TREATIES AND OTHER INTERNATIONAL ACTS SERIES 02-1211 

________________________________________________________________________ 

AVIATION 

Transport Services 

 Agreement between the 

UNITED STATES OF AMERICA 

and the UNITED ARAB EMIRATES 

Signed at Abu Dhabi March 11, 2002 

 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.” 
UNITED ARAB EMIRATES 

Aviation: Transport Services 

Agreement signed at Abu Dhabi March 11, 2002; 

 Entered into force December 11, 2002. 

 With annexes. 
AIR TRANSPORT AGREEMENT

BETWEEN

THE GOVERNMENT OF

THE UNITED STATES OF AMERICA

AND

THE GOVERNMENT OF

THE UNITED ARAB EMIRATES

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

Arab Emirates (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 United Arab Emirates, the

Minister of Communications, or any person or agency authorized to perform functions

exercised by the said Minister of Communications;

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

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.
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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

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

Article 5 (Application of Laws) of this Agreement; or

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

in Article 6 (Safety).

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

subparagraphs lb or lc of this Article, the rights established by this Article shall be

exercised only after consultation with the other Party.

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

impose conditions on the operating authorization or technical permission of an airline or

airlines of the other Party in accordance with the provisions of Article 7 (Aviation

Security).

Article 5

Application of Laws

1. While entering, within, or leaving the territory of one Party, its laws and

regulations relating to the operation and navigation of aircraft shall be complied with by

the other Party's airlines.

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

regulations relating to the admission to or departure from its territory of passengers, crew

or cargo on aircraft (including regulations relating to entry, clearance, aviation security,

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

shall be complied with by, or on behalf of, such passengers, crew or cargo of the other

Party's airlines.

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.
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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 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.
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Article 8

Commercial Opportunities

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

the other Party for the promotion and sale of air transportation.

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

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

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

and other specialist staff required for the provision of air transportation.

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

the territory of the other Party ("self-handling") or, at its option, select among competing

agents for such services in whole or in part. The rights shall be subject only to physical

constraints resulting from considerations of airport safety. Where such considerations

preclude self-handling, ground services shall be available on an equal basis to all airlines;

charges shall be based on the costs of services 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

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transport to and from all airports with customs facilities, and including, where applicable,

the right to transport cargo in bond under applicable laws and regulations. Such cargo,

whether moving by surface or by air, shall have access to airport customs processing and

facilities. Airlines may elect to perform their own surface transportation or to provide it

through arrangements with other surface carriers, including surface transportation

operated by other airlines and indirect providers of cargo air transportation. Such

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

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

such transportation.

Article 9

Customs Duties and Charges

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

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

ground equipment, fuel, lubricants, consumable technical supplies, spare parts (including

engines), aircraft stores (including but not limited to such items of food, beverages and

liquor, tobacco and other products destined for sale to or use by passengers in limited

quantities during flight), and other items intended for or used solely in connection with

the operation or servicing of aircraft engaged in international air transportation shall be

exempt, on the basis of reciprocity, from all import restrictions, property taxes and capital

levies, customs duties, excise taxes, and similar fees and charges 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 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.

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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.

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

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

capacity, frequency or traffic that would be inconsistent with the purposes of this

Agreement.

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

operational plans by airlines of the other Party for approval, except as may be required on

a non-discriminatory basis to enforce the uniform conditions foreseen by paragraph 2 of

this Article or as may be specifically authorized in an Annex to this Agreement. If a Party

requires filings for information purposes, it shall minimize the administrative burdens of

filing requirements and procedures on air transportation intermediaries and on designated

airlines of the other Party.

Article 12

Pricing

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

designated airline based upon commercial considerations in the marketplace.

Intervention by the Parties shall be limited to:

a. prevention of unreasonably discriminatory prices or practices;

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

due to the abuse of a dominant position; and

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

indirect governmental subsidy or support.

2. Each Party may require notification to or filing with its aeronautical authorities of

prices to be charged to or from its territory by airlines of the other Party. Notification or

filing by the airlines of both Parties may be required no more than 30 days before the

proposed date of effectiveness. In individual cases, notification or filing may be

permitted on shorter notice than normally required. Neither Party shall require the

notification or filing by airlines of the other Party of prices charged by charterers to the

public, except as may be required on a non-discriminatory basis for information purposes.

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

continuation of a price proposed to be charged or charged by (i) an airline of either Party

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

of one Party for international air transportation between the territory of the other Party

and any other country, including in both cases transportation on an interline or intraline

basis. 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.
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Article 13 

Consultations

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

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

date the other Party receives the request unless otherwise agreed.

Article 14

Settlement of Disputes

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

paragraph 3 of Article 12 (Pricing), that is not resolved by a first round of formal

consultations may be referred by agreement of the Parties for decision to some person or

body. If the Parties do not so agree, the dispute shall, at the request of either Party, be

submitted to arbitration in accordance with the procedures set forth below.

2. Arbitration shall be by a tribunal of three arbitrators to be constituted as follows:

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

name one arbitrator. Within 60 days after these two arbitrators have been named, they

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.
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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.

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 be provisionally applied upon signature and shall

enter into force upon an exchange of diplomatic notes confirming that each Party has

completed all of its necessary internal procedures. Upon entry into force this Agreement

shall supersede the aviation security agreement between the United States of America and

the United Arab Emirates, effected by exchange of notes at Abu Dhabi December 26,

1993 and February 17, 1994.

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

Governments, have signed this Agreement.

DONE at Om En 

, this L i I-4 day of /YinAc.../A , 200j, in two

originals, in the English and Arabic languages, each text being equally authentic.

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF

THE UNITED STATES OF AMERICA: THE UNITED ARAB EMIRATES:

f
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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:

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

points to a point or points in the United Arab Emirates and beyond.

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

or points.

B. Routes for the airline or airlines designated by the Government of the United Arab

Emirates:

1. From points behind the United Arab Emirates via the United Arab Emirates 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;

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

points on the routes; and

6. serve points behind any point or points 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 allcargo services, the service serves a point in the territory of the Party designating the

airline.
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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 or points

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(s) 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(s).

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
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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.

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 changeof-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
15

obligated to, but shall also be entitled to, operate in conformance with the CRS rules that

apply in the territory where the CRS is being operated.

e. Travel agents shall be allowed to use any of the secondary displays available

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

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

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

Party shall require that all distribution facilities that a system vendor provides shall be

offered on a non-discriminatory basis to participating airlines. A Party shall require that

CRS vendors display, on a non-discriminatory, objective, carrier-neutral and marketneutral 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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