TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13-618 

________________________________________________________________________ 

CIVIL AVIATION 

Transport Services 

 Agreement Between the 

UNITED STATES OF AMERICA 

and AUSTRALIA 

Signed at Washington March 31, 2008 

with 

Annexes 

and 

Agreement Amending the Agreement 

Effected by Exchange of Notes at 

Washington May 30 and June 18, 2013 
 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.” 
 AUSTRALIA 

 Civil Aviation: Transport Services 

 Agreement signed at Washington 

 March 31, 2008; 

 Entered into force June 18, 2013. 

 With annexes. 

 And agreement amending the agreement. 

 Effected by exchange of notes at 

 Washington May 30 and June 18, 2013; 

 Entered into force June 18, 2013. 

 
AIR TRANSPORT AGREEMENT

BETWEEN

THE GOVERNMENT OF

THE UNITED STATES OF AMERICA

AND

THE GOVERNMENT OF

AUSTRALIA
AIR TRANSPORT AGREEMENT BETWEEN THE GOVERNMENT OF THE

UNITED STATES OF AMERICA AND THE GOVERNMENT OF AUSTRALIA

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

(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 make it possible for airlines to offer the travelling and shipping public

a variety of service options, and wishing to encourage individual airlines to

develop and implement innovative and competitive prices;

Desiring to facilitate the expansion of international air transport opportunities;

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, done at Chicago

December 7, 1944;

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 and in the case of Australia, the Department of

Infrastructure, Transport, Regional Development and Local Government, and any

person or agency authorized to perform functions exercised by the Department of
Transportation or said Department of Infrastructure, Transport, Regional

Development and Local Government;

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, scheduled, or charter, for

remuneration or hire;

4. "airline of a Party" means an airline that is licensed by and has its principal

place of business in the territory of that Party;

5. "Convention" means the Convention on International Civil Aviation, done at

Chicago 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 in force for

both Parties;

6. "designated airline" means an airline designated and authorized in

accordance with Article 3 (Designation and Authorization) of this Agreement;

7. "full cost" means the cost of providing facilities and services, which may

include a reasonable charge for administrative overhead;

8. "homeland" means the territory of the Party by which an airline was granted

its Air Operator's Certificate (AOC) and in which it has its principal place of

business;

9. "international air transportation" means air transportation that passes through

the airspace over the territory of more than one State;

10. "ICAO" means the International Civil Aviation Organization;

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11. "price" means any fare, tariff, rate, or charge for the carriage of passengers,

baggage, or cargo (excluding mail) in international air transportation, including

surface transportation in connection with international air transportation, charged

by airlines, including their agents, and the conditions governing the availability of

such fare, tariff, rate, or charge;

12. "stop for non-traffic purposes" means a landing for any purpose other than

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

13. "territory" means the land areas, internal waters, and territorial sea under the

sovereignty of a Party; and

14. "user charge" means a charge imposed on airlines for the provision of

airport, airport environmental, air navigation, or aviation security facilities or

services including related services and facilities.

Article 2

Grant of Rights

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

international air transportation by the airlines of the other Party:

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

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

3. the rights otherwise specified in this Agreement.

Article 3

Designation and Authorization

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

conduct scheduled 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 state

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that the airline is authorized to conduct the type of transportation specified in

Annex I.

2. Each Party, on receipt of a designation, and of applications from a

designated airline of the other Party, or applications from an airline of the other

Party intending to operate charter international air transportation, in the form and

manner prescribed for operating authorizations and technical permissions, shall

grant appropriate authorizations and permissions with minimum procedural delay,

provided:

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

other Party, nationals of that Party, or both;

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

and regulations normally applied to the operation of international air transportation

by the Party considering the application or applications; and

c. the other Party is maintaining and administering the provisions set forth

in Article 6 (Safety) and Article 7 (Aviation Security).

Article 4

Revocation of Authorization

1. Either Party may revoke, suspend, limit, or impose conditions on the

operating authorizations or technical permissions of an airline where:

a. that airline is not an airline of the other Party under Article 1(4);

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

in the other Party, the other Party's nationals, or both; or

c. that airline has failed to comply with the laws and regulations referred to

in Article 5 (Application of Laws) of this Agreement.

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

subparagraph 1 c of this Article, the rights established by this Article shall be

exercised only after consultation with the other Party.

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

suspend, 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 6 (Safety) or Article 7 (Aviation Security).

Article 5

Application of Laws

1. The laws, regulations and rules of a Party relating to the admission to or

departure from its territory of aircraft engaged in international air navigation, or to

the operation and navigation of such aircraft while within its territory, shall be

complied with by such aircraft upon entering, when departing from, or while

within the territory of the first Party.

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

regulations and rules relating to the admission to or departure from its territory of

passengers, crew or cargo on aircraft (including regulations and rules 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,

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and operation of airlines of that other Party. Such consultations shall take place

within forty-five days of a request. 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.

3. Each Party reserves the right to withhold, revoke, suspend, limit, or impose

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

airlines of the other Party in the event the other Party does not take such

appropriate corrective action within a reasonable time and to take immediate

action, prior to consultations, as to such airline or airlines if the other Party is not

maintaining and administering the aforementioned standards and immediate action

is essential to prevent further noncompliance. Any action taken in accordance with

this paragraph shall be discontinued promptly upon compliance by the other Party

with the safety provisions of this Article.

Article 7

Aviation Security

1. The Parties affirm 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, done at Tokyo September 14, 1963, the Convention for the

Suppression of Unlawful Seizure of Aircraft, done at The Hague December 16,

1970, the Convention for the Suppression of Unlawful Acts against the Safety of

Civil Aviation, done at Montreal September 23, 1971, and the Protocol for the

Suppression of Unlawful Acts of Violence at Airports Serving International Civil

Aviation, Supplementary to the Convention for the Suppression of Unlawful Acts

against the Safety of Civil Aviation, done at Montreal February 24, 1988, as well

as with any other convention relating to the security of civil aviation to the degree

in force for both Parties.

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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 that 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,

suspend, 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. Any action taken in

accordance with this paragraph shall be discontinued promptly upon compliance

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

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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 and to

use the services and personnel of any organization, company or airline operating in

the territory of the other Party which is allowed to perform such services.

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

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

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

operational, and other specialist staff required for the provision of air

transportation. Consistent with such laws and regulations, each Party intends to act

expeditiously in processing the necessary employment authorizations and other

documents for staff referred to in this paragraph.

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

territory of the other Party ("self-handling") or, at the airline's 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-handling 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. An airline of a 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 and,

except where inconsistent with generally applicable law or regulation, any other

country or countries of its choice, on demand, local revenues in excess of sums

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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 under this Agreement,

any 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;

b) an airline or airlines of a third country; and

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

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

authority and (ii) meet the requirements normally applied to such arrangements.

8. 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 (land or maritime) transportation for cargo to or from

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

from all airports with customs facilities, and to transport cargo in bond or

otherwise subject to customs control 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.

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Article 9

Customs Duties and Charges

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

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

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

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

and liquor, tobacco, and other products destined for sale to or 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 (a) imposed by the national authorities, and (b) not

based on the cost of services provided, provided that such equipment and supplies

remain on board the aircraft.

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

levies, duties, fees, and charges referred to in paragraph 1 of this Article, with the

exception of charges based on the cost of the service provided:

a. aircraft stores introduced into or supplied in the territory of a Party and

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

of the other Party engaged in international air transportation, even when these

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

Party in which they are taken on board;

b. 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

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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 materials are to be used on a part of the journey

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

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

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

authorities.

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

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

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

other Party of the items specified in paragraphs 1 and 2 of this Article.

Article 10

User Charges

1. Each Party shall take all steps within its power to ensure that bodies

responsible for the provision of airport, airport environmental, air navigation, and

aviation security facilities and services levy charges on airlines only to the extent

the charges are just, reasonable, not unjustly discriminatory, and equitably

apportioned amongst categories of users.

2. Reasonable charges reflect, but do not exceed, the full cost to the competent

charging authorities of providing the facilities and services. These charges may

include a reasonable return on assets, after depreciation. Facilities and services for

which charges are made should be provided on an efficient and economic basis.

For charges to be not unjustly discriminatory, they should be levied on foreign

airlines on terms no less favourable than the most favourable terms available to any

other airline at the time the charges are assessed.

3. The Parties shall encourage the exchange of such information between the

charging bodies and the airlines as may be necessary to permit a full and timely

assessment of the charges in accordance with paragraphs 1 and 2 of this Article.

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4. Increased or new charges should only follow adequate consultations between

the charging bodies and the airlines. Reasonable notice of any proposals for

changes in user charges should be given to users to enable them to express their

views before changes are made.

5. Neither Party shall be in breach of a provision of this Article, unless (a) it

fails to undertake a review of the charge or practice that is the subject of complaint

by the other Party within a reasonable amount of time; or (b) following such a

review it fails to take all steps within its power to remedy any charge or practice

that is inconsistent with this Article.

Article 11 

Fair and equal opportunity

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

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

Agreement.

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

of the international air transportation it offers under Annex I or Annex II based

upon commercial considerations in the marketplace. Consistent with this right,

neither Party shall unilaterally limit the volume of traffic, frequency, or regularity

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

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 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. Any requirements for the filing of schedules, applications for programs for

charter flights, or operational plans by airlines of the other Party shall be on a nondiscriminatory basis and imposed only when necessary to fulfill requirements

under the domestic law of either Party. If a Party requires filings, it shall minimize

the administrative burdens of filing requirements and procedures on air

transportation intermediaries and on airlines of the other Party.

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Article 12 

Pricing

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

airlines of both Parties based upon commercial considerations in the marketplace.

2. Unless required by national laws and regulations, prices charged by airlines

of the Parties shall not be required to be filed with the aeronautical authorities of

either Party.

Article 13

Competition

1. The Parties recognize that competition among airlines in the U.S.-Australia

market is important to promote the objectives of this Agreement, and confirm that

they apply their respective competition regimes to protect and enhance overall

competition and not to benefit individual competitors.

2. The Parties recognize that cooperation between their respective

competition authorities serves to promote competition in markets and has the

potential to promote compatible regulatory results. The Parties agreed that

their respective aviation authorities should continue to cooperate on

competition matters, taking into account the different responsibilities,

competencies and procedures of the authorities.

Article 14

U.S. Government Procured Transportation

Effective October 1, 2008, Australian airlines shall have the right to transport

passengers and cargo on scheduled and charter flights for which a U.S.

Government civilian department, agency, or instrumentality (1) obtains the

transportation for itself or in carrying out an arrangement under which

payment is made by the Government or payment is made from amounts

provided for the use of the Government, or (2) provides the transportation to

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or for a foreign country or international or other organization without

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

States and any point in Australia, except - with respect to passengers only -

between points for which there is a city-pair contract fare in effect, or (b)

between any two points outside the United States. This paragraph shall not

apply to transportation obtained or funded by the Secretary of Defense or the

Secretary of a military department.

Article 15

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 16

Amendments

This Agreement may be amended in writing by agreement of both Parties. Any

amendment to this Agreement shall enter into force on the date of the later note in

an exchange of diplomatic notes between the Parties confirming that each Party

has completed the necessary internal procedures for entry into force of the

amendment.

Article 17

Termination

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

to the other Party of its decision to terminate this Agreement. Such notice shall be

sent simultaneously to the International Civil Aviation Organization. This

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

other Party) at the end of the International Air Transport Association (IATA)

traffic season in effect one year following the date of written notification of

termination, unless the notice is withdrawn by agreement of the Parties before the

end of this period.

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NOTE NO. 149/2013

The Embassy of Australia in Washington presents its compliments to the United States Department of

State and has the honour to refer to the Air Transport Agreement between the Government of Australia

and the Government of the United States of America, done at Washington on 31 March 2008 (`the Air

Transport Agreement').

The Embassy has the honour to propose the following amendments to the text of the Air Transport

Agreement:

• the following Settlement of Disputes Article be inserted in the Air Transport Agreement as

Article 16:

"Article 16

Settlement of Disputes

Any dispute arising under this Agreement, except those that may arise under Article 12

(Pricing), or that concern the application of relevant domestic competition law, that is not

resolved by a first round of formal consultations under Article 15, may be referred by

agreement of the Parties for decision to some person or body. If the Parties do not so agree,
2

either Party may give written notice to the other Party through diplomatic channels that it is

requesting that the dispute be submitted to arbitration.

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 f 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. The arbitral tribunal shall be entitled to decide the extent of its jurisdiction in accordance

with this Agreement and, except as otherwise agreed, shall establish its own procedural

rules. The tribunal, once formed, may at the request of either Party, recommend interim

relief measures pending its final decision. If either Party requests it, or the tribunal deems it

appropriate, 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.
3

4. Except as otherwise agreed or as directed by the tribunal, the statement of claim shall be

submitted within 45 days of the time the tribunal is fully constituted and the statement of

defense shall be submitted 60 days thereafter. Any reply by the claimant shall be submitted

within 30 days of the statement of defense. Any reply by the respondent shall be submitted

within 30 days thereafter. If either Party requests it or the tribunal deems it appropriate, the

tribunal shall hold a hearing within 45 days after the last pleading is 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, 30 days after the last pleading is submitted. The decision of

the majority of the tribunal shall prevail.

6. The Parties may submit requests for interpretation of the decision within 15 days after it is

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

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

responsible Party does not cure the violation, or does not reach agreement with the other

Party on a mutually satisfactory resolution within 40 days after notification of the tribunal's

decision, the other Party may suspend the application of comparable benefits arising under

this Agreement until such time as the Parties have reached agreement on a resolution of the

dispute. Nothing in this paragraph shall be construed as limiting the right of either Party to

take countermeasures in accordance with international law.

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
State the

WA

30 May

of its highest consideration.

EA46,46.

4

the International Civil Aviation Organization in connection with the procedures of

paragraph 2b of this Article shall be considered to be part of the expenses of the arbitral

tribunal!'

• And that Articles 16-19 of the Air Transport Agreement be renumbered 17-20

respectively

lithe foregoing proposal is acceptable to the Government of the United States of America, the

Australian Embassy has the honour to propose that this Note and the Department of State's

confirmatory Note in reply shall constitute an Agreement between the two Governments amending the

Air Transport Agreement, which, notwithstanding Article 16 of the Air Transport Agreement, shall

enter into force upon the date of entry into force of the Air Transport Agreement.

The Australian Embassy avails itself of this opportunity to renew to the United States Department of
The Department of State acknowledges receipt of Note No. 149/2013, dated

May 30, 2013, from the Embassy of Australia, which proposes amendments to the

text of the Air Transport Agreement between the Government of the United States

of America and the Government of Australia, signed at Washington on March 31,

2008 (the "Agreement") and reads as follows:

The Embassy of Australia in Washington presents its compliments to the

United States Department of State and has the honour to refer to the Air

Transport Agreement between the Government of Australia and the

Government of the United States of America, done at Washington on 31

March 2008 (`the Air Transport Agreement').

The Embassy has the honour to propose the following amendments to the

text of the Air Transport Agreement:

• the following Settlement of Disputes Article be inserted in the Air

Transport Agreement as Article 16:

"Article 16

Settlement of Disputes

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

under Article 12 (Pricing), or that concern the application of relevant

domestic competition law, that is not resolved by a first round of

formal consultations under Article 15, may be referred by agreement

of the Parties for decision to some person or body. If the Parties do

not so agree, either Party may give written notice to the other Party

through diplomatic channels that it is requesting that the dispute be

submitted to arbitration.

DIPLOMATIC NOTE
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. The arbitral tribunal shall be entitled to decide the extent of its

jurisdiction in accordance with this Agreement and, except as

otherwise agreed, shall establish its own procedural rules. The

tribunal, once formed, may at the request of either Party, recommend

interim relief measures pending its final decision. If either Party

requests it, or the tribunal deems it appropriate, 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, the

statement of claim shall be submitted within 45 days of the time the

tribunal is fully constituted and the statement of defense shall be

submitted 60 days thereafter. Any reply by the claimant shall be

submitted within 30 days of the statement of defense. Any reply by

the respondent shall be submitted within 30 days thereafter. If either

Party requests it or the tribunal deems it appropriate, the tribunal shall

hold a hearing within 45 days after the last pleading is 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, 30 days after
the last pleading is submitted. The decision of the majority of the

tribunal shall prevail.

6. The Parties may submit requests for interpretation of the decision

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

issued within 15 days of such request.

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

Agreement and the responsible Party does not cure the violation, or

does not reach agreement with the other Party on a mutually

satisfactory resolution within 40 days after notification of the

tribunal's decision, the other Party may suspend the application of

comparable benefits arising under this Agreement until such time as

the Parties have reached agreement on a resolution of the dispute.

Nothing in this paragraph shall be construed as limiting the right of

either Party to take countermeasures in accordance with international

law.

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 2b of this Article shall be considered to be part of the

expenses of the arbitral tribunal."

• And that Articles 16-19 of the Air Transport Agreement be

renumbered 17-20 respectively.

If the foregoing proposal is acceptable to the Government of the United

States of America, the Australian. Embassy has the honour to propose that

this Note and the Department of State's confirmatory Note in reply shall

constitute an Agreement between the two Governments amending the Air

Transport Agreement, which, notwithstanding Article 16 of the Air

Transport Agreement, shall enter into force upon the date of entry into force

of the Air Transport Agreement.
The Australian Embassy avails itself of this opportunity to renew to the

United States Department of State the assurances of its highest

consideration.

The Department of State confirms that the proposal contained in the

Embassy's note is acceptable to the Government of the United States of America.

Therefore, the Embassy's note and this reply shall constitute an Agreement

amending the Air Transport Agreement, which shall enter into force upon the date

of entry into force of the Air Transport Agreement.

Department of State,

Washington, June 18, 2013.