printable banner

U.S. Department of State - Great Seal

U.S. Department of State

Diplomacy in Action

13120 Malta - Air Transport Agreement


   
Share

TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13120

 

 

AVIATION

Transport Services

 

 


Agreement Between the
UNITED STATES OF AMERICA
and MALTA

 

 

Signed at Washington October 12, 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.”

 

MALTA

Aviation: Transport Services

Agreement signed at Washington October 12, 2000;
Entered into force October 12, 2000.
With annexes.

AIR TRANSPORT AGREEMENT
BETWEEN
THE GOVERNMENT OF
THE UNITED STATES OF AMERICA
AND
THE GOVERNMENT OF MALTA
The Government of the United States of America and the
Government of Malta (hereinafter, "the Parties");
Desiring to facilitate the expansion of international air
transport opportunities, and make it possible for airlines
to offer the traveling and shipping public a variety of
service options;
Desiring to ensure the highest degree of safety and
security in international air transport and reaffirming
their grave concern about acts or threats against 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:
-2-
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 Malta, the Ministry
responsible for Civil Aviation and any person or agency
authorized to perform functions exercised by the said
Ministry;
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;
-3-
8. "Price" means any fare, rate or charge for the
carriage of passengers (and their baggage) and/or cargo
(excluding mail) in air transportation charged by airlines,
including their agents, and the conditions governing the
availability of such fare, rate or charge;
9. "Stop for non-traffic purposes" means a landing for
any purpose other than taking on or discharging passengers,
baggage, cargo and/or mail in air transportation;
10. "Territory" means the land areas under the
sovereignty, jurisdiction, protection, or trusteeship of a
Party, and the territorial waters adjacent thereto; and
11. "User charge" means a charge imposed on airlines for
the provision of airport, air navigation, or aviation
security facilities or services including related services
and facilities.
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.
-4-
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).
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:
-5-
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.
-6-
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
-7-
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, done at Tokyo September 14, 1963, the Convention
for the Suppression of Unlawful Seizure of Aircraft, done
at The Hague December 16, 1970, the Convention for the
Suppression of Unlawful Acts against the Safety of Civil
Aviation, done at Montreal September 23, 1971, and the
Protocol for the Suppression of Unlawful Acts of Violence
at Airports Serving International Civil Aviation, done at
Montreal February 24, 1988.
2. The Parties shall provide upon request all necessary
assistance to each other to prevent acts of unlawful
seizure of civil aircraft and other unlawful acts against
the safety of such aircraft, of their passengers and crew,
and of airports and air navigation facilities, and to
address any other threat to the security of civil air
navigation.
3. The Parties shall, in their mutual relations, act in
conformity with the aviation security 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
-8-
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 airlines of each Party shall have the right to
establish offices in the territory of the other Party for
the promotion and sale of air transportation.
2. The designated airlines of each Party shall be
entitled, in accordance with the laws and regulations of
the other Party relating to entry, residence, and
employment, to bring in and maintain in the territory of
the other Party managerial, sales, technical, operational,
and other specialist staff required for the provision of
air transportation.
3. Each designated airline shall have the right to
perform its own ground-handling in the territory of the
other Party ("self-handling") 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
-9-
provided; and such services shall be comparable to the kind
and quality of services as if self-handling were possible.
4. Any airline of each Party may engage in the sale of
air transportation in the territory of the other Party
directly and, at the airline's discretion, through its
agents, except as may be specifically provided by the
charter regulations of the country in which the charter
originates that relate to the protection of passenger
funds, and passenger cancellation and refund rights. Each
airline shall have the right to sell such transportation,
and any person shall be free to purchase such
transportation, in the currency of that territory or in
freely convertible currencies.
5. Each airline shall have the right to convert and remit
to its country, on demand, local revenues in excess of sums
locally disbursed. Conversion and remittance shall be
permitted promptly without restrictions or taxation in
respect thereof at the rate of exchange applicable to
current transactions and remittance on the date the carrier
makes the initial application for remittance.
6. The airlines of each Party shall be permitted to pay
for local expenses, including purchases of fuel, in the
territory of the other Party in local currency. At their
discretion, the airlines of each Party may pay for such
expenses in the territory of the other Party in freely
convertible currencies according to local currency
regulation.
7. In operating or holding out the authorized services on
the agreed routes, any designated airline of one Party may
enter into cooperative marketing arrangements such as
blocked-space, code-sharing or leasing arrangements, with
a) an airline or airlines of either Party;
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;
-10-
provided that all participants in such arrangements (i)
hold the appropriate authority and (ii) meet the
requirements normally applied to such arrangements.
8. Notwithstanding any other provision of this Agreement,
airlines and indirect providers of cargo transportation of
both Parties shall be permitted, without restriction, to
employ in connection with international air transportation
any surface transportation for cargo to or from any points
in the territories of the Parties or in third countries,
including transport to and from all airports with customs
facilities, and including, where applicable, the right to
transport cargo in bond under applicable laws and
regulations. Such cargo, whether moving by surface or by
air, shall have access to airport customs processing and
facilities. Airlines may elect to perform their own
surface transportation or to provide it through
arrangements with other surface carriers, including surface
transportation operated by other airlines and indirect
providers of cargo air transportation. Such intermodal
cargo services may be offered at a single, through price
for the air and surface transportation combined, provided
that shippers are not misled as to the facts concerning
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
-11-
that are (a) imposed by the national authorities, and (b)
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.
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.
-12-
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
charging authorities or bodies of each Party on the
airlines of the other Party shall be just, reasonable, not
unjustly discriminatory, and equitably apportioned among
categories of users. In any event, any such user charges
shall be assessed on the airlines of the other Party on
terms not less favorable than the most favorable terms
available to any other airline at the time the charges are
assessed.
2. User charges imposed on the airlines of the other
Party may reflect, but shall not exceed, the full cost to
the competent charging authorities or bodies of providing
the appropriate airport, airport environmental, air
navigation, and aviation security facilities and services
at the airport or within the airport system. Such 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 Party shall encourage consultations between the
competent charging authorities or bodies in its territory
and the airlines using the services and facilities, and
shall encourage the competent charging authorities or
bodies and the airlines to exchange such information as may
be necessary to permit an accurate review of the
reasonableness of the charges in accordance with the
principles of paragraphs 1 and 2 of this Article. Each
Party shall encourage the competent charging authorities to
provide users with reasonable notice of any proposal for
changes in user charges to enable users to express their
views before changes are made.
-13-
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 (a) 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 (b) 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 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 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
-14-
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.
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 (i) an airline of either Party for
international air transportation between the territories
of the Parties, or (ii) 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.
-15-
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
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.
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 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
-16-
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.
-17-
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 2b of this Article shall be considered to be part
of the expenses of the arbitral tribunal.
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. This Agreement
shall terminate at midnight (at the place of receipt of the
notice to the other Party) immediately before the first
anniversary of the date of receipt of the notice by the
other Party, unless the notice is withdrawn by agreement of
the Parties before the end of this period.
Article 16
Registration with ICAO
This Agreement and all amendments thereto shall be
registered with the International Civil Aviation
Organization.
-18-
Article 17
Entry into Force
This Agreement and its Annexes shall enter into force on
the date of signature. Upon entry into force, this
Agreement shall supersede the Agreement on Aviation
Security between the Government of the United States of
America and the Government of Malta effected by exchange of
notes at Valletta on November 5, 1996 and February 28,
2000.
IN WITNESS WHEREOF, the undersigned, being duly authorized
by their respective Governments, have signed this
Agreement.
DONE at Washington, this twelfth day of October, 2000, in
duplicate, in the English language.
FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF
THE UNITED STATES OF AMERICA: MALTA:
-19-
ANNEX I
Scheduled Air Transportation
Section 1
Routes
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:
1. From points behind the United States via the United
States and intermediate points to a point or points in
Malta and beyond.
2. For all-cargo service or services, between Malta and
any point or points.
B. Routes for the airline or airlines designated by the
Government of Malta:
1. From points behind Malta via Malta 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;
-20-
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
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, with the exception of
all-cargo services, 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, 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 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.
-21-
ANNEX II
Charter Air Transportation
Section 1
A. Airlines of each Party designated under this Annex
shall, in accordance with the terms of their designation,
have the right to carry international charter traffic of
passengers (and their accompanying baggage) and/or cargo
(including, but not limited to, freight forwarder, split,
and combination (passenger/cargo) charters):
1. Between any point or points in the territory of the
Party that has designated the airline and any point or
points in the territory of the other Party; and
2. 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, 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 Party.
B. 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, except with respect to cargo charters, 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
-22-
territory of the Party that has designated the airline is a
continuation of the transportation from beyond such point.
C. 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
A. 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.
B. 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.
Section 3
Except with respect to the consumer protection rules
referred to in the preceding paragraph, 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.
-23-
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
-24-
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. 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.
-25-
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.
-26-
ANNEX IV
Transitional Provisions
This Annex shall expire on September 30, 2004 or such
earlier date as is agreed upon by the Parties.
Section 1
Ground Handling Services
Notwithstanding the provisions of Article 8, Paragraph 3,
until the expiration of this Annex, or until such earlier
date as any other air carrier is allowed to provide its own
airside ground handling services or choose among
competitive handlers, airside ground-handling services in
Malta shall be made available, as at present, on an equal
basis to all airlines and the charges shall be based on the
cost of services provided.
Section 2
Fifth-Freedom Rights for U.S. Airlines
A. Notwithstanding Annex I of this Agreement, U.S.
airlines shall not exercise local traffic rights in
scheduled combination air transportation between a point or
points in the United Kingdom, Italy and Germany and a point
or points in Malta.
B. Notwithstanding Annex II of this Agreement, U.S.
airlines shall not exercise local traffic rights in charter
combination air transportation between a point or points in
Malta and a point or points in third countries.
Section 3
Seventh-Freedom All Cargo Service
A. Notwithstanding Annexes I and II of this Agreement,
U.S. airlines shall not exercise local traffic rights in
all-cargo air transportation between a point or points in
Malta and any point or points under:
-27-
1. Annex I, section 1(A)(2); or
2. 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
Malta.
B. Notwithstanding Annexes I and II of this Agreement,
Maltese airlines shall not exercise local traffic rights in
all-cargo air transportation between a point or points in
the United States and any point or points under:
1. Annex I, section 1(B)(2); or
2. 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
Malta for the purpose of carrying local traffic
between Malta and the territory of the United States.



Back to Top
Sign-in

Do you already have an account on one of these sites? Click the logo to sign in and create your own customized State Department page. Want to learn more? Check out our FAQ!

OpenID is a service that allows you to sign in to many different websites using a single identity. Find out more about OpenID and how to get an OpenID-enabled account.