TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13035 

________________________________________________________________________ 

AVIATION 

Transport Services

 Agreement Between the 

UNITED STATES OF AMERICA 

and BAHRAIN 

Signed at Washington May 24, 1999 

with 

Annexes 
 NOTE BY THE DEPARTMENT OF STATE 

 Pursuant to Public Law 89—497, approved July 8, 1966 

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued 

under the authority of the Secretary of State shall be competent 

 evidence . . . of the treaties, international agreements other than 

treaties, and proclamations by the President of such treaties and 

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime 

jurisdiction, and in all the tribunals and public offices of the 

United States, and of the several States, without any further proof 

or authentication thereof.” 
 BAHRAIN 

 Aviation: Transport Services 

Agreement signed at Washington May 24, 1999; 

Entered into force July 6, 2001. 

With annexes. 
AIR TRANSPORT AGREEMENT

BETWEEN

THE GOVERNMENT OF

THE UNITED STATES OF AMERICA

AND

THE GOVERNMENT OF

THE STATE OF BAHRAIN

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

(hereinafter, "the Parties");

Desiring to promote an international aviation system based on competition among airlines in the

marketplace with minimum government interference and regulation;

Desiring to facilitate the expansion of international air transport opportunities;

Desiring to make it possible for airlines to offer the traveling and shipping public a variety of

service options at the lowest prices that are not discriminatory and do not represent abuse of a

dominant position, and wishing to encourage individual airlines to develop and implement

innovative and competitive prices;

Desiring to ensure the highest degree of safety and security in international air transport and

reaffirming their grave concern about acts or threats against the security of aircraft, which

jeopardize the safety of persons or property, adversely affect the operation of air transportation,

and undermine public confidence in the safety of civil aviation; and

Being Parties to the Convention on International Civil Aviation, opened for signature at Chicago

on December 7, 1944;

Have agreed as follows:
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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 Government of the State of Bahrain, the

Civil Aviation Affairs, of the Ministry of Transportation , or any person or agency authorized to

perform functions exercised by the said officials;

2. "Agreement" means this Agreement, its Annexes, and any amendments thereto;

3. "Air transportation" means the public carriage by aircraft of passengers, baggage, cargo,

and mail, separately or in combination, for remuneration or hire;

4. "Convention" means the Convention on International Civil Aviation, opened for signature

at Chicago on December 7, 1944, and includes:

a. any amendment that has entered into force under Article 94(a) of the Convention and

has been ratified by both Parties, and

b. any Annex or any amendment thereto adopted under Article 90 of the Convention,

insofar as such Annex or amendment is at any given time effective for both Parties;

5. "Designated airline" means an airline designated and authorized in accordance with

Article 3 of this Agreement;

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

administrative overhead;

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

over the territory of more than one State;

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

and/or cargo (excluding mail) in air transportation charged by airlines, including their agents, and

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

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

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

10. "Territory" means the land areas under the sovereignty, jurisdiction, protection, or

trusteeship of a Party, and the territorial waters adjacent thereto; and
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11. "User charge" means a charge imposed on airlines for the provision of airport, air

navigation, or aviation security facilities or services including related services and facilities.

Article 2

Grant of Rights

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

air transportation by the airlines of the other Party:

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

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

c. the rights otherwise specified in this Agreement.

2. Nothing in this Article shall be deemed to confer on the airline or airlines of one Party the

rights to take on board, in the territory of the other Party, passengers, their baggage, cargo, or

mail carried for compensation and destined for another point in the territory of that other Party.

Article 3

Designation and Authorization

1. Each Party shall have the right to designate as many airlines as it wishes to conduct

international air transportation in accordance with this Agreement and to withdraw or alter such

designations. Such designations shall be transmitted to the other Party in writing through

diplomatic channels, and shall identify whether the airline is authorized to conduct the type of air

transportation specified in Annex I or in Annex II or both.

2. On receipt of such a designation, and of applications from the designated airline, in the

form and manner prescribed for operating authorizations and technical permissions, the other

Party shall grant appropriate authorizations and permissions with minimum procedural delay,

provided:

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

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

b. the designated airline is qualified to meet the conditions prescribed under the laws and

regulations normally applied to the operation of international air transportation by the Party

considering the application or applications; and
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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 Party's nationals, or both;

b. that airline has failed to comply with the laws and regulations referred to in Article 5

(Application of Laws) of this Agreement; or

c. the other Party is not maintaining and administering the standards as set forth in

Article 6 (Safety).

2. Unless immediate action is essential to prevent further noncompliance with

subparagraphs 1 b or 1 c 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.
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Article 6

Safety

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

provided for in this Agreement, certificates of airworthiness, certificates of competency, and

licenses issued or validated by the other Party and still in force, provided that the requirements

for such certificates or licenses at least equal the minimum standards that may be established

pursuant to the Convention. Each Party may, however, refuse to recognize as valid for the

purpose of flight above its own territory, certificates of competency and licenses granted to or

validated for its own nationals by the other Party.

2. Either Party may request consultations concerning the safety standards maintained by the

other Party relating to aeronautical facilities, aircrews, aircraft, and operation of the designated

airlines. If, following such consultations, one Party finds that the other Party does not effectively

maintain and administer safety standards and requirements in these areas that at least equal the

minimum standards that may be established pursuant to the Convention, the other Party shall be

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

standards, and the other Party shall take appropriate corrective action. Each Party reserves the

right to withhold, revoke, or limit the operating authorization or technical permission of an

airline or airlines designated by the other Party in the event the other Party does not take such

appropriate corrective action within a reasonable time.

Article 7

Aviation Security

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

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

unlawful interference forms an 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, the

Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation, signed at

Montreal on September 23, 1971, and the Protocol for the Suppression of Unlawful Acts of

Violence at Airports Serving International Civil Aviation, done at Montreal on February 24,

1988.

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

acts of unlawful seizure of civil aircraft and other unlawful acts against the safety of such

aircraft, of their passengers and crew, and of airports and air navigation facilities, and to address
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any other threat to the security of civil air navigation.

3. The Parties shall, in their mutual relations, act in conformity with the aviation security

standards and appropriate recommended practices established by the International Civil Aviation

Organization and designated as Annexes to the Convention; they shall require that operators of

aircraft of their registry, operators of aircraft who have their principal place of business or

permanent residence in their territory, and the operators of airports in their territory act in

conformity with such aviation security provisions.

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

into, for departure from, and while within the territory of that other Party and to take adequate

measures to protect aircraft and to inspect passengers, crew, and their baggage and carry-on

items, as well as cargo and aircraft stores, prior to and during boarding or loading. Each Party

shall also give positive consideration to any request from the other Party for special security

measures to meet a particular threat.

5. When an incident or threat of an incident of unlawful seizure of aircraft or other unlawful

acts against the safety of passengers, crew, aircraft, airports or air navigation facilities occurs, the

Parties shall assist each other by facilitating communications and other appropriate measures

intended to terminate rapidly and safely such incident or threat.

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

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

immediate consultations with the aeronautical authorities of the other Party. Failure to reach a

satisfactory agreement within 15 days from the date of such request shall constitute grounds to

withhold, revoke, limit, or impose conditions on the operating authorization and technical

permissions of an airline or airlines of that Party. When required by an emergency, a Party may

take interim action prior to the expiry of 15 days.

Article 8 

Commercial Opportunities

1. The airlines of each Party shall have the right to establish offices in the territory of the

other Party for the promotion and sale of air transportation.

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

regulations of the other Party relating to entry, residence, and employment, to bring in and

maintain in the territory of the other Party managerial, sales, technical, operational, and other

specialist staff required for the provision of air transportation.

3. Each designated airline shall have the right to perform its own ground-handling in the

territory of the other Party ("self-handling") or, at its option, select among competing agents for
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such services in whole or in part. The rights shall be subject only to physical constraints

resulting from considerations of airport safety. Where such considerations preclude selfhandling, 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.

5. Each airline shall have the right to convert and remit to its country, on demand, local

revenues in excess of sums locally disbursed. Conversion and remittance shall be permitted

promptly without restrictions or taxation in respect thereof at the rate of exchange applicable to

current transactions and remittance on the date the carrier makes the initial application for

remittance.

6. The airlines of each Party shall be permitted to pay for local expenses, including

purchases of fuel, in the territory of the other Party in local currency. At their discretion, the

airlines of each Party may pay for such expenses in the territory of the other Party in freely

convertible currencies according to local currency regulation.

7. In operating or holding out the authorized services on the agreed routes, any designated

airline of one Party may enter into cooperative marketing arrangements such as blocked-space,

code-sharing or leasing arrangements, with

a. an airline or airlines of either Party; and

b. an airline or airlines of a third country, provided that such third country authorizes or

allows comparable arrangements between the airlines of the other Party and other airlines on

services to, from and via such third country;

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

requirements normally applied to such arrangements.

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

cargo transportation of both Parties shall be permitted, without restriction, to employ in

connection with international air transportation any surface transportation for cargo to or from

any points in the territories of the Parties or in third countries, including transport to and from all

airports with customs facilities, and including, where applicable, the right to transport cargo in

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

shall have access to airport customs processing and facilities. Airlines may elect to perform their
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own surface transportation or to provide it through arrangements with other surface carriers,

including surface transportation operated by other airlines and indirect providers of cargo air

transportation. Such intermodal cargo services may be offered at a single, through price for the

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

concerning such transportation.

Article 9

Customs Duties and Charges

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

transportation by the designated airlines of the other Party, their regular equipment, ground

equipment, fuel, lubricants, consumable technical supplies, spare parts (including engines),

aircraft stores (including but not limited to such items of food, beverages, 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 (i) imposed by the national authorities, and (ii) not based on the cost of

services provided, provided that such equipment and supplies remain on board the aircraft.

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

and charges referred to in paragraph 1 of this Article, with the exception of charges based on the

cost of the service provided:

a. aircraft stores introduced into or supplied in the territory of a Party and taken on board,

within reasonable limits, for use on outbound aircraft of an airline of the other Party engaged in

international air transportation, even when these stores are to be used on a part of the journey

performed over the territory of the Party in which they are taken on board;

b. ground equipment and spare parts (including engines) introduced into the territory of a

Party for the servicing, maintenance, or repair of aircraft of an airline of the other Party used in

international air transportation;

c. fuel, lubricants and consumable technical supplies introduced into or supplied in the

territory of a Party for use in an aircraft of an airline of the other Party engaged in international

air transportation, even when these supplies are to be used on a part of the journey performed

over the territory of the Party in which they are taken on board; and

d. promotional and advertising materials introduced into or supplied in the territory of

one Party and taken on board, within reasonable limits, for use on outbound aircraft of an airline

of the other Party engaged in international air transportation, even when these stores are to be
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used on a part of the journey performed over the territory of the Party in which they are taken on

board.

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

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

4. The exemptions provided by this Article shall also be available where the designated

airlines of one Party have contracted with another airline, which similarly enjoys such

exemptions from the other Party, for the loan or transfer in the territory of the other Party of the

items specified in paragraphs 1 and 2 of this Article.

Article 10

User Charges

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

each Party on the airlines of the other Party shall be just, reasonable, not unjustly discriminatory,

and equitably apportioned among categories of users. In any event, any such user charges shall

be assessed on the airlines of the other Party on terms not less favorable than the most favorable

terms available to any other airline at the time the charges are assessed.

2. User charges imposed on the airlines of the other Party may reflect, but shall not exceed,

the full cost to the competent charging authorities or bodies of providing the appropriate airport,

airport environmental, air navigation, and aviation security facilities and services at the airport or

within the airport system. Such charges may include a reasonable return on assets, after

depreciation. Facilities and services for which charges are made shall be provided on an efficient

and economic basis.

3. Each Party shall encourage consultations between the competent charging authorities or

bodies in its territory and the airlines using the services and facilities, and shall encourage the

competent charging authorities or bodies and the airlines to exchange such information as may be

necessary to permit an accurate review of the reasonableness of the charges in accordance with

the principles of paragraphs (1) and (2) of this Article. Each Party shall encourage the competent

charging authorities to provide users with reasonable notice of any proposal for changes in user

charges to enable users to express their views before changes are made.

4. Neither Party shall be held, in dispute resolution procedures pursuant to Article 14, to be

in breach of a provision of this Article, unless (i) it fails to undertake a review of the charge or

practice that is the subject of complaint by the other Party within a reasonable amount of time; or

(ii) following such a review it fails to take all steps within its power to remedy any charge or

practice that is inconsistent with this Article.
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Article 11 

Fair Competition

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

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

2. Each Party shall allow each designated airline to determine the frequency and capacity of

the international air transportation it offers based upon commercial considerations in the

marketplace. Consistent with this right, neither Party shall unilaterally limit the volume of

traffic, frequency or regularity of service, or the aircraft type or types operated by the designated

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

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

3. Neither Party shall impose on the other Party's designated airlines a first-refusal

requirement, uplift ratio, no-objection fee, or any other requirement with respect to capacity,

frequency or traffic that would be inconsistent with the purposes of this Agreement.

4. Neither Party shall require the filing of schedules, programs for charter flights, or

operational plans by airlines of the other Party for approval, except as may be required on a nondiscriminatory 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 nondiscriminatory basis for information purposes.

3. Neither Party shall take unilateral action to prevent the inauguration or continuation of a

price proposed to be charged or charged by (i) an airline of either Party for international air

transportation between the territories of the Parties, or (ii) an airline of one Party for international

air transportation between the territory of the other Party and any other country, including in both

cases transportation on an interline or intraline basis. If either Party believes that any such price

is inconsistent with the considerations set forth in paragraph (1) of this Article, it shall request

consultations and notify the other Party of the reasons for its dissatisfaction as soon as possible.

These consultations shall be held not later than 30 days after receipt of the request, and the

Parties shall cooperate in securing information necessary for reasoned resolution of the issue. If

the Parties reach agreement with respect to a price for which a notice of dissatisfaction has been

given, each Party shall use its best efforts to put that agreement into effect. Without such mutual

agreement, the price shall go into effect or continue in effect.

Article 13 

Consultations

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

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

other Party receives the request unless otherwise agreed.

Article 14

Settlement of Disputes

1. Any dispute arising under this Agreement, except those that may arise under paragraph 3

of Article 12 (Pricing), that is not resolved by a first round of formal consultations may be

referred by agreement of the Parties for decision to some person or body. If the Parties do not so

agree, the dispute shall, at the request of either Party, be submitted to arbitration in accordance

with the procedures set forth below.
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2. Arbitration shall be by a tribunal of three arbitrators to be constituted as follows:

a. Within 30 days after the receipt of a request for arbitration, each Party shall name one

arbitrator. Within 60 days after these two arbitrators have been named, they shall by agreement

appoint a third arbitrator, who shall act as President of the arbitral tribunal;

b. If either Party fails to name an arbitrator, or if the third arbitrator is not appointed in

accordance with subparagraph a of this paragraph, either Party may request the President of the

Council of the International Civil Aviation Organization to appoint the necessary arbitrator 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 15

Termination

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

this Agreement. Such notice shall be sent simultaneously to the International Civil Aviation

Organization. This Agreement shall terminate at midnight (at the place of receipt of the notice to

the other Party) immediately before the first anniversary of the date of receipt of the notice by the

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

period.

Article 16

Registration with ICAO

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

Aviation Organization.

Article 17

Entry into Force

This Agreement and its Annexes shall enter into force 30 days after the Parties have notified each

other by exchange of diplomatic notes of the completion of their constitutional requirements.

IN WITNESS WHEREOF the undersigned, being duly authorized by their respective

Governments, have signed this Agreement.

DONE at Washington this 24th day of May, 1999, in the English language.

FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF

UNITED STATES OF AMERICA THE STATE OF BAHRAIN
ANNEX I

Scheduled Air Transportation

Section 1 

Routes

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

designation, be entitled to perform scheduled international air transportation between points on

the following routes:

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

1. From points behind the United States via the United States and intermediate points to a

point or points in Bahrain and beyond.

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

B. Routes for the airline or airlines designated by the Government of The State of Bahrain:

1. From points behind Bahrain via Bahrain and intermediate points to a point or points in

the United States and beyond.

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

Section 2

Operational Flexibility

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

1. operate flights in either or both directions;

2. combine different flight numbers within one aircraft operation;

3. serve behind, intermediate, and beyond points and points in the territories of the Parties

on the routes in any combination and in any order;

4. omit stops at any point or points;
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5. transfer traffic from any of its aircraft to any of its other aircraft at any point on the

routes; and

6. serve points behind any point in its territory with or without change of aircraft or flight

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

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

otherwise permissible under this Agreement; provided that, with the exception of all-cargo

services, the service serves a point in the territory of the Party designating the airline.

Section 3 

Change of Gauge

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

international air transportation without any limitation as to change, at any point on the route, in

type or number of aircraft operated; provided that, with the exception of all-cargo services, in the

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

transportation from the territory of the Party that has designated the airline and, in the inbound

direction, the transportation to the territory of the Party that has designated the airline is a

continuation of the transportation from beyond such point.
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, 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 of 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.

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
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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.

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.
ANNEX III

Principles of Non-Discrimination Within

and Competition among Computer Reservations Systems

Recognizing that Article 11 (Fair Competition) of this Agreement guarantees the airlines of both

Parties "a fair and equal opportunity to compete,"

Considering that one of the most important aspects of the ability of an airline to compete is its

ability to inform the public of its services in a fair and impartial manner, and that, therefore, the

quality of information about airline services available to travel agents who directly distribute

such information to the traveling public and the ability of an airline to offer those agents

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

competitive opportunities, and

Considering that it is equally necessary to ensure that the interests of the consumers of air

transport products are protected from any misuse of such information and its misleading

presentation and that airlines and travel agents have access to effectively competitive computer

reservations systems:

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

a. Information regarding international air services, including the construction of

connections on those services, shall be edited and displayed based on non-discriminatory and

objective criteria that are not influenced, directly or indirectly, by airline or market identity.

Such criteria shall apply uniformly to all participating airlines.

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

c. CRS vendors shall not delete information submitted by participating airlines; such

information shall be accurate and transparent; for example, code-shared and 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.
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e. Travel agents shall be allowed to use any of the secondary displays available through

the CRS so long as the travel agent makes a specific request for that display.

2. A Party shall require that each CRS vendor operating in its territory allow all airlines

willing to pay any applicable non-discriminatory fee to participate in its CRS. A Party shall

require that all distribution facilities that a system vendor provides shall be offered on a nondiscriminatory 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.