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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 20-629 

TRANSPORTATION 

Aviation Transport Services 

Agreement Between the 

UNITED STATES OF AMERICA 

and OTHER GOVERNMENTS 

With Annexes and Joint Declaration 

Signed at Brussels and Washington 

April 25 and 30, 2007 

Entered into force June 29, 2020 
 

 

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.” 
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AIR TRANSPORT AGREEMENT 

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THE UNITED STATES OF AMERICA (hereinafter the "United States"), . 

of the one part; and 

THE REPUBLIC OF AUSTRIA, 

THE KINGDOM OF BELGIUM, 

THE· REPUBLIC OF BULGARIA, 

THE REPUBLIC OF CYPRUS, 

THE CZECH REPUBLIC, 

THE KINGDOM OF DENMARK, 

THE REPUBLIC OF ESTONIA, 

THE REPUBLIC OF FINLAND, 

THE FRENCH REPUBLIC, 

THE FEDERAL REPUBLIC OF GERMANY, 

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THE HELLENIC REPUBLIC, 

THE REPUBLIC OF HUNGARY, 

IRELAND, 

THE ITALIAN REPUBLIC, 

•THE REPUBLIC OF LATVIA, 

THE REPUBLIC OF LITiillANIA, 

THE GRAND DUCHY OF LUXEMBOURG, 

MALTA, 

THE KINGDOM OF THE NETHERLANDS, 

THE REPUBLIC OF POLAND, 

THE PORTUGUESE REPUBLIC, 

ROMANIA, 

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THE SLOVAK REPUBLIC, 

THE REPUBLIC OF SLOVENIA, 

THE KINGDOM OF SPAIN, 

. THE KINGDOM OF SWEDEN, 

THE·UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, 

being parties to the Treaty establishing the European Community and being Member States of the 

European Union (hereinafter the "Member States"), 

and the EUROPEAN COMMUNITY, 

of the other part; 

DESIRING to promote an international aviation system based on, competition among airlines in the . i 

marketplace with minimum government interference and regulation; 

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DESIRING to facilitate the expansion of international air transport opportunities, including through 

the development of air transportation networks to meet the needs of passengers and shippers for 

convenient air transportation services; 

DESIRING to make it possible for airlines to offer the traveling and shipping public competitive 

prices and services in open markets; 

DESIRING to have all sectors of the air transport industry, including airline workers, benefit in a 

liberalized agreement; 

DESIRING to ensure the highest degree of safety and security in intermitional 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 transportatioh,-and 

undermine public confidence in the safety of civil aviation; 

NOTING the Convention on International Civil Aviation, opened for signature at Chicago on 

December 7, 1944; 

RECOGNISING that government subsidies may adversely affect airline competition and may 

jeopardize the basic objectives of this Agreement; 

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AFFIRMING the importance of protecting the environment in developing and implementing 

international aviation policy; · 

NOTING the importance of protecting consumers, including the protections afforded by the 

Convention for the Unification of Certain Rules for International Carriage by Air, done at 

Montreal May 28, 1999; 

INTENDING to build upon the framework of existing agreements with the goal of opening access 

. to markets and maximizing benefits for consumers, airlines, labor, and communities on both sides 

of the Atlantic; 

RECOGNISING the importance of enhancing the access of their airlines to global capital markets 

in order to strengthen competition and promote the objectives _of this Agreement; 

INTENDING to establish a precedent of global significance to promote the benefits ofliberalization 

in this crucial economic sector; 

HAVE AGREED AS FOLLOWS: 

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ARTICLE! 

Definitions 

For the purposes of this Agreement, unless otherwise stated, the term: 

1. "Agreegient" means this Agreement, its Annexes and Appendix-, and any amendments thereto; 

2. "Air transportation" means the carriage by aircraft of passengers, baggage, cargo, and mail, 

separately or in combination, held out to the public for remuneration or hire; 

3. "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 the United States and the Member State or Member States as is relevant to the 

issue in question, 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 the. United States and the 

Member State or Member States as is relevant to the issue in question; 

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4. "Full cost" means the cost of providing service plus a reasonable charge for administrative 

overhead; 

5. "International air transportation" means air transportation that passes through 'the airspace 

over the territory of more than one State; 

6. "Party" means either the United States or the European Community and its Member States; 

7. . "Price" means any fare, rate or charge for the carriage of passengers, baggage and/or cargo 

(excluding mail) in air transportation, including surface transportation in connection with 

international air transportation, if applicable, charged by airlines, including their agents, and the 

conditions governing the, availability of such. fare, rate or charge; 

8. "Stop for non-traffic purposes" means a landing for any purpose other than talcing on or 

discharging passengers, baggage, cargo and/or mail in air transportation; 

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9. "Territory" means, for the United States, the land areas (mainland and islands), internal waters 

and ·territorial sea under its sovereignty or jurisdiction, and, for the. European Community and its 

Member States, the land areas (mainland and islands), internal waters and territorial sea in which 

the Treaty establishing the European Community is applied and under the conditions laid down in 

that Treaty and any successor instrument; application of this Agreement to Gibraltar airport is 

understood to be without prejudice to the respective legal positions of the Kingdom of Spain and the 

United Kingdom with regard to the dispute over sovereignty over the territory in which the airport 

is situated, and to the continuing suspension of Gibraltar Airport from European Community 

aviation measures existing as at 18 September 2006 as between Member States, in accordance with 

the Ministerial statement on Gibraltar Airport agreed in C6rdoba on 18 September 2006; and 

10. "User charge" means a charge imposed on airlines for the provision of airport, airport 

environmental, air navigation, or aviation security facilities or services including related services 

and facilities. 

ARTICLE2 

Fair and Equal Opportunity 

Each Party shall allow a fair and equal opportunity for the airlines of both Parties to compete in 

providip.g the international air transportation governed by this Agreement. 

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ARTICLE3 

Grant ofRights 

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; 

(c) the right to perfo~ international air transportation between points on the following routes: 

(i) for airlines of the United States (hereinafter "U.S. airlines"), from points behind the 

United States via the United States and intermediate points to any point or points in any 

Member State or States and beyond; and for all-cargo service, between any Member 

State and_ any point or points (including in any other Member States); 

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(ii) for airlines of the European Community and its Member States (hereinafter 

"Community airlines"), from points behind the Member States via the Member States 

and intermediate points to any point or points in the United States and beyond; for 

all-cargo service, between the United States and any pointor points; and, for 

combination services, between any point or points in the United States and any point or 

points in any member of the European Common Aviation Area (hereinafter 

the IIECAA") as of the date of signature of this Agreement; and 

(d) the rights otherwise specified in this Agreement. 

2. Each airline may on any or all flights and at its option: 

( a) operate flights in either or.both directions; 

(b) combine different flight.numbers within one aircraft operation; 

(c) serve behind, intermediate, and beyond points and points in the territories of the Parties in any 

combination and in any order; 

( d) omit stops at any point or points; 

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( e) transfer traffic from any of its aircraft to any of its other aircraft at any point; 

(f) serve points behind any point in its territory with or without change of aircraft or flight 

number and hold out and advertise such services to the public as through services; 

(g) · make stopovers at any points whether within or outside the territory of either Party; 

(h) cariy transit traffic through the other Party's territory; and 

(i) . combine traffic on the same aircraft regardless of where such traffic originates; 

without directional or geographic limitation and without loss of any right to carry traffic otherwise 

permissible under this Agreement. 

3. The provisions of paragraph I of this Article shall apply subject to the requirements that: 

(a) for U.S. airlines, with the exception of all-cargo services, the transportation is part of a service 

that serves the United States, and 

(b) for Community airlines, with the exception of(i) all-cargo services and (ii) combination 

services between the United States and any member of the ECAA as of the date of signature 

of this Agreement, the transportation is part of a service that serves a Member State: 

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4. Each Party shall allow each 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 airlines of the other Party, nor 

shall it require the filing of schedules, programs for charter flights, or operational plans by airlines 

of the other Party, except as may be required for customs, technical, operational, or environmental 

(consistent with Article 15) reasons under uniform conditions consistent with Article 15 of the 

Convention . 

. 5. Any airline may perform international air transportation without any limitation as to change, 

at any point, in type or number of aircraft operated; provided that, (a) for U.S. airlines, with the 

exception of all-cargo services, the transportation is part of a service that serves the United States, 

and (b) for Community airlines, with the ~xception of (i) all-cargo services and (ii) combination 

services between the United States and a member of the ECAA as of the date of signature of this 

Agreement, the transportation is part of a service that serves a Member State. 

6. Nothing in this Agreement shall be deemed to confer on: 

(a) U,S. airlines the right to take on board, in the territory of any Member State, passengers, 

baggage, cargo, or mail carried for compensation and destined for another point in the 

territory of that Member State; 

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(b) Community airlines the right to take on board, in the territory of the United States, 

passengers, baggage, cargo, or mail carried for compensation and destined for another point in 

the territory of the United States. 

7. Community airlines' access to U.S. Government procured transportation shall be governed by 

Annex 3. 

ARTICLE4 

Authorization 

On receipt of applications from an airline of one Party, in the fonn and manner prescribed for 

operating authorizations and technical permissions, the other Party shall grant appropriate 

authorizations and permissions with minimum procedural delay, provided: 

(a) for a U.S. airline, substantial ownership and effective control of that airline are vested in the 

United States, U.S. nationals, or both, and the airline is licensed as a U.S. airline and has its 

principal place of business in U.S. territory; 

(b) for a Community airline, substantial ownership and effective control of that air1ine are vested 

in a Member State or States, nationals of such a state or states, or both, and the airline is 

licensed as a Community airline and has its principal place ofbusiness in the territory of the 

European Community; 

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(c) the 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 

(d) .the provisions set forth in Article 8 (Safety) and Article 9 (Security) are being maintained and 

administered. 

ARTICLE5 

Revocation of Authorization. 

1. Either Party may revoke, suspend or limit the operating authorizations or technical 

permissions or otherwise suspend or limit the operations of an airline of the other Party where: 

(a) for a U.S. airline, substantial ownership and effective control of that airline are not vested in 

the United States, U.S. nationals, ot both, or the airline is not licensed as a U.S. airline or does 

not have its principal place of business in U.S. territory; 

(b) for a Community airline, substantial ownership and effective control of that airline are not 

vested in a Member State or States, nationals of such a state or states,. or both, or the airline is 

not licensed as a Community airline or does not have its principal place of business in the 

territory of the European Community; or 

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- ( c) that airline has failed to comply with the laws and regulations referred to in Article 7 

(Application of Laws) oftlμs Agreement. 

2. Unless immed_iate action is essential to prevent further noncompliance with subparagraph l(c) 

of this Article, the rights established by this Article shall be exercised only after consultation with 

the Qther 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 8 (Safety) or Article 9 (Security). 

ARTICLE6 

Additional Matters related to Ownership, Investment, and Control 

Notwithstanding any other provision in this Agreement, the Parties shall implement the provisions 

of Annex 4 in their decisions under their respective laws and regulations concerning ownership, 

investment and control. 

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ARTICLE7 

Application of Laws 

1. The. laws and regulations of a 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 utilized by the airlines of the other Party, 

and ~hall be complied with by such aircraft upon entering or departing from or while within the 

territory of the first Party. 

2. While entering, within, or leaving the territory of one Party, the laws and regulations 

applicable within that territory relating to the admission to or departure from its territory of 

passengers, crew or cargo on aircraft.(including regulations relating to entry, clearance, 

immigration, passports, customs and quarantine or, in the case of mail, postal regulations) shall be 

complied with by, or on behalf of, such passengers, crew or cargo of the other Party's airlines. 

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ARTICLE 8 

Safety 

1. The responsible authorities of the Parties shall recognize as valid, for the purposes of 

operating the air transportation provided for in this Agreement, certificates of airworthiness, 

certificates of competency, and licenses issued or validated by each other 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. The responsible authorities may, however; refuse to 

recognize as valid for purposes of flight above their own territory, certificates of competency and 

licenses granted to or validated for their own nationals by such other authorities. 

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2. The responsible authorities of a Party may request consultations with other responsible 

authorities concerning the safety standards maintained by those authorities relating to aeronautical 

facilities, aircrews, aircraft, and operation of the airlines overseen by those authorities. Such 

consultations shall take place within .45 days of the request unless otherwise agreed. If following 

such consultations, the requesting responsible authorities find that those authorities do 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 requesting 

responsible authorities shall notify those authorities of such findings and the steps considered 

necessary to confoflll. with these minimum standards, and those authorities shall take appropriate 

corrective action. The requesting responsible authorities reserve the right to withhold, revoke or_ 

limit the operating authorization or technical permission of an airline oqirlines for which those 

authorities provide safety oversight in the event those authorities do not take such appropriate 

corrective action within a reasonable time and to take immediate action as to such airline or airlines 

if essential to prevent further noncompliance with the duty to maintain and administer the 

aforementioned standards and requirements resulting in ari immediate threat to flight safety. 

3. The European Commission shall simultaneously rece_ive all requests and notifications under 

this Article. 

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4. Nothing in this Article shall prevent the responsible authorities of the Parties from conducting 

safety discussions, including those relating to the routine application of safety standards and 

requirements or to emergency situations that may arise from time to time. 

ARTICLE9 

Security 

1. . In accordance with their rights and obligations under international law, the Parties reaffirm 

that their obligation to each other to protect the security of civil aviation against acts of unlawful 

interference forms an integral part of this Agreement. Without limiting the generality of their rights 

and obligations under international law, the Parties shall in particular act in conformity with the 

following agreements: 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. 

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2. The Parties shall provide upon request all necessary assistance to each other to address any 

threat to the security of civil aviation, including the preve~tion of 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. 

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 

airc~aft of their registries, 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 shall ensure that effective measures are taken within its territory 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; and that those measures are adjusted to meet 

increased threats to the security of civil aviation. Each Party agrees that the security provisions 

required by. the other Party for departure from .and while within the territory of that other Party must 

be observed. Each Party shall give positive consideration to any request from the other Party for 

special security measures to meet a particular threat. 

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5. With full regard and mutual respect for each other's sovereignty,_ a Party may adopt security 

measures for entry into its territory. Where possible, that Party shall take into account the security 

measures already applied by the other Party and any views that the other Party may offer. Each 

Party recognizes, however, that nothing in this Article limits the ability of a Party to refuse entry 

into its territory of any flight or flights that it deems to present a threat to its security. 

6. A Party may take emergency measures including amendments to meet a specific security 

threat. Such measures shall be notified immediately to the responsible authorities of the other 

Party. 

7. The Parties underline the importance of working towards compatible practices and standards 

as a means of enhancing air transport security and minimising regulatory divergence. To this end, 

the Parties shall fully utilize and develop existing channels for the discussion of current and 

proposed security measures. The Parties expect that the discussions will address, among other 

issues, new security measures proposed or under consideration by the other Party, incl~ding the 

revision of security measures occasioned by a change in circumstances; ineasures proposed by one 

Party to meet the security requirements of the other Party; possibilities for the more expeditious 

adjustment of standards with respect to aviation security measures; and compatibility of the 

requirements of one Party with the legislative obligations of the other Party; Such discussions 

should serve to foster early notice and prior discussion of new security initiatives and requirements. 

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8. Without prejudice to the need to take immediate action in order to protect transportation 

security, the Parties affirm that when considenng security measures, a Party shall evaluate possible 

adverse effects on international air transportation and, unless constrained by law, shall take such 

factors into account when it determines what measures are necessary and appropriate to address 

those security concerns. 

9. 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. 

10. When a Party has reasonable grounds to believe that the other Party has departed from the 

aviation security provisions of this Article, the responsible authorities of that Party may request 

immediate consultations with the.responsible 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. 

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11. Separate from airport assessments undertaken to determine conformity with the aviation 

security standards and practices referred to in paragraph 3 of this Article, a Party may request the 

cooperation of the other Party in assessing whether particular security measures of that other Party 

meet the requirements of the requesting Party. The responsible authorities of the Parties shall 

coordinate in advance the airports to be assessed and the dates of assessment and establish a 

procedure to address the results of such assessments. Taking into account the results of the 

assessments, the requesting Party may decide that security measures of an equivalent standard are 

applied in the territory of the other Party in order that transfer passengers, transfer baggage, and/or 

transfer cargo niay be exempted from re-screening in the territory of the requesting Party. Such a 

deyision shall be communicated to the other Party. 

ARTICLE 10 

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 and related activities. 

2. The 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 who are required 

to support the provision of air transportation. 

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3.(a) Without prejudice to subparagraph (b) below, each airline shall have in relation to 

ground.handling in the territory of the other Party: 

(i) the right to perform its own ground.handling ("self-handling") or, at its option 

(ii) the right to select among competing suppliers that provide ground.handling services in whole 

or in part where such suppliers are allowed market access on the basis of the laws and 

regulations of each Party, and where such suppliers are present in the market. 

(b) The rights under (i) and (ii) in subparagraph (a) above shall be subject only to specific 

constraints of available space or capacity arising from the need to maintain safe operation of the 

airport. Where such constraints preclude self-handling and where there is no effective competition 

between suppliers that provide ground.handling services, all such services shall be available on both 

an equal and an adequate basis to all airlines; prices of such services shall not exceed their full cost 

including a reasonable return on assets, after depreciation. 

4. Any airline of each Party may engage in the sale of air transportation in the territory of the 

other Party directly and/or, at the airline's discretion, through its sales agents or other intermediaries 

appointed by the airline. Each airline shall have the rightto sell such transportation, and any person 

shall be free to purchase such transportation, in the currency of that territory or in freely convertible 

currencies. 

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5. Each airline shall have the right to convert and remit from the territory of the other Party to its 

home territory and, except where inconsistent with generally applicable law or regulation, the 

country or countries of its choice, 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 pennitted 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 services under the Agreement, any airline of a Party may enter 

into cooperative marketing arrangements, such as blocked-space or code,.sharing arrangements, 

with: 

(a) any airline or airlines of the Parties; 

I (b) any airline or airlines ofa third country; and 

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( c) a surface (land or maritime) transportation provider of any country; 

provided that (i) all participants in such arrangements hold the appropriate authority and (ii) the 

arrangements meet the conditions prescribed under the laws and regulations normally applied by the 

Parties to the operation or holding out of international air transportation. 

8. The airlines of each Party shall be entitled to enter into franchising or branding arrangements 

with companies, including airlines, of either Party or third countries, provided that the airlines hold 

the appropriate authority and meet the conditions prescribed und~ the laws and regulations 

normally applied by the Parties to such arrangements. Annex 5 shall apply to such arrangements. 

9. The airlines of each Party may enter into arrangements for the provision of aircraft with crew 

for international air transportation with: 

(a) any airlines or airlines of the Parties; and 

(b) any airlines or airlines of a third country; 

provided that all participants in such arrangements hold the appropriate authority and meet the 

conditions prescribed under the laws and regulations normally applied by the Parties to such 

arrangements. Neither Party shall require an airline of either Party providing the aircraft to hold 

traffic rights under this Agreement for the routes on which the aircraft will be operated. 

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10. Notwithstanding any other provision of this Agreement, airlines.and indirect providers of 

cargo transportation of the Parties shall be permitted, without.restricticm, 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 arid 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 

· intennodal 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. 

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ARTICLE 11 

Customs Duties and Charges 

1. On arriving in the territory of one Party, aircraft operated in international air transportation by 

the 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 ~se 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 ate (a) imposed by the 

national authoriti~s or the European Community, 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; 

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(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) printed matter, as provided for by the customs legislation of each Party, introduced into or 

supplied in the territory of one Party and taken on board 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 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. 

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5; Nothing in this Agreement shall prevent either Party from imposing taxes, levies, duties, fees 

or charges on goods sold other than for consumption on board to passengers during a sector of an 

air service between two points within its territory at which embarkation or disembarkation is 

permitted. 

6. In the event that two or more Member States envisage applying to the fuel supplied to aircraft 

of U.S. airlines in the territories of such Member States for flights between such Member States any 

waiver of the exemption contained in Article 14.1 (b) of Council Directive 2003/96/EC of 

27 October 2003, the Joint Committee shall consider that issue, in accordance with paragraph 4(e) 

of Article 18. 

7. A Party may request the assistance of the other Party, on behalf of its airline or airlines, in 

securing an exemption from taxes, duties, charges and fees imposed by state and local governments 

or authorities on the goods specified in paragraphs 1 and 2 of this Article, as well as from fuel 

through-put charges, in the circumstances described in this Article, except to the extent that the 

charges are based on the cost of providing the service. In response to such a request, the other Party 

shall bring the views of the requesting Party to the attention of the relevant governmental unit or 

authority and urge that those views be given appropriate consi.deration. 

USNCE/en31 
--

- ARTICLE 12 

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, airpprt 

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 territpry 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 reasona.t,leness 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. 

USNCE/en32 
4. Neither Party shall be held, in dispute resolution procedures pursuant to Article 19, 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 13 

Pricing 

1. Prices for air transportation services operated pursuant to this Agreement shall be established 

freely and shall not be subject to approval, nor may they be required to be filed. 

2. Notwithstanding paragraph 1: 

(a). The introduction or continuation of a price proposed to be charged or charged by a 

U.S. airline for international air transportation between a point in one Member State and a 

point in another Member State shall be consistent with Article 1(3) of Council 

Regulation (EEC) 2409/92 of 23 July 1992, or a not more restrictive successor regulation. 

(b) Under this paragraph, the airlines of the Parties Shall provide immediate access, on request, to 

infonnation on historical, existing, and proposed prices to the.responsible authorities of the 

Parties in a manner and format acceptable to those authorities. 

USA/CE/en 33 

-
ARTICLE 14 

Government Subsidies and Support 

I. The Parties recognize that government subsidies and support may adversely affect the fair and 

equal opportunity of airlines to compete in providing the international air transportation governed 

by this Agreement. 

2. If one Party believes that a government subsidy or support being considered or provided by 

the other Party for or to the airlines of that other Party would adversely affect or is adversely 

affecting that. fair and equal opportunity of the airlines of the first Party to compete, it may submit 

observations to that Party. Furthermore, it may request a meeting of the Joint Committee as 

provided in Article 18, to consider the issue and develop appropriate responses to concerns found to 

be legitimate. 

3. Each Party may approach responsible governmental entities in the territory of the other Party, 

including entities at the state, provincial or local level, if it believes that a subsidy or support being 

considered or provided by such entities will have the adverse competitive effects referred to in 

paragraph 2. If a Party decides to make such. direct contact it shall inform promptly the other Party 

through diplomatic channels. It may also request a meeting of the Joint Committee. 

/' 

USA/CE/en 34 
-

4. Issues raised under this Article could include, for example, capital injections, 

cross-subsidization, grants, guarantees, ownership, relief or tax exemption, by any governmental 

entities. 

ARTICLE 15 

Environment 

1, The Parties recognize the importance of protecting the environment when developing and 

implementing international aviation policy. The Parties recognize that the costs and benefits of 

measures to protect the environment must be carefully weighed in developing international aviation 

policy. 

2. When a Party is considering proposed environmental measures, it should evaluate possible 

adverse effects on the exercise of.rights contained in this Agreement, and, if such measures are 

adopted, it should take appropriate stws to mitigate any such adverse effects. 

3. When environmental measures are established, the aviation environmental standards adopted 

by the International Civil Aviation Organization in Annexes to the Convention shall be followed 

except where differences have been filed. The Parties slμill apply any environmental measures 

affecting air services under this Agreement in accordance with Article 2 and 3(4) of this Agreement. 

USA/CE/en 35 
--

4. If one Party believes that a matter involving aviation environmental protection raises concerns 

for the application or implementation of this Agreement, it may request a meeting of the Joint 

Committee, as provided in Article 18, to consider the issue and develop appropriate responses to 

concerns found to be legitimate. 

ARTICLE 16 

Coruirimer Protection 

The Parties affirm the importance of protecting consumers, and either Party may request a meeting 

of the Joint Committee to discuss consumer protection issues that the requesting Party identifies as 

significant. 

ARTICLE 17 

Computer Reserv~tion Systems 

1. Computer Reservation Systems (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 provided the CRS complies with any relevant regulatory requirements of the other 

Party. 

USNCE/en36 
2. Neithc;:r 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 CRS displays (including edit and display 

parameters), operations, practices, sales, or ownership than those imposed on its own CRS vendors. 

3. Owners/Operators of CRSs of one Party that comply with the relevant regulatory 

requirements of the other Party, if any, shall have the same opportunity to own CRSs within the 

territory of the other Party as do owners/operators of that Party. 

ARTICLE 18 

The Joint Committee 

1. A Joint Committee consisting ofrepresentatives of the Parties shall meet at least once a year 

to conduct consultations relating to this Agreement and to review its implementation. 

2. A Party may also request a meeting of the Joint Committee to seek to resolve questions 

relating to the interpretation or application of this Agreement. However, with respect to Article 20 

or Annex 2, the Joint Committee may consider questions only relating to the refusal by either 

Participant to implement the commitments undertaken, and the impact of competition decisions on 

the application of this Agreement. Such a meeting shall begin at the earliest possible date, but not 

later than 60 days from the date of receipt of the request, unless otherwise agreed. 

USA/CE/en 37 
-

3. The Joint Committee shall review, no later than at its first annual meeting and thereafter as 

aJ?Propriate, the overall implementation of the Agreement, including any effects of aviation 

infrastructure constraints on the exercise of rights provided for in Article 3, the effects of security 

measures taken under Article 9, the effects on the conditions of competition, including in the field 

of Computer Reservation Systems, and any social effects of the implementation of the Agreement. 

4. The Joint Committee shall also develop cooperation by: 

(a) fostering expert-level exchanges on new legislative or regulatory initiatives and 

developments, including in the. fields of security, safety, the environment, aviation 

infrastructure (including slots), and consumer protection; 

(b) considering .the social effects of the Agreement as it is implemented and developing 

appropriate responses to concerns found to be legitimate; 

(c) considering potential areas for the further development of the Agreement, including the 

recommendati.on of amendments to the Agreement; 

(d) maintaining an inventory of issues regarding government subsidies or support raised by either 

Party in the Joint Committee; 

( e) making decisions~ on the basis of consensus, concerning any matters with respect to 

application of paragraph 6 of Article 11; 

USA/CE/en 38 
-

(f) developing, within one year of provisional application, approaches tc:, regulatory 

determinations with regard to airline fitness and citizenship, with the goal of achieving 

reciprocal recognition of such determinations; 

(g) developing a common understanding of the criteria used by the Parties in making their 

respective decisions in cases concerning airline control, to the extent consistent with 

confidentiality requirements; 

(h) fostering consultation, where appropriate, on air transport issues dealt with in international 

organizations and in relations with third countries, including consideration of whether to 

adopt a joint approach; 

(i) taking, on the basis of consensus, the decisions to which paragraph 3 of Article 1 of Annex 4 

and paragraph 3 of Article 2 of Annex 4 refer. 

5. The Parties share the goal of maximizing the bel}.efits for consumers, airlines, labor, and 

communitie·s on both sides ofthe Atlantic by extending this Agreement to include third countries. 

To this end, the Joint Committee shall work to develop a proposal regarding the conditions and 

procedures, including any necessary amendments to this Agreement, that would be required for 

third countries to accede to this Agreement. 

6. The Joint Committee shall operate on the basis of consensus. 

USA/CE/en 39 
- - -

I 

ARTICLE 19 

Arbitration 

1. Any dispute relating to the application or interpretation ,of this Agreement, other than issues 

arising under Article 20 or under Annex 2, that is not resolved by a meeting of the Joint Committee 

may be referred to a pery;on or body for decision by agreement of the Parties. 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. Unless the Parties otherwise agree, arbitration shall be by a tribunal of three arbitrators to be 

constituted as follows: 

(a) Within 20 days after the receipt of a request for arbitration, each Party shall name one 

arbitrator. Within 45 days after these two arbitrators have been named, they shall by 

agreement appoint a third arbitrator, who shall act as President of the tribunal. 

USA/CE/en 40 

-
(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 of receipt of that request. If the President of the 

Council of the International Civil Aviation Organization is a national of either the 

United States or a Member State, the most senior Vice President of that Council who is not 

disqualified on that ground shall make the appointment. 

3. ~xcept as otherwise agreed, the tribunal shall determine the limits of its jurisdiction in 

accordance with this Agreement arid shall establish its own procedural rules. At the request of a 

Party, the tribunal, once formed, may ask the other Party to implement interim relief measures 

pending the tribunal's final determination. At the direction of the tribunal or at the request of either 

Party, a conference shall be held not later than 15 days after the tribun.al is fully constituted for the 

tribunal to determine the precise issues to be arbitrated and the specific procedures to be followed. 

4. Except as othernrise agreed or as directed by the tribunal: 

(a) The statement of claim shall be submitted within 30 days of the time the tribunal is fully 

constituted, and the statement of defense shall be submitted 40 days thereafter. Any reply by 

the claimant shall be subnritted within 15 days of the submission of the statement of defense. 

Any reply by the respondent shall be submitted within 15 days thereafter. 

USNCE/en41 
. (b) The tribunal shall hold a hearing at the request of either Party, or may hold a hearing on its 

own initiative, within 15 days after the last reply is filed. 

5. The tribunal shall attempt to render a written decision within 30 days after completion of the 

hearing or, ifno hearing is held, within 30 days after the last reply is submitted. The decision of the 

majority of the tribunal shall prevail. 

6. The Parties may submit requests for clarification of the decision within 10 days after it is 

rendered and any clarification given shall be issued within 15 days of such request. · 

7. If the tribunal determines that there has been a violation of this Agreement and the responsible 

Party does not cure the violation, or does not reach agreement with the other Party on a mutually 

satisfactory resolution within 40 days after notification of the tribunal's decision, the other Party 

may suspend the application of comparable benefits arising under this Agreement until such time as 

the Parties have reached agreement on a resolution of the dispute. Nothing in this paragraph shall 

be construed as limiting the right of either Party to take proportional measures in accordance with 

international law. 

USNCE/en42 

-
8. The expenses of the 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, or by any Vice President of that Council, in connection 

with the procedures of paragraph 2(b) ofthis Article shall be considered to be part of the expenses 

of the tribunal. 

ARTICLE20 

Competition 

1. The Parties recognize that competition among airlines in the transatlantic market is important 

to promote the objectives of this Agreement, and confirm that they apply .their respective 

competition regimes to protect and enhance overall competition and not individual competitors. 

2. The Parties recognize that differences may arise concerning the application of their respective 

competition regimes to international aviation affecting the transatlantic market, and that competition 

among airlines in that market might be fostered by minimising those differences. 

USNCE/en43 
-

3. The Parties recognize that cooperation between their respective competition authorities serves 

to promote competition in markets and has the potential to promote compatible regulatory results 

and to minimise differences in approach with respect to their respective competition reviews of 

inter~carrier agreements. Consequently, the Parties shall further this cooperation to the extent 

feasible, taking into account the different responsibilities, competencies and procedures of the 

authorities, in accordance with Annex 2. 

4. The Joint Committee shall be briefed annually on the results of the cooperation under 

Annex 2. 

ARTICLE21 

Second Stage Negotiations 

1. The Parties share the goal of continuing to open access to markets and to maximise benefits 

for consumers, airlines, lab~r, and communities on both sides of the Atlantic, including the 

facilitation of investment so as to better reflect the realities of a global aviation industry, the 

strengthening of the transatlantic air transportation system, and the establishment of a framework 

that will encourage other countries to open their own air services markets. The Parties shall begin 

negotiations not later than 60 days after the date of provisional application of this Agreement, with 

the goal of developing the next stage expeditiously. 

USA/CE/en 44 

-
2. To that end, the agenda for the second s~ge negotiations shall include.the following items of 

priority interest to one or both Parties: 

(a) further liberalization of traffic rights; 

(b) additional foreign investment opportunities; 

( c) effect of environmental measures and infrastructure constraints on the exercise of traffic 

rights; 

(d) further access to Government-financed air transportation; and 

(e) provision of aircraft with crew. 

3. The Parties shall review their progress towards a second stage agreement no later than 

18 months after the date when the negotiations are due to start in accordance with paragraph 1. If 

no second stage agreement has been reached by the Parties within twelve months of the start of the 

review, each Party reserves the right thereafter to suspend rights specified in this Agre~ent. Such 

suspension shall take effect no sooner than the start of the International Air Transport 

Association (IATA) traffic season that commences no less than twelve months after the date on 

which notice of suspension.is given. 

USNCE/en45 
ARTICLE22 

Relationship to Other Agreements 

1. During the period of provisional application pursuant to Article 25 of this Agreement, the 

bilateral agreements listed in section 1 of Annex 1, shall be suspended, except to the extent 

provided in section 2 of Annex 1. 

2. · μpan entry into force pursuant to Article 26 of this Agreement, this Agreement shall 

supersede the bilateral agreements listed in section l of Annex 1, except to the extent provided in 

section 2 of Annex 1. 

3. If the Parties become parties to a multilateral agreement, or endorse a decision adopted by the 

International Civil Aviation Organization or another international organization, that addresses 

matters covered by this Agreement, they shall consult in the Joint Committee to determine whether 

this Agreement should be revised to take into account such developments. 

USA/CE/en 46 

- -
AllTICLE 23 

Termination 

Either Party may, at any time, give notice in writing through diplomatic channels to the other Party 

of its decision to terminate this Agreement. Such notice shall be sent simultaneously to the 

International Civil Aviati~n Organization. This Agreement shall tenninate at midnight GMT at the 

end of the International Air Transport Association (IATA) traffic season in effect one year 

following the date ofwritteli notification of termination, unless the notice is withdrawn by 

agreement of the Parties before the end of this period. 

ARTICLE24 

Registration with !CAO 

This Agreement and all amendments thereto shall be registered with the International Civil Aviation 

Organization. 

USNCE/en47 

\ 
ARTICLE25 

Provisional Application 

P.ending entry into force pursuant to Article 26: 

l) The Parties agree to apply this Agreement from 30 March 2008. 

2) Either Party may at any time give notice in writing through diplomatic channels to the other 

party of a decision to no longer apply this Agreement. In that event, application shall cease at 

midnight GMT at the end of the International Air Transport Association (IA TA) traffic season 

in effect one year following the date of written notification, unless the notice is withdrawn by 

agreement of the Parties before the .end of this period. 

USNCE/en48 

-
ARTICLE26 

Entry into Force 

This Agreement shall enter into force one month after the date of the later note in an exchange of 

diplomatic notes between the Parties confirming that all necessary procedures for entry into force of 

this Agreement have been completed. For purposes of this exchange, the United States shall deliver 

to the European Community the diplomatic note to the European Community and its Member 

States, and the European Community shall deliver to the United States the diplomatic note or notes 

from the European Community and its Member States. The diplomatic note or notes from the 

European Community and its Member States shall contain communications from each Member 

State confirming that its necessary procedures for entry into force of this Agreement have been 

completed. 

IN WITNESS WHEREOF the undersigned, being duly authorized, have signed this Agre~ent. 

DONE at Brussels on the twenty-fifth day of April, 2007 and at Washington on the thirtieth day of 

April, 2007, in duplicate. 

USNCE/en49 
For the United States of America 

3a Peny6muca .61,nrapIDI 

Pour le Royaume de Belgique 

Voor het Koninkrijk Belgie 

Fur das ~tlnigreich Belgien 

Cette signature engage egalement la Communaut6 franl'3iso, la Communaute tlamandc, la Communaute gcnnanophone, la Region 

wallonne;la R6gion flamandc ct la Region de Bruxelles-Capilalo. 

Doze handtckening verbindl evcneens de Vlaarme Qemeenschap, de Franse Gcmecnschap, . de OuitBtalige Gemeenschap, bet 

Vlaamso Clewes!, hel Waalse Gewest en hel Brussels Hoofdslcdolijk Gewest. · 

Dicsc Untcn;chrift. bindet zugleich die Deutschspmchige Ocmeinschaft, die Flllmischc Gemeinschaft, die Fmnzi!sischo 

Gemeinschaft, die Wallonische Region, die Flamischc Region und die Region BrOssel-Hauptstadt 

Za Ceskou republiku 

A Kongeriget Danmarks vegne 

USA/CE/X3 
Ftlr die Bundesrepublik Deutschland 

Eesti Vabariigi nimel 

Por el Reino de Espana 

Pour la Republique fran~aise 

{ 

USA/CE/X5 
r• 

-

Thar cheaim Na hEireaim 

For Ireland 

Latvijas Republikas vl!rdll 

Lietuvos Respublikos vardu 

USA/CE/X7 
.- Pour le Grarid-Duche de Luxembourg 

A Magyar Koztarsasag reszerlSI 

Ghal Malta 

Voor bet Koninkrijk der Nederlanden 

Filr die Republik Osterreich .... 

USA/CE/X9 
W imieniu Rzeczypospolitej Polsk:iej 

Pela Republica Portuguesa 

Za Republilm Slovenijo 

Za Slovensku republiku 

USA/CE/X 11 
Suomen tasavallan puolesta 

ForKonungariketSverige 

For the United Kin om of Great Britain and Northern Ireland 

3a EsponeACICllTa o6mnocT 

For the European Community 

Por la Comunidad Europea 

Za Evropske spolecenstvi 

For Det Europreiske Frellesskab 

Fiir die Europiiische Gemeinschaft 

Euroopa Ohenduse nimel 

rm Tl1" Eupromr.'!IClj Koiv6't11T« 

Pour la Communaute eutopeenne 

Per Ia Comunita europea 

Eiropas Kopienas varda 

Europos bendrijos vardu 

az Eur6pai Kozosseg reszerol 

Ghall-Komunita Ewropca 

V oor de Europese Gemeenschap 

W irnieniu Wsp6lnoty Europejskiej 

Pela Comunidade Europeia 

Pentru Comunitatea Europeana 

·2a Eur6pske spolocenstvo 

za Evropsko skupnost 

Euroopan yhteisl!n puolesta 

PA Europeiska gemenskapens viignar 

USA/CE/X 13 
ANNEXl 

Section 1 

As provided in Article 22 of this Agreement, the following bilateral agreements between the 

United States and Member States shall be suspended or superseded by this Agreement: 

a. The Republic of Austria: Air services agreement, signed at Vienna March 16, 1989; 

amended June 14, 1995. 

b. The Kingdom of Belgium: Air transport agreement, effected by exchange of notes at 

Washington October 23, 1980; amended September 22 and November 12, 1986; 

amended November 5, 1993 and January 12, 1994. 

(amendment concluded on September 5, 1995 (provisionally applied).) 

c. The Republic of Bulgaria: Civil aviation security Agre(1lllent, signed at Sofia April 24, 1991. 

d. The Czech Republic: Air transport agreement, signed at Prague September 10, 1996; 

amended June 4, 2001 and February 14, 2002. 

USNCE/ANNEXl/en 1 
I 

e. 

f. 

g. 

h. 

i. 

-

The Kingdom of Denmark: Agreement relating to air transport services, effected by 

exchange of notes at Washington December 16, 1944; amended August 6, 1954; 

amended June 16, 1995. 

The Republic ofFinland: Air transport agreement, signed at Helsinki March 29, 1949; related 

protocol signed May .12, 1980; agreement amending 1949 agreement and 1980 protocol 

concluded June 9, 1995. 

The French Republic: Air transport agreement, signed at Washington June 18, 1998; 

amended October 10, 2000; amended January 22, 2002. 

The Federal Republic of Germany: Air transport agreement and exc~ges of notes, signed ·at 

Washington July 7, 1955; amended April 25, 1989. 

(related protocol concluded November 1, 1978; related agreement concluded May 24, 1994; 

protocol amending the 1955 agreement concluded on May 23, 1996; agreement amending 

the 1996 protocol.concluded on October 10, 2000 (all provisionally applied).) 

The Hellenic Republic: Air transport agreement, signed at Athens July 31, 1991; extended 

untii July 31, 2007 by exchange of notes of June 22 and 28, 2006. 

USA/CE/ANNEX 1/en2 

-

I 

I 

- -, 

-
j. The Republic of Hungary: Air transport agreement and memorandum of understanding, 

signed at Budapest July 12, 1989; extended until July 12, 2007 by exchange ofnotes of 

July 11 and 20, 2006. 

k. Ireland: Agreement relating to air transport services, effected by exchange of notes at 

Washington February 3, 1945; amended January.25, 1988 and September 29, 1989; amended 

July 25 and September 6, 1990. 

(Memorandum of consultations, signed at Washington October 28, 1993 (provisionally 

applied).) 

l. The Italian Republic: Air transport agreement, with memorandum and exchange of notes, 

signed at Rome June 22, 1970; amended October 25, 1988; related memorandum of 

understanding signed September 27, 1990; amendment of 1970 agreement and 1990 MOU 

concluded November 22 and December 23, 1991; amendment of 1970 agreement and 

1990 MOU concluded May 30 and October 21, 1997; agreement supplementing the 

1970 agreement concluded December 30, 1998 and February 2, 1999: 

(Protocol amending the 1970 agreement concluded December 6, 1999 (provisionally 

applied).) 

USNCE/ANNEX 1/en 3 
m. 

n. 

o. 

p. 

q. 

r. 

s. 

The Grand Duchy of Luxembourg: Air transport agreement, signed at Luxembourg 

August 19, 1986; amen1ed June 6, 1995; amended July 13 and 21, 1998. 

Malta: Air transport agreement, signed at Washington October 12, 2000. 

The Kingdom of the Netherlands: Air transport agreement, signed at Washington April 3, 

1957; protocol amending the 1957 agreement concluded on March 31, 1978; amendment 

of 1978 protocol concluded June 11, 1986; amendment of 1957 agreement concluded 

October 13 and December 22, 1987; amendment of 1957 agreement concluded January 29 

and March 13, 1992; amendment of 1957 agreement and 1978 protocol concluded 

October 14, 1992. 

The Republic of Poland: Air transport agreement, signed at Warsaw June 16, 2001 . 

The Portuguese Republic: Air transport agreement, signed at Lisbon May 30, 2000. 

Romania: Air transport agreement, signed at Washington July 15, 1998. 

The Slovak Republic: Air transport agreement, signed at Bratislava January 22, 2001. 

USA/CE/ANNEX lien 4 

I 
t. The Kingdom of Spain: Air transport agreement signed at Madrid February 20, 1973; related 

agreement of February 20, March 31 and April 7, 1987; amendment of 1973 agreement 

concluded May 31, 1989; amendment of 1973 agreement concluded November 27, 1991. 

u. The Kingdom of Sw.eden: Agreement relating to air transport services, effected by 

exchange of notes .at Washington December 16, 1944; amended August 6, 1954; 

amended June 16, 1995. 

v. ~e United Kingdom of Great Britain and Northern Ireland: Agreement concerning air 

services, and exchange ofletters, signed at Bermuda July 23, 1977; agreement relating to 

North Atlantic air fares, concluded March 17, 1978; agreement amending the 1977 agreement, 

concluded April 25, 1978; agreement modifying and extending the 1978 agreement relating to 

North Atlantic air fares, concluded November 2 and 9, 1978; agreement amending the 1977 

agreement, concluded December 4, 1980; agreement amending the 1977 agreement, 

concluded February 20, 1985; agreement amending Article 7, Annex 2, and Annex 5 of 

the 1977 agreement, concluded May 25, 1989; agreement concerning amendments of the 

1977 agreement, termination of the US/UK Arbitration Concerning Heathrow Airport User 

Charges and the request for arbitration made by the United Kingdom in its embassy's 

note no. 87 of 13 October 1993 and settlement of the matters which gave rise to those 

proceedings, concluded March 11, 1994; agreement amending the 1977 agreement, 

concluded March 27, 1997. 

USA/CE/ANNEX lien 5 
(Arrangements, being provisionally applied, contained in the memorandum of consultations 

dated September 11, 1986; arrangements contained in the exchange ofletters dated July 27, 

1990; arrangements contained in the memorandum of consultations ofMarch 11, 1991; 

arrangements contained in the exchange ofletters dated October 6, 1994; arrangements 

contained in the memorandum ofconsultations of June 5, 1995; arrangements contained in the 

exchange ofletters dated March 31 and April 3, 2000 (all provisionally applied).) 

Section 2 

Notwithstanding section 1 of this Annex, for areas that are not encompassed within the definition of 

"territory" 'in Article 1 of this Agreement, the agreements in paragraphs ( e) 

(Denmark-United States), (g) (France-United States), and (v) (United Kingdom-United States) of 

that section shall continue to apply, according to their terms. 

Section 3 

Notwithstanding Article 3 of this Agreement, U.S. airlines shall not have the right to provide 

all-cargo services, that are not part of a service that serves the United States, to or from points in the 

Member States, except to or from points in the Czech Republic, the French Republic, 

the Federal Republic of Germany, the Grand Duchy of Luxembourg, Malta, the Republic of Poland, 

i:he Portuguese Republic, and the Slovak Republic. 

USA/CE/ANNEX lien 6 
- --

Section 4 

Notwithstanding any other provisions of this Agreement, this section shall apply to scheduled and 

charter combination air transportation between Ireland and the United States with effect from the 

beginning ofIATA Winter season 2006/2007 until the end of the IATA Winter se~on 2007/2008. 

a. (i) Each U.S. and Community airline may operate 3 non-stop flights between the 

United States and Dublin for each non-stop flight that the airline operates between the 

United States and Shannon. This entitlement for non-stop Dublin flights shall be based 

on an average of operations over the entire three-season transitional period. A flight 

shall be deemed to be a non-stop Dublin, or a non-stop. Shannon, flight, according to the 

first point of entry into, or the last point of departure from, Ireland. 

(ii) The requirement to serve Shannon in subparagraph (a)(i) of this Section shall terminate 

if any airline inaugurates scheduled or charter combination service between Dublin and 

the United States, in either direction, without operating at least one non-stop flight to 

Shannon for every three non-stop flights to Dublin, averaged over the transition period. 

USA/CE/ANNEX 1/en 7 
b. 

c. 

For services between the United States and Ireland, Community airlines may serve only 

Boston, New York, Chicago, Los Angeles, and 3 additional points in the United States, to be 

notified to the United States upon selection or change. These services may operate via 

intermediate points in other Member States or in third countries. 

Code sharing shall be authorized between Ireland and the United States only via other points 

in.the European Community. Other code-share arrangements will be considered on tht; basis 

of comity and reciprocity. 

USA/CE/ANNEX lien 8 
ANNEXl 

Concerning 

Cooperation With Respect to Competition Issues in the Air Transportation Industry 

Article 1 

The cooperation as set forth in this Ann~x shall be implemented by ~e Department of 

Transportation of the United States of America and the Commission of the European Communities 

(hereinafter referred to as "the Participants"), consistent with their respective functions in 

addressing competition issues in the air transportation industry involving the United States and the 

European Community. 

Article2 

Purpose 

The purpose of this cooperation is: 

1. To enhance mutual understanding of the application by the Participants of the laws, 

procedures and practices under their respective competition regimes to encourage competition 

in the air transportation industry; 

2. To facilitate understanding between the Participants of the impact of air transportation 

industry developments on competition in the international aviation market; 

USA/CE/ANNEX 2/en 1 
-

3. To reduce the potential for conflicts in the Participants' application of their respective 

competition regimes to agreements and other cooperative arrangements which have an impact 

on the transatlantic market; and 

4. To promote compatible regulatory approaches to agreements and other cooperative 

arrangements through a better understanding of the methodologies, analytical techniques 

including the definition of the relevant market(s) and analysis of competitive effects, and 

remedies that-the Participants use in their respective independent competition reviews. 

Article 3 

Definitions 

· For the purpose of this Annex, the term "competition regime" means the laws, procedures and 

practices that govern the Participants' exercise of their respective functions in reviewing agreements 

and other cooperative arrangements among airlines in the international market. For the European 

Community, this includes, but is not limited to, Articles 81, 82, and 85 of the Treaty Establishing 

the European Community and their implementing Regulations pursuant to the said Treaty, as well 

as any amendments thereto. For the Department of Transportation, this includes, but is not limited 

to, sections 41308, 41309, and 41720 ofTitle 49 of the United States Code; and its implementing 

Regulations and legal precedents pursuant thereto. 

USA/CE/ANNEX 2/en 2 

- , 

,, -
Article 4 

Areas of Cooperation 

Subject to the qualifications in subparagraphs l(a) and l(b} of Article 5, the types of cooperation 

between the Participants shall include the following: 

(1) Meetings between representatives of the Participants, to include competition experts, in 

principle on a semi-annual basis, for the purpose of discussing developments in the air 

transportation industry, competition policy matters of mutual-interest, and analytical 

approaches to the application of competition law to international aviation, particularly in the 

transatlantic market. The above discussions may lead to the develqpment of a better 

understanding of the Participants' respective approaches to competition issues, including . 

existing commonalities, and to more compatibility in those approaches, in particular with 

respect to inter-carrier agreements. · 

(2) Consultations at any time between the Participants, by mutual agreement or at the request of 

either Participant, to discuss any matter related to this Annex, including specific cases. 

(3) Each Participant may, at its discretion, invite representatives of other governmental authorities 

to participate as appropriate in any meetings or consultations held pursuant to paragraphs 1 

or2 above. 

USA/CE/ ANNEX 2/en 3 
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~ I 

( 4) Timely notifications of the following proceedings or matters, which in the judgment of the 

notifying Participant may have sign.ificant implications for the competition interests of the 

other Participant: 

a. With respect to the Department of Transportation, (i) proceedings for review of 

applications for approval of agreements and other cooperative arrangements among 

airlines involving international air transportation, in particular for antitrust immunity 

involving airlines organized under the laws of the United States and the European 

Community, and (ii) receipt by the Department of Transportation of a joint venture 

agreement pursuant to section 41720 of Title 49 of the United States Code; and 

b. With respect to the Commission of the European Communities, (i) proceedings for 

review of agreements and other cooperative arrangements among airlines involving 

international air transportation, in particular for alliance and other cooperative 

agreements involving airlines organized under the laws of the United States and the 

European Community, and (ii) consideration of individual or block exemptions from 

European Union competition law; 

(5) Notifications of the availability, and any conditions governing that availability, of information 

and data filed With a Participant, in electronic form or otherwise, that, in the judgment of that 

Participant, may have significant implications for the competition interests of the other 

Participant; and 

I' . 

USA/CE/ANNEX 2/en 4 

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( 6) Notifications of such other activities relating to air transportation competition policy as may 

seem appropriate to the notifying Participant. 

Article 5 

Use and Disclosure of Information 

(1) Notwithstanding any other provision of this Annex, neither Participant is expected to provide 

infonnation to the other Participant if disclosure of the information to the requesting 

Participant: 

a. is prohibited by the laws, regulations or practices of the Participant possessing the 

information; or 

b. would be incompatible with important interests of the Participant possessing the 

information; 

(2) Each Participant shall to the extent possible maintain the confidentiality of any mformation 

provided to it in confidence by the other Participant under this Annex and to oppose any 

application for disclosure of such information to a third party that is not authorized by the 

supplying Participant to receive the information. Each Participant intends to notify the other 

Participant whenever any information proposed to be exchanged in discussions or in any other 

manner may be required to be disclosed in a public proceeding. 

USA/CE/ANNEX 2/en 5 
(3) 

(1) 

(2) 

Where pursuant to this Annex a Participant provides information on a confidential basis to the 

other Participant for the purposes specified in Article 2, that information should be used by 

the receiving Participant only for that purpose. 

Article 6 

Implementation 

Each Participant is designating a representative to be responsible for coordination of activities 

established under this Annex. 

This Annex, and all activities undertaken by a Participant pursuant to it, are 

a. intended to be implemented only to the extent consistent with all laws, regulations, and 

practices applicable to that Participant; and 

b. intended to be implemented without prejudice to the Agreement between the European 

Communities and the Government of the United States of America Regarding the 

Application of their Competition Laws. 

USA/CE/ANNEX 2/en 6 
ANNEX3 

Concerning 

U.S. Government Procured Transportation 

Community airlines shall have the right to transport passengers and cargo on scheduled and charter. 

flights for which a U.S. Government civilian department; agency, or instrumentality (1) obtains the 

transportation for itself or in carrying out an arrangement under which payment is made by the 

Government or payment is rriade from amounts provided for the use of the Government, or (2) 

provides the transportation to or for a foreign country or international or other organization without 

reimbursement, and that transportation is (a) between any point in the United States and any point 

in a Member State, except - with respect to passengers only - between points for which there is a 

city-pair contract fare in effect, oi:' (b) between any two points outside the United States. This 

paragraph shall not apply to transportation obtained or funded by the Secretary of Defense or the 

Secretary of a military department. 

USNCE/ANNEX 3/en 1 
ANNEX4 

Concerning 

Additional Matters Related to Ownership, Investment and Control 

Article 1 

Ownership of Airlines of a Party 

1. Ownership by nationals ofa Member State or States of the equity of a U.S. airline shall be 

pennitted, subject to two limitations. First, ownership by all foreign nationals of more than 

25 percent of a corporation's voting equity is prohibited. Second, actual control of a U.S. 

airline by foreign nationals is also prohibited. Subject to the overall 25 percent limitation on 

foreign ownership of voting equity: 

a. ownership by nationals of a Member State or States of: 

(1) as much as 25 percent of the voting equity; and/or 

(2) as much as 49.9 percent of the total equity 

of a U.S. airline shall not be deemed, of itself, to constitute control of that airline; 

and 

b. ownership by nationals ofa Member State or States of 50 percent or more of the total 

equity of a U.S. airline shall Iiot be presumed to constitute control of that airline. Such 

ownership shall be considered on a case-by-case basis. 

USNCE/ ANNEX 4/en 1 
2. 

3. 

4. 

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Ownership by U.S. nationals of a Community airline shall be permitted subject to two 

limitations. First, the airline must be majority owned by Member States and/or by nationals 

of Member States. Second, the airline must be effectively controlled by such states and/or 

such nationals. 

For the purposes of paragraph (b) of Article 4 and subparagraph l(b) of Article 5 of this 

Agreement, a member of the ECAA as of the date of signature of this Agreement and citizens 

of such a member shall be treated as a Member State and its nationals, respectively. The Joint 

Committee may decide that this provision shall apply to new members of the ECAA and their 

citizens. 

Notwithstanding paragraph 2, the European Community and its Member States reserves the 

right to limit investments by U.S. nationals in the voting equity of a Community airline made 

after the signature of this Agreement to a level equivalent to that allowed by the United States 

for foreign nationals in U.S. airlines, provided that the exercise of thai right is consistent with 

international law. 

USA/CE/ANNEX 4/en 2 

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1. 

2. 

3. 

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Article 2 

Ownership and Control of Third-Country Airlines 

Neither Party shall exercise any available rights under air services arrangements with a 

third country to refuse, revoke, suspend or limit authorizations or permissions for any airlines 

of that third country on the grounds that substantial ownership of that airline is vested in the 

other Party, its nationals, or both. 

The United States shall not ~x.ercise any available rights under air services arrangements to 

refuse, revoke, suspend or limit authorizations or permissions for any airline of the 

Principality of Liechtenstein, the Swiss Confederation, a member of the ECAA as of the date 

of signature of this Agreement, or any country in Africa that is implementing an Open-Skjes 

air services agreement with the United States as of the date of signature of this Agreement, on 

the grounds that effective control of that airline is vested in a Member State or States, 

nationals of such a state or states, or both. 

The Joint Committee may decide that neither Party shall exercise the rights referred to in 

paragraph 2 of this Article with respect to airlines of a specific country or countries. 

USA/CE/ANNEX 4/en 3 

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Article 3 

Control of Airlines 

1. The rules applicable in the European Community on ownership and control of Community air 

earners are currently laid down in Article 4 of Council Regulation (EEC) No. 2407 /92 

of23 July 1992 on licensing of air earners. Under this Regulation, responsibility for granting 

an Operating Licence to a Community air earner lies with the Member States. Member States 

apply Regulation 2407 /92 in accordance with their national regulations and procedures. 

2. l'he rules applica,ble in the United ~fates are currently laid down in Sections 40102(a)(2), 

41102 and 41103 of Title 49 of the United States Code (U.S.C.), which require that licenses 

for a U.S. "air carrier" issued by the Department of Transportation, whether a certificate, an 

exemption, or commuter license, to engage in "air transportation" as a common earner, be 

held only by citizens of the United States as defined in 49 U.S.C §40102(a)(l5). That section 

requires that the president and two-thirds of the board of directors and other managing 

officers of a corporation be U.S. citizens, that at least 75 percent of the voting stock be owned 

by U.S. citizens, and that the corporation be under the actual control of U.S. citizens. The 

requirement must be met ~tially by an applicant, and continue to be met by a U.S. airline 

holding a license. 

3. The practice followed by each Party in applying its laws and regulations is set out in the 

Appendix to this Annex. 

USA/CE/ANNEX 4/en 4 

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Appendix to Annex 4 

1. In the United States, citizenship detenninations are necessary for all U.S. air carrier applicants 

for a certificate, exemption, or commuter license. An initial application for a license is filed 

in a formal public docket, and processed "on the record" with filings by the applicant and any 

other interested parties: The Department of Transportation renders a fuial decision by an 

Order based on the formal public record of the case, including documents for which 

confidential treatment has been granted. A "continuing .fitness" case may be handled 

informally by the Department, or may be set for docketed procedures similar to those used for 

initial applications. 

2. The Department's determinations evolve through a variety of precedents, which reflect, 

among other things, the changing nature of .financial markets and investment structures and 

DOT's willingness to consider new approaches to foreign investment that are consistent with 

U.S. law. DOT works with applicants to consider proposed forms of investment and to assist 

them in fashioning transactions that fully comply with U.S. citizenship law, and applicants 

regularly consult with DOT staff before finalising their applications. At any time before a 

formal proceeding has begun, DOT staff may discuss questions concerning citizenship issues 

or other aspects of the proposed transaction and offer suggestions, where appropriate, as to 

alternatives that would allow a proposed transaction to meet U.S. citizenship requirements. 

USA/CE/ANNEX 4/APPENDIX/en 1 
3. In making both its initial and continuing citizenship and fitness determinations, 

DOT considers the totality of circumstances affecting the U.S. airline, and Department 

precedents have permitted consideration_ of the nature of the aviation relationship between the 

United States and the homeland(s) of any foreign investors. In the context of this. Agreement, 

DOT would treat investments from EU nationals at least as favorably as it would treat 

investments from nationals of bilateral or multilateral Open-Skies partners. 

4. In the European Union, paragraph 5 of Article 4 of Regulation 2407/92 provides that the 

European Commission, acting at the request of a Member State, shall examine compliance 

. with the requirements of Article 4 and take a decision if necessary. In taking such decisions 

the Commission must ensure compliance with the procedural rights recognized as general 

principles of Community law by the European Court of Justice, including the right of · 

interested parties to be heard in a timely manner. 

5. When applying its laws and regulations, each Party shall ensure that any transaction involving 

investment in one of its airlines by nationals of the other Party is afforded fair and expeditious 

consideration. 

USA/CE/ANNEX 4/APPENDIX/en 2 
ANNEXS 

Concerning 

Franchising and Branding 

1. The airlines of each Party shall not be precluded from entering into franchise or branding 

arrangements, including conditions relating to brand protection and operational matters, 

provided that: they comply, in particular, with the applicable laws and regulations concerning 

~ontrol; the ability of the airline to exist outside of the franchise is not jeopardized; the 

arrangement does not result in a foreign airline engaging in cabotage operations; and 

applicable regulations, such as consumer protection provisions, including those regarding the 

disclosure of the identity of the airline operating the service, are complied with. So long as 

those requirements are met, close business relationships and cooperative arrangements 

between the airlines of each Party and foreign businesses are permissible, and each of the 

following individual aspects, among others, of a franchise or branding arrangement would 

not, other than in exceptional circumstances, of itself raise control issues: 

a) using and displaying a specific brand or trademark of a franchisor, including 

stipulations on the geographic area in which the brand or trademark may be used; 

b) displaying on the franchisee's aircraft the colors and logo of the franchisor's brand, 

including the display of such a brand, trademark, logo or similar identification 

prominently on its aircraft and the uniforms of its personnel; 

USA/CE/ANNEX 5/en 1 
c) using and displaying the brand, trademark or logo on, or in conjunction with, the 

franchisee's airport facilities and equipment; 

d) maintaining customer service standards designed for marketing purposes; 

e) maintaining customer service standards designed to protect the integrity of the franchise 

brand; 

f) providing for license fees on standard commercial terms; 

g) providing for participation in frequent flyer programs, including the accrual of benefits; 

and 

h) providing in the franchise or branding agreement for the right of the franchisor or 

franchisee to terminate the arrangement and withdraw the brand, provided that nationals 

of the United States or the Member States remain in control of the U.S. or Community 

airline, respectively. 

2. Franchising and branding arrangements are independent of, but may coexist with, a 

code-sharing arrangement that requires that both airlines have the appropriate authority from 

the Parties, as provided for in paragraph 7 of Article 10 of this Agreement. 

USNCE/ ANNEX 5/en 2 

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Joint Declaration 

Representatives of the United States and of the European Community and its Member States 

confinned that the Aii Transport Agreement initialled in Brussels on 2 March 2007 and envisioned 

for signature on 30 April 2007 is to be authenticated in other languages, as provided either by 

exchange of letters, before signature of the Agreement, or by decision of the Joint Committee, after 

signature of the Agreement. 

This Joint Declaration is an integral part of the Air Transport Agreement. 

For the United States: For the European Community 

and its Member States; ad referendum 

{signed. John Byerly] [signed. Daniel Calleja] 

Date: 18 April 2007 Date: 18 April 2007 

USA/CE/JOINT DECLARATION/en 1