EXPLANATORY MEMORANDUM

1. Context of the proposal

|| · Grounds for and objectives of the proposal The Euro-Mediterranean Aviation Agreement between the European Union and its Member States, of the one part, and the Government of the State of Israel, of the other part has been negotiated by the Commission as authorised by the Council in April 2008. Air services between the EU and the State of Israel presently operate on the basis of bilateral agreements between individual Member States and the State of Israel. It is part of the EU's external aviation policy to negotiate comprehensive air services agreements with neighbouring countries where the added value and economic benefits of such agreements have been demonstrated. The Agreement aims at: - gradual market opening in terms of access to routes and capacity on a reciprocal basis; - promoting regulatory cooperation and harmonisation of regulations and approaches based on EU legislation in the field of aviation; - promoting air services based on competition among air carriers with minimum government interference and regulation; - non-discrimination and level playing field for economic operators.

|| · General context The negotiating directives set out the general objective of negotiating a comprehensive air transport agreement with the aim of gradually and reciprocally opening market access and ensuring regulatory convergence and effective implementation of EU standards. In accordance with the negotiating directives, a draft Agreement with the Government of the State of Israel was initialled by the two sides on 30 July 2012.

|| · Existing provisions in the area of the proposal The provisions of the Agreement shall prevail over the relevant provisions of the existing bilateral air services agreements between Member States and the State of Israel. However, existing traffic rights which originate from these bilateral agreements and which are not covered under this Agreement can continue to be exercised, provided that there is no discrimination between the Member States and their nationals.

|| · Consistency with the other policies and objectives of the Union The conclusion of a comprehensive air transport agreement with the Government of the State of srae is an important element in the development of the EU external aviation policy and in particular a wider European Common Avition Area, as described in the Commission Communication COM(2005) 79 final "Developing the agenda for the Community's external aviation policy".

2. Consultation of interested parties and impact assessment In line with Art. 218 (4) TFEU the Commission has conducted the negotiations in consultation with a special committee. In addition, it consulted interested parties throughout the process.

|| · Consultation of interested parties

|| Consultation methods, main sectors targeted and general profile of respondents The Commission has consulted with stakeholders, in particular via the Consultative Forum comprising representatives of air carriers, airports, and labour organisations.

|| Summary of responses and how they have been taken into account The stakeholder comments, many of which were made orally in the context of the negotiations, which took over three years and eight negotiation rounds, or numerous EU preparatory meetings, concerned especially an as fast as possible opening of the EU-Israel aviation market (flights from/to the EU to/from Israel) and regulatory convergence. Furthermore, the stakeholders wished to make sure the EU rules on slots are respected in the agreement. All comments from stakeholders were duly taken into consideration in the preparation of the Union's negotiating position. The stakeholders have after the finalisation of the negotiations expressed they are keen to see the agreement signed and implemented.

|| · Collection and use of expertise

|| There was no need for external expertise.

|| · Impact assessment A report prepared for the Commission in 2007 by consultants on the economic impact of the agreement, estimated that the economic benefit of such an agreement would be up to altogether € 96 Mio p.a. in consumer surplus as a result of lower fares. The analysis also showed a positive impact in terms of job creation. A summary of this report was contained in a Communication from the Commission published on 9 November 2007 (COM(2007)691 final). The Agreement establishes a Joint Committee which will be responsible for reviewing the implementation of the Agreement and its effects.

3. Legal elements of the proposal

|| · Summary of the proposed action The Agreement consists of the main body including the main principles, and six annexes: Annex I on agreed services and specified routes; Annex II on transitional provisions; Annex III with a list of the states referred to in articles 3, 4 and 8 of the Agreement; Annex IV on rules relating to civil aviation; Annex V on agreed base frequencies on certain routes; and Annex VI on regulatory requirements and standards.

|| · Legal basis Article 100 (2), in conjunction with Article 218 (5) and (8) , first paragraph of the Treaty on the Functioning of the European Union.

|| · Subsidiarity principle The subsidiarity principle applies insofar as the proposal does not fall under the exclusive competence of the Union.

|| The objectives of the proposal cannot be sufficiently achieved by the Member States for the following reason(s).

|| The provisions of the Agreement will prevail over the relevant provisions of the existing arrangements made by individual Member States. The Agreement creates simultaneously for all Union air carriers equal and uniform conditions for market access, and establishes new arrangements for regulatory co-operation and convergence between the European Union and the State of Israel in fields essential for the safe, secure, and efficient operation of air services. These arrangements can only be achieved at Union level because they involve a number of areas of exclusive Union competence.

|| Union action will better achieve the objectives of the proposal for the following reason(s).

|| The Agreement allows for the simultaneous extension of its terms to the 27 Member States, applying the same rules without discrimination and benefiting all Union air carriers regardless of their nationality. These carriers will be able to operate freely from any point in the European Union to any point in the State of Israel which is currently not the case.

|| The gradual removal of all market access restrictions between the EU and the State of Israel will not only attract new entrants to the market and create opportunities to operate to underserved airports, but will also facilitate consolidation between EU air carriers.

|| The Agreement secures for all EU air carriers access to commercial opportunities, such as the possibility to freely establish prices. One further objective of the mandate is to create a level playing field between all EU and Israeli air carriers, and this requires strong regulatory co-operation which can only be delivered at Union level.

|| The proposal therefore complies with the subsidiarity principle. The subsidiarity principle applies insofar as the proposal does not fall under the exclusive competence of the Union.

|| · Proportionality principle The proposal complies with the proportionality principle for the following reason(s).

|| A Joint Committee will be established to discuss matters related to the implementation of the Agreement. The Joint Committee will foster expert-level exchanges on new legislative or regulatory initiatives or developments and consider potential areas for further development of the Agreement. The Joint Committee will be composed of representatives of the Commission and the Member States.

|| Furthermore, Member States will continue to carry out the traditional administrative tasks they execute in the context of international air transport, but under common rules applied uniformly.

|| · Choice of instruments

|| Proposed instruments: international agreement.

|| Other means would not be adequate for the following reason(s).

|| External aviation relations can only be given effect through international agreements.

4. Budgetary implication

|| The proposal has no implication for the Union budget.

||

2012/0323 (NLE)

Proposal for a

COUNCIL DECISION

on the signature, on behalf of the European Union, and provisional application of the Euro-Mediterranean Aviation Agreement between the European Union and its Member States, of the one part, and the State of Israel, of the other part

THE COUNCIL OF THE EUROPEAN UNION

Having regard to the Treaty on the Functioning of the European Union and in particular Article 100 (2), in conjunction with Article 218 (5) and (8) , first paragraph thereof,

Having regard to the proposal from the European Commission,

Whereas

(1) the Commission has negotiated on behalf of the Union and of the Member States a Euro-Mediterranean Aviation Agreement between the Government of the State of Israel and the European Union and its Member States (hereinafter, the “Agreement”) in accordance with the Council Decision of 8 April 2008 authorising the Commission to open negotiations. The negotiations were successfully concluded by the initialling of the Agreement on 30 July 2012;

(2) the Agreement should be signed and applied provisionally, subject to its conclusion at a later date;

HAS ADOPTED THIS DECISION:

Article 1

Signature

1. The signing of the Euro-Mediterranean Aviation Agreement between the European Union and its Member States, of the one part, and the Government of the State of Israel, of the other part, is hereby authorised on behalf of the Union, subject to the conclusion of the said Agreement.

The text of the Agreement is annexed to this Decision.

2. The Council Secretariat General shall establish the instrument of full powers to sign the Agreement, subject to its conclusion, for the person(s) indicated by the negotiator of the Agreement.

Article 2

Provisional application

Pending its entry into force, the Agreement shall be applied on a provisional basis from the date of signature of the Agreement.

Article 3

Joint Committee

The European Union shall be represented in the Joint Committee established under Article 22 of the Agreement by the Commission.

Article 4

Settlement of Disputes

1. The Commission shall represent the Union in dispute settlement proceedings under Article 23 of the Agreement.

2. Any appropriate action to be taken under Article 23 of the Agreement on matters which fall within the Union competence shall be decided upon by the Commission, in consultation with a Special Committee of representatives of the Member States appointed by the Council.

Article 5

Entry into force

This Decision shall enter into force on the day of its adoption. It shall be published in the Official Journal of the European Union.

Done at Brussels,

For the Council

The President […]

ANNEX

EURO-MEDITERRANEAN AVIATION AGREEMENT

BETWEEN THE EUROPEAN UNION

AND ITS MEMBER STATES, of the one part

AND THE GOVERNMENT OF THE STATE OF ISRAEL, of the other part

THE KINGDOM OF BELGIUM,

THE REPUBLIC OF BULGARIA,

THE CZECH REPUBLIC,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE REPUBLIC OF ESTONIA,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE REPUBLIC OF CYPRUS,

THE REPUBLIC OF LATVIA,

THE REPUBLIC OF LITHUANIA,

THE GRAND DUCHY OF LUXEMBOURG,

HUNGARY,

MALTA,

THE KINGDOM OF THE NETHERLANDS,

THE REPUBLIC OF AUSTRIA,

THE REPUBLIC OF POLAND,

THE PORTUGUESE REPUBLIC,

ROMANIA,

THE REPUBLIC OF SLOVENIA,

THE SLOVAK REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SWEDEN,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

Contracting Parties to the Treaty on European Union and the Treaty on the functioning of the European Union, hereinafter referred to as the "Member States", and

THE EUROPEAN UNION,

of the one part, and

THE GOVERNMENT OF THE STATE OF ISRAEL, hereinafter referred to as "Israel",

of the other part,

Desiring to promote an international aviation system based on fair competition among air carriers in the marketplace with minimum government interference and regulation;

Desiring to facilitate the expansion of international air transport opportunities, including through the development of air transport networks to meet the needs of passengers and shippers for convenient air transport services;

RECOGNISING the importance of air transport in promoting trade, tourism and investment;

Desiring to make it possible for air carriers to offer the travelling and shipping public competitive prices and services in open markets;

RECOGNISING the potential benefits of regulatory convergence and, to the extent practical, harmonisation of regulations;

Desiring to have all sectors of the air transport industry, including air carrier workers, benefit in a liberalised environment;

Desiring to ensure the highest degree of safety and security in international air transport and reaffirming their grave concern with regard to acts or threats against the security of aircraft, which jeopardise the safety of persons or property, adversely affect the operation of air transport and undermine public confidence in the safety of civil aviation;

RECOGNISING the security needs in connection with the air relations between the European Union and Israel, as a result of the current Geo-Political situation;

Noting the Convention on International Civil Aviation opened for signature at Chicago on 7 December 1944;

RECOGNISING that this Euro-Mediterranean Aviation Agreement lies within the scope of the Euro‑Mediterranean Partnership envisaged in the Declaration of Barcelona of 28 November 1995;

NOTING their common will to promote a Euro-Mediterranean Aviation Area based on the principles of regulatory convergence, regulatory cooperation and liberalisation of market access;

Desiring to ensure a level playing field allowing fair and equal opportunity for air carriers to provide air transport;

RecogniSing that subsidies may adversely affect air carrier competition and may jeopardise the basic objectives of this Agreement;

Affirming the importance of protecting the environment in developing and implementing international aviation policy and recognising the rights of sovereign States to take appropriate measures to this effect;

Noting the importance of protecting consumers, including the protections afforded by the Convention for the Unification of Certain Rules for International Carriage by Air, done at Montreal on 28 May 1999, insofar as both the Contracting Parties are parties to this Convention;

NOTING that this Agreement implies the exchange of personal data, which will be subject to the data protection legislation of the Contracting Parties and of the Commission Decision of 31 January 2011 pursuant to Directive 95/46/EC of the European Parliament and of the Council on the adequate protection of personal data by the State of Israel with regard to automated processing of personal data (2011/61/EU);

Intending to build upon the framework of existing air transport agreements with the goal of opening access to markets and maximising benefits for the consumers, air carriers, labour, and communities of both Contracting Parties;

Noting that this Agreement is to be applied in a progressive but integral way, and that a suitable mechanism can ensure the establishment of equivalent regulatory requirements and standards for civil aviation based on the highest standards applied by the Contracting Parties;

Have agreed as follows:

ARTICLE 1

Definitions

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

(1) "Agreed services" and "Specified routes" mean international air transport pursuant to Article 2 (Traffic Rights) and Annex I of this Agreement;

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

(3) "Air carrier" means an undertaking with a valid operating licence;

(4) "Air transport" means the carriage by civil aircraft of passengers, baggage, cargo, and mail, separately or in combination, held out to the public for remuneration or hire, which, for the avoidance of doubt, shall include scheduled and non-scheduled (charter) air transport, and full cargo services;

(5) "Association Agreement" means the Euro‑Mediterranean Agreement establishing an association between the European Communities and their Member States, of the one part, and the State of Israel, of the other part, signed at Brussels on 20 November 1995;

(6) "Competent authorities" means the government agencies or entities responsible for the administrative functions under this Agreement;

(7) "Contracting Parties" shall mean, on the one hand, the European Union or its Member States, or the European Union and its Member States, in accordance with their respective powers, and, on the other hand, Israel;

(8) "Convention" means the Convention on International Civil Aviation, opened for signature at Chicago on 7 December 1944, and includes:

(a) any amendment that has entered into force under Article 94(a) of the Convention and has been ratified by both Israel and the Member State or Member States of the European Union, 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 Israel and the Member State or Member States of the European Union as is relevant to the issue in question;

(9) "EU Treaties" shall mean the Treaty on European Union and the Treaty on the functioning of the European Union;

(10) "Fifth freedom right" means the right or privilege granted by one state (the "Granting State") to the air carriers of another state ("the Recipient State"), to provide international air transport services between the territory of the Granting State and the territory of a third state, subject to the condition that such services originate or terminate in the territory of the Recipient State;

(11) “Fitness” means whether an air carrier is fit to operate international air services, that is to say, whether it has satisfactory financial capability and adequate managerial expertise and is disposed to comply with the laws, regulations and requirements which govern the operation of such services;

(12) "Full cost" means the cost of providing service plus a reasonable charge for administrative overhead and where relevant any applicable charges aimed at reflecting environmental costs and applied without distinction as to nationality;

(13) "International air transport" means air transport that passes through the airspace over the territory of at least two States;

(14) “IATA” means the International Air Transport Association;

(15) “ICAO” means the International Civil Aviation Organisation;

(16) "National" means:

(a) any person having Israeli citizenship in the case of Israel, or the nationality of a Member State in the case of the European Union and its Member States; or

(b) any legal entity (i) which is owned directly or through majority ownership and at all times is effectively controlled by persons or entities having Israeli citizenship in the case of Israel, or persons or entities having the nationality of a Member State or one of the other states listed in Annex III in the case of the European Union and its Member States, and (ii) the principal place of business of which is in Israel in the case of Israel, or in a Member State in the case of the European Union and its Member States;

(17) “Nationality”, when referred to an air carrier, means whether an air carrier satisfies requirements regarding such issues as its ownership, effective control and principal place of business;

(18) "Non-scheduled air service" means any commercial air service other than a scheduled air service;

(19) “Operating license” means, (i) in the case of the European Union and its Member States an operating license and any other relevant documents or certificates given under Regulation EC 1008/2008 and any successor instrument, and (ii) in the case of Israel an Air Operating License and any other relevant documents or certificates given under Article 18 of The Israeli Air Navigation Law 2011 and any successor instrument;

(20) "Price" means:

(a) "air fares" to be paid to air carriers or their agents or other ticket sellers for the carriage of passengers and baggage on air services and any conditions under which those fares apply, including remuneration and conditions offered to agency and other auxiliary services; and

(b) "air rates" to be paid for the carriage of cargo and any conditions under which those rates apply, including remuneration and conditions offered to agency and other auxiliary services.

This definition covers, where relevant, the surface transport in connection with international air transport and the applicable conditions;

(21) "Principal place of business" means the head office or registered office of an air carrier in the Contracting Party within which the principal financial functions and operational control, including continued airworthiness management, of the air carrier are exercised, as listed in its Operating license;

(22) "Public service obligation" means any obligation imposed upon air carriers to ensure on a specified route the minimum provision of scheduled air services satisfying fixed standards of continuity, regularity, pricing and minimum capacity which air carriers would not assume if they were solely considering their commercial interest. Air carriers may be compensated by the Contracting Party concerned for fulfilling public service obligations;

(23) "Scheduled air service" means a series of flights possessing all the following characteristics:

(a) on each flight seats and/or capacity to transport cargo and/or mail are available for individual purchase by the public (either directly from the air carrier or from its authorised agents);

(b) it is operated so as to serve traffic between the same two or more airports, either:

– according to a published timetable, or

– with flights so regular or frequent that they constitute a recognisably systematic series;

(24) "SESAR" (Single European Sky ATM Research) means the technical implementation of the Single European Sky which provides a coordinated, synchronised research, development and deployment of the new generations of air traffic management systems;

(25) "Subsidy" means any financial contribution granted by the competent authorities, a government, a regional organisation or another public organisation, i.e. when:

(a) a practice of the competent authorities, a government, a regional body or another public organisation involves a direct transfer of funds such as grants, loans or equity infusion, potential direct transfer of funds to the company, the assumption of liabilities of the company such as loan guarantees, capital injections, ownership, protection against bankruptcy or insurance;

(b) revenue of the competent authorities, a government, a regional body or another public organisation that is otherwise due is foregone or not collected;

(c) the competent authorities, a government, a regional body or another public organisation provide goods or services other than general infrastructure, or purchase goods or services; or

(d) the competent authorities, a government, a regional body or another public organisation make payments to a funding mechanism or entrust or direct a private body to carry out one or more of the type of functions illustrated under (a), (b) and (c) which would normally be vested in the government and, in practice, in no real sense differs from practices normally followed by governments;

and where a benefit is thereby conferred;

(26) "Territory" means, for Israel, the territory of the State of Israel, and, for the European Union, the land areas (mainland and islands), internal waters and territorial sea in which the EU Treaties are applied and under the conditions laid down in the EU Treaties and any successor instrument. The application of this Agreement to the airport of Gibraltar is understood to be without prejudice to the respective legal positions of the Kingdom of Spain and the United Kingdom with regard to their dispute over sovereignty over the territory in which the airport is situated and to the continuing suspension of Gibraltar Airport from EU aviation measures existing as at 18 September 2006 as between Member States in accordance with the terms of the Ministerial Statement on Gibraltar Airport agreed in Cordoba on 18 September 2006. The application of this Agreement is understood to be without prejudice to the status of the territories that came under Israeli administration after June 1967;

(27) "User charge" means a charge imposed on air carriers for the provision of airport, airport environmental, air navigation, or aviation security facilities or services including related services and facilities;

Title I

Economic Provisions

Article 2

Traffic Rights

1. Each Contracting Party shall grant to the other Contracting Party, in accordance with Annex I and Annex II, the following rights for the conduct of international air transport by the air carriers of the other Contracting Party:

(a) the right to fly across its territory without landing;

(b) the right to make stops in its territory for any purpose other than taking on or discharging passengers, baggage, cargo and/or mail in air transport (non-traffic purposes);

(c) while operating an agreed service on a specified route, the right to make stops in its territory for the purpose of taking up and discharging international traffic in passengers, cargo and/or mail, separately or in combination; and

(d) the rights otherwise specified in this Agreement.

2. Nothing in this Agreement shall be deemed to confer on the air carriers of:

(a) Israel the right to take on board, in the territory of any Member State, passengers, baggage, cargo, and/or mail carried for compensation and destined for another point in the territory of that Member State;

(b) the European Union the right to take on board, in the territory of Israel, passengers, baggage, cargo, and/or mail carried for compensation and destined for another point in the territory of Israel.

ARTICLE 3

Authorisation

1. On receipt of applications for operating authorisation from an air carrier of one of the Contracting Parties, the competent authorities shall grant appropriate authorisations with minimum procedural delay, provided that:

(a) for an air carrier of Israel:

– the air carrier has its principal place of business in Israel, and has received its operating licence in accordance with the law of Israel; and

– effective regulatory control of the air carrier is exercised and maintained by Israel; and

– the air carrier is owned, directly or by majority participation, and effectively controlled by Israel and/or its nationals;

(b) for an air carrier of the European Union:

– the air carrier has its principal place of business in the territory of a European Union Member State under the EU Treaties, and has received its operating licence in accordance with European Union law; and

– effective regulatory control of the air carrier is exercised and maintained by the European Union Member State responsible for issuing its Air Operator Certificate and the competent authority is clearly identified; and

– the air carrier is owned, directly or by majority participation, and it is effectively controlled by European Union Member States and/or by nationals of European Union Member States, or by other States listed in Annex III and/or of nationals of these other States;

(c) the air carrier meets the conditions prescribed under the laws and regulations normally applied by the competent authority for the operation of international air transport; and

(d) the provisions set forth in Article 13 (Aviation Safety) and Article 14 (Aviation Security) are being maintained and administered.

ARTICLE 3 bis

Reciprocal Recognition of Regulatory Determinations

with Regard to Air Carrier Fitness and Nationality

Upon receipt of an application for authorisation from an air carrier of one Contracting Party, the competent authorities of the other Contracting Party shall recognise any fitness and/or nationality determination made by the competent authorities of the first Contracting Party with respect to that air carrier as if such determination had been made by its own competent authorities, and shall not inquire further into such matters, except as provided for in subparagraph a) below.

(a) If, after receipt of an application for authorisation from an air carrier, or after the grant of such authorisation, the competent authorities of the receiving Contracting Party have a specific concern based on reasonable doubt that, despite the determination made by the competent authorities of the other Contracting Party, the conditions prescribed in Article 3 (Authorisation) of this Agreement for the grant of appropriate authorisations or permissions have not been met, then they shall promptly advise those authorities, giving substantive reasons for their concern. In that event, either Contracting Party may seek consultations which may include representatives of the competent authorities of both Contracting Parties, and/or additional information relevant to this concern, and such requests shall be met as soon as practicable. If the matter remains unresolved, either Contracting Party may bring the matter to the Joint Committee set up under Article 22 (The Joint Committee) of this Agreement and may, in accordance with paragraphs 7 and 9 of Article 22 (The Joint Committee), take appropriate safeguard measures under Article 24 (Safeguard measures).

(b) These procedures do not cover recognition of determinations in relation to:

(i) Safety certificates or licences;

(ii) Security arrangements; or

(iii) Insurance coverage.

Article 4

Refusal, Revocation, Suspension or Limitation of Authorisation

1. The competent authorities of either Contracting Party may refuse, revoke, suspend or limit the operating authorisations or otherwise suspend or limit the operations of an air carrier of another Contracting Party where:

(a) for an air carrier of Israel:

– the air carrier does not have its principal place of business in Israel, or has not received its operating licence in accordance with the applicable law of Israel; or

– effective regulatory control of the air carrier is not exercised or maintained by Israel; or

– the air carrier is not owned, directly or by majority participation, or effectively controlled by Israel and/or nationals of Israel;

(b) for an air carrier of the European Union:

– the air carrier does not have its principal place of business in the territory of a European Union Member State under the EU Treaties, or has not received its operating licence in accordance with European Union law; or

– effective regulatory control of the air carrier is not exercised or maintained by the European Union Member State responsible for issuing its Air Operator Certificate or the competent authority is not clearly identified; or

– the air carrier is not owned, directly or by majority participation, or effectively controlled by European Union Member States and/or nationals of European Union Member States, or by other States listed in Annex III and/or nationals of these other States;

(c) the air carrier has failed to comply with the laws and regulations referred to in Article 6 (Compliance with laws and regulations) of this Agreement;

(d) the provisions set forth in Article 13 (Aviation Safety) and Article 14 (Aviation Security) are not being maintained or administered; or

(e) a Contracting Party has made the determination in accordance with Article 7 (Competitive Environment) that the conditions for a competitive environment are not being fulfilled.

2. Unless immediate action is essential to prevent further non-compliance with points (c) or (d) of paragraph 1, the rights established by this Article shall be exercised only after consultation with the competent authorities of the other Contracting Party.

Article 5

Investment

1. Notwithstanding Article 3 (Authorisation) and Article 4 (Refusal, Revocation, Suspension, Limitation of Authorisation) of this Agreement, and upon verification by the Joint Committee in accordance with Article 22 (10) (The Joint Committee) that reciprocal arrangements are available, the Contracting Parties may allow majority ownership and/or the effective control of air carriers of Israel by European Union Member States or their nationals, or of air carriers of the European Union by Israel or its nationals in accordance with the conditions of paragraph 2 of this Article.

2. In relation to paragraph 1 of this Article, specific investments by Contracting Parties' interests shall be individually permitted by virtue of a prior decision of the Joint Committee in accordance with Article 22(2) (The Joint Committee) of this Agreement.

This decision shall specify the conditions associated with the operation of the agreed services under this Agreement and with the services between third countries and the Contracting Parties. The provisions of Article 22(9) (The Joint Committee) of this Agreement shall not apply to this type of decisions.

Article 6

Compliance with Laws and Regulations

1. While entering, within, or leaving the territory of one Contracting Party, the laws and regulations applicable within that territory relating to the admission to or departure from its territory of aircraft engaged in international air transport, or to the operation and navigation of aircraft engaged in international air transport shall be complied with by the other Contracting Party's air carriers.

2. While entering, within, or leaving the territory of one Contracting Party, the laws and regulations applicable within that territory relating to the admission to or departure from its territory of passengers, crew, or cargo on aircraft (including regulations relating to entry, clearance, immigration, passports, customs and quarantine or, in the case of mail, postal regulations) shall be complied with by, or on behalf of, such passengers, crew or cargo of the other Contracting Party's air carriers.

ARTICLE 7

Competitive Environment

1. The Contracting Parties reaffirm the application of the provisions of Chapter 3 ("Competition") of Title IV of the Association Agreement to this Agreement.

2. The Contracting Parties acknowledge that it is their joint objective to have a fair and competitive environment for the operation of air services. The Contracting Parties recognise that fair competitive practices by air carriers are most likely to occur where these air carriers operate on a fully commercial basis and are not subsidised, and where neutral and non-discriminatory access to airport facilities, services, and slot allocation is ensured.

3. If one Contracting Party finds that conditions exist in the territory of the other Contracting Party, in particular due to subsidy, which would adversely affect the fair and equal opportunity of its air carriers to compete, it may submit observations to the other Contracting Party. Furthermore, it may request a meeting of the Joint Committee, as provided for in Article 22 (The Joint Committee) of this Agreement. Consultations shall start within 30 days of receipt of such a request. Failure to reach a satisfactory agreement within 30 days from the start of consultations shall constitute grounds for the Contracting Party that requested the consultations to take action to refuse, withhold, revoke, suspend or impose appropriate conditions on the authorisations of the air carrier(s) concerned, consistent with Article 4 (Refusal, Revocation, Suspension or Limitation of Authorisation).

4. The actions referred to in paragraph 3 shall be appropriate, proportionate and restricted with regard to scope and duration to what is strictly necessary. They shall be exclusively directed towards the air carrier(s) benefiting from the conditions referred to in paragraph 3, and shall be without prejudice to the right of either Contracting Party to take action under Article 23 (Dispute resolution and Arbitration).

5. The Contracting Parties agree that the participation of the Israeli Government to help cover additional security expenses incurred by the Israeli air carriers as a result of Israeli Government instructions, is not an unfair competitive practice and is not considered as a subsidy for the purpose of this article provided that:

(a) such support covers exclusively costs necessarily incurred by the air carriers of Israel when implementing extra security measures required by the Israeli authorities which are not imposed on, or incurred by, air carriers of the European Union; and

(b) such security costs are clearly identified and quantified by Israel; and

(c) the Joint Committee receives, once a year, a report describing the total sum of the security expenses and the rate of participation of the Israeli government in the previous year.

6. Each Contracting Party, upon notification to the other Contracting Party, may approach responsible government entities in the territory of the other Contracting Party including entities at the state, provincial or local level to discuss matters relating to this Article.

7. The provisions of this Article shall apply without prejudice to the Contracting Parties' laws and regulations regarding public service obligations in the territories of the Contracting Parties.

Article 8

Commercial Opportunities

Air carrier representatives

1. The air carriers of each Contracting Party shall have the right to establish offices and facilities in the territory of the other Contracting Party required for the provision of air transport and for the promotion and sale of air transport, including ancillary or supplemental services.

2. The air carriers of each Contracting Party shall be entitled, in accordance with the laws and regulations of the other Contracting Party relating to entry, residence and employment, to bring in and maintain in the territory of the other Contracting Party managerial, sales, technical, operational, and other specialist staff who are required to support the provision of air transport.

Ground handling

3. (a) Without prejudice to point (b) below, each air carrier shall have in relation to groundhandling in the territory of the other Contracting Party:

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

(ii) the right to select among competing suppliers that provide groundhandling services in whole or in part where such suppliers are allowed market access on the basis of the laws and regulations of each Contracting Party, and where such suppliers are present in the market.

(b) For the following categories of groundhandling services i.e. baggage handling, ramp handling, fuel and oil handling, freight and mail handling as regards the physical handling of freight and mail between the air terminal and the aircraft, the rights under point (a)(i) and (ii) shall be subject only to physical or operational constraints according to the laws and regulations applicable in the territory of the other Contracting Party. Where such constraints preclude self-handling and where there is no effective competition between suppliers that provide groundhandling services, all such services shall be available on both an equal and non-discriminatory basis to all air carriers; prices of such services shall not exceed their full cost including a reasonable return on assets, after depreciation.

Sales, local expenses and transfer of funds

4. Any air carrier of each Contracting Party may engage in the sale of air transport in the territory of the other Contracting Party directly and/or, at the air carrier's discretion, through its sales agents, other intermediaries appointed by the air carrier or through the internet or any other available channel. Each air carrier 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 air carrier shall have the right to convert and remit at any time, in any way, freely without restrictions or taxation, in any freely convertible currency and at the official rate of exchange applicable, from the territory of the other Contracting Party to its home territory and, except where inconsistent with generally applicable law or regulation, to the country or countries of its choice, on demand, local revenues.

6. The air carriers of each Contracting Party shall be permitted to pay for local expenses, including purchases of fuel, in the territory of the other Contracting Party in local currency. At their discretion, the air carriers of each Contracting Party may pay for such expenses in the territory of the other Contracting Party in freely convertible currencies according to local currency regulation.

Cooperative arrangements

7. In operating or holding out services under this Agreement, any air carrier of a Contracting Party may enter into cooperative marketing arrangements, such as blocked-space agreements or code-sharing arrangements, with:

(a) any air carrier or carriers of the Contracting Parties; and

(b) any air carrier or carriers of a third country; and

(c) any surface, land or maritime carriers;

provided that (i) the operating carrier holds the appropriate traffic rights and (ii) the marketing carriers hold the appropriate route rights within the relevant bilateral provisions and (iii) the arrangements meet the requirements relating to safety and competition normally applied to such arrangements. In respect of passenger transport sold involving code-shares, the purchaser shall be informed at the point of sale, or in any case at check-in, or on boarding where no check-in is required for a connecting flight, which transportation providers will operate each sector of the service.

Surface transport

8. (a) In relation to the transport of passengers, surface transport providers shall not be subject to laws and regulations governing air transport on the sole basis that such surface transport is held out by an air carrier under its own name. Surface transport providers have the discretion to decide whether to enter into cooperative arrangements. In deciding on any particular arrangement, surface transport providers may consider, among other things, consumer interests and technical, economic, space, and capacity constraints.

(b) Moreover, and notwithstanding any other provision of this Agreement, air carriers and indirect providers of cargo transport of the Contracting Parties shall be permitted, without restriction, to employ in connection with international air transport any surface transport for cargo to or from any points in Israel and the European Union, 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. Air carriers may elect to perform their own surface transport or to provide it through arrangements with other surface carriers, including surface transport operated by other air carriers and indirect providers of cargo air transport. Such intermodal cargo services may be offered at a single, through price for the air and surface transport combined, provided that shippers are not misled as to the facts concerning such transport.

Leasing

9. a) The air carriers of each Contracting Party shall be entitled to provide the agreed services using aircraft leased with or without crew from any air carrier, including from third countries, provided that all participants in such arrangements meet the conditions prescribed under the laws and regulations normally applied by the Contracting Parties to such arrangements.

b) Neither Contracting Party shall require the air carriers leasing out their equipment to hold traffic rights under this Agreement.

c) The leasing with crew (wet-leasing) of an aircraft of an air carrier of a third country, other that those mentioned in Annex III, by an Israeli air carrier or by an air carrier of the European Union, in order to exploit the rights envisaged in this Agreement, shall remain exceptional or meet temporary needs. It shall be submitted to (i) the licensing authority of the leasing air carrier for prior approval and (ii) the competent authority of the other Contracting Party to where it is intended to operate the wet-leased aircraft for information.

For the purposes of this subparagraph, the term "aircraft" means an aircraft of an air carrier of a third country, which is not prohibited to operate in the European Union and/or Israel.

Franchising and Branding

10. The air carriers of each Contracting Party shall be entitled to enter into franchising or branding arrangements with companies, including air carriers, of either Contracting Party or third countries, provided that the air carriers hold the appropriate authority and meet the conditions prescribed under the laws and regulations applied by the Contracting Parties to such arrangements, particularly those requiring the disclosure of the identity of the air carriers operating the service.

Airport slot allocation

11. Each Contracting Party shall ensure that its procedures, guidelines and regulations to manage slots applicable at airports in its territory are applied in a transparent, effective and non-discriminatory manner.

Consultations in the Joint Committee

12. If a Contracting Party believes that the other Contracting Party is in violation of this Article, it may notify the other Contracting Party of its findings and request consultations under paragraph 4 of Article 22 (The Joint Committee).

Article 9

Customs Duties and Charges

1. On arriving in the territory of one Contracting Party, aircraft operated in international air transport by the air carriers of the other Contracting Party, their regular equipment, fuel, lubricants, consumable technical supplies, ground equipment, spare parts (including engines), aircraft stores (including but not limited to such items as 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 transport 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 or local authorities or the European Union, 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 Contracting Party and taken on board, within reasonable limits, for use on outbound aircraft of an air carrier of the other Contracting Party engaged in international air transport, even when these stores are to be used on a part of the journey performed over the said territory;

(b) ground equipment and spare parts (including engines) introduced into the territory of a Contracting Party for the servicing, maintenance, or repair of aircraft of an air carrier of the other Contracting Party used in international air transport;

(c) fuel, lubricants and consumable technical supplies introduced into or supplied in the territory of a Contracting Party for use in an aircraft of an air carrier of the other Contracting Party engaged in international air transport, even when these supplies are to be used on a part of the journey performed over the said territory;

(d) printed matter, as provided for by the customs legislation of each Contracting Party, introduced into or supplied in the territory of one Contracting Party and taken on board for use on outbound aircraft of an air carrier of the other Contracting Party engaged in international air transport, even when these stores are to be used on a part of the journey performed over the said territory; and

(e) safety and security equipment for use at airports or cargo terminals.

3. Nothing in this Agreement shall prevent a Contracting Party from imposing taxes, levies, duties, fees, or charges on fuel supplied in its territory, on a non-discriminatory basis, for use in an aircraft of an air carrier that operates between two points in its territory. While entering, within, or leaving the territory of one Contracting Party, its laws and regulations relating to the sale, supply, and use of aircraft fuel shall be complied with by the other Contracting Party's air carriers.

4. The regular airborne, as well as the material, supplies and spare parts referred to in paragraphs 1 and 2 of this Article normally retained on board aircraft operated by an air carrier of one Contracting party may be unloaded in the territory of the other Contracting Party only with the approval of the customs authorities of that Contracting Party and may be required to be kept under the supervision or control of the said authorities up to such time as they are re-exported or otherwise disposed in accordance with customs regulation.

5. The exemptions provided by this Article shall also be available where the air carriers of one Contracting Party have contracted with another air carrier, which similarly enjoys such exemptions from the other Contracting Party, for the loan or transfer in the territory of the other Party of the items specified in paragraphs 1 and 2.

6. Nothing in this Agreement shall prevent either Party from imposing taxes, levies, duties, fees or charges on goods sold other than for consumption on board to passengers during a sector of an air service between two points within its territory at which embarkation or disembarkation is permitted.

7. The stipulations of the present Agreement shall not affect the field of VAT, with the exception of such tax on imports. The provisions of the respective conventions in force between a European Union Member State and Israel for the avoidance of double taxation on income and on capital remain unaffected by this Agreement.

Article 10

User Charges for Airports and Aviation Facilities and Services

1. Each Contracting Party shall ensure that user charges that may be imposed by its competent charging authorities or bodies on the air carriers of the other Contracting Party for the use of air navigation and air traffic control services shall be cost-related and non-discriminatory. In any event, any such user charges shall be assessed on the air carriers of the other Contracting Party on terms not less favourable than the most favourable terms available to any other air carrier.

2. Each Contracting Party shall ensure that user charges that may be imposed by its competent charging authorities or bodies on the air carriers of the other Contracting Party for the use of airport, aviation security and related facilities and services shall be not unjustly discriminatory, and equitably apportioned among categories of users. These charges may reflect, but shall not exceed, the full cost to the competent charging authorities or bodies of providing the appropriate airport and aviation security facilities and services at that airport or within that airport’s system. These charges may include a reasonable return on assets, after depreciation. Facilities and services for which user charges are made shall be provided on an efficient and economic basis. In any event, these charges shall be assessed on the air carriers of the other Party on terms not less favourable than the most favourable terms available to any other air carrier at the time the charges are assessed.

3. Each Contracting Party shall encourage consultations between the competent charging authorities or bodies in its territory and the air carriers or their representative bodies using the services and facilities, and shall encourage the competent charging authorities or bodies to provide each airport user, or the representatives or associations of airport users, with information on the components serving as a basis for determining the system or the level of all charges levied at each airport by the airport managing bodies as such information 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 Contracting Party shall encourage the competent charging authorities to provide users with reasonable notice of any proposal for changes in user charges to enable those authorities to consider the views expressed by the users before changes are made.

4. Neither Contracting Party shall be held, in dispute resolution procedures pursuant to Article 23 (Dispute Resolution and Arbitration), to be in breach of a provision of this Article, unless (a) it fails to undertake a review of the charge or practice that is the subject of complaint by the other Contracting 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

Pricing

1. The Contracting Parties shall permit prices to be freely established by the air carriers on the basis of free and fair competition.

2. The Contracting Parties shall not require prices to be filed.

3. Discussions between the competent authorities may be held to discuss matters such as, but not limited to, prices which may be unjust, unreasonable or discriminatory.

Article 12

Statistics

1. Each Contracting Party shall provide the other Contracting Party with statistics that are required by domestic laws and regulations, and, upon request, other available statistical information as may be reasonably required for the purpose of reviewing the operation of air services under this Agreement.

2. The Contracting Parties shall cooperate in the framework of the Joint Committee under Article 22 (The Joint Committee) to facilitate the exchange of statistical information between them for the purpose of monitoring the development of air services under this Agreement.

Title II

Regulatory Cooperation

Article 13

Aviation Safety

1. Without prejudice to the discretion of the legislative authorities of the Contracting Parties, the Contracting Parties shall closely cooperate in the area of aviation safety with the objective of establishing, to the practical extent possible, harmonised rules or mutual recognition of each other's safety standards. The Joint Committee, with the assistance of the European Aviation Safety Agency, shall oversee this process of cooperation.

2. The Contracting Parties shall ensure that their relevant legislation, rules or procedures deliver, at minimum, the level of regulatory requirements and standards relating to air transport specified in Part A of Annex IV, as detailed in Annex VI.

3. The competent authorities of the Contracting Parties shall recognise as valid, for the purposes of operating the air transport provided for in this Agreement, certificates of airworthiness, certificates of competency, and licenses issued or validated by each other and still in force, provided that the requirements for such certificates or licenses at least equal the minimum standards that may be established pursuant to the Convention. The competent authorities may, however, refuse to recognise as valid for purposes of flight above their own territory, certificates of competency and licenses granted to or validated for their own nationals by such other authorities.

4. Each Contracting Party may request consultations at any time concerning the safety standards maintained by the other Contracting Party in areas relating to aeronautical facilities, flight crew, aircraft and the operation of aircraft. Such consultations shall take place within thirty (30) days of that request.

5. If, following such consultations, one Contracting Party finds that the other Contracting Party does not effectively maintain and administer safety standards in the areas referred to in paragraph 4 that meet the standards established at that time pursuant to the Convention, the other Contracting Party shall be informed of such findings and of the steps considered necessary to conform with the ICAO standards. The other Contracting Party shall then take appropriate corrective action within an agreed time period.

6. The Contracting Parties shall ensure that aircraft registered in one Contracting Party suspected of non-compliance with international aviation safety standards established pursuant to the Convention landing at airports open to international air traffic in the territory of the other Contracting Party shall be subject to ramp inspections by the competent authorities of that other Contracting Party, on board and around the aircraft to check both the validity of the aircraft documents and those of its crew and the apparent condition of the aircraft and its equipment.

7. The competent authorities of either Contracting Party may take all appropriate and immediate measures whenever they ascertain that an aircraft, any component of an aircraft or an operation may:

(a) fail to satisfy the minimum standards established pursuant to the Convention, or

(b) give rise to serious concerns – established through an inspection referred to in paragraph 6, pursuant to Article 16 of the Convention – that an aircraft or the operation of an aircraft does not comply with the minimum standards established pursuant to the Convention , or

(c) give rise to serious concerns that there is a lack of effective maintenance and administration of minimum standards established pursuant to the Convention.

8. Where the competent authorities of one Contracting Party take action under paragraph 7, they shall promptly inform the competent authorities of the other Contracting Party of taking such action, providing reasons for its action.

9. When urgent action is essential to ensure the safety of an air carrier operation, each Contracting Party reserves the right to immediately suspend or vary the operating authorisation of an air carrier or air carriers of the other Contracting Party.

10. Where measures taken in application of paragraphs 7 or 9 are not discontinued even though the basis for taking them has ceased to exist, either Contracting Party may refer the matter to the Joint Committee.

Article 14

Aviation Security

1. The Contracting Parties reaffirm their obligations to each other to provide for the security of civil aviation against acts of unlawful interference, and in particular their obligations under the Convention, the Convention on Offences and Certain Other Acts Committed on Board Aircraft, signed at Tokyo on 14 September 1963, the Convention for the Suppression of Unlawful Seizure of Aircraft, signed at The Hague on 16 December 1970, the Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation, signed at Montreal on 23 September 1971, the Protocol for the Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation, signed at Montreal on 24 February 1988, insofar as both Contracting Parties are parties to these conventions, as well as all other conventions and protocols relating to civil aviation security of which both Contracting Parties are parties.

2. The Contracting 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, their passengers and crew, airports and air navigation facilities, and any other threat to the security of civil aviation.

3. The Contracting Parties shall, in their mutual relations, act in conformity with the aviation security Standards and, so far as they are applied by them, the Recommended Practices established by the ICAO and designated as Annexes to the Convention, to the extent that such security provisions are applicable to the Contracting Parties. Both Contracting Parties shall require that operators of aircraft of their registry, operators who have their principal place of business or permanent residence in their territory, and the operators of airports in their territory, act, at least, in conformity with such aviation security provisions.

4. Each Contracting Party shall ensure that effective measures are taken within its territory to protect aircraft, to screen passengers and their carry-on items, and to carry out appropriate checks on crew, cargo (including hold baggage) and aircraft stores prior to and during boarding or loading and that those measures are adjusted to meet increases in the threat. Each Contracting Party agrees that their air carriers may be required to respect the aviation security provisions referred to in paragraph 3 required by the other Contracting Party, for entrance into, departure from, or while within, the territory of that other Contracting Party. When a Contracting Party is informed of a specific threat for a specific flight or specific series of flights to or from the territory of the other Contracting Party, it shall inform the other Contracting Party, and special security measures may be decided by the first Contracting Party to take into account the specific threat, in accordance with paragraph 6.

5. The Contracting Parties agree to work towards achieving mutual recognition of each other's security standards. To this end, they shall establish administrative arrangements allowing for consultations on existing or planned aviation security measures and for cooperation and sharing of information on quality control measures implemented by the Contracting Parties. A Contracting Party may also request the cooperation of the other Contracting Party to assess whether particular security measures of that other Contracting Party meet the requirements of the requesting Contracting Party. Taking into account the results of the assessments, the requesting Contracting Party may decide that security measures of an equivalent standard are applied in the territory of the other Contracting Party in order that transfer passengers, transfer baggage, and/or transfer cargo may be exempted from re-screening in the territory of the requesting Contracting Party. Such a decision shall be communicated to the other Contracting Party.

6. Each Contracting Party shall also act favourably upon any request from the other Contracting Party for reasonable special security measures to meet a particular threat. Except in case of emergency, each Contracting Party will inform the other Contracting Party in advance of any special security measures it intends to introduce which could have a significant financial or operational impact on the air transport services provided under this Agreement. Either Contracting Party may request a meeting of the Joint Committee to discuss such security measures, as provided for in Article 22 (The Joint Committee) of this Agreement.

7. When an incident or threat of an incident of unlawful seizure of civil aircraft or other unlawful acts against the safety of such aircraft, their passengers and crew, airports or air navigation facilities occurs, the Contracting Parties shall assist each other by facilitating communications and other appropriate measures intended to terminate rapidly and safely such incident or threat thereof.

8. Each Contracting Party shall take all measures it finds practicable to ensure that an aircraft subjected to an act of unlawful seizure or other acts of unlawful interference which is on the ground in its territory is detained on the ground unless its departure is necessitated by the overriding duty to protect human life. Wherever practicable, such measures shall be taken on the basis of mutual consultations.

9. When a Contracting Party has reasonable grounds to believe that the other Contracting Party has departed from the aviation security provisions of this Article, that Contracting Party may request immediate consultations with the other Contracting Party.

10. Without prejudice to Article 4 (Refusal, Revocation, Suspension or Limitation of Authorisation), failure to reach a satisfactory agreement within fifteen (15) days from the date of such request shall constitute grounds to withhold, revoke, limit or impose conditions on the operating authorisation of one or more air carriers of such other Contracting Party.

11. When required by an immediate and extraordinary threat, a Contracting Party may take interim action prior to the expiry of fifteen (15) days.

12. Without prejudice to the need to take immediate action in order to protect transport security, the Contracting Parties affirm that when considering security measures, each Contracting Party shall evaluate possible adverse economic and operational effects on the operation of air services under this Agreement and, unless constrained by law, shall take such factors into account when it determines what measures are necessary and appropriate to address those security concerns.

13. Any action taken in accordance with the paragraphs 10 or 11 shall be discontinued upon compliance by the other Contracting Party with the provisions of this Article.

14. Notwithstanding this Article, The Contracting Parties agree that no party will be obliged to reveal information, which may harm the national security of each of the Contracting Parties.

Article 15

Air Traffic Management

1. The Contracting Parties agree to cooperate closely in the field of air traffic management with a view to extending the Single European Sky to Israel in order to enhance safety and overall efficiency for general air traffic, to optimise capacities and to minimise delays. To this purpose, Israel shall be involved in the Single European Sky Committee as observer. The Joint Committee shall monitor this process of cooperation.

2. With a view to facilitating the application of the Single European Sky legislation in their territories:

(a) Israel shall take the necessary measures to adjust its air traffic management institutional structures to the Single European Sky, in particular by establishing a pertinent national supervisory body at least functionally independent of the air navigation service provider(s); and

(b) The European Union shall associate Israel with relevant operational initiatives in the fields of air navigation services, airspace and interoperability that stem from the Single European Sky, in particular through appropriate coordination on SESAR.

3. (a) The Contracting Parties shall ensure that their relevant legislation, rules or procedures deliver, at minimum, the regulatory requirements and standards relating to air transport specified in Section A of Part B of Annex IV as detailed in Annex VI.

(b) The Contracting Parties shall endeavour to act in accordance with European Union regulatory requirements and standards relating to air transport specified in Section B of Part B of Annex IV as detailed in Annex VI.

Article 16

Environment

1. The Contracting Parties recognise the importance of protecting the environment when developing and implementing international aviation policy.

2. The Contracting Parties acknowledge that effective global, regional, national and/or local action is needed to minimise the impact of civil aviation on the environment.

3. The Contracting Parties recognise the importance of working together, and within the framework of multilateral discussions, to consider and minimise the effects of aviation on the environment and the economy, and to ensure that any mitigating measures are fully consistent with the objectives of this Agreement.

4. Nothing in this Agreement shall be construed to limit the authority of the competent authorities of a Contracting Party to take all appropriate measures to prevent or otherwise address the environmental impacts of air transport provided that such measures are applied without distinction as to nationality.

5. The Contracting Parties shall ensure that their relevant legislation, rules or procedures deliver, at minimum, the regulatory requirements and standards relating to air transport specified in Part C of Annex IV as detailed in Annex VI.

Article 17

Air Carrier Liability

1. The Contracting Parties reaffirm their obligations under the Convention for the Unification of Certain Rules for International Carriage by Air, done at Montreal on 28 May 1999 (the Montreal Convention).

2. The Contracting Parties shall ensure that their relevant legislation, rules or procedures deliver, at minimum, the regulatory requirements and standards relating to air transport specified in Part D of Annex IV as detailed in Annex VI.

Article 18

Consumer Rights and Protection of Personal Data

The Contracting Parties shall ensure that their relevant legislation, rules or procedures deliver, at minimum, the regulatory requirements and standards relating to air transport specified in Part E of Annex IV as detailed in Annex VI.

Article 19

Computer Reservation Systems

The Contracting Parties shall apply their laws and regulations, including competition rules, to operations of computer reservation systems on a fair and non-discriminatory basis. The computer reservation systems, air carriers and travel agencies of one Contracting Party shall enjoy treatment equivalent to that given to the computer reservation systems, air carriers and travel agencies operating in the territory of the other Contracting Party.

Article 20

Social aspects

The Contracting Parties shall ensure that their relevant legislation, rules or procedures deliver, at minimum, the regulatory requirements and standards relating to air transport specified in Part F of Annex IV as detailed in Annex VI.

Title III

Institutional Provisions

Article 21

Interpretation and Enforcement

1. The Contracting Parties shall take all appropriate measures, whether general or particular, to ensure fulfilment of the obligations arising out of this Agreement and shall refrain from any measures which would jeopardise attainment of the objectives of this Agreement.

2. Each Contracting Party shall be responsible, in its own territory, for the proper enforcement of this Agreement and, in particular, the regulatory requirements and standards relating to air transport specified in Annex IV as detailed in Annex VI.

3. Each Contracting Party shall give the other Contracting Party all necessary information and assistance subject to the applicable law of the respective Contracting Party, in the case of investigations on possible infringements which that other Contracting Party carries out under its respective competences as provided in this Agreement.

4. Whenever the Contracting Parties act under the powers granted to them by this Agreement on matters which are of interest to the other Contracting Party and which concern the authorities or undertakings of the other Contracting Party, the competent authorities of the other Contracting Party shall be fully informed and given the opportunity to comment before a final decision is taken.

Article 22

The Joint Committee

1. A committee composed of representatives of the Contracting Parties (hereinafter referred to as the Joint Committee) is hereby established, which shall be responsible for the administration of this Agreement and shall ensure its proper implementation. For this purpose it shall make recommendations and take decisions in the cases provided for in this Agreement.

2. The decisions of the Joint Committee shall be adopted by consensus and shall be binding upon the Contracting Parties. They will be put into effect by the Contracting Parties in accordance with their own rules.

3. The Joint Committee shall adopt its Rules of Procedure.

4. The Joint Committee shall meet as and when necessary, and at least once a year. Either Contracting Party may request the convening of a meeting.

5. A Contracting Party may also request a meeting of the Joint Committee to seek to resolve any question relating to the interpretation or application of this Agreement. Such a meeting shall begin at the earliest possible date, but not later than two months from the date of receipt of the request, unless otherwise agreed by the Contracting Parties.

6. For the purpose of the proper implementation of this Agreement, the Contracting Parties shall exchange information and, at the request of either Contracting Party, shall hold consultations within the Joint Committee.

7. If, in the view of one of the Contracting Parties, a decision of the Joint Committee is not properly implemented by the other Contracting Party, the former may request that the issue be discussed by the Joint Committee. If the Joint Committee cannot solve the issue within two months of its referral, the requesting Contracting Party may take appropriate safeguard measures under Article 24 (Safeguard Measures).

8. The decisions of the Joint Committee shall state the date of its implementation in the Contracting Parties and any other information likely to concern economic operators.

9. Without prejudice to paragraph 2, if the Joint Committee does not take a decision on an issue which has been referred to it within six months of the date of referral, the Contracting Parties may take appropriate temporary safeguard measures under Article 24 (Safeguard Measures).

10. The Joint Committee shall examine questions relating to bilateral investments of majority participation, or changes in the effective control of air carriers of the Contracting Parties.

11. The Joint Committee shall also develop cooperation by:

(a) carrying out its specific tasks in relation to the process of regulatory cooperation, as set out in Title II of this Agreement;

(b) fostering expert-level exchanges on new legislative or regulatory initiatives and developments, including in the fields of security, safety, the environment, aviation infrastructure (including slots), competitive environment and consumer protection;

(c) regularly examining the social effects of the Agreement as it is implemented, notably in the area of employment, and developing appropriate responses to concerns found to be legitimate;

(d) agreeing, on the basis of consensus, proposals, approaches or documents of a procedural nature directly related to the functioning of this Agreement; and

(e) considering potential areas for the further development of this Agreement, including the recommendation of amendments to this Agreement.

(f) addressing the application of section A.1 of Annex IV (list of air carriers subject to an operating ban).

12. The Parties share the goal of maximising the benefits for consumers, air carriers, labour, and communities on both sides by extending this Agreement to include third countries. To this end, the Joint Committee shall work to develop a proposal regarding the conditions and procedures, including any necessary amendments to this Agreement, which would be required for third countries to accede to this Agreement.

Article 23

Dispute Resolution and Arbitration

1. Either Contracting Party may refer through diplomatic channels, to the Association Council established under the Association Agreement, any dispute relating to the application or interpretation of this Agreement, having not been resolved in accordance with Article 22 (The Joint Committee). For the purposes of this Article, the Association Council established under the Association Agreement shall act as Joint Committee.

2. The Association Council may settle the dispute by means of a decision.

3. The Contracting Parties shall take the necessary measures to implement the decision referred to in paragraph 2.

4. Should the Contracting Parties be unable to settle the dispute in accordance with paragraph 2, the dispute shall, at the request of either Contracting Party, be submitted to an arbitration tribunal of three arbitrators in accordance with the procedure laid down hereafter:

(a) each Contracting Party shall appoint an arbitrator within sixty (60) days from the date of reception of the notification for the request for arbitration by the arbitration tribunal addressed by the other Contracting Party through diplomatic channels; the third arbitrator should be appointed by the Contracting Parties within sixty (60) additional days. If one of the Contracting Parties has not appointed an arbitrator within the agreed period, or if the third arbitrator is not appointed within the agreed period, each Contracting Party may request the President of the Council of the ICAO to appoint an arbitrator or arbitrators, whichever is applicable;

(b) the third arbitrator appointed under the terms of paragraph a) above should be a national of a third State having diplomatic relations with each of the Contracting Parties at the time of appointment, and shall act as a President of the arbitration tribunal;

(c) the arbitration tribunal shall agree its rules of procedure; and

(d) subject to the final decision of the arbitration tribunal, the expenses of the arbitration shall be shared equally by the Contracting Parties.

5. At the request of a Contracting Party the arbitration tribunal may order the other Contracting Party to implement interim relief measures pending the arbitration tribunal's final decision.

6. The arbitration tribunal shall seek to adopt any provisional decision or final decision by consensus. Where consensus is not possible, the arbitration tribunal shall adopt its decisions by majority voting.

7. If one of the Contracting Parties does not act in conformity with a decision of the arbitration tribunal taken under the terms of this Article within thirty (30) days from the notification of the aforementioned decision, the other Contracting Party may, for as long as this failure endures, limit, suspend or revoke the rights or privileges which it had granted under the terms of this Agreement to the Contracting Party at fault.

Article 24

Safeguard Measures

1. The Contracting Parties shall take any general or specific measures required to fulfil their obligations under this Agreement. They shall see to it that the objectives set out in this Agreement are attained.

2. If either Contracting Party considers that the other Contracting Party has failed to fulfil an obligation under this Agreement, it may take appropriate measures. Safeguard measures shall be restricted with regard to their scope and duration to what is strictly necessary in order to remedy the situation or maintain the balance of this Agreement. Priority shall be given to such measures which will least disturb the functioning of this Agreement.

3. A Contracting Party which is considering taking safeguard measures shall notify the other Contracting Party through the Joint Committee and shall provide all relevant information.

4. The Contracting Parties shall immediately enter into consultations in the Joint Committee with a view to finding a commonly acceptable solution.

5. Without prejudice to Articles 3(1)(d) (Authorisation) and 4(1)(d) (Refusal, Revocation, Suspension or Limitation of Authorisation) and Articles 13 (Aviation Safety) and 14 (Aviation Security), the Contracting Party concerned may not take safeguard measures until one month has elapsed after the date of notification under paragraph 3, unless the consultation procedure under paragraph 4 has been concluded before the expiration of the stated time limit.

6. The Contracting Party concerned shall, without delay, notify the measures taken to the Joint Committee and shall provide all relevant information.

7. Any action taken under the terms of this Article shall be suspended, as soon as the Contracting Party at fault satisfies the provisions of this Agreement.

Article 25

Geographic Extension of the Agreement

The Contracting Parties commit to conduct a continuous dialogue to ensure the coherence of this Agreement with the Barcelona process, and they aim, as their ultimate goal, at a Common Euro-Mediterranean Aviation Area. Therefore, the possibility of mutually agreeing upon amendments to take into account similar Euro-Mediterranean aviation agreements shall be discussed within the Joint Committee in accordance with Article 22(11) (The Joint Committee).

Article 26

Relationship to Other Agreements

1. The provisions of this Agreement supersede the relevant provisions of existing bilateral agreements and arrangements between Israel and the Member States. However, notwithstanding any term of this Agreement, existing traffic rights, security arrangements which originate from these bilateral agreements or other arrangements which are not covered under this Agreement, or which are more favourable, can continue to be exercised. As far as air carriers are concerned, such rights and arrangements can continue to be exercised by:

(a) Air carriers of the European Union, provided that there is no discrimination in the execution of these existing rights or other arrangements between air carriers of the European Union on the basis of nationality.

(b) Air carriers of the State of Israel.

2. If the Contracting Parties become parties to a multilateral agreement, or endorse a decision adopted by the ICAO or another international organisation, that addresses matters covered by this Agreement, they shall consult in the Joint Committee to determine whether this Agreement should be revised to take into account such developments.

3. This Agreement shall be without prejudice to any decision by the two Contracting Parties to implement future recommendations that may be made by the ICAO. The Contracting Parties shall not cite this Agreement, or any part of it, as the basis for opposing consideration in the ICAO of alternative policies on any matter covered by this Agreement.

4. The Contracting Parties agree that there will be no restriction or prevention to conclude, in the future, security arrangements between the Government of the State of Israel and each Government of the Member States of the European Union in security areas that fall outside the scope of the exclusive competence of the EU. However, the Contracting Parties agree (i) to privilege, when possible and in accordance with paragraph 5 of Article 14, the conclusion of Security arrangement at the EU level, and (ii) to provide the Joint Committee with the relevant information concerning those bilateral security arrangements, subject to Article 14 (Aviation Security), paragraph 14.

Article 27

Amendments

1. If one of the Contracting Parties wishes to revise the provisions of this Agreement, it shall notify the Joint Committee accordingly. The amendment to this Agreement shall enter into force in accordance with Article 30.

2. The Joint Committee may, upon the proposal of one Contracting Party and in accordance with this Article, decide to modify the Annexes of this Agreement.

3. This Agreement shall be without prejudice to the right of each Contracting Party, subject to compliance with the principle of non-discrimination and the provisions of this Agreement to unilaterally adopt new legislation or amend its existing legislation in the field of air transport mentioned in Annex IV, with respect to the principle of non-discrimination and in accordance with the provisions of this Agreement.

4. When new legislation or amendment to its existing legislation in the field of air transport mentioned in Annex IV is being considered by one of the Contracting Parties, it shall inform the other Contracting Party as appropriate and possible. Providing such information and, at the request of one of the Contracting Parties, a preliminary exchange of views may take place in the Joint Committee.

5. Each Contracting Party shall regularly and as soon as appropriate inform the other Contracting Party of newly adopted legislation or amendment to its existing legislation in the field of air transport mentioned in Annex IV. Providing such information may take place in the Joint Committee. Upon the request of any Contracting Party, the Joint Committee shall within sixty days hold an exchange of views on the implications of such new legislation or amendment for the proper functioning of this Agreement.

6. In order to safeguard the proper functioning of this Agreement, the Joint Committee shall:

(a) adopt a decision revising Annexes IV and/or VI of this Agreement so as to integrate therein, if necessary on a basis of reciprocity, the new legislation or amendment in question; or

(b) adopt a decision to the effect that the new legislation or amendment in question shall be regarded as in accordance with this Agreement; or

(c) decide any other measures, to be adopted within a reasonable period of time, regarding the new legislation or amendment in question.

Article 28

Termination

1. This Agreement is concluded for an unlimited period.

2. 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 ICAO. This Agreement shall terminate at midnight GMT at the end of the IATA traffic season in effect one year following the date of written notification of termination, unless the notice is withdrawn by agreement of the Contracting Parties before the expiry of this period.

Article 29

Registration with the International Civil Aviation Organisation and the United Nations Secretariat

This Agreement and all amendments thereto shall be registered with the ICAO and with the UN Secretariat.

Article 30

Application and Entry into force

1. This Agreement shall be applied provisionally, in accordance with the national laws of the Contracting Parties, as of the date of its signature by the Contracting Parties.

2. This Agreement shall enter into force one month after the date of the last note in an exchange of diplomatic notes between the Contracting Parties confirming that all necessary procedures for entry into force of this Agreement have been completed. For purposes of this exchange, Israel shall deliver to the General Secretariat of the Council of the European Union its diplomatic note to the European Union and its Member States, and the General Secretariat of the Council of the European Union shall deliver to Israel the diplomatic note from the European Union and its Member States. The diplomatic note from the European Union and its Member States shall contain communications from each Member State confirming that its necessary procedures for entry into force of this Agreement have been completed.

IN WITNESS WHEREOF the undersigned, being duly authorised, have signed this Agreement.

Done at ……… on the …… day of ….… in the year ……, which corresponds to the ______ day of ________ 577_ in the Hebrew calendar, in duplicate, in the Bulgarian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovene, Spanish, Swedish and Hebrew languages, each text being equally authentic.

ANNEX I

AGREED SERVICES AND SPECIFIED ROUTES

1. This Annex is subject to the transitional provisions contained in Annex II of this Agreement.

2. Each Contracting Party grants to the air carriers of the other Contracting Party the rights to provide air transport services on the routes specified hereunder:

(a) For air carriers of the European Union:

Points in the European Union – one or more intermediate points in Euromed[1] countries, ECAA countries[2] or countries listed in Annex III – one or more points in Israel;

(b) For air carriers of Israel:

Points in Israel – one or more intermediate points in Euromed countries, ECAA countries or countries listed in Annex III – one or more points in the European Union.

3. The services operated, according to paragraph 2 of this Annex, shall originate or terminate in the territory of Israel, for Israeli air carriers, and in the territory of the European Union, for European Union air carriers.

4. The air carriers of each Contracting Party may on any or all flights and at their option:

(a) operate flights in either or both directions;

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

(c) serve intermediate points as specified in paragraph 2 of this Annex and points in the territories of the Contracting Parties in any combination and in any order;

(d) omit stops at any point or points;

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

(f) make stopovers at any points whether within or outside the territory of either Contracting Party, without prejudice to Article 2 (2) ( Traffic Rights) of this Agreement;

(g) carry transit traffic through the other Contracting Party’s territory; and

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

5. Each Contracting Party shall allow each air carrier to determine the frequency and capacity of the international air transport it offers based upon commercial considerations in the marketplace. Consistent with this right, neither Contracting Party shall unilaterally limit the volume of traffic, frequency or regularity of service, or the aircraft type or types operated by the air carriers of the other Contracting Party, except for customs, technical, operational, environmental or health protection reasons or in application of Article 7 (Competitive Environment) of this Agreement.

6. The air carriers of each Contracting Party may serve, including within the framework of code share arrangements, any points located in a third country that is not included on the specified routes, provided that they do not exercise fifth freedom rights.

7. Notwithstanding any other provisions of this Annex, this Agreement does not grant any rights allowing the conduct of international air transport to / from/ through the territory of a third country that does not have diplomatic relations with all the Contracting Parties.

_________________ ANNEX II

TRANSITIONAL PROVISIONS

1. Notwithstanding paragraphs 2 and 3 of this Annex, all rights, including traffic rights, and more beneficial treatments already granted by bilateral agreements or arrangements between Israel and Member States of the European Union existing as of the date of signature of this Agreement shall continue to be exercised in accordance with the provisions of Article 3 (Authorisation) of this Agreement. As far as air carriers are concerned, such rights and arrangements can continue to be exercised by:

(a) Air Carriers of the European Union, provided that there is no discrimination in the execution of these existing rights or other arrangements between air carriers of the European Union on the basis of nationality.

(b) Air Carriers of the State of Israel.

2. For passenger, cargo and/or mail services, separately or in combination, air carriers of Israel and of the Member States of the European Union shall be entitled to exercise 3rd and 4th freedom rights on the specified routes subject to the following transitional provisions:

(a) From the date of signature of this Agreement and for scheduled air services only:

i. For each route, except for those specified in Annex V, authorised air carriers shall be entitled to operate the number of weekly frequencies available under the respective bilateral agreements or arrangements applicable or seven (7) weekly frequencies, whichever is the highest; and

ii. For the routes specified in Annex V, authorised air carriers shall be entitled to operate the number of weekly frequencies as specified in Annex V.

From the date of signature of this Agreement, there will be no limitations regarding the number of authorised air carriers per route for each of the Contracting Parties.

(b) From the first day of the first summer IATA season following the date of signature of this Agreement and for scheduled air services only, authorised air carriers shall be entitled to operate:

i. For the routes specified in Part A of Annex V to this Agreement, three (3) additional weekly frequencies in relation to the number of weekly frequencies specified in Part A of Annex V; and

ii. For any other route, including for the routes specified in part B of Annex V, seven (7) additional weekly frequencies in relation to the number of weekly frequencies resulting from the application of paragraph a) i. and a) ii above.

(c) From the first day of the second summer IATA season following the date of signature of this Agreement and for scheduled air services only, authorised air carriers shall be entitled to operate:

i. For the routes specified in Part A of Annex V to this Agreement, three (3) additional weekly frequencies in relation to the number of weekly frequencies resulting from the application of paragraph b) i. above; and

ii. For any other route, including for the routes specified in part B of Annex V, seven (7) additional weekly frequencies in relation to the number of weekly frequencies resulting from the application of paragraph b) ii. above

(d) Subject to paragraph 4 below, from the first day of the third summer IATA season following the date of signature of this Agreement and for scheduled air services only, authorised air carriers shall be entitled to operate:

i. For the routes specified in Part A of Annex V to this Agreement, four (4) additional weekly frequencies in relation to the number of weekly frequencies resulting from the application of paragraph c) i. above; and

ii. For any other route, including for the routes specified in part B of Annex V, seven (7) additional weekly frequencies in relation to the number of weekly frequencies resulting from the application of paragraph c) ii. above.

(e) From the first day of the fourth summer IATA season following the date of signature of this Agreement and for scheduled air services only, authorised air carriers shall be entitled to operate:

i. For the routes specified in Part A of Annex V to this Agreement, four (4) additional weekly frequencies in relation to the number of weekly frequencies resulting from the application of paragraph d) i. above; and

ii. For any other route, including for the routes specified in part B of Annex V, seven (7) additional weekly frequencies in relation to the number of weekly frequencies resulting from the application of paragraph d) ii. above.

(f) From the first day of the fifth summer IATA season following the date of signature of this Agreement, the provisions of Annex I shall apply and the air carriers of both Contracting Parties shall be entitled to operate freely 3rd and 4th freedom rights on the specified routes without any limitation regarding the capacity, the weekly frequencies or the regularity of the service.

3. With regard to the non-scheduled air services:

(a) From the date of signature of this Agreement, operations of non-scheduled air services shall continue to remain subject to approval from the relevant authorities of the Contracting Parties, which will favourably consider such request, and

(b) From the date specified in paragraph 2.f) above, the provisions of Annex I shall apply and the air carriers of both Contracting Parties shall be entitled to operate freely 3rd and 4th freedom rights on the specified routes without any limitation regarding the capacity, the weekly frequencies, the number of authorised air carriers or the regularity of the service.

4. Prior to the date specified in paragraph 2.d) of this Annex, the Joint Committee shall meet to review the implementation of this Agreement and to assess the commercial impact of the first two stages of the transitional period described in this Annex. On the basis of such an assessment, and without prejudice to its competence in accordance with Article 22 of this Agreement, the Joint Committee may decide by consensus:

(a) to delay, for a mutually agreed period of time, which shall not exceed two years, the implementation of paragraphs 2.d), 2.e) and 2.f) on certain routes, in case the above mentioned assessment determines either the circumvention of restrictions imposed on scheduled air services through the operations of non-scheduled air services or the existence of a substantial imbalance of the volume of traffic carried by the air carriers of the Contracting Parties that could endanger the preservation of the air services; or

(b) to increase the number of additional frequencies specified in paragraphs 2.d) i. and 2.e) i.

If the Joint Committee is not able to reach an agreement, a Contracting Party may take appropriate safeguard measures under Article 24 of this Agreement (Safeguard Measures).

5. The implementation and application by Israel of the regulatory requirements and standards which are delivered in European Union legislation relating to air transport mentioned in Annex IV shall be validated by a decision of the Joint Committee on the basis of an evaluation by the European Union. Such an evaluation shall be conducted at the earliest of: (i) the date on which Israel notifies the Joint Committee of its fulfilment of the harmonisation process based on Annex IV of this Agreement, or (ii) three years after the entry into force of this Agreement.

6. Notwithstanding the provisions of Annex I, and without prejudice to Article 26(1) of this Agreement and paragraph 1 of this Annex, until the moment of the adoption of the decision referred to in paragraph 5 of this Annex, the air carriers of the Contracting Parties shall not have the right to exercise fifth freedom rights, including between points within the territory of the European Union, when operating the agreed services on the specified routes.

ANNEX III

LIST OF OTHER STATES REFERRED TO IN ARTICLES 3, 4 AND 8 OF THE AGREEMENT AND IN ANNEX I

1. The Republic of Iceland (under the Agreement on the European Economic Area)

2. The Principality of Liechtenstein (under the Agreement on the European Economic Area)

3. The Kingdom of Norway (under the Agreement on the European Economic Area)

4. The Swiss Confederation (under the Air Transport Agreement between the European Community and the Swiss Confederation)

________________

ANNEX IV

RULES RELATING TO CIVIL AVIATION

The equivalent regulatory requirements and standards of European Union legislation referred to in this Agreement shall be delivered on the basis of the following acts. Where necessary, specific adaptations for each individual act are set out hereafter. The equivalent regulatory requirements and standards shall be applicable in accordance with Annex VI unless otherwise specified in this Annex or in Annex II on Transitional Provisions.

A. AVIATION SAFETY

A.1 List of air carriers subject to an operating ban

Israel shall, at the earliest possible, take measures corresponding to those taken by the EU Member States on the basis of the list of air carriers which are subject to an operating ban due to safety reasons.

The measures will be taken according to the relevant rules regarding the establishment and publication of a list of air carriers which are subject to an operating ban and the information requirements to air passengers of the identity of the air carrier operating the flights on which they travel, established in the following EU legislation:

No 2111/2005

Regulation (EC) No 2111/2005 of the E