agreed or as directed by the tribunal, 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 on
its own initiative within 15 days after replies are due.
5. The tribunal shall attempt to render a written decision within 30 days after completion of
the hearing or, if no hearing is held, after the date both replies are submitted. The
decision of the majority of the tribunal shall prevail.
6. The Parties may submit requests for clarification of the decision within 15 days after it is
rendered and any clarification given shall be issued within 15 days of such request.
7. Each Party shall, to the degree consistent with its national law, give full effect to any
decision or award of the arbitral tribunal.
8. The expenses of the arbitral tribunal, including the fees and expenses of the arbitrators,
shall be shared equally by the Parties. Any expenses incurred by the President of the
Council of the International Civil Aviation Organization in connection with the
procedures of paragraph 2.b. of this Article shall be considered to be part of the expenses
of the arbitral tribunal.
Either Party may, at any time, give notice in writing to the other Party of its decision
to terminate this Agreement. Such notice shall be sent simultaneously to the International
Civil Aviation Organization. This Agreement shall terminate at midnight (at the place of
receipt of the notice to the other Party) immediately before the first anniversary of the date of
receipt of the notice by the other Party, unless the notice is withdrawn by agreement of the
Parties before the end of this period.
Registration with ICAO
This Agreement and all amendments thereto shall be registered with the International
Civil Aviation Organization.
Entry into Force
1. This Agreement and its Annexes shall enter into force on the date of signature.
2. Upon entry into force, this Agreement shall supersede the following treaties:
a) Air Transport Agreement between the Government of the United States and
the Government of the Republic of Korea, signed at Washington on
April 24, 1957 (hereinafter referred to as "the 1957 Agreement");
b) Amendment of the 1957 Agreement, concluded by Exchange of Notes at
Washington on March 26, 1971;
c) Exemption Agreement for the Introduction of Ground Equipment of Aircraft
between the Government of the United States of America and the Government of the
Republic of Korea, concluded by Exchange of Notes at Washington on
March 26, 1971;
d) Memorandum of Understanding to Amend the 1957 Agreement, as amended on
March 26, 1971, concluded by Exchange of Notes at Seoul on March 22, 1979;
e) Agreement for the Inclusion of Civil Aviation Security Provisions in the 1957
Agreement as amended, concluded by exchange of Notes at Seoul on
September 15, 1988;
f) Memorandum of Understanding to Supplement and Amend the 1957 Agreement,
as amended, concluded by Exchange of Notes at Seoul on September 10 and
November 22, 1991.
IN WITNESS WHEREOF the undersigned, being duly authorized by their respective
Governments, have signed this Agreement.
DONE AT Washington this 9th day of June, 1998, in duplicate, in the English and Korean
languages, each text being equally authentic.
FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF THE
UNITED STATES OF AMERICA: REPUBLIC OF KOREA:
Scheduled Air Transportation
Airlines of each Party designated under this Annex shall, in accordance with the
terms of their designation, be entitled to perform scheduled international air transportation
between points on the following routes1:
A. Routes for the airline or airlines designated by the Government of the United States:
From points behind the United States via the United States and intermediate points to a point
or points in the Republic of Korea and beyond.
B. Routes for the airline or airlines designated by the Government of the Republic of
From points behind the Republic of Korea via the Republic of Korea and intermediate points
to a point or points in the United States and beyond.
Each designated airline may, on any or all flights and at its option:
1. Operate flights in either or both directions;
2. Combine different flight numbers within one aircraft operation;
3. Serve behind, intermediate, and beyond points and points in the territories of the Parties
on the routes in any combination and in any order;
4. Omit stops at any point or points;
5. Transfer traffic from any of its aircraft to any of its other aircraft at any point on the
1 The provision of Annex I shall not be construed to give U.S. designated airlines the right to operate air services
to/from any point in the Republic of Korea from/to any point in the northern part of the Korean peninsula which is
not under the administrative control of the Republic of Korea.
6. Serve points behind any point in its territory with or without change of aircraft or flight
number and may hold out and advertise such services to the public as through services;
without directional or geographic limitation and without loss of any right to carry traffic
otherwise permissible under this Agreement; provided that the service serves a point in
the territory of the Party designating the airline.
Change of Gauge
On any segment or segments of the routes above, any 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 and, in the inbound direction, the
transportation to the territory of the Party that has designated the airline is a continuation of
the transportation from beyond such points.
Charter Air Transportation
Airlines of each Party designated under this Annex shall, in accordance with the
terms of their designation, have the right to 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)1.
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; and
Between any point or points in the territory of the other Party and any point or points
in a third country or countries; provided that such service constitutes part of a
continuous operation, with or without a change of aircraft, that includes service to the
homeland for the purpose of carrying local traffic between the homeland and the
territory of the other Party.
In the performance of services covered by this Annex, airlines of each 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; (3) to combine on the same aircraft traffic originating in one
Party's territory, traffic originating in the other Party's territory, and traffic originating in
third countries; and (4) to 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 from beyond such point.
Each Party shall extend favorable consideration to applications by airlines of the other
Party to carry traffic not covered by this Annex on the basis of comity and reciprocity.
Any airline designated by either Party performing international charter air
transportation originating in the territory of either Party, whether on a one-way or round-trip
basis, shall have the option of complying with the charter laws, regulations, and rules either
of its homeland or of the other Party. 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.
1The provisions of Annex II shall not be construed to give U.S. designated airlines the right to operate air services
to/from any point in the Republic of Korea from/to any point in the northern part of the Korean peninsula which is
not under the administrative control of the Republic of Korea.
However, nothing contained in the above paragraph shall limit the rights of either
Party to require airlines designated under this Annex by either Party to adhere to
requirements relating to the protection of passenger funds and passenger cancellation and
Except with respect to the consumer protection rules referred to in the preceding
paragraph above, neither Party shall require an airline designated under this Annex by the
other Party, in respect of the carriage of traffic from the territory of that other Party or of a
third country on a one-way or round-trip basis, to submit more than a declaration of
conformity with the applicable laws, regulations and rules referred to under Section 2 of this
Annex or of a waiver of these laws, regulations, or rules granted by the applicable
Principles of Non-Discrimination Within
and Competition among Computer Reservations Systems
Recognizing that Article 11 (Fair Competition) of this Agreement guarantees the
airlines of both Parties " a fair and equal opportunity to compete,"
Considering that one of the most important aspects of the ability of an airline to
compete is its ability to inform the public of its services in a fair and impartial manner, and
that, therefore, the quality of information about airline services available to travel agents who
directly distribute such information to the traveling public and the ability of an airline to
offer those agents competitive computer reservations systems (CRSs) represent the foundation
for an airline's competitive opportunities, and
Considering that it is equally necessary to ensure that the interests of the consumers
of air transport products are protected from any misuse of such information and its
misleading presentation and that airlines and travel agents have access to effectively
competitive computer reservations systems:
1. The Parties agree that CRSs will have integrated primary displays for which:
a) information regarding international air services, including the construction of
connections on those services, shall be edited and displayed based on non-
discriminatory and objective criteria that are not influenced, directly or indirectly, by
b) CRS data bases shall be as comprehensive as possible.
c) CRS vendors shall not delete information submitted by participating airlines; such
information shall be accurate and transparent; for example, code-shared and change-
of-gauge flights and flights with stops should be clearly identified as having those
d) All CRSs that are available to travel agents who directly distribute information about
airline services to the traveling public in either Party's territory shall not only be
obligated to, but shall also be entitled to, operate in conformance with the CRS rules
that apply in the territory where the CRS is being operated.
e) Travel agents shall be allowed to use any of the secondary displays available through
the CRS so long as the travel agent makes a specific request for that display.
2. A Party shall require that each CRS vendor operating in its territory allow all airlines
willing to pay any applicable non-discriminatory fee to participate in its CRSA Party shall
require that all distribution facilities that a system vendor provides shall be offered on a
non-discriminatory basis to participating airlines. A Party shall require that CRS vendors
display, on a non-discriminatory, objective, carrier-neutral and market-neutral basis, the
international air services of participating airlines in all markets in which they wish to sell
those services. Upon request, a CRS vendor shall disclose details of its data base update
and storage procedures, its criteria for editing and ranking information, the weight given
to such criteria, and the criteria used for selection of connect points and inclusion of
3. CRS vendors operating in the territory of one Party shall be entitled to bring in, maintain,
and make freely available their CRSs to travel agencies or travel companies whose
principal business is the distribution of travel-related products in the territory of the other
Party if the CRS complies with these principles.
4. Neither Party shall, in its territory, impose or permit to be imposed on the CRS vendors
of the other Party more stringent requirements with respect to access to and use of
communication facilities, selection and use of technical CRS hardware and software, and
the technical installation of CRS hardware, than those imposed on its own CRS vendors.
5. Neither Party shall, in its territory, impose or permit to be imposed on the CRS vendors
of the other Party more restrictive requirements with respect to CRS displays (including
edit and display parameters) operation, or sale than those imposed on its own CRS
6. CRSs in use in the territory of one Party that comply with these principles and other
relevant nondiscriminatorily regulatory, technical, and security standards shall be entitled
to effective and unimpaired access in the territory of the other Party. One aspect of this
is that a designated airline shall participate in such a system as fully in its homeland
territory as it does in any system offered to travel agents in the territory of the other
Party. Owners/operators of CRSs of one Party shall have the same opportunity to
own/operate CRSs that conform to these principles within the territory of the other Party
as do owners/operators of that Party. Each Party shall ensure that its airlines and its CRS
vendors do not discriminate against travel agents in their homeland territory because of
their use or possession of a CRS also operated in the territory of the other Party.