Agreement between the European Community and the Government of Nepal on certain aspects of air services
Date: 2009-01-23
Institutions: European Community, Nepal
Subjects: Nepal, agreement (EU), air transport

12.2.2009

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Official Journal of the European Union

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between the European Community and the Government of Nepal on certain aspects of air services

AGREEMENT

THE EUROPEAN COMMUNITY

of the one part, and

THE GOVERNMENT OF NEPAL

of the other part

(hereinafter referred to as ‘the Parties’)

NOTING that bilateral air service agreements have been concluded between several Member States of the European
Community and Nepal containing provisions contrary to Community law,

NOTING that the European Community has exclusive competence with respect to several aspects that may be included in
bilateral air service agreements between Member States of the European Community and third countries,

NOTING that under European Community law Community air carriers established in a Member State have the right to
non-discriminatory access to air routes between the Member States of the European Community and third countries,

HAVING REGARD to the agreements between the European Community and certain third countries providing for the
possibility for the nationals of such third countries to acquire ownership in air carriers licensed in accordance with
European Community law,

RECOGNISING that certain provisions of the bilateral air service agreements between Member States of the European
Community and Nepal, which are contrary to European Community law, must be brought into conformity with it in
order to establish a sound legal basis for air services between the European Community and Nepal and to preserve the
continuity of such air services,

RECOGNISING that bilateral air service agreements between Member States of the European Community and Nepal
should be consistent with the laws of Nepal and the European Community and provide a viable and sound legal basis for
ensuring continuity and development of air services between the European Community and Nepal,

NOTING that provisions of the bilateral air service agreements between Member States of the European Community and
Nepal, which are not inconsistent with European Community law, do not need to be affected by this Agreement,

NOTING that under European Community law air carriers may not, in principle, conclude agreements which may affect
trade between Member States of the European Community and which have as their object or effect the prevention,
restriction or distortion of competition,

RECOGNISING that provisions in bilateral air service agreements concluded between Member States of the European
Community and Nepal which (i) require or favour the adoption of agreements between undertakings, decisions by
associations of undertakings or concerted practices that prevent, distort or restrict competition between air carriers in
the relevant routes; or (ii) reinforce the effects of any such agreement, decision or concerted practice; or (iii) delegate to air
carriers or other private economic operators the responsibility for taking measures that prevent, distort or restrict
competition between air carriers on the relevant routes may render ineffective the competition rules applicable to
undertakings,

NOTING that it is not a purpose of the European Community, as part of this agreement, to bring about any changes in
the total volume of air traffic between the European Community and Nepal, to affect the balance between Community air
carriers and air carriers of Nepal, or to make amendments to the provisions of existing bilateral air service agreements
concerning traffic rights,

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HAVE AGREED AS FOLLOWS:

Article 1

General provisions

For the purposes of this Agreement, ‘Member States’ shall

1.
mean Member States of the European Community.

2.
References in each of the agreements listed in Annex I to
nationals of the Member State that is a party to that agreement
shall be understood as referring to nationals of the Member
States of the European Community.

aeronautical authority is clearly identified in the desig­
nation; and

(iii) the air carrier is owned directly or through majority
ownership and is effectively controlled by Member
States and/or nationals of Member States, and/or by
other states listed in Annex III and/or nationals of
such other states;

(b) in the case of an air carrier designated by Nepal:

3.
References in each of the agreements listed in Annex I to
air carriers or airlines of the Member State that is a party to that
agreement shall be understood as referring to air carriers or
airlines designated by that Member State.

(i) it has its principal place of business in Nepal; and

(ii) Nepal has and maintains effective regulatory control of

the air carrier.

Article 2

Designation, authorisation and revocation

1.
The provisions in paragraphs 3 and 4 of this Article shall
supersede the corresponding provisions in the Articles listed in
Annex II(a) and (b) respectively, in relation to the designation of
air carriers by the Member State concerned, its authorisations
and permissions granted by Nepal, and the refusal, revocation,
suspension or limitation of the authorisations or permissions of
the air carrier, respectively.

2.
The provisions in paragraphs 3 and 4 of this Article shall
supersede the corresponding provisions in the Articles listed in
Annex II(a) and (b) respectively, in relation to the designation of
air carriers by Nepal, its authorisations and permissions granted
by the Member State concerned, and the refusal, revocation,
suspension or limitation of the authorisations or permissions
of the air carrier, respectively.

Either party may refuse, revoke, suspend or limit the au-
4.
thorisation or permissions of an air carrier designated by the
other party where:

(a)

in the case of an air carrier designated by a Member State:

(i) the air carrier is not established in the territory of the
designating Member State under the Treaty establishing
the European Community or does not have a valid
operating licence from a Member State in accordance
with European Community law; or

(ii) effective regulatory control of

the air carrier is not
exercised or not maintained by the Member State
responsible for issuing its air operator’s certificate, or
the relevant aeronautical authority is not clearly iden­
tified in the designation; or

3.
On receipt of such a designation, and of applications from
the designated air carrier(s), in the form and manner prescribed
for authorisations and permissions, the other party shall, subject
to paragraphs 4 and 5 grant the appropriate authorisations and
permissions with minimum procedural delay, provided that:

(iii) the air carrier is not owned directly or through majority
ownership and is not effectively controlled by Member
States and/or nationals of Member States, and/or by
other states listed in Annex III and/or nationals of
such other states; or

(a)

in the case of an air carrier designated by a Member State:

(b) in the case of an air carrier designated by Nepal:

(i) the air carrier is established in the territory of the desig­
nating Member State under the Treaty establishing the
European Community and has a valid Operating
Licence from a Member State in accordance with
European Community law; and

(ii) effective regulatory control of the air carrier is exercised
and maintained by the Member State responsible for
issuing its Air Operator’s Certificate and the relevant

(i) it does not have its principal place of business in Nepal;

or

(ii) Nepal is not maintaining effective regulatory control of

the air carrier; or

(iii) majority ownership or control of

the air carrier
designated by Nepal is vested in a third country that
does
of
accept
Community air carriers established in the Community.

designation

effectively

not

the

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In exercising its right under paragraph 4, Nepal shall not
5.
discriminate between air carriers of Member States on the
grounds of nationality.

The provisions contained in the agreements listed in
this
that are incompatible with paragraph 1 of

2.
Annex I
Article shall not be applied.

Article 3

Safety

in paragraph 2 of

The provisions

1.
complement
listed in Annex II(c).

the corresponding provisions

Article 7

Annexes to the Agreement

this Article shall
in the Articles

The Annexes to this Agreement shall form an integral part
thereof.

2. Where a Member State has designated an air carrier whose
regulatory control
is exercised and maintained by another
Member State, the rights of the Government of Nepal under
the safety provisions of the agreement between the Member
State that has designated the air carrier and the Government
of Nepal shall apply equally in respect of the adoption, exercise
or maintenance of safety standards by that other Member State
and in respect of the operating authorisation of that air carrier.

Article 8

Revision or amendment

The Parties may, at any time, revise or amend this Agreement
by mutual consent.

Article 9

Entry into force and provisional application

Article 4

Taxation of aviation fuel

The provisions

1.
complement
listed in Annex II(d).

in paragraph 2 of

the corresponding provisions

this Article shall
in the Articles

taxes,

2.
Notwithstanding any other provision to the contrary,
nothing in each of the agreements listed in Annex II(d) shall
prevent a Member State from imposing, on a non-discrimi­
fees or charges on fuel
natory basis,
supplied in its territory for use in an aircraft of a designated
in the
air carrier of Nepal
territory of
in the
territory of that Member State or in the territory of another
Member State.

that operates between a point
that Member State and another point

levies, duties,

Article 5

Tariffs for carriage within the European Community

The provisions

1.
complement
listed in Annex II(e).

in paragraph 2 of

the corresponding provisions

this Article shall
in the Articles

2.
The tariffs to be charged by the air carrier(s) designated by
the Government of Nepal under an agreement listed in Annex I
containing a provision listed in Annex II(e) for carriage wholly
within the European Community shall be subject to European
Community law.

Article 6

Compatibility with competition rules

associations of undertakings or

1.
Notwithstanding any other provision to the contrary,
nothing in each of the agreements listed in Annex I shall (i)
the adoption of agreements between undertakings,
favour
concerted
decisions by
practices
(ii)
reinforce the effects of any such agreement, decision or
concerted practice; or
economic
(iii) delegate
operators the responsibility for taking measures that prevent,
distort or restrict competition.

that prevent, distort or

restrict competition;

to private

This Agreement shall enter into force when the Parties
1.
respective
have notified each other
internal procedures necessary for its entry into force have
been completed.

in writing that

their

Notwithstanding paragraph 1, the Parties agree to provi­
2.
sionally apply this Agreement from the first day of the month
following the date on which the Parties have notified each other
of the completion of the procedures necessary for this purpose.

3.
Agreements and other arrangements between Member
States and the Government of Nepal which, at the date of
signature of this Agreement, have not yet entered into force
and are not being applied provisionally are listed in Annex
I(b). This Agreement shall apply to all such Agreements and
arrangements upon their entry into force or provisional appli­
cation.

Article 10

Termination

In the event

that an agreement

1.
is
terminated, all provisions of this Agreement that relate to the
agreement listed in Annex I concerned shall terminate at the
same time.

listed in Annex I

In the event that all agreements listed in Annex I are
2.
terminated, this Agreement shall terminate at the same time.

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

Done at Brussels in duplicate, on the twenty-third day of
January in the year two thousand and nine in the Bulgarian,
Czech, Danish, Dutch, English, Estonian, Finnish, French,
Lithuanian,
German, Greek, Hungarian,
Maltese,
Slovene,
Spanish, Swedish and Nepali languages.

Portuguese, Romanian,

Latvian,

Slovak,

Italian,

Polish,

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За Европейската Общност
Por la Comunidad Europea
Za Evropské společenství
For Det Europæiske Fællesskab
Für die Europäische Gemeinschaft
Euroopa Ühenduse nimel
Για την Ευρωπαϊκή Κοινότητα
For the European Community
Pour la Communauté européenne
Per la Comunità europea
Eiropas Kopienas vārdā
Europos bendrijos vardu
Az Európai Közösség részéről
Għall-Komunità Ewropea
Voor de Europese Gemeenschap
W imieniu Wspólnoty Europejskiej
Pela Comunidade Europeia
Pentru Comunitatea Europeană
Za Európske spoločenstvo
Za Evropsko skupnost
Euroopan yhteisön puolesta
För Europeiska Gemenskapen

За правителството на Непал
Por el Gobierno de Nepal
Za vládu Nepálu
For Nepals regering
Für die Regierung von Nepal
Nepali valitsuse nimel
Για την Κυβέρνηση του Νεπάλ
For the Government of Nepal
Pour le gouvernement du Népal
Per il governo del Nepal
Nepālas valdības vārdā
Nepalo vyriausybės vardu
Nepál kormánya részéről
Għall-Gvern tan-Nepal
Voor de Regering van Nepal
W imieniu Rządu Nepalu
Pelo Governo do Nepal
Pentru Guvernul Nepalului
Za vládu Nepálu
Za vlado Nepala
Nepalin hallituksen puolesta
För Nepals regering

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ANNEX I

LIST OF AGREEMENTS REFERRED TO IN ARTICLE 1 OF THIS AGREEMENT

(a) Air service agreements between the Government of Nepal and Member States of the European Community which, at
the date of signature of this Agreement, have been concluded, signed and/or are being applied provisionally:

— Agreement between the Austrian Federal Government and His Majesty’s Government of Nepal relating to Civil Air
Transport signed at Kathmandu on 29 October 1997, hereinafter referred to as ‘Nepal-Austria Agreement’ in
Annex II,

— Agreement between the Government of the Grand Duchy of Luxembourg and His Majesty’s Government of Nepal
on air services done at Luxembourg on 18 June 1999, hereinafter referred to as ‘Nepal-Luxembourg Agreement’
in Annex II,

— Agreement between the Kingdom of the Netherlands and His Majesty’s Government of Nepal on air services done
at Schiphol Airport on 10 June 1998, hereinafter referred to as ‘Nepal-The Netherlands Agreement’ in Annex II,

— Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and His
Majesty’s Government of Nepal concerning air services done at Kathmandu on 3 March 1994, hereinafter referred
to as ‘Nepal-United Kingdom Agreement’ in Annex II;

(b) Air service agreements and other arrangements initialled or signed between the Government of Nepal and Member
States of the European Community which, at the date of signature of this Agreement, have not yet entered into force
and are not being applied provisionally:

— Air Services Agreement between His Majesty’s Government of Nepal and the Government of the Republic of
France initialled at Kathmandu on 7 July 1998, hereinafter referred to as ‘Nepal-France Agreement’ in Annex II,

— Agreement between the Government of the Federal Republic of Germany and His Majesty’s Government of Nepal
on Air Services initialled and attached as Annex III to the Protocol done at Bonn on 26 July 2000, hereinafter
referred to as ‘Nepal-Germany Agreement’ in Annex II,

— Agreement between His Majesty’s Government of Nepal and the Government of the Italian Republic concerning
Air Services initialled at Kathmandu on 8 May 1992 hereinafter referred to as ‘Nepal-Italy Agreement’ in Annex II.

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ANNEX II

LIST OF ARTICLES IN THE AGREEMENTS LISTED IN ANNEX I AND REFERRED TO IN ARTICLES 2 TO 6 OF
THIS AGREEMENT

(a) Designation by a Member State:

— Article 4 of the Nepal-Austria Agreement,
— Article 4 of the Nepal-France Agreement,
— Article 4 of the Nepal-Italy Agreement,
— Article 3 of the Nepal-Luxembourg Agreement,
— Article 5 of the Nepal-The Netherlands Agreement,
— Article 4 of the Nepal-United Kingdom Agreement;

(b) Refusal, revocation, suspension or limitation of authorisations or permissions:

— Article 4 of the Nepal-Austria Agreement,
— Article 5 of the Nepal-France Agreement,
— Article 4 of the Nepal-Germany Agreement,
— Article 5 of the Nepal-Italy Agreement,
— Article 4 of the Nepal-Luxembourg Agreement,
— Article 6 of the Nepal-The Netherlands Agreement,
— Article 5 of the Nepal-United Kingdom Agreement;

(c) Safety:

— Article 8 of the Nepal-Austria Agreement,
— Article 9 of the Nepal-France Agreement,
— Article 14 of the Nepal-Germany Agreement,
— Article 10 of the Nepal-Italy Agreement,
— Article 6 of the Nepal-Luxembourg Agreement,
— Article 10 of the Nepal-The Netherlands Agreement;

(d) Taxation of aviation fuel:

— Article 9 of the Nepal-Austria Agreement,
— Article 12 of the Nepal-France Agreement,
— Article 7 of the Nepal-Germany Agreement,
— Article 6 of the Nepal-Italy Agreement,
— Article 8 of the Nepal-Luxembourg Agreement,
— Article 13 of the Nepal-The Netherlands Agreement,
— Article 8 of the Nepal-United Kingdom Agreement;

(e) Tariffs for carriage within the European Community:
— Article 12 of the Nepal-Austria Agreement,
— Article 14 of the Nepal-France Agreement,
— Article 8 of the Nepal-Italy Agreement,
— Article 10 of the Nepal-Luxembourg Agreement,
— Article 8 of the Nepal-The Netherlands Agreement,
— Article 7 of the Nepal-United Kingdom Agreement.

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ANNEX III

LIST OF OTHER STATES REFERRED TO IN ARTICLE 2 OF THIS AGREEMENT

(a) The Republic of Iceland (under the Agreement on the European Economic Area);

(b) The Principality of Liechtenstein (under the Agreement on the European Economic Area);

(c) The Kingdom of Norway (under the Agreement on the European Economic Area);

(d) The Swiss Confederation (under the Agreement between the European Community and the Swiss Confederation on

Air Transport).