1

TREATIES AND OTHER INTERNATIONAL ACTS SERIES 12851

AVIATION 

Transport Services

Agreement Between the 

UNITED STATES OF AMERICA

and PAKISTAN

Signed at Rawalpindi April 10, 1997

with 

Annexes 

and 

Amending Agreement 

Effected by Exchange of Notes 

Signed at Islamabad 

April 12 and 29, 1999
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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.’’

For sale by the Superintendent of Documents, U.S. Government Printing Office, 

Washington, D.C. 20402
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(1) TIAS 12851

PAKISTAN 

Aviation: Transport Services 

Agreement signed at Rawalpindi April 10, 1997; 

Entered into force April 10, 1997. 

With annexes. 

And amending agreement. 

Effected by exchange of notes 

Signed at Islamabad April 12 and 29, 1999; 

Entered into force April 29, 1999.
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1TIAS 1591; 61 Stat. 1180. 

AIR TRANSPORT AGREEMENT 

BETWEEN THE GOVERNMENT OF THE 

UNITED STATES OF AMERICA 

AND 

THE GOVERNMENT OF THE 

ISLAMIC REPUBLIC OF PAKISTAN

The Government of the United States of America and the Government of the 

Islamic Republic of Pakistan (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 predatory or 

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;1

Have agreed as follows:

Article 1

Definitions

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

1. "Aeronautical authorities" means, in the case of the United States, the Department of Transportation, or its successor, and in the case of the Islamic Republic 

of Pakistan, the Aviation Division, or its successor, and any person or agency 

authorized to perform the functions exercised by the said aeronautical authorities; 

2. "Agreement" means this Agreement, its Annexes, and any amendments thereto; 
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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 airline designated and authorized in accordance 

with Article 3 of this Agreement; 

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

administrative overhead; 

7. "International air transportation" means air transportation that passes through 

the airspace over the territory of more than one State; 

8. "Price" means any fare, rate or charge for the carriage of passengers (and their 

baggage) and/or cargo (excluding mail) in air transportation charged by airlines, 

including their agents, and the conditions governing the availability of such fare, 

rate or charge; 

9. "Stop for non-traffic purposes" means a landing for any purpose other than 

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

10. "Territory" means the land areas under the sovereignty, jurisdiction, protection, or trusteeship of a Party, and the territorial waters adjacent thereto; and 

11. "User charge" means a charge imposed on airlines for the provision of airport, air navigation, or aviation security facilities or services including related 

services and facilities.

Article 2

Grant of Rights

1. Each Party grants to the other Party the following rights for the conduct of 

international air transportation by the airlines of the other Party: 

a. the right to fly across its territory without landing; 

b. the right to make stops in its territory for non-traffic purposes; and 

c. the rights otherwise specified in this Agreement. 
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2. Nothing in this Article shall be deemed to confer on the airline or airlines 

of one Party the rights to take on board, in the territory of the other Party, passengers, their baggage, cargo, or mail carried for compensation and destined for 

another point in the territory of that other Party.

Article 3

Designation and Authorization

1. Each Party shall have the right to designate any number of airlines to conduct 

international air transportation in accordance with this Agreement and to withdraw or alter such designations. Such designations shall be transmitted to the 

other Party in writing through diplomatic channels, and shall identify whether the 

airline is authorized to conduct the type of air transportation specified in Annex 

I or in Annex II or both. 

2. On receipt of such a designation, and of applications from the designated airline, in the form and manner prescribed for operating authorizations and technical 

permissions, the other Party shall grant appropriate authorizations and permissions with minimum procedural delay, provided: 

a. substantial ownership and effective control of that airline are vested in 

the Party designating the airline, nationals of that party, or both; 

b. the designated airline is qualified to meet the conditions prescribed 

under the laws and regulations normally applied to the operation of international air transportation by the Party considering the application or 

applications; and 

c. the Party designating the airline is maintaining and administering the 

standards set forth in Article 6 (Safety) and Article 7 (Aviation Security).

Article 4

Revocation of Authorization

1. Either Party may revoke, suspend or limit the operating authorizations or technical permissions of an airline designated by the other Party where: 

a. substantial ownership and effective control of that airline are not vested 

in the other Party, the other 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). 
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2. Unless immediate action is essential to prevent further noncompliance with 

subparagraphs 1b or 1c of this Article, the rights established by this Article shall 

be exercised only after consultation with the other Party. 

3. This Article does not limit the rights of either Party to withhold, revoke, limit 

or impose conditions on the operating authorization or technical permission of 

an airline or airlines of the other Party in accordance with the provisions of 

Article 7 (Aviation Security).

Article 5

Application of Laws 

1. While entering, within, or leaving the territory of one Party, its laws and regulations relating to the operation and navigation of aircraft shall be complied with 

by the other Party’s airlines. 

2. While entering, within, or leaving the territory of one Party, its laws and regulations relating to the admission to or departure from its territory of passengers, 

crew or cargo on aircraft (including regulations relating to entry, clearance, aviation security, immigration, passports, customs and quarantine or, in the case of 

mail, postal regulations) shall be complied with by, or on behalf of, such passengers, crew or cargo of the other Party’s airlines.

Article 6

Safety

1. Each Party shall recognize as valid, for the purpose of operating the air 

transportation provided for in this Agreement, certificates of airworthiness, certificates of competency, and licenses issued or validated by the other Party and 

still in force, provided that the requirements for such certificates or licenses at 

least equal the minimum standards that may be established pursuant to the 

Convention. Each Party may, however, refuse to recognize as valid for the purpose of flight above its own territory, certificates of competency and licenses 

granted to or validated for its own nationals by the other Party. 

2. Either Party may request consultations concerning the safety standards maintained by the other Party relating to aeronautical facilities, aircrews, aircraft, and 

operation of the designated airlines. If, following such consultations, one Party 

finds that the other Party does not effectively maintain and administer safety 

standards and requirements in these areas that at least equal the minimum standards that may be established pursuant to the Convention, the other Party shall 

be notified of such findings and the steps considered necessary to conform with 

these minimum standards, and the other Party shall take appropriate corrective 

action. Each Party reserves the right to withhold, revoke, or limit the operating 
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1TIAS 6768, 7192, 7570; 20 UST 2941; 22 UST 1641; 24 UST 564. 

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, conforming to minimum standards that may be established pursuant to the 

Convention, within a reasonable time.

Article 7

Aviation Security

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

Parties reaffirm that their obligation to each other to protect the security of civil 

aviation against acts of unlawful interference forms an integral part of this 

Agreement. Without limiting the generality of their rights and obligations under 

international law, the Parties shall in particular act in conformity with the provisions of the Convention on Offenses and Certain Other Acts Committed on 

Board Aircraft, signed at Tokyo on September 14, 1963, the Convention for the 

Suppression of Unlawful Seizure of Aircraft, signed at The Hague on December 

16, 1970, and the Convention for the Suppression of Unlawful Acts against the 

Safety of Civil Aviation, signed at Montreal on September 23, 1971.1

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 all aviation 

security standards and appropriate recommended practices established by the 

International Civil Aviation Organization and designated as Annexes to the 

Convention; they shall require that operators of aircraft of their registry, operators of aircraft who have their principal place of business or permanent residence 

in their territory, and the operators of airports in their territory act in conformity 

with such aviation security provisions. 

4. Each Party agrees to observe the security provisions required by the other 

Party for entry into 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 
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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 30 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 30 days. Any 

action taken in accordance with this paragraph shall be discontinued upon 

compliance by the other Party with the provisions of this Article.

Article 8

Commercial Opportunities

1. The airlines of each Party shall have the right to establish offices in the territory of the other Party for the promotion and sale of air transportation. 

2. The designated airlines of each Party shall be entitled, in accordance with the 

laws and regulations of the other Party relating to entry, residence, and employment, to bring in and maintain in the territory of the other Party managerial, 

sales, technical, operational, and other specialist staff required for the provision 

of air transportation. 

3. Each designated airline shall have the right to perform its own ground-handling in the territory of the other Party ("self-handling") or, at its option, select 

among competing agents for such services in whole or in part. These 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 convertible currencies. 
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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, provided that all airlines in such arrangements 1) hold the appropriate authority and 

2) meet the requirements normally applied to such arrangements, any designated 

airline of one Party may enter into cooperative marketing arrangements such as 

blocked-space, code-sharing or leasing arrangements, with 

i) an airline or airlines of either Party; and 

ii) 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.

Article 9

Customs Duties and Charges

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

transportation by the designated airlines of the other Party, their regular equipment, ground equipment, fuel, lubricants, consumable technical supplies, spare 

parts (including engines), aircraft stores (including but not limited to such items 

of food, beverages and liquor, tobacco and other products destined for sale to 

or use by passengers in limited quantities during flight), and other items intended 

for or used solely in connection with the operation or servicing of aircraft 

engaged in international air transportation shall be exempt, on the basis of reciprocity, from all import restrictions, property taxes and capital levies, customs 

duties, excise taxes, and similar fees and charges that are (1) imposed by the 

national authorities, and (2) not based on the cost of services provided, provided 

that such equipment and supplies remain on board the aircraft. 

2. There shall also be exempt, on the basis of reciprocity, from the taxes, levies, 

duties, fees and charges referred to in paragraph 1 of this Article, with the exception of charges based on the cost of the service provided: 
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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 Contracting Party and taken on board, within reasonable 

limits, for use on outbound aircraft of an airline of the other Contracting 

Party engaged in international air transportation, even when these stores 

are to be used on a part of the journey performed over the territory of 

the Contracting Party in which they are taken on board. 

3. Equipment and supplies referred to in paragraphs 1 and 2 of this Article may 

be required to be kept under the supervision or control of the appropriate authorities. 

4. The exemptions provided by this Article shall also be available where the designated airlines of one Party have contracted with another airline, which similarly 

enjoys such exemptions from the other Party, for the loan or transfer in the territory of the other Party of the items specified in paragraphs 1 and 2 of this 

Article.

Article 10

User Charges 

1. User charges that may be imposed by the competent charging authorities or 

bodies of each Party on the airlines of the other Party shall be just, reasonable, 

not unjustly discriminatory, and equitably apportioned among categories of users. 

In any event, any such user charges shall be assessed on the airlines of the other 

Party on terms not less favorable than the most favorable terms available to any 

other airline at the time the charges are assessed. 

2. User charges imposed on the airlines of the other Party may reflect, but shall 

not exceed, the full cost to the competent charging authorities or bodies of providing the appropriate airport, airport environmental, air navigation, and aviation 
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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 of practice 

that is inconsistent with this Article.

Article 11

Fair Competition 

1. Each Party shall allow a fair and equal opportunity for the designated airlines 

of both Parties to compete in providing the international air transportation governed by this Agreement. 

2. Each party shall allow each designated airline to determine the frequency and 

capacity of the international air transportation it offers based upon commercial 

considerations in the marketplace. Consistent with this right, neither Party shall 

unilaterally limit the volume of traffic, frequency or regularity of service, or the 

aircraft type or types operated by the designated airlines of the other Party, 

except as may be required for customs, technical, operational, or environmental 

reasons under uniform conditions consistent with Article 15 of the Convention. 

3. Neither Party shall impose on the other Party’s designated airlines a firstrefusal 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 
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be required on a non-discriminatory basis to enforce the uniform conditions foreseen by paragraph 2 of this Article or as may be specifically authorized in an 

Annex to this Agreement. If a Party requires filings for information purposes, 

it shall minimize the administrative burdens of filing requirements and procedures on air transportation intermediaries and on designated airlines of the other 

Party.

Article 12

Pricing 

1. Each Party shall allow prices for air transportation to be established by each 

designated airline based upon commercial considerations in the marketplace. 

Intervention by the Parties shall be limited to: 

a. prevention of unreasonably discriminatory prices or practices; 

b. protection of consumers from prices that are unreasonably high or 

restrictive due to the abuse of a dominant position; and 

c. protection of airlines from prices that are artificially low due to direct 

or indirect governmental subsidy or support. 

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 
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effect. Without such mutual agreement, the price shall go into effect or continue 

in effect.

Article 13

Intermodal Services 

Notwithstanding any other provision of this Agreement, airlines and indirect providers of cargo transportation of both Parties shall be permitted, without restriction, to employ in connection with international air transportation any surface 

transportation for cargo to or from any points in the territories of the Parties or 

in third countries, including transport to and from all airports with customs facilities, and including, where applicable, the right to transport cargo in bond under 

applicable laws and regulations. Such cargo, whether moving by surface or by 

air, shall have access to airport customs processing and facilities. Airlines may 

elect to perform their own surface transportation or to provide it through arrangements with other surface carriers, including surface transportation operated by 

other airlines and indirect providers of cargo air transportation. Such intermodal 

cargo services may be offered at a single, through price for the air and surface 

transportation combined, provided that shippers are not misled as to the facts 

concerning such transportation.

Article 14

Consultations

Either Party may, at any time, request consultations relating to this Agreement. 

Such consultations shall begin at the earliest possible date, but not later than 60 

days from the date the other Party receives the request unless otherwise agreed.

Article 15

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 
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been named, they shall by agreement appoint a third arbitrator, who shall 

act as President of the arbitral tribunal; 

b. If either Party fails to name an arbitrator, or if the third arbitrator is 

not appointed in accordance with subparagraph a of this paragraph, either 

Party may request the President of the Council of the International Civil 

Aviation Organization to appoint the necessary arbitrator or arbitrators 

within 30 days. If the President of the Council is of the same nationality 

as one of the Parties, the most senior Vice President who is not disqualified on that ground shall make the appointment. 

3. Except as otherwise agreed, the arbitral tribunal shall determine the limits of 

its jurisdiction in accordance with this Agreement and shall establish its own 

procedural rules. The tribunal, once formed, may recommend interim relief measures pending its final determination. At the direction of the tribunal or at the 

request of either of the Parties, a conference to determine the precise issues to 

be arbitrated and the specific procedures to be followed shall be held not later 

than 15 days after the tribunal is fully constituted. 

4. Except as otherwise agreed or as directed by the tribunal, each Party shall 

submit a memorandum within 45 days of the time the tribunal is fully constituted. Replies shall be due 60 days later. The tribunal shall hold a hearing at 

the request of either Party or on its own initiative within 15 days after replies 

are due. 

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

completion of the hearing or, if no hearing is held, after the date both replies 

are submitted. The decision of the majority of the tribunal shall prevail. 

6. The Parties may submit requests for clarification of the decision within 15 

days after it is rendered and any clarification given shall be issued within 15 

days of such request. 

7. Each Party shall, to the degree consistent with its national law, give full effect 

to any decision or award of the arbitral tribunal. 

8. The expenses of the arbitral tribunal, including the fees and expenses of the 

arbitrators, shall be shared equally by the Parties. Any expenses incurred by the 

President of the Council of the International Civil Aviation Organization in 

connection with the procedures of paragraph 2.b. of this Article shall be considered to be part of the expenses of the arbitral tribunal.
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Article 16

Termination

Either Party may, at any time, give notice in writing to the other Party of its 

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

to the International Civil Aviation Organization. This Agreement shall terminate 

at midnight (at the place of receipt of the notice to the other Party) immediately 

before the first anniversary of the date of receipt of the notice by the other Party, 

unless the notice is withdrawn by agreement of the Parties before the end of this 

period.

Article 17

Registration with ICAO

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

Article 18

Entry into Force

This Agreement and its Annexes shall enter into force on the date of signature.

IN WITNESS WHEREOF the undersigned, being duly authorized by their 

respective Governments, have signed this Agreement.

DONE at Rawalpindi, this 10th day of April, 1997, in duplicate in the English 

language.

FOR THE GOVERNMENT OF THE 

UNITED STATES OF AMERICA: 

FOR THE GOVERNMENT OF THE 

ISLAMIC REPUBLIC OF PAKISTAN:

Thomas Simons, Jr. Hassan Raza Pasha 
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ANNEX I 

Scheduled Air Transportation 

Section 1 

Routes

Airlines of each Party designated under this Annex shall, in accordance with the 

terms of their designation, be entitled to perform scheduled international air 

transportation between points on the following routes: 

A. Routes for the airline or airlines designated by the Government of the 

United States: 

From the United States via intermediate points to a point or points in 

Pakistan and beyond. 

B. Routes for the airline or airlines designated by the Government of Pakistan: 

1. For combination services: 

From Pakistan via intermediate points: Kazakhstan, Kyrgyzstan, 

Tajikistan, Uzbekistan, and Turkmenistan; the Middle East, and North 

Africa; Rome, Amsterdam, Frankfurt, Geneva, Zurich, Paris,

London 1/, Montreal, Toronto and three additional intermediate points 

on a transatlantic routing to be selected by the Government of Pakistan 

2/; and three intermediate points on a transpacific routing to be selected 

by the Government of Pakistan 2/3/; to New York and five additional 

U.S. points to be selected by the Government of Pakistan 2/, and two 

additional U.S. points to be selected by the Government of Pakistan 2/ 

for services operated through cooperative services arrangements only; 

and beyond to the points listed above.

————————————————————————

1/ There are no local traffic rights between the United States and London, except 

between New York and London. 

2/ The Government of Pakistan will notify the Government of the United States 

of its choices through diplomatic note. These selections may be changed by the 

Government of Pakistan, following 30 days’ notice to the Government of the 

United States. 

3/ If points in Japan are selected, there are no local traffic rights between Japan 

and the United States. [Footnotes in the original.]
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2. For all-cargo services: 

From Pakistan via intermediate points to a point or points in the United 

States and beyond.3/

Section 2 

Operational Flexibility

Each designated airline may, on any or all flights and at its option: 

1. operate flights in either or both directions; 

2. combine different flight numbers within one aircraft operation; 

3. serve points on the routes in any combination and in any order (which 

may include serving intermediate points as beyond points and beyond 

points as intermediate points); 

4. omit stops at any point or points; and 

5. transfer traffic from any of its aircraft to any of its other aircraft at 

any point on the routes; 

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

traffic otherwise permissible under this Agreement; provided that the service 

begins and/or terminates at a point in the territory of the Party designating the 

airline.

Section 3 

Change of Gauge 

On any segment or segments of the routes above, any designated airline may 

perform international air transportation without any limitation as to change, at 

any point on the route, in type or number of aircraft operated; provided that, in 

the outbound direction, the transportation beyond such point is a continuation of 

the transportation from the territory of the Party that has designated the airline 

and, in the inbound direction, the transportation to the territory of the Party that 

has designated the airline is a continuation of the transportation from beyond 

such point.

——————————————————————————

3/ If points in Japan are selected, there are no local traffic rights between Japan 

and the United States. [Footnote in the original.]
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ANNEX II 

Charter Air Transportation 

Section 1 

Airlines of each Party designated under this Annex shall, in accordance with the 

terms of their designation, have the right to carry international charter traffic of 

passengers (and their accompanying baggage) and/or cargo (including, but not 

limited to, freight forwarder, split, and combination (passenger/cargo) charters): 

Between any point or points in the territory of the Party that has designated the airline and any point or points in the territory of the other 

Party; and 

Between any point or points in the territory of the other Party and any 

point or points in a third country or countries, provided that such service 

constitutes part of a continuous operation, with or without a change of 

aircraft, that includes service to the homeland for the purpose of carrying 

local traffic between the homeland and the territory of the other Party. 

In the performance of services covered by this Annex, airlines of each Party designated under this Annex shall also have the right: (1) to make stopovers at any 

points whether within or outside of the territory of either Party; (2) to carry 

transit traffic through the other Party’s territory; and (3) to combine on the same 

aircraft traffic originating in one Party’s territory, originating in the other Party’s 

territory, and traffic originating in third countries. 

Each Party shall extend favorable consideration to applications by airlines of the 

other Party to carry traffic not covered by this Annex on the basis of comity 

and reciprocity.

Section 2

Any airline designated by either Party performing international charter air 

transportation originating in the territory of either Party, whether on a one-way 

or round-trip basis, shall have the option of complying with the charter laws, 

regulations, and rules either of its homeland or of the other Party. If a Party 

applies different rules, regulations, terms, conditions, or limitations to one or 

more of its airlines, or to airlines of different countries, each designated airline 

shall be subject to the least restrictive of such criteria. However, nothing contained in the above paragraph shall limit the rights of either Party to require airlines designated under this Annex by either Party to adhere to requirements 

relating to the protection of passenger funds and passenger cancellation and 

refund rights.
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Section 3

Except with respect to the consumer protection rules referred to in the preceding 

paragraph above, neither Party shall require an airline designated under this 

Annex by the other Party, in respect of the carriage of traffic from the territory 

of that other Party or of a third country on a one-way or round-trip basis, to 

submit more than a declaration of conformity with the applicable laws, regulations and rules referred to under section 2 of this Annex or of a waiver of these 

laws, regulations, or rules granted by the applicable aeronautical authorities.
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ANNEX III 

Principles of Non-Discrimination Within 

and Competition among Computer Reservations Systems

Recognizing that Article 11 (Fair Competition) of the U.S.-Pakistan Agreement 

guarantees the airlines of both Parties "a fair and equal opportunity to compete,"

Considering that one of the most important aspects of the ability of an airline 

to compete is its ability to inform the public of its services in a fair and impartial 

manner, and that, therefore, the quality of information about airline services 

available to travel agents who directly distribute such information to the traveling 

public and the ability of an airline to offer those agents competitive computer 

reservations systems (CRSs) represent the foundation for an airline’s competitive 

opportunities, and 

Considering that it is equally necessary to ensure that the interests of the consumers of air transport products are protected from any misuse of such information and its misleading presentation and that airlines and travel agents have 

access to effectively competitive computer reservations systems: 

1. The Parties agree that CRSs will have integrated primary displays for 

which: 

a. Information regarding international air services, including the construction 

of connections on those services, shall be edited and displayed based on 

non-discriminatory and objective criteria that are not influenced, directly or 

indirectly, by airline or market identity. Such criteria shall apply uniformly 

to all participating airlines. 

b. CRS data bases shall be as comprehensive as possible. 

c. CRS vendors shall not delete information submitted by participating airlines; such information shall be accurate and transparent; for example, codeshared and change-of-gauge flights and flights with stops should be clearly 

identified as having those characteristics. 

d. All CRSs that are available to travel agents who directly distribute 

information about airline services to the traveling public in either Party’s 

territory shall not only be obligated to, but shall also be entitled to, operate 

in conformance with the CRS rules that apply in the territory where the 

CRS is being operated. 

e. Travel agents shall be allowed to use any of the secondary displays available through the CRS so long as the travel agent makes a specific request 

for that display. 
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2. A Party shall require that each CRS vendor operating in its territory allow 

all airlines willing to pay any applicable non-discriminatory fee to participate in 

its CRS. A Party shall require that all distribution facilities that a system vendor 

provides shall be offered on a non-discriminatory basis to participating airlines. 

A Party shall require that CRS vendors display, on a non-discriminatory, objective, carrier-neutral and market-neutral basis, the international air services of 

participating airlines in all markets in which they wish to sell those services. 

Upon request, a CRS vendor shall disclose details of its data base update and 

storage procedures, its criteria for editing and ranking information, the weight 

given to such criteria, and the criteria used for selection of connect points and 

inclusion of connecting flights. 

3. CRS vendors operating in the territory of one Party shall be entitled to bring 

in, maintain, and make freely available their CRSs to travel agencies or travel 

companies whose principal business is the distribution of travel-related products 

in the territory of the other Party if the CRS complies with these principles. 

4. Neither Party shall, in its territory, impose or permit to be imposed on the 

CRS vendors of the other Party more stringent requirements with respect to 

access to and use of communication facilities, selection and use of technical CRS 

hardware and software, and the technical installation of CRS hardware, than 

those imposed on its own CRS vendors. 

5. Neither Party shall, in its territory, impose or permit to be imposed on the 

CRS vendors of the other Party more restrictive requirements with respect to 

CRS displays (including edit and display parameters), operation, or sale than 

those imposed on its own CRS vendors. 

6. CRSs in use in the territory of one Party that comply with these principles 

and other relevant non-discriminatory regulatory, technical, and security standards shall be entitled to effective and unimpaired access in the territory of the 

other Party. One aspect of this is that a designated airline shall participate in 

such a system as fully in its homeland territory as it does in any system offered 

to travel agents in the territory of the other Party. Owners/operators of CRSs of 

one Party shall have the same opportunity to own/operate CRSs that conform to 

these principles within the territory of the other Party as do owners/operators of 

that Party. Each Party shall ensure that its airlines and its CRS vendors do not 

discriminate against travel agents in their homeland territory because of their use 

or possession of a CRS also operated in the territory of the other Party.
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[AMENDING AGREEMENT]

EMBASSY OF THE 

UNITED STATES OF AMERICA

No. 405/ECON 

April 12, 1999

Excellency: 

I have the honor to refer to the Air Transport Agreement between the 

Government of the United States of America and the Government of the Islamic 

Republic of Pakistan, with Annexes, signed at Rawalpindi April 10, 1997, 

hereinafter the Agreement. 

In order to transform the Agreement into an "Open Skies" Agreement to 

benefit both United States and Pakistani airlines, to provide for certain conforming changes to the operational flexibility language of the Agreement, and 

to provide for Seventh-Freedom rights for all cargo-service, as well as to update 

the security provision of the Agreement, I have the honor to propose, on behalf 

of the Government of the United States of America, that the Agreement be 

amended as follows: 

1. Article 7, paragraph 4 of the Agreement shall be amended to read as follows: 

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.

His Excellency 

Sartaj Aziz 

Minister of Foreign Affairs of 

The Islamic Republic of Pakistan
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2. The final sentence of article 7, paragraph 6 of the Agreement shall be 

deleted. 

3. In article 13, line 5, the phrase "transportation for cargo" shall be corrected to read "transportation of cargo."

4. Paragraphs a and b of section 1 of Annex I of the Agreement shall be 

amended to read as follows: 

a. Routes for the airline or airlines designated by the Government of the 

United States of America: 

1. From points behind the United States via the United States and intermediate points to a point or points in Pakistan and beyond. 

2. For all-cargo service or services, between Pakistan and any point or 

points. 

b. Routes for the airline or airlines designated by the Government of the 

Islamic Republic of Pakistan: 

l. From points behind Pakistan via Pakistan and intermediate points to a 

point or points in the United States and beyond. 

2. For all-cargo service or services, between the United States and any point 

or points. 

5. Section 2 of Annex I of the Agreement shall be amended to read: 

Each designated airline may, on any or all flights and at its option: 

1. Operate flights in either or both directions; 

2. Combine different flight numbers within one aircraft operation; 

3. Serve behind, intermediate, and beyond points and points in the territories 

of the parties on the routes in any combination and in any order; 

4. Omit stops at any point or points; 

5. Transfer traffic from any of its aircraft to any of its other aircraft at any 

point on the routes; and 

6. 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; without directional or geographic limitation and 

without loss of any right to carry traffic otherwise permissible under this 

Agreement; provided that, with the exception of all-cargo services, the 

service serves a point in the territory of the part designating the airline. 

6. Section 1 of Annex II shall be amended to read as follows: 
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Section 1

Airlines of each party designated under this Annex shall, in accordance with 

the terms of their designation, have the right to carry international charter 

traffic of passengers (and their accompanying baggage) and/or cargo 

(including, but not limited to, freight forwarder, split, and combination [passenger/cargo] charters): between any point or points in the territory of the 

party that has designated the airline and any point or points in the territory 

of the other party; and between any point or points in the territory of the 

other party and any point or points in a third country or countries, provided 

that, except with respect to cargo charters, such service constitutes part of 

a continuous operation, with or without a change of aircraft, that includes 

service to the homeland for the purpose of carrying local traffic between 

the homeland and the territory of the other party. 

In the performance of services covered by this Annex, airlines of each party 

designated under this Annex shall also have the right: (1) to make stopovers 

at any points whether within or outside of the territory of either party; (2) 

to carry transit traffic through the other party’s territory; (3) to combine on 

the same aircraft traffic originating in one party’s territory, traffic originating in the other party’s territory, and traffic originating in third countries; 

and (4) to perform international air transportation without any limitation as 

to change, at any point on the route, in type or number of aircraft operated; 

provided that, except with respect to cargo charters, in the outbound direction, the transportation beyond such point is a continuation of the transportation from the territory of the party that has designated the airline and in 

the inbound direction, the transportation to the territory of the party that has 

designated the airline is a continuation on the transportation from beyond 

such point. 

Each party shall extend favorable consideration to applications by airlines 

of the other party to carry traffic not covered by this Annex on the basis 

of comity and reciprocity. 

If this proposal is acceptable to the Government of the Islamic Republic of 

Pakistan, I have the further honor to propose that this note and your note in reply 

shall constitute an agreement between our two governments, which shall enter 

into force on the date of your note. 

Accept, Excellency, the renewed assurances of my highest consideration.

William B. Milam
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Ministry of Foreign Affairs 

Islamabad

No. USA(I)-1/43/99

April 29, 1999

The Ministry of Foreign Affairs of the Islamic Republic of Pakistan presents 

its compliments to the Embassy of the United States of America in Islamabad 

and with reference to their note No. 405/ECON dated April 12, 1999 has the 

honour to state that the Government of Pakistan agrees with the amendments in 

the Air Transport Agreement between Pakistan and the United States of America 

proposed by the U.S. side. 

The Ministry of Foreign Affairs avails itself of this opportunity to renew 

to the Embassy of the United States of America the assurances of its highest 

consideration.

Embassy of the 

United States of America, 

Islamabad.