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12974 Romania - Air Transport Agreement


   
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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 12974

AVIATION

Transport Services

 

 


Agreement Between the
UNITED STATES OF AMERICA
and ROMANIA


Signed at Washington July 15, 1998

with

Annexes

 

 


 

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.”

 

ROMANIA

Aviation: Transport Services

Agreement signed at Washington July 15, 1998;
Entered into force August 19, 1999.
With annexes.

AIR TRANSPORT AGREEMENT
BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND
THE GOVERNMENT OF ROMANIA
The Government of the United States of America and the Government of Romania (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:
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Article 1
Definitions
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 Romania, the Ministry of Transport, or its
successor;
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 Parties;
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 administrative
overhead;
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. For the United States of America, "territory" means the land areas under its sovereignty,
jurisdiction, protection, or trusteeship and the territorial waters adjacent thereto. For Romania,
"territory" means the land areas under its sovereignty, jurisdiction, or protection 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 facilities.
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Article 2
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.
Article 3
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 with minimum procedural delay,
provided:
a. substantial ownership and effective control of that airline are vested in the Party
designating the airline, nationals of that Party, or both;
b. the designated 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).
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Article 4
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).
Article 5
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 Party's airlines.
2. While entering, within, or leaving the territory of one Party, its laws and regulations relating
to the admission to or departure from its territory of passengers, crew or cargo on aircraft
(including regulations relating to entry, clearance, aviation security, immigration, passports,
customs and quarantine or, in the case of mail, postal regulations) shall be complied with by, or
on behalf of, such passengers, crew or cargo of the other Party's airlines.
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Article 6
Safety
1. Each Party shall recognize as valid, for the purpose of operating the air transportation
provided for in this Agreement, certificates of airworthiness, certificates of competency, and
licenses issued or validated by the other Party and still in force, provided that the requirements
for such certificates or licenses at least equal the minimum standards 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.
Article 7
Aviation Security
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, when it is in force for both Parties, 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.
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3. The Parties shall, in their mutual relations, act in conformity with the aviation security
standards and appropriate recommended practices 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.
Article 8
Commercial Opportunities
1. The designated airlines of each Party shall have the right to establish and maintain offices or
agencies 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. Each Party shall, to the extent
consistent with its laws and regulations, grant with minimum delay the necessary employment
authorization, visa, or other similar documents to such staff.
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3. Each designated airline shall have the right to perform its own ground-handling in the
territory of the other Party ("self-handling") 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 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 were possible.
4. Any designated airline of each Party may engage in the sale of air transportation and shall
have the right to advertise and promote the sale of such transportation in the territory of the
other Party directly through its own offices and, at the airline's discretion, through sales and/or
travel 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 designated 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 convertible currencies.
5. Each designated 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 prevailing
exchange rate in effect on the date the conversion takes place.
6. The designated 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. Subject to the provisions of Annex IV, 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, designated 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
8
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 such transportation.
Article 9
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, 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.
9
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.
Article 10
User Charges
1. User charges that may be imposed by the competent 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 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 authorities or bodies in its
territory and the airlines using the services and facilities, and shall encourage the competent
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 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.
10
Article 11
Fair Competition
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 Agreement.
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, applied to scheduled or charter air transportation, that would be
inconsistent with the purposes of this Agreement.
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.
Article 12
Pricing
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.
11
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.
Article 13
Consultations and Amendments
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. This Agreement may be amended
by written agreement of the Parties. Amendments shall enter into force upon an exchange of
diplomatic notes following the completion of all necessary internal procedures of the Parties.
Article 14
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.
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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 arbitral tribunal;
b. If either Party fails to name an arbitrator, or if the third arbitrator is not appointed in
accordance with subparagraph a of this paragraph, either Party may request the President
of the Council of the International Civil Aviation Organization to appoint the necessary
arbitrator or arbitrators within 30 days. If the President 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 constituted.
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.
13
Article 15
Termination
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 (ICAO). This Agreement shall terminate one year after the date of
written notification, unless the notice is withdrawn by agreement of the Parties before the end
of this period.
Article 16
Registration with ICAO
This Agreement and all amendments thereto shall be registered with the International Civil
Aviation Organization.
Article 17
Entry into Force
This Agreement shall enter into force upon an exchange of diplomatic notes following the
completion of all necessary internal procedures of the Parties. Upon entry into force, this
Agreement shall supersede the 1979 Agreement between the Government of the United States
of America and the Government of the Socialist Republic of Romania Renewing and
Amending the Agreement Relating to Civil Air Transport of December 4, 1973, as extended
and amended.
IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective
Governments, have signed this Agreement.
DONE AT Washington, in duplicate, this 15th day of July, 1998, in the English and Romanian
languages, each text being equally authentic.
FOR THE GOVERNMENT OF THE
UNITED STATES
OF AMERICA:[Signature]
FOR THE GOVERNMENT
OF ROMANIA:[Signature]
ANNEX I
Scheduled Air Transportation
Section 1
Routes
Subject to the provisions of Annex IV, 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 routes:
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 Romania and beyond.
B. Routes for the airline or airlines designated by the Government of Romania:
From points behind Romania via Romania and intermediate points to a point or points in the
United States and beyond.
Section 2
Operational Flexibility
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
routes; and
2
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.
Section 3
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 is a continuation of the transportation from beyond such
point.
ANNEX II
Charter Air Transportation
Section 1
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):
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.
Section 2
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.
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 refund rights.
2
Section 3
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 aeronautical authorities.
ANNEX III
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 airline or market
identity. Such criteria shall apply uniformly to all participating airlines.
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
characteristics.
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
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 CRS. A 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 connecting flights.
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 vendors.
6. CRSs in use in the territory of one Party that comply with these principles and other relevant
non-discriminatory 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.
ANNEX IV
Transitional Provisions
1. Third-country code-sharing. Notwithstanding Article 8, paragraph 7, until November 1,
2001, the designated airlines of each Party may operate or hold out scheduled, combination
code-sharing services between points in the territory of that Party and points in the territory of
the other Party over an intermediate point or points, as specified in Annex I, pursuant to code-
sharing arrangements between an airline of that Party and an airline of a third country, only as
follows:
a. From April 1, 1999, through October 31, 1999, no more than three airlines of
each Party may exercise the rights in Article 8, paragraph 7(b).
b. From November 1, 1999, through October 31, 2001, no more than four airlines
of each Party may exercise the rights in Article 8, paragraph 7(b).
c. In providing services under Section 1, a designated airline of the United States
may offer as many frequencies as were operated by its code-share partner or partners
during any week in any previous calendar year since January 1, 1997.
d. For purposes of Subsection lc. above, a frequency is defined for a designated
airline of the United States as one round-trip aircraft operation, pursuant to a code-share
arrangement with an airline of a third-country, to and from the first point of arrival into
the territory of the other Party.
2. Service by Romanian airlines. Notwithstanding Annex I, section 1, airlines designated
by the Government of Romania may serve the United States only as follows:
a. Through March 31, 1999, from behind Romania via Romania and intermediate
points in Belgium, Bulgaria, the Czech Republic, Denmark, France, Germany, Hungary,
Ireland, Malta, the Netherlands, and Slovakia to New York and Chicago with a total of
seven weekly frequencies (no more than five to New York), each point served to count
as one frequency regardless of whether both points are used on a single flight, and
beyond to Montreal. If, however, a designated airline or airlines of the United States
offers scheduled combination service to Romania with its own aircraft during this
period, the designated airlines of Romania may offer the same number of frequencies as
the airline or airlines of the United States.
b. From April 1, 1999, through October 31, 2001, from behind Romania via
Romania and intermediate points to three points in the United States and beyond.1
These three points shall initially be New York, Chicago and Los Angeles;
however, any of these three points may be changed by the Government of Romania,
following 30 days' notice to the Government of the United States. In addition,
however, subject to paragraph 7 of Article 8, airlines designated by Romania may also
serve the following points in the United States, on a code-share basis only:
1) From April 1, 1999, through October 31, 1999, 15 points; and
2) From November 1, 1999, through October 31, 2001, 30 points.
Any of these points may be changed by the Government of Romania, following 30
days' notice to the Government of the United States.



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