U.S.-Guatemala Air Transport Agreement of May 8, 1997
AIR TRANSPORT AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE REPUBLIC OF GUATEMALA
The Government of the United States of America and the Government of the Republic of Guatemala (hereinafter, "the Parties") ;
Desiring to promote an international aviation system based on competition among airlines in the marketplace with minimum government interference and regulation ;
Desiring to facilitate the expansion of international air transport opportunities ;
Desiring to make it possible for airlines to offer the traveling and shipping public a variety of service options at the lowest prices that are not discriminatory and do not represent abuse of a dominant position, and wishing to encourage individual airlines to develop and implement innovative and competitive prices ;
Desiring to ensure the highest degree of safety and security in international air transport and reaffirming their grave concern about acts or threats - against the security of aircraft, which jeopardize the safety of persons or property, adversely affect the operation of air transportation, and undermine public confidence in the safety of civil aviation ;
and Being Parties to the Convention on International Civil Aviation, opened for signature at Chicago on December 7, 1944 ;
Have agreed as follows :
For the purposes of this Agreement, unless otherwise stated, the term :
1 . "Aeronautical authorities" means, in the case of the United States, the Department of Transportation, or its successor, and in the case of Guatemala, the Ministry of Communications, Transportation, and Public Works, and any person or agency authorized to perform the functions exercised by the said officials of the Republic of Guatemala ;
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 : (1) any amendment that has entered into force under Article 94(a) of the Convention and has been ratified by both Parties, and (2) 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'airlire designated and authorized in accordance with Article 3 of this Agreement ;
6 . "Full cost" means the cost of providing service plus a reasonable charge for administrative overhead ;
7 . "International air transportation" means air transportation that passes through the airspace over the territory of more than one State ;
8 . "Price" means any fare, rate or charge for the carriage of passengers (and their baggage) and/or cargo (excluding mail) in air transportation charged by airlines, including their agents, and the conditions governing the availability of such fare, rate or charge ;
9 . "Stop for non-traffic purposes" means a landing for any purpose other than taking on or discharging passengers, baggage, cargo and/or mail in air transportation ;
10 . "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 .
Grant of Rights
1 . Each Party grants to the other Party the following rights for the conduct of international air transportation by the airlines of the other Party :
a . the right to fly across its territory without landing ;
b . the right to make stops in its territory for non-traffic purposes ; and
c . the rights otherwise specified in this Agreement .
2 . Nothing in this Article shall be deemed to confer on the airline or airlines of one Party the rights to take on board, in the territory of the other Party, passengers, their baggage, cargo, or mail carried for compensation and destined for another point in the territory of that other Party .
Designation and Authorization
1 . Each Party shall have the right to designate as many airlines as it wishes to conduct international air transportation in accordance with this Agreement and to withdraw or alter such designations . Such designations shall be transmitted to the other Party in writing through diplomatic channels, and shall identify whether the airline is authorized to conduct the type of air transportation specified in Annex I or in Annex II or both .
2 . On receipt of such a designation, and of applications from the designated airline, in the form and manner prescribed for operating authorizations and technical permissions, the other Party shall grant appropriate authorizations and permissions 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) .
Revocation of Authorization
1 . Either Party may revoke, suspend or limit the operating authorizations or technical permissions of an airline designated by the other Party where :
a . substantial ownership and effective control of that airline are not vested in the other Party, the Party's nationals, or both ;
b . that airline has failed to comply with the laws and regulations referred to in Article 5 (Application of Laws) of this Agreement ; or
c . the other Party is not maintaining and administering the standards as set forth in Article 6 (Safety) .
2 . Unless immediate action is essential to prevent further noncompliance with subparagraphs lb or lc of this Article, the rights established by this Article shall be exercised only after consultation with the other Party.
3 . This Article does not limit the rights of either Party to withhold, revoke, limit . or impose conditions on the operating authorization or technical permission of an airline or airlines of the other Party in accordance with the provisions of Article 7 (Aviation Security) .
Application of Laws
1 . While entering, within, or leaving the territory of one Party, its laws and regulations relating to the operation and navigation of aircraft shall be complied with by the other 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 .
1 . Each Party shall recognize as valid, for the purpose of operating the air transportation provided for in this Agreement, certificates of airworthiness, certificates of competency, and licenses issued or validated by the other Party and still in force, provided that the requirements for such certificates or licenses at least equal the minimum standards that may be established pursuant to the Convention . Each Party may, however, refuse to recognize as valid for the purpose of flight above its own territory, certificates of competency and licenses granted to or validated for its own nationals by the other Party .
2 . Either Party may request consultations concerning the safety standards maintained by the other Party relating to aeronautical facilities, aircrews, aircraft, and operation of the designated airlines . If, following such consultations, one Party finds that the other Party does not effectively maintain and administer safety standards and requirements in these areas that at least equal the minimum standards that may be established pursuant to the Convention,' the other Party shall be notified of such findings and the steps considered necessary to conform with these minimum standards, and the other Party shall take appropriate corrective action . . Each Party reserves the right to withhold, revoke, or limit the operating authorization or technical permission of an airline or airlines designated by the other Party in the event the other Party does not take such appropriate corrective action within a reasonable time .
1 . In accordance with their rights and obligations under international law, the Parties reaffirm that their obligation to each other to protect the security of civil aviation against acts of unlawful interference forms an integral part of this Agreement . Without limiting ithe generality of their rights and obligations under international law, the Parties shall in particular act in conformity with the provisions of the Convention on Offenses and Certain Other Acts Committed on Board Aircraft, signed at Tokyo on September 14, 1963, the Convention for the Suppression of Unlawful Seizure of Aircraft, signed at The Hague on December 16, 1970, and the Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation, signed at Montreal on September 23, 1971, and the Protocol for the Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation, done at Montreal on February 24, 1988 .
2 . The Parties shall provide upon request all necessary assistance to each other to prevent acts of unlawful seizure of civil aircraft and other unlawful acts against the safety of such aircraft, of their passengers and crew, and of airports and air navigation facilities, and to address any other threat to the security of civil air navigation .
3 . The Parties shall, in their mutual relations, act in conformity with the aviation security provisions established by the International Civil Aviation Organization and designated as Annexes to the Convention ; they shall require that operators of aircraft of their registry, operators of aircraft who have their principal place of business or permanent residence in their territory, and the operators of airports in their territory act in conformity with such aviation security provisions .
4 . Each Party agrees to observe the security provisions required by the other Party for entry into, for departure from, and while within the territory of that other Party and to take adequate measures to protect aircraft and to inspect passengers, crew, and their baggage and carry-on items, as well as cargo and aircraft stores, prior to and during boarding or loading . Each Party shall also give positive consideration to any request from the other Party for special security measures to meet a particular threat .5 . When an incident or threat of an incident of unlawful seizure of aircraft or other unlawful acts against the safety of passengers, crew, aircraft, airports or air navigation facilities occurs, the Parties shall assist each other by facilitating communications and other appropriate measures intended to terminate rapidly and safely such incident or threat .
6 . . When a Party has reasonable grounds to believe that the other Party has departed from the aviation security provisions of this Article, the aeronautical authorities of that Party may request immediate consultations with the aeronautical authorities of the other . Party . Failure to reach a satisfactory agreement within 15 days from the date of such request shall constitute grounds to withhold, revoke, limit, or impose conditions on the operating authorization and technical permissions of an airline or airlines of that Party . When required by an emergency, a Party may take interim action prior to the expiry of 15 days .
1 . The airlines of each Party shall have the right to establish offices in the territory of the other Party for the promotion and sale of air transportation .
2 . The designated airlines of each Party shall be entitled, in accordance with the laws and regulations of the other Party relating to entry, residence, and employment, to bring in and maintain in the territory of the other Party managerial, sales, technical, operational, and other specialist staff required for the provision of air transportation .
3 . Each designated airline shall have the right to perform its own ground-handling in the territory of the other Party ("self-handling") or, at its option, select among competing agents for such services in whole or in part . The rights shall be subject only to physical constraints resulting from considerations of airport safety . Where such considerations preclude self-handling, ground services shall be available on an equal basis to all airlines ; charges shall be based on the costs of services provided ; and such services shall be comparable to the kind and quality of services as if self-handling, were possible .4 . Any 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 Oonvertible 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 ; and b) an airline or airlines of a third country, provided that such third country authorizes or allows comparable arrangements between the airlines of the other Party and other airlines on services to, from and via such third country ; provided that all airlines in such arrangements 1) hold the appropriate authority and 2) meet the requirements normally applied to such arrangements .
8 . Notwithstanding any other provision of this Agreement, airlines and indirect providers of cargo transportation of both Parties shall be permitted, without restriction, to employ in connection with international air transportation any surface transportation for cargo to or from any points in the territories of the Parties or in third countries, including transport to and from . all airports with customs facilities, and including, where applicable, the right to transport cargo in bond under applicable laws and regulations . Such cargo, whether moving by surface or by air, shall have access to airport customs processing and facilities . Airlines may elect to perform their own surface transportation or to provide it through arrangements with other surface carriers, including surface transportation operated by other airlines and indirect providers of cargo air transportation . Such intermodal cargo services may be offered at a single, through price for the air and surface transportation combined, provided that shippers are not misled as to the facts concerning such transportation .
Customs Duties and Charges
1 . On arriving in the territory of one Party, aircraft operated in international air transportation by the designated airlines of the other Party, their regular equipment, ground equipment, fuel, lubricants, consumable technical supplies, spare parts (including engines), aircraft stores (including but not limited to such items of food, beverages and liquor, tobacco and other products destined for sale to or use by passengers in limited quantities during flight), and other items intended for or used solely in connection with the operation or servicing of aircraft engaged in international air transportation shall be exempt, on the basis of reciprocity, from all import restrictions, property taxes and capital levies, customs duties, excise taxes, and similar fees and charges that are (1) imposed by the national authorities, and (2) not based on the cost of services provided, provided that such equipment and supplies remain on board the aircraft .
2 . There shall also be exempt, on the basis of reciprocity, from the taxes, levies, duties, fees and charges referred to in paragraph 1 of this Article, with the exception of charges based on the cost of the service provided :
a . aircraft stores introduced into or supplied in the territory of a Party and taken on board, within reasonable limits, for use on outbound aircraft of an airline of the other Party engaged in international air transportation, even when these stores are to be used on a part of the journey performed over the territory of the Party in which they are taken on board ;
b . ground equipment and spare parts (including engines) introduced into the territory of a Party for the servicing, maintenance, or repair of aircraft of an airline of the other Party used in international air transportation ;
c . fuel, lubricants and consumable technical supplies introduced into or supplied in the territory of a Party for use in an aircraft of an airline of the other Party engaged in international air transportation, even when these supplies are to be used on a part of the journey performed over the territory of the Party in which they are taken on board ; and
d . promotional and advertising materials introduced into or supplied in the territory of one Party and taken on board, within reasonable limits, for use on outbound aircraft of an airline of the other Party engaged in international air transportation, even when these stores are to be used on a part of the journey performed over the territory of the Party in which they are taken on board .
3 . Equipment and supplies referred to in paragraphs 1 and 2 of this Article may be required to be kept under the supervision or control of the appropriate authorities .
4 . The exemptions provided by this Article shall also be available where the designated airlines of one Party have contracted with another airline, which similarly enjoys such exemptions from the other Party, for the loan or transfer in the territory of the other Party of the items specified in paragraphs 1 and 2 of this Article .
1 . User charges that may be imposed by the competent charging authorities or bodies of each Party on the airlines of the other Party . shall be just, reasonable, not unjustly discriminatory, and equitably apportioned among categories of users . In any event, any such user charges shall be assessed on the airlines of the other Party on terms not less favorable than the most favorable terms available to any other airline at the time the charges are assessed .
2 . User charges imposed on the airlines of the other Party may reflect, but shall not exceed, the full cost to the competent : charging authorities or bodies of providing the appropriate airport, airport environmental, air navigation, and aviation security facilities and services at the airport or within the airport system . Such full cost may include a reasonable return on assets, after depreciation . Facilities and services for which charges are made shall be provided on an efficient and economic basis .
3 . Each Party shall encourage consultations between the competent charging authorities or bodies in its territory and the airlines using the services and facilities, and shall encourage the competent charging authorities or bodies and the airlines to exchange such information as may be necessary to permit an accurate review of the reasonableness of the charges in accordance with the principles of paragraphs (1) and (2) of this Article . Each Party shall encourage the competent charging authorities to provide users with reasonable notice of any proposal for changes in user charges to enable users to express their views before changes are made .
4 . Neither Party shall be held, in dispute resolution procedures pursuant to Article 14, to be in breach of a provision of this Article, unless (i) it fails to undertake a review of the charge or practice that is the subject of complaint by the other Party within a reasonable amount of time ; or (ii) following such a review it fails to take all steps within its power to remedy any charge or practice that is inconsistent with this Article .
1 . Each Party shall allow a fair and equal opportunity for the designated airlines of both Parties to compete in providing the international air transportation governed by this 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 filing requirements and procedures on air transportation intermediaries and on designated airlines of the other Party .
1 . Each Party shall allow prices for air transportation to be established by each designated airline based upon commercial considerations in the marketplace . Intervention by the Parties shall be limited to :
a . . prevention of unreasonably discriminatory prices or practices ;
b . protection of consumers from prices that are unreasonably high or restrictive due to the abuse of a dominant position ; and
. protection of airlines from prices that are artificially low due to direct or indirect governmental subsidy or support .
2 . Each Party may require notification to or filing with its aeronautical authorities of prices to be charged to or from its territory by airlines of the other Party . Notification or filing by the airlines of both Parties may be required no more than 30 days before the proposed date of effectiveness . In individual cases, notification or filing may be permitted on shorter-notice than normally required . Neither Party shall require the notification or filing by airlines of the other Party of prices charged by charterers to the public, except as may be required on a non-discriminatory basis for information purposes .
3 . Neither Party shall take unilateral action to prevent the inauguration or continuation of a price proposed to be charged or charged'by (a) an airline of either Party for international air transportation between the territories of the Parties, or (b) an airline of one Party for international air transportation between the territory of the other Party and any other country, including in both cases transportation on an interline or intraline basis . If either Party believes that any such price is inconsistent with the considerations set forth in paragraph (1) of this Article, it shall request consultations and notify the other Party of the reasons for its dissatisfaction as soon as possible . These consultations shall be held not later than 30 days after receipt of the request, and the Parties shall cooperate in securing information necessary for reasoned-resolution of the issue . If the Parties reach agreement with respect to a price for which a notice of dissatisfaction has been given, each Party shall use its best efforts to put that agreement into effect . Without such mutual agreement, the price shall go into effect or continue in effect .
Either Party may, at any time, request consultations relating to this Agreement . Such consultations shall begin at the earliest possible date, but not later than 60 days from the date the other Party receives the request unless otherwise agreed .
Settlement of Disputes
1 . Any dispute arising under this Agreement, except those that may arise under paragraph 3 of Article 12 (Pricing), that is not resolved by a first round of formal consultations may be referred by agreement of the Parties for decision to some person or body . . If the Parties do not so agree, the dispute shall, at the request of either Party, be submitted to arbitration in accordance with the procedures set forth below .
2 . Arbitration shall be by a tribunal of three arbitrators to be constituted as follows :
a . Within 30 days after the receipt of a request for arbitration, each Party shall name one arbitrator . Within '60 days after these two arbitrators have been named, they shall by agreement appoint a third arbitrator, who shall act as President . of the 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 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 .
Reqistration with ICAO
This Agreement and all amendments thereto shall be registered with the International Civil Aviation Organization .
Entry into Force
The competent aeronautical authorities of the United States of America and the Republic of Guatemala shall permit operations on a provisional basis to the designated airlines of each Party in accordance with the terms of the Agreement upon signature . Provisional application of the Air Transport Agreement between the Government of the United States of America and the Government of the Republic of Guatemala, signed at Guatemala July 16, 1992, shall terminate upon signature of this Agreement . This Agreement shall enter into force upon an exchange of notes following the completion of all necessary internal procedures by the Parties .
IN WITNESS WHEREOF the undersigned, being duly authorized by their respective Governments, have signed this Agreement .
DONE AT San Jose, this eighth day of May, 1997, in duplicate, in the English and Spanish languages, each text being equally authentic . F
OR THE GOVERNMENT OF THE UNI STATES ERICA :
FOR THE GOVERNMENT OF THE REPUBLIC OF GUATEMALA :