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13101 Portugal - Air Transport Agreement


   
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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13101

 

 

AVIATION

Transport Services

 

 


Agreement Between the
UNITED STATES OF AMERICA
and PORTUGAL

 

 

Signed at Lisbon May 30, 2000

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.”

 

PORTUGAL

Aviation: Transport Services

Agreement signed at Lisbon May 30, 2000;
Entered into force May 9, 2002.
With annexes.

AIR TRANSPORT AGREEMENT
BETWEEN
THE UNITED STATES OF AMERICA
AND
THE PORTUGUESE REPUBLIC
The United States of America and the Portuguese Republic, hereinafter called
"the Contracting Parties,"
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;
Being Parties to the Convention on International Civil Aviation opened for
signature at Chicago on the seventh day of December, 1944; and
Desiring to conclude a new Air Transport Agreement between the United
States of America and Portugal, in order to implement their common policy of
a market-oriented air transport system,
Have agreed as follows:
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ARTICLE I
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 the
Portuguese Republic, the National Institute of Civil Aviation and any person or
body authorized to perform any functions at present exercised by the National
Institute of Civil Aviation;
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 air space 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
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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;
ARTICLE 2
GRANT OF RIGHTS
1. Each Contracting Party grants to the other Contracting Party the
following rights for the conduct of international air transportation by the
airlines of the other Contracting 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 Contracting Party the rights to take on board, in the territory of
the other Contracting Party, passengers, their baggage, cargo, or mail carried
for compensation and destined for another point in the territory of that other
Contracting Party.
ARTICLE 3
DESIGNATION AND AUTHORIZATION
1. Each Contracting 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 Contracting 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 Contracting 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 Contracting Party designating the airline, nationals of that
Contracting 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 Contracting Party
considering the application or applications; and
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c) the Contracting Party designating the airline is maintaining and
administering the standards set forth in Article 6 (Safety) and Article 7
(Aviation Security).
ARTICLE 4
REVOCATION OF AUTHORIZATION
1. Each Contracting Party may revoke, suspend or limit the operating
authorizations or technical permissions of an airline designated by the other
Contracting Party where:
a) substantial ownership and effective control of that airline are not
vested in the other Contracting Party, the Contracting Parties' nationals,
or both;
b) that airline has failed to comply with the laws and regulations
referred to in Article 5 (Application of Laws) of the Agreement; or
c) the other Contracting Party is not maintaining and administering
the standards as set forth in Article 6 (Safety).
2. Unless immediate action is essential to prevent further non-compliance
with subparagraphs 1.b) or 1.c) of this Article, the rights established by this
Article shall be exercised only after consultation with the other Contracting
Party. Such consultations shall commence within thirty (30) days from the date
the other Contracting Party receives the request therefor.
3. This Article does not limit the rights of either Contracting Party to
withhold, revoke, limit or impose conditions on the operating authorization or
technical permissions of an airline or airlines of the other Contracting Party in
accordance with the provisions of Article 7 (Aviation Security).
ARTICLE 5
APPLICATION OF LAWS
1. 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 of the other
Contracting Party and shall be complied with by such aircraft upon entrance
into or departure from, and while within the territory of the first Contracting
Party.
2. 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, 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 Contracting Party upon entrance into or departure from,
and while within, the territory of the first Contracting Party.
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ARTICLE 6
SAFETY
1. Each Contracting 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 Contracting Party and still in force, provided that the requirements for
such certificates or licenses at least equal the minimum standards which may be
established pursuant to the Convention. Each Contracting 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 Contracting Party.
2. Either Contracting Party may request consultations concerning the
safety standards maintained by the other Contracting Party relating to
aeronautical facilities, aircrews, aircraft, and operation of the designated
airlines. Such consultations shall take place within thirty (30) days from the
date of a request by one Contracting Party, unless both Contracting Parties
otherwise agree. If, following such consultations, one Contracting Party finds
that the other Contracting 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 Contracting Party shall be notified of such findings and the steps
considered necessary to conform with these minimum standards, and the other
Contracting Party shall take appropriate corrective action. Each Contracting
Party reserves the right to withhold, revoke, or limit the operating authorization
or technical permission of an airline or airlines designated by the other
Contracting Party in the event the other Contracting Party does not take such
appropriate corrective action within a reasonable time.
ARTICLE 7
AVIATION SECURITY
1. Consistent with their rights and obligations under international law, the
Contracting 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 Contracting 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 14
September 1963, the Convention for the Suppression of Unlawful Seizure of
Aircraft, signed at The Hague on 16 December 1970 and the Convention for
the Suppression of Unlawful Acts against the Safety of Civil Aviation, signed
at Montreal on 23 September 1971.
2. The Contracting 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 aircraft, their passengers and crew,
airports and air navigation facilities, and to address any other threat to the
security of civil aviation.
3. The Contracting 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, or 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 Contracting Party agrees to observe the security provisions
required by the other Contracting Party for entry into, for departure from, and
while within the territory of that other Contracting 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 Contracting Party shall also give positive
consideration to any request from the other Contracting Party for special
security measures to meet a particular threat.
5. When an incident or threat of an incident of unlawful seizure of civil
aircraft or other unlawful acts against the safety of aircraft, their passengers and
crew, airports or air navigation facilities occurs, the Contracting Parties shall
assist each other by facilitating communications and other appropriate
measures intended to terminate rapidly and safely such incident or threat
thereof.
6. When a Contracting Party has reasonable grounds to believe that the
other Contracting Party has departed from the aviation security provisions of
this Article, the aeronautical authorities of that Contracting Party may request
immediate consultations with the aeronautical authorities of the other
Contracting Party. Failure to reach a satisfactory agreement within fifteen (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 Contracting Party. When required
by an emergency, a Contracting Party may take interim action prior to the
expiry of fifteen (15) days.
ARTICLE 8
COMMERCIAL OPPORTUNITIES
1. The airlines of each Contracting Party shall have the right to establish
offices in the territory of the other Contracting Party for the promotion and sale
of air transportation, in accordance with applicable non-discriminatory
procedures and administrative requirements, if any.
2. The designated airline or airlines of one Contracting Party shall have the
right, in accordance with the laws and regulations relating to entry, residence,
and employment of the other Contracting Party, to bring in and maintain in the
territory of the other Contracting Party managerial, sales, technical,
operational, and other specialist staff who are required to support the provision
of air transportation.
3. Any airline of each Contracting Party may engage in the sale of air
transportation in the territory of the other Contracting 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 convertible currencies.
4. Each Contracting Party shall grant to any airline of the other Contracting
Party the right to convert and remit to its country freely on demand, without
restrictions or taxation in respect thereof, in any freely convertible currency,
and at any legal rate of exchange applicable on the date the carrier makes the
initial application for or initiates remittance, the revenue, in excess of sums
locally disbursed, realized through the sale of air transportation and ancillary
services.
5. The airlines of each Contracting Party shall be permitted to pay for local
expenses, including purchases of fuel, in the territory of the other Contracting
Party in local currency. At their discretion, the airlines of each Contracting
Party may pay for such expenses in the territory of the other Contracting Party
in freely convertible currencies according to local currency regulation.
6. 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;
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; and
c) a surface transportation provider of any country;
provided that all airlines or surface transportation providers in such
arrangements (i) hold the appropriate authority and (ii) meet the requirements
normally applied to such arrangements.
7. Notwithstanding any other provision of this Agreement, airlines and
indirect providers of cargo transportation of both Contracting 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 Contracting Parties or in third countries, including transport to
and from all airports with appropriate inspection facilities, and including,
where applicable, the right to transport cargo in bond under applicable laws and
regulations. 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
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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.
8. Each designated airline shall have the right to perform its own
ground-handling in the territory of the other Contracting Party (self-handling)
or, at its option, select among competing authorized agents for such services in
whole or in part. These rights shall be exercised in compliance with the laws
and regulations normally applied by the Contracting Parties on a
nondiscriminatory basis. The right to self handle or select among competing
authorized agents shall be subject only to constraints resulting from
considerations of airport safety and, for the Portuguese side, bases for
exemption provided for in European Union Council Directive 96/67/EC and the
Portuguese legislation implementing that Directive. Where such considerations
preclude self-handling, ground services shall be available on an equal basis to
all airlines; charges shall be based on the full costs of services provided; and
such services shall be comparable to the kind and quality of services as if
self-handling were possible.
ARTICLE 9
CUSTOMS DUTIES AND CHARGES
1. On arriving in the territory of one Contracting Party, aircraft operated in
international air transportation by the designated airlines of the other
Contracting 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) regular equipment and 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) introduced into or supplied in the territory of a Contracting Party
and taken on board, within reasonable limits, for use on outbound
aircraft of an airline of the other Contracting 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 Contracting
Party in which they are taken on board;
b) ground equipment and spare parts (including engines) introduced
into the territory of a Contracting Party for the servicing, maintenance,
or repair of aircraft of an airline of the other Contracting Party used in
international air transportation;
c) fuel, lubricants and consumable technical supplies introduced
into or supplied in the territory of a Contracting Party for use in an
aircraft of an airline of the other Contracting 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 Contracting
Party in which they are taken on board; and
d) promotional and advertising materials introduced into or supplied
in the territory of one Contracting Party and taken on board, within
reasonable limits, for use on outbound aircraft of an airline of the other
Contracting 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 Contracting 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 Contracting Party have contracted with another
airline, which similarly enjoys such exemptions from the other Contracting
Party, for the loan or transfer in the territory of the other Contracting 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 charging authorities
or bodies of each Contracting Party on the airlines of the other Contracting
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 Contracting 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 Contracting 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 charges 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 Contracting 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
10
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
Contracting 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 Contracting 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 Contracting 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.
ARTICLE 11
FAIR COMPETITION
1. Each Contracting Party shall allow a fair and equal opportunity for the
designated airlines of both Contracting Parties to compete in providing the
international air transportation governed by this Agreement.
2. Each Contracting Party shall allow each designated airline to determine
the frequency and capacity of the international air transportation it offers based
on commercial considerations in the marketplace. Consistent with this right,
neither Contracting Party shall unilaterally limit the volume of traffic,
frequency or regularity of service, or of the aircraft type or types operated by
the designated airlines of the other Contracting Party, except as may be
required for customs, technical, operational (including congestion) 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 Agreement.
4. Neither Contracting Party shall require the filing of schedules, programs
for charter flights, or operating plans by airlines of the other Contracting 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 authorized in an Annex to this Agreement. If a Contracting Party
requires such filings for information purposes, it shall minimize the
administrative burdens of the filing requirements and procedures on air
transportation intermediaries and on designated airlines of the other
Contracting Party.
ARTICLE 12
PRICING
1. Each Contracting Party shall allow prices of air transportation to be
established by each designated airline based upon commercial considerations in
the marketplace. Intervention by the Contracting Parties shall be limited to;
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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;
c) protection of airlines from prices that are artificially low due to
direct or indirect governmental subsidy or support; and
d) protection of airlines from abuses of a dominant position
resulting from prices that are unjustifiably low, taking account of the
costs to the initiating airline of providing the services or facilities to
which they relate, where evidence exists as to an intent to eliminate
competition.
2. Each Contracting 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 Contracting Party. Notification or filing by the airlines of
both Contracting Parties may be required no more than thirty (30) days before
the proposed date of effectiveness. In individual cases, notification or filing
may be permitted on shorter notice than normally required. Neither
Contracting Party shall require the notification or filing by airlines of the other
Contracting Party of prices charged by charterers to the public, except as may
be required on a non-discriminatory basis for information purposes.
3. Neither Contracting 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 Contracting Party for international air
transportation between the territories of the Contracting Parties, or;
b) an airline of one Contracting Party for international air
transportation between the territory of the other Contracting Party and
any other country,
including in both cases transportation on an interline or intraline basis,
provided that, in the case of services to or from third countries to which
Council Regulation (EEC) No. 2409/92 of 23 July 1992, applies on the date
that the Agreement is signed, or to which a not more restrictive successor
regulation applies, such a price is not specifically prohibited under that
Regulation.
4. If either Contracting 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 Contracting Party of the reasons for its
dissatisfaction as soon as possible. These consultations shall be held not later
than thirty (30) days after receipt of the request, and the Contracting Parties
shall cooperate in securing information necessary for reasoned resolution of the
issue. If the Contracting Parties reach agreement with respect to a price for
which a notice of dissatisfaction has been given, each Contracting Party shall
take appropriate action, consistent with its national law, to put that agreement
into effect. Without such mutual agreement, the price shall go into effect or
continue in effect.
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ARTICLE 13
CONSULTATIONS
Either Contracting Party may, at any time, request in writing
consultations on the interpretation, application or amendment of the
Agreement. Such consultations shall begin within a period of sixty (60) days
from the date of the other Contracting Party receives the request. If the
requesting Contracting Party considers that expedited consultations are
necessary to address a matter that it considers urgent, such consultations shall
begin within thirty (30) days from the date the other Contracting Party receives
the request.
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.
2. Arbitration shall be made by a tribunal of three arbitrators to be
constituted as follows:
a) Within thirty (30) days after the receipt of a request for
arbitration, each Contracting Party shall name one arbitrator. Within
sixty (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 Contracting Party fails to name an arbitrator, or if the
third arbitrator is not appointed in accordance with subparagraph a) of
this paragraph, either Contracting Party may request the President of the
Council of the International Civil Aviation Organization to appoint the
necessary arbitrator or arbitrators within thirty (30) days. If the
President of the Council is of the same nationality as one of the
Contracting 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 Contracting Parties, a conference to determine
the precise issues to be arbitrated and the specific procedures to be followed
shall be held not later than fifteen (15) days after the tribunal is fully
constituted.
4. Except as otherwise agreed or as directed by the tribunal, each
Contracting Party shall submit a memorandum within forty five (45) days of
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the time the tribunal is fully constituted. Replies shall be due sixty (60) days
later. The tribunal shall hold a hearing at the request of either Contracting
Party or on its own initiative within fifteen (15) days after replies are due.
5. The tribunal shall, unless otherwise agreed by the Contracting Parties,
render a written decision within sixty (60) 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 Contracting Parties may submit requests for clarification of the
decision within fifteen (15) days after it is rendered and any clarification given
shall be issued within fifteen (15) days of such request.
7. Each Contracting 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 Contracting 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.
ARTICLE 15
COMPARABLE TREATMENT
The United States shall, to the full extent permitted by U.S. law, offer
Portuguese carriers the benefit of any U.S. legislation that provides carriers of
other European Union member States opportunities in the areas of cabotage
and foreign ownership and control of U.S. carriers. The Portuguese Republic
shall, to the full extent permitted by Portuguese and European Union law, offer
U.S. carriers the benefit of any Portuguese or European Union legislation that
provides carriers of any other North American State opportunities in the areas
of cabotage and foreign ownership and control of Portuguese carriers.
ARTICLE 16
REGISTRATION WITH ICAO
This Agreement and all amendments thereto shall be registered with the
International Civil Aviation Organization.
ARTICLE 17
TERMINATION
Either Contracting Party may at any time give notice in writing to the
other Contracting Party of its decision to terminate the present Agreement.
Such notice shall be simultaneously communicated to the International Civil
Aviation Organization. This Agreement shall terminate at midnight at the
place of receipt of the notice twelve (12) months after the date of the receipt of
such notice by the other Contracting Party, unless the notice to terminate is
14
withdrawn by mutual agreement before the expiry of this period. In the
absence of acknowledgment of receipt by the other Contracting Party, notice
shall be deemed to have been received fourteen (14) days after the receipt of
the notice by the International Civil Aviation Organization.
ARTICLE 18
AMENDMENTS
1. The Agreement may be amended by written agreement of the
Contracting Parties. Amendments shall enter into force on the day on which
both Contracting Parties have informed each other by exchange of diplomatic
notes that the necessary internal procedures have been completed.
Amendments to the Annexes shall be provisionally applied by the Contracting
Parties through their aeronautical authorities from the date of signature.
2. If, after entry into force of the Agreement, both Contracting Parties
become party to a multilateral agreement that addresses matters covered by this
Agreement, they shall consult to determine whether this Agreement should be
amended to take into account the multilateral agreement.
ARTICLE 19
ENTRY INTO FORCE
The Agreement shall apply provisionally upon signature and shall enter
into force on the day on which both Contracting Parties have informed each
other through an exchange of diplomatic notes that the necessary internal
procedures for entry into force of the Agreement have been completed. Upon
entry into force the Agreement shall supersede the Agreement between the
United States of America and the Portuguese Republic relating to air transport
services, signed at Lisbon December 6, 1945, as amended.
IN WITNESS WHEREOF the undersigned, duly authorized thereto by
the respective Governments, have signed this Agreement.
DONE at Lisbon, on the 30th day of May, 2000, in the English and
Portuguese languages, both texts being equally authentic.
FOR THE FOR THE
UNITED STATES OF AMERICA: PORTUGUESE REPUBLIC:
15
ANNEX I
Scheduled Air Transportation
Section 1
Routes
Airlines of each Contracting 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:
1. From points behind the United States via the United States
and intermediate points to a point or points in Portugal and
beyond.
2. For all-cargo service or services, between Portugal and
any point or points.
B. Routes for the airline or airlines designated by the Portuguese
Republic.
1. From points behind Portugal via Portugal and intermediate
points to a point or points in the United States and beyond.
2. For all-cargo service or services, between the United
States and any point or points.
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 Contracting 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
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;
16
without directional or geographic limitation and without loss of any right to
carry traffic otherwise permissible under this Agreement; provided that, with
the exception of all-cargo services, the service serves a point in the territory of
the Contracting 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, with the exception of all-cargo services, in the outbound
direction, the transportation beyond such point is a continuation of the
transportation from the territory of the Contracting Party that has designated
the airline and, in the inbound direction, the transportation to the territory of the
Contracting Party that has designated the airline is a continuation of the
transportation from beyond such point.
ANNEX II
Charter Air Transportation
Section I
A. Airlines of each Contracting 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 Contracting
Party that has designated the airline and any point or points in the
territory of the other Contracting Party; and
2. Between any point or points in the territory of the other
Contracting Party and any point or points in a third country or countries,
provided that, except with respect to cargo charters, 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
Contracting Party.
B. In the performance of services covered by this Annex, airlines of each
Contracting Party designated under this Annex shall also have the right: (1) to
make stopovers at any points whether within or outside the territory of either
Contracting Party; (2) to carry transit traffic through the other Contracting
Party's territory; (3) to combine on the same aircraft traffic originating in one
Contracting Party's territory, traffic originating in the other Contracting 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, except with
17
respect to cargo charters in the outbound direction, the transportation beyond
such point is a continuation of the transportation from the territory of the
Contracting Party that has designated the airline and in the inbound direction,
the transportation to the territory of the Contracting Party that has designated
the airline is a continuation of the transportation from beyond such point.
C. Each Contracting Party shall extend favorable consideration to
applications by airlines of the other Contracting Party to carry traffic not
covered by this Annex on the basis of comity and reciprocity.
Section 2
A. Any airline designated by either Contracting Party performing
international charter air transportation originating in the territory of the other
Contracting 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 Contracting Party. If a Contracting 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.
B. However, nothing contained in the above paragraph shall limit the rights
of either Contracting Party to require airlines designated under this Annex by
either Contracting Party to adhere to requirements relating to the protection of
passenger funds and passenger cancellation and refund rights.
Section 3
Except with respect to the consumer protection rules referred to in the
preceding paragraph above, neither Contracting Party shall require an airline
designated under this Annex by the other Contracting Party, in respect of the
carriage of traffic from the territory of that other Contracting 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
Computer Reservations Systems
1. The Contracting Parties recognise that computer reservations systems
(CRS) operations are an important aspect of the ability of an airline to compete.
Specifically, the Contracting Parties note that CRS operations are regulated at
the date of this agreement:
- in Portugal under European Community Regulation 2299/89, 24 July
1989, as amended by European Community Regulation 3089/93, 29
October, 1993, and by European Community Regulation 323/99, 8
February, 1999; and
- in the United States, under 14 CFR 255.
18
2. The Contracting Parties agree that, consistent with the laws and
regulations of the Contracting Parties in effect on the date that this Agreement
is signed, the following principles shall be followed with respect to CRS
operations in international aviation on a nondiscriminatory basis.
a) CRS's shall have integrated primary displays for which:
(i) 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, and that apply uniformly to all participating airlines;
(ii) CRS data bases shall be as comprehensive as possible and
CRS vendors shall not delete information from their data bases
until it has been superseded;
(iii) CRS vendors shall not manipulate information given by
participating airlines in a manner which would lead to the
provision of inaccurate, misleading or discriminatory
information; and the information provided by participating
carriers shall be clear and accurate; for example flights where the
code displayed is not that of the operating carrier (i.e. code-
shares), flights involving a change of aircraft and flights with
stops shall be clearly identified as having those characteristics;
(iv) All CRSs that are available to travel agents who directly
distribute information about airline services to the travelling
public in either Contracting 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.
b) Travel agents shall be allowed to use any of the secondary
displays available through the CRS for an individual transaction so long
as the travel agent makes a request for that display to meet a specific
request by a consumer.
c) All airlines willing to pay any applicable non-discriminatory fee
shall be permitted to participate in such vendor's CRS. All distribution
facilities that a system vendor provides shall be offered on a non-
discriminatory basis to participating airlines. CRS vendors shall
display, on a non-discriminatory, objective, carrier-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.
d) CRS vendors of one Contracting Party operating in the territory
of the other Contracting Party shall be entitled to bring in, maintain, and
make freely available their CRSs to travel agencies or travel companies
19
and other subscribers whose principal business is the distribution of
travel-related products in the territory of the other Contracting Party, if
the CRS complies with these principles.
e) In the territory of one Contracting Party, CRS vendors of the
other Contracting Party shall not be subject to more stringent or
restrictive requirements, with respect to access to and use of
communications facilities, selection and use of technical CRS hardware
and software, and the technical installation of CRS hardware, than those
imposed on the first Contracting Party's own CRS vendors.
f) CRSs in use in the territory of one Contracting Party shall be
entitled to effective and unimpaired access in the territory of the other
Contracting Party provided that they comply with the standards and laws
in force in that territory, which shall be non-discriminatory. 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 Contracting Party. Owners/operators
of CRSs of one Contracting Party shall have the same opportunity to
own/operate CRSs that conform to these principles within the territory
of the other Contracting Party, as do owners/operators of that
Contracting Party. Airlines and CRS vendors of one Contracting Party
shall 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 Contracting Party.
ANNEX IV
Transitional Provisions
1. The following provisions shall expire on December 31, 2002, or such
earlier date as is agreed upon by the Contracting Parties:
a) Charter services - country of origin rules: Notwithstanding the
provisions of Annex II, designated airlines of each Contracting Party
shall conduct charter operations in accordance with the laws, regulations
and rules of the country of origin of the traffic.
2. The following provisions shall expire on December 31, 2003, or such
earlier date as is agreed upon by the Contracting Parties:
a) Fifth-freedom rights to certain African countries for U.S. airlines:
Notwithstanding the provisions of Annex I, section 1 (A)(1) and the
provisions of Annex II, section 1 (A), the airlines of the United States
shall not be permitted to exercise local traffic rights between a point or
points in Portugal and any point or points in Angola, Cape Verde,
Guinea-Bissau, Mozambique, or Sao Tome and Principe;
b) Seventh-freedom rights for all-cargo services for U.S. airlines:
Notwithstanding the provisions of Annex I, section 1 (A)(2) and the
provisions of Annex II, section 1 (A)(2), the airlines of the United States
shall not be permitted to operate all-cargo service or services between
Portugal and any point or points under
20
(i) Annex I, section 1 (A)(2); or
(ii) Annex II, section 1 (A)(2) where such service does not
constitute part of a continuous operation, with or without a
change of aircraft, that includes service to the United States for
the purpose of carrying local traffic between the United States
and the territory of Portugal; and
c) Seventh-freedom rights for all-cargo services for Portuguese
airlines:
Notwithstanding the provisions of Annex I, section 1 (B)(2) and the
provisions of Annex II, section 1 (A)(2), the airlines of the Portuguese
Republic shall not be permitted to operate all-cargo service or services
between the United States and any point or points under
(i) Annex I, section 1 (B)(2); or
(ii) Annex II, section 1 (A)(2) where such service does not constitute
part of a continuous operation, with or without a change of
aircraft, that includes service to Portugal for the purpose of
carrying local traffic between Portugal and the territory of the
United States.



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