Proposal for a COUNCIL DECISION on the signature and provisional application of the Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part; and  on the signature and provisional application of the Ancillary Agreement between the European Union and its Member States, of the first part, Iceland, of the second part, and the Kingdom of Norway, of the third part, on the application of the Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part
Date: 2011-05-02
Institutions: European Commission
Subjects: Iceland, Norway, United States, agreement (EU), air transport, interim agreement (EU), signature of an agreement

EUROPEAN COMMISSION 

Brussels, 2.5.2011 
COM(2011) 239 final 

2011/0103 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the signature and provisional application of the Air Transport Agreement between 
the United States of America, of the first part, the European Union and its Member 
States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the 
fourth part; and 

on the signature and provisional application of the Ancillary Agreement between the 
European Union and its Member States, of the first part, Iceland, of the second part, 
and the Kingdom of Norway, of the third part, on the application of the Air Transport 
Agreement between the United States of America, of the first part, the European Union 
and its Member States, of the second part, Iceland, of the third part, and the Kingdom 
of Norway, of the fourth part 

 
 
  
 
 
EXPLANATORY MEMORANDUM 

1. 

Context of the proposal 

•  Grounds for and objectives of the proposal 

The Air Transport Agreement between the European Union and its Member States, on 
the one hand, and the United States of America (US), on the other hand, signed on 25 
and 30 April 2007 ("the EU-US Air Transport Agreement"), entered into effect on 30 
March  2008.  Article  18  (5)  of  the  EU-US  Air  Transport  Agreement  confirms  both 
Parties'  goal  of  "maximising  the  benefits  for  consumers,  airlines,  labour  and 
communities on both sides of the Atlantic by extending this Agreement to include third 
countries". Article 18 (5) of the EU-US Air Transport Agreement further asks the Joint 
Committee established under Article 18 (1) of the EU-US Air Transport Agreement "to 
develop a proposal regarding the conditions and procedures that would be required for 
third countries to accede to this Agreement". Norway and Iceland formally requested 
the  accession  to  the  EU-US  Air  Transport  Agreement  in  2007.  In  accordance  with 
Article 18 (5) of the EU-US Air Transport Agreement, the Joint Committee developed 
in  its  meeting  on  16  November  2010  a  proposal  for  the  accession  of  Iceland  and 
Norway  to  the  EU-US  Air  Transport  Agreement,  consisting  of  a  four-party  "Cover 
Letter Agreement" and an Ancillary Agreement for the internal arrangements between 
the  Union,  Norway  and  Iceland.  Norway  and  Iceland  being  an  integral  part  of  the 
European  Common  Aviation  Area,  these  Agreements  will  ensure  a  consistent 
regulatory framework for flights between the US and the single aviation market in the 
EU – including Iceland and Norway. It will create commercial benefits for airlines and 
consumers in the EU and it will particularly ensure the consistency of the EU-US Air 
Transport Agreement with the common Scandinavian air transport policy. At the same 
time,  the  proposal  ensures  that  the  bilateral  character  of  the  EU-US  Air  Transport 
Agreement is maintained. Iceland and Norway will be committed to the negotiations of 
a second-stage air transport agreement with the US. 

•  General context 

The EU-US Air Transport Agreement has removed all commercial barriers for flights 
between any point in the EU and any point in the US. In addition, the US has granted 
so-called 7th freedom rights to EU air carriers to operate between the US and non-EU 
countries  of  the  European  Common  Aviation  Area  (ECAA),  such  as  Norway  and 
Iceland. However, the ECAA has no external dimension. Therefore, EU air carriers do 
currently  not  have  the  right  to  operate  flights  between  Norway  and  Iceland  and  third 
countries. In the same way, Norwegian and Icelandic air carriers do currently not have 
the right to operate between the EU and the US. 

The EU-US Air Transport Agreement has created uniform conditions for market access 
for  all  Union  air  carriers,  and  has  established  new  arrangements  for  regulatory  co-
operation  between  the  European  Union  and  the  US  in  fields  essential  for  the  safe, 
secure,  and  efficient  operation  of  transatlantic  air  services.  Norway  and  Iceland  have 
adopted  the  complete  acquis  communautaire  in  aviation  policy.  Therefore,  including 

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both countries in the scope of the EU-US Air Transport Agreement will ensure that all 
European air carriers applying the acquis communautaire will operate transatlantic air 
services in a harmonised framework.  

The accession of Iceland and Norway to the EU-US Air Transport Agreement could be 
a  precedent  for  the  accession  of  Iceland  and  Norway  to  other  aviation  agreements  of 
the Union (e.g. Euro-Mediterranean Aviation Agreement with Morocco).  

•  Existing provisions in the area of the proposal 

The  provisions  of  the  Cover  Letter  Agreement  extend  the  scope  of  the  EU-US  Air 
Transport Agreement mutatis mutandis to Norway and Iceland. The provisions of the 
Ancillary  Agreement  are  based  on  the  Council  Decision  of  25  April  2007  on  the 
signature  and  provisional  application  of  the  EU-US  Air  Transport  Agreement 
(2007/339/EC). 

•  Consistency with the other policies and objectives of the Union 

The  objective  of  extending  the  EU-US  Air  Transport  Agreement  to  third  countries  is 
explicitly  foreseen  in  the  EU-US  Air  Transport  Agreement.  The  Cover  Letter 
Agreement  will  establish  the  necessary  link  between  the  EU-US  Air  Transport 
Agreement and the European Common Aviation Area Agreement. It will not establish 
an external dimension to the European Economic Area Agreement. It is consistent with 
the EU's overall policy towards Iceland and Norway. 

2. 

Consultation of interested parties and impact assessment 

•  Consultation of interested parties 

Consultation methods, main sectors targeted and general profile of respondents 

The accession of Iceland and Norway to the EU-US Air Transport Agreement has been 
discussed in various meetings of the Joint Committee established under the EU-US Air 
Transport  Agreement  and  in  informal  technical  meetings  with  Member  States.  All 
these  meetings  have  been  prepared  in  meetings  of  the  Industry  Consultative  Forum 
with representatives of air carriers, airports, and labour organisations.  

Summary of responses and how they have been taken into account 

The issue of accession of Iceland and Norway to the EU-US Air Transport Agreement 
has been discussed in four meetings of the Industry Consultative Forum, during which 
all  elements  of  the  approach  were  discussed  in  detail.  All  comments  from  Member 
States  and  stakeholders  were  duly  taken  into  consideration  in  the  preparation  of  the 
Union's position for the Joint Committee held on 16 November 2010. 

•  Collection and use of expertise 

There was no need for external expertise. 

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•  Impact assessment 

The Agreement extends the scope of the EU-US Air Transport Agreement to Iceland 
and Norway. This will give EU air carriers the opportunity to take up the rights granted 
by  the  US  since  30  March  2008  to  operate  passenger  flights  between  the  US  and 
Iceland or Norway.  

3. 

Legal elements of the proposal 

•  Summary of the proposed action 

The proposal consists of two elements: 

-  The  four-party  "Cover  Letter  Agreement"  extends  the  scope  of  the  EU-US  Air 
Transport Agreement mutatis mutandis to all four parties.  

- The Ancillary Agreement ensures that the bilateral nature of the EU-US Air Transport 
Agreement  is  maintained.  Norway  and  Iceland  will  be  represented  in  the  Joint 
Committee by the Commission for all areas that are not in the exclusive competence of 
Member States. Rules are established for the exchange of information, the participation 
in second-stage negotiations, and the representation in arbitration procedures. 

•  Legal basis 

Article  100(2),  in  conjunction  with  the  Article  218(5)  and  the  first  subparagraph  of 
Article 218(6) thereof. 

•  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: 

The EU-US Air Transport Agreement has established new arrangements at Union level 
governing  the  provision  of  transatlantic  air  services  that  replaced  the  previous 
arrangements  made  by  individual  Member  States.  The  accession  of  third  countries  to 
the EU-US Air Transport Agreement can only be achieved at Union level. 

The proposal therefore complies with the subsidiarity principle. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s): 

The  proposal  will  not  affect  the  regulatory  framework  within  the  European  Common 
Aviation Area. The proposal will not modify the EU-US Air Transport Agreement. The 

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proposal  is  limited  on  ensuring  consistency  between  the  common  aviation  market  in 
Europe and the regulatory framework for transatlantic flights established by the EU-US 
Air Transport Agreement. 

The proposal does not create any new obligations for EU aviation authorities or for EU 
industry.  It  creates  new  rights  for  EU  air  carriers  and  ensures  full  consistency  of  the 
EU-US Air Transport Agreement with the common Scandinavian air transport policy. 

•  Choice of instruments 

Other means would not be adequate for the following reasons: 

The  four-party  Cover  Letter  Agreement  and  an  Ancillary  Agreement  are  the  most 
effective  instruments  to  ensure  both  full  extension  of  the  EU-US  Air  Transport 
Agreement  to  Iceland  and  Norway  and  the  bilateral  character  of  the  EU-US  Air 
Transport  Agreement.  A  multilateral  agreement  replacing  the  EU-US  Air  Transport 
Agreement  would  reduce  the  EU  to  one  player  in  a  four-party  Agreement  while  the 
proposed  Agreements  maintain  the  bilateral  relationship  between  the  US,  on  the  one 
hand, and Europe, on the other hand. Parallel bilateral agreements between (1) Iceland-
US,  (2)  Norway-US,  (3)  Iceland-European  Union,  and  (4)  Norway-European  Union 
would add unnecessary complexity and would not guarantee the full consistency of the 
regulatory framework for transatlantic flights. 

4. 

Budgetary implication 

The proposal has no implication for the Union budget. 

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2011/0103 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the signature and provisional application of the Air Transport Agreement between the 
United States of America, of the first part, the European Union and its Member States, of the 
second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part; and 

on the signature and provisional application of the Ancillary Agreement between the 
European Union and its Member States, of the first part, Iceland, of the second part, and the 
Kingdom of Norway, of the third part, on the application of the Air Transport Agreement 
between the United States of America, of the first part, the European Union and its Member 
States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the 
fourth 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) thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The  Air  Transport  Agreement  signed  by  the  European  Community  and  its  Member  States 
and the United States of America on April 25 and 30, 2007 (hereinafter, "the Air Transport 
Agreement"), as amended by the Protocol to amend the Air Transport Agreement signed by 
the  European  Union  and  its  Member  States  and  the  United  States  of  America  on  June  24, 
2010 (hereinafter, "the Protocol") explicitly provides for the accession of third countries to 
the Air Transport Agreement. 

In  accordance  with  Article 18(5)  of  the  Air  Transport  Agreement,  as  amended  by  the 
Protocol,  the  Joint Committee  established  thereunder  has  developed  a  proposal  for  the 
accession of Iceland and the Kingdom of Norway to the Air Transport Agreement. 

On 16 November 2010 the Joint Committee proposed an Air Transport Agreement between 
the United States of America, of the first part, the European Union and its Member States, of 
the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part, 
(hereinafter, "the Agreement"). 

The Commission has negotiated an Ancillary Agreement between the European Union and 
its Member States, of the first part, Iceland, of the second part, and the Kingdom of Norway, 
of  the  third  part,  on  the  application  of  the  Air  Transport  Agreement  between  the 

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United States of America, of the first part, the European Union and its Member States, of the 
second  part,  Iceland,  of  the  third  part,  and  the  Kingdom  of  Norway,  of  the  fourth  part, 
(hereinafter, "the Ancillary Agreement").  

(5) 

The  Agreement  and  the  Ancillary  Agreement  should  be  signed  and  provisionally  applied, 
subject to their conclusion at a later date. 

HAS ADOPTED THIS DECISION:  

Article 1 

The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s)  empowered  to  sign 
the Air  Transport  Agreement  between  the  United States  of  America,  of  the  first  part,  the 
European Union  and  its  Member  States,  of  the  second  part,  Iceland,  of  the  third  part,  and  the 
Kingdom of Norway, of the fourth part, and the Ancillary Agreement between the European Union 
and its Member States, of the first part, Iceland, of the second part, and the Kingdom of Norway, of 
the  third  part,  on  the  application  of  the  Air  Transport  Agreement  between  the  United States  of 
America, of the first part, the European Union and its Member States, of the second part, Iceland, of 
the third part, and the Kingdom of Norway, of the fourth part.  

The text of the Agreement and of the Ancillary Agreement are annexed to this Decision. 

Article 2 

The  Agreement  and  the  Ancillary  Agreement  shall  be  applied  provisionally  from  the  date  of 
signing, pending their entry into force.  

Article 3  

Article 4 

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 [Place], 

For the Council 
The President 
[…] 

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ATTACHMENT 1 

AIR TRANSPORT AGREEMENT 

THE UNITED STATES OF AMERICA (hereinafter, the "United States"), 

of the first 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, 

IRELAND, 

THE HELLENIC REPUBLIC, 

THE KINGDOM OF SPAIN, 

THE FRENCH REPUBLIC, 

THE ITALIAN REPUBLIC, 

THE REPUBLIC OF CYPRUS, 

THE REPUBLIC OF LATVIA, 

THE REPUBLIC OF LITHUANIA, 

THE GRAND DUCHY OF LUXEMBOURG, 

THE REPUBLIC OF HUNGARY, 

THE REPUBLIC OF MALTA, 

THE KINGDOM OF THE NETHERLANDS, 

THE REPUBLIC OF AUSTRIA, 

THE REPUBLIC OF POLAND, 

THE PORTUGUESE REPUBLIC, 

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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, 

being parties to the Treaty on European Union and the Treaty on the Functioning of the European 
Union and being Member States of the European Union (hereinafter, the "Member States"), 

and 

THE EUROPEAN UNION, 

ICELAND, 

of the second part; 

of the third part; and 

THE KINGDOM OF NORWAY (hereinafter, "Norway"),  

of the fourth part;  

DESIRING to promote an international aviation system based on competition among airlines in the 
marketplace with minimum government interference and regulation; 

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

DESIRING to make it possible for airlines to offer the travelling and shipping public competitive 
prices and services in open markets; 

DESIRING to have all sectors of the air transport industry, including airline workers, benefit in a 
liberalized agreement; 

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

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

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RECOGNIZING  that  government  subsidies  may  adversely  affect  airline  competition  and  may 
jeopardize the basic objectives of this Agreement; 

AFFIRMING  the  importance  of  protecting  the  environment  in  developing  and  implementing 
international aviation policy; 

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 
May 28, 1999; 

INTENDING to build upon the framework of existing agreements with the goal of opening access 
to markets and maximizing benefits for consumers, airlines, labor, and communities on both sides 
of the Atlantic; 

RECOGNIZING the importance of enhancing the access of their airlines to global capital markets 
in order to strengthen competition and promote the objectives of this Agreement; 

INTENDING to establish a precedent of global significance to promote the benefits of liberalization 
in this crucial economic sector; 

RECOGNIZING  that  the  European  Union  replaced  and  succeeded  the  European  Community  as  a 
consequence  of  the  entry  into  force  on  December  1,  2009  of  the  Treaty  of  Lisbon  amending  the 
Treaty on European Union and the Treaty establishing the European Community, and that as of that 
date, all the rights and obligations of, and all the references to the European Community in the Air 
Transport  Agreement  signed  by  the  European  Community  and  its  Member  States  and  the  United 
States of America on April 25 and 30, 2007, apply to the European Union;  

HAVE AGREED AS FOLLOWS: 

ARTICLE 1 

Definition 

"Party" means the United States, the European Union and its Member States, Iceland, or Norway. 

ARTICLE 2 

Application of the Air Transport Agreement as amended by the Protocol 

and the Annex to this Agreement 

The  provisions  of  the  Air  Transport  Agreement  signed  by  the  European  Community  and  its 
Member States  and  the  United  States  of  America  on  April 25  and 30, 2007  (hereinafter,  "the  Air 
Transport Agreement"), as amended by the Protocol to Amend the Air Transport Agreement signed 
by the United States of America and the European Union and its Member States on June 24, 2010 
(hereinafter, "the Protocol"), which are hereby incorporated by reference, shall apply to all Parties 
to  this  Agreement,  subject  to  the  Annex  to  this  Agreement.  The  provisions  of  the  Air Transport 
Agreement,  as  amended  by  the  Protocol,  shall  apply  to  Iceland  and  Norway  as  though  they  were 
Member States of the European Union, so that Iceland and Norway shall have all of the rights and 

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obligations of Member States under that agreement. The provisions of the Annex to this Agreement 
form an integral part of this Agreement. 

ARTICLE 3 

Termination 

Either  the  United  States  or  the  European  Union  and  its  Member  States  may,  at  any  time, 
1. 
give  notice  in  writing  through  diplomatic  channels  to  the  other  three  Parties  of  its  decision  to 
terminate this Agreement or to end this Agreement's provisional application under Article 5.  

A copy of the notice shall be sent simultaneously to the International Civil Aviation Organization 
(ICAO).  This  Agreement  shall  terminate,  or  provisional  application  of  this  Agreement  shall  end, 
at midnight GMT  at  the  end  of  the  International  Air  Transport  Association  (IATA)  traffic  season 
in effect  one year  following  the  date  of  the  written  notification,  unless  the  notice  is  withdrawn 
by agreement of all of the Parties before the end of this period. 

Either  Iceland  or  Norway  may,  at  any 

2. 
through 
diplomatic channels to the other Parties of its decision to withdraw from this Agreement or to end 
its  provisional  application  of  this  Agreement  under  Article  5.  A  copy  of  the  notice  shall  be  sent 
simultaneously to ICAO. Such withdrawal or cessation of provisional application shall be effective 
at  midnight GMT  at  the  end  of  the  IATA  traffic  season  in  effect  one  year  following  the  date  of 
written notification, unless the notice is withdrawn by agreement of the Party giving written notice, 
the United States, and the European Union and its Member States before the end of this period. 

time,  give  notice 

in  writing 

Either  the  United  States  or  the  European  Union  and  its  Member  States  may,  at  any  time, 
3. 
give notice in writing through diplomatic channels to Iceland or Norway of its decision to terminate 
this  Agreement  or  to  end  this  Agreement's  provisional  application,  with  respect  to  Iceland  or 
Norway.  Copies  of  the  notice  shall  be  sent  simultaneously  to  the  other  two  Parties  to  this 
Agreement and to ICAO. Termination or cessation of provisional application with respect to Iceland 
or Norway shall be effective at midnight GMT at the end of the IATA traffic season in effect one 
year following the date of written notification, unless the notice is withdrawn by agreement of the 
United States, the European Union and its Member States, and the Party receiving the notice, before 
the end of this period. 

4. 
For  purposes  of  the  diplomatic  notes  contemplated  by  this  Article,  diplomatic  notes  to  or 
from the European Union and its Member States shall be delivered to or from, as the case may be, 
the European Union. 

Notwithstanding  any  other  provision  of  this  Article,  if  the  Air  Transport  Agreement,  as 

5. 
amended by the Protocol, is terminated, this Agreement shall terminate simultaneously. 

ARTICLE 4 

Registration with ICAO 

This  Agreement  and  all  amendments  thereto  shall  be  registered  with  ICAO  by  the  General 
Secretariat of the Council of the European Union. 

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ARTICLE 5 

Provisional Application 

Pending its entry into force, the Parties agree to provisionally apply this Agreement, to the extent 
permitted  under  applicable  domestic  law,  from  the  date  of  signature.  If  the  Air Transport 
Agreement, as amended by the Protocol, is terminated in accordance with Article 23 thereof, or its 
provisional  application  ceases  in  accordance  with  Article 25  of  that  agreement,  or  provisional 
application  of  the  Protocol  ceases  in  accordance  with  Article  9  of  the  Protocol,  provisional 
application of this Agreement shall cease simultaneously. 

ARTICLE 6 

Entry into force 

This Agreement shall enter into force on the later of: 

1. 

2. 

the date of entry into force of the Air Transport Agreement,  

the date of entry into force of the Protocol, and 

3. 
one  month  after  the  date  of  the  last  note  of  the  exchanges  of  diplomatic  notes  among 
the Parties  confirming  that  all  necessary  procedures  for  entry  into  force  of  this  Agreement  have 
been completed. 

For  the  purposes  of  this  exchange  of  diplomatic  notes,  diplomatic  notes  to  or  from  the 
European Union  and  its  Member  States  shall  be  delivered  to  or  from,  as  the  case  may  be,  the 
European  Union.  The  diplomatic  note  or  notes  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 authorized, have signed this Agreement.  

DONE at………., in quadruplicate, this ………. day of ……………., 2011. 

FOR THE UNITED STATES OF AMERICA 

FOR THE KINGDOM OF BELGIUM 

FOR THE REPUBLIC OF BULGARIA 

FOR THE CZECH REPUBLIC 

FOR THE KINGDOM OF DENMARK 

FOR THE FEDERAL REPUBLIC OF GERMANY 

FOR THE REPUBLIC OF ESTONIA 

FOR IRELAND 

FOR THE HELLENIC REPUBLIC 

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FOR THE KINGDOM OF SPAIN 

FOR THE FRENCH REPUBLIC 

FOR THE ITALIAN REPUBLIC 

FOR THE REPUBLIC OF CYPRUS 

FOR THE REPUBLIC OF LATVIA 

FOR THE REPUBLIC OF LITHUANIA 

FOR THE GRAND DUCHY OF LUXEMBOURG 

FOR THE REPUBLIC OF HUNGARY 

FOR THE REPUBLIC OF MALTA 

FOR THE KINGDOM OF THE NETHERLANDS 

FOR THE REPUBLIC OF AUSTRIA 

FOR THE REPUBLIC OF POLAND 

FOR THE PORTUGUESE REPUBLIC 

FOR ROMANIA 

FOR THE REPUBLIC OF SLOVENIA 

FOR THE SLOVAK REPUBLIC 

FOR THE REPUBLIC OF FINLAND 

FOR THE KINGDOM OF SWEDEN 

FOR THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND 

FOR THE EUROPEAN UNION 

FOR ICELAND 

FOR THE KINGDOM OF NORWAY 

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ANNEX 

Specific Provisions with Respect to Iceland and Norway 

The  provisions  of  the  Air  Transport  Agreement,  as  amended  by  the  Protocol,  modified  as 
follows,  shall  apply  to  all  Parties  to  this  Agreement.  The  provisions  of  the  Air  Transport 
Agreement,  as  amended  by  the  Protocol,  shall apply  to  Iceland  and  Norway  as  though  they 
were Member States of the European Union, so that Iceland and Norway shall have all of the 
rights and obligations of Member States under that agreement: 

Paragraph 9 of Article 1 of the Air Transport Agreement, as amended by the Protocol, 

1. 
shall read as follows: 

"Territory" means, for the United States, the land areas (mainland and islands), internal waters 
and  territorial  sea  under  its  sovereignty  or  jurisdiction,  and,  for  the  European Union  and  its 
Member  States,  the  land  areas  (mainland  and  islands),  internal waters  and  territorial  sea  in 
which  the  Agreement  on  the  European  Economic  Area  is  applied  and  under  the  conditions 
laid  down  in  that  agreement  and  any  successor  instrument,  with  the  exception  of  the  land 
areas  and  internal  waters  under  the  sovereignty  or  jurisdiction  of  the  Principality  of 
Liechtenstein; application of this Agreement to Gibraltar airport is understood to be without 
prejudice to the respective legal positions of the Kingdom of Spain and the United Kingdom 
with regard to the dispute over sovereignty over the territory in which the airport is situated, 
and to the continuing suspension of Gibraltar Airport from European Union aviation measures 
existing  as  at  18  September  2006  as  between  Member  States,  in  accordance  with  the 
Ministerial statement on Gibraltar Airport agreed in Córdoba on 18 September 2006; and 

Articles 23 to 26 of the Air Transport Agreement, as amended by the Protocol, shall 

2. 
not apply to Iceland and Norway. 

3. 

Articles 9 and 10 of the Protocol shall not apply to Iceland and Norway. 

The following shall be added to Section 1 of Annex 1 of the Air Transport Agreement, 

4. 
as amended by the Protocol: 

Iceland:  Air  Transport  Agreement,  signed  at  Washington  June  14,  1995;  amended 
w. 
March 1, 2002  by  exchange  of  notes;  amended  August  14,  2006  and  March 9, 2007  by 
exchange of notes. 

The  Kingdom  of  Norway:  Agreement  relating  to  Air  Transport  Services  effected  by 
x. 
exchange of notes at Washington, October 6, 1945; amended August 6, 1954 by exchange of 
notes; amended June 16, 1995 by exchange of notes. 

The text of Section 2 of Annex 1 of the Air Transport Agreement, as amended by the 

5. 
Protocol, shall read as follows: 

Notwithstanding  section  1  of  this  Annex,  for  areas  that  are  not  encompassed  within  the 
definition  of  "territory"  in  Article  1  of  this  Agreement,  the  agreements  in  paragraphs  (e) 
(Denmark-United States),  (g)  (France-United States),  (v)  (United Kingdom-United States), 
and  (x)  (Norway-United States)  of  that  section  shall  continue  to  apply,  according  to  their 
terms. 

EN 

13 

   EN 

 
The text of Section 3 of Annex 1 of the Air Transport Agreement, as amended by the 

6. 
Protocol, shall read as follows: 

Notwithstanding Article 3 of this Agreement, U.S. airlines shall not have the right to 
provide  all-cargo  services,  that  are  not  part  of  a  service  that  serves  the  United  States,  to  or 
from  points  in  the  Member  States,  except  to  or  from  points  in  the  Czech  Republic,  the 
French Republic,  the  Federal  Republic  of  Germany,  the  Grand  Duchy  of  Luxembourg,  the 
Republic  of  Malta,  the  Republic  of  Poland,  the  Portuguese  Republic,  the  Slovak  Republic, 
Iceland, and the Kingdom of Norway. 

The  following  sentence  shall  be  added  at  the  end  of  Article  3  of  Annex  2  of  the 

7. 
Air Transport Agreement, as amended by the Protocol: 

For Iceland and Norway, this includes, but is not limited to, Articles 53, 54, and 55 of 
the  Agreement  on  the  European  Economic  Area  and  the  EU  Regulations  implementing 
Articles  101,  102  and  105  of  the  Treaty  on  the  Functioning  of  the  European  Union  as 
incorporated into the Agreement on the European Economic Area, as well as any amendments 
thereto. 

Article  21  paragraph  4  of  the  Air  Transport  Agreement  as  amended  by  the  Protocol 
8. 
shall apply to Iceland and Norway to the extent that the relevant laws and regulations of the 
European  Union  are  incorporated  into  the  Agreement  on  the  European  Economic  Area,  in 
accordance with any adaptations thereby stipulated. 

EN 

14 

   EN 

 
 
 
Joint Declaration 

Representatives of the United States of America, the European Union and its Member States, 
Iceland, and the Kingdom of Norway confirmed that the text of the Air Transport Agreement 
between the United States of America, of the first part, the European Union and its Member 
States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth 
part  (the  "Agreement"),  is  to  be  authenticated  in  other  languages,  as  provided  either,  before 
signature of the Agreement, by Exchanges of Letters among the United States of America, the 
European Commission on behalf of the European Union and its Member States, Iceland, and 
the  Kingdom  of  Norway  or,  after  signature  of  the  Agreement,  by  decision  of  the  Joint 
Committee.  

This Joint Declaration is an integral part of the Agreement. 

For the United States of America: 

For  the  European  Union  and  its  Member 
States: 

XXX 

XXX 

For Iceland: 

For the Kingdom of Norway: 

XXX 

XXX 

EN 

15 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EN 

16 

   EN 

 
 
 
 
ATTACHMENT 2 

ANCILLARY AGREEMENT 

BETWEEN THE EUROPEAN UNION AND ITS MEMBER STATES, 
OF THE FIRST PART, 

ICELAND, OF THE SECOND PART, 

AND THE KINGDOM OF NORWAY, OF THE THIRD PART, 

ON THE APPLICATION OF THE AIR TRANSPORT AGREEMENT 
BETWEEN  
THE UNITED STATES OF AMERICA, OF THE FIRST PART, THE EUROPEAN UNION 
AND ITS MEMBER STATES, OF THE SECOND PART, 
ICELAND, OF THE THIRD PART, 

AND THE KINGDOM OF NORWAY, OF THE FOURTH 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, 

IRELAND, 

THE HELLENIC REPUBLIC, 

THE KINGDOM OF SPAIN, 

THE FRENCH REPUBLIC, 

THE ITALIAN REPUBLIC, 

THE REPUBLIC OF CYPRUS, 

THE REPUBLIC OF LATVIA, 

THE REPUBLIC OF LITHUANIA, 

THE GRAND DUCHY OF LUXEMBOURG, 

THE REPUBLIC OF HUNGARY, 

EN 

17 

   EN 

 
 
THE REPUBLIC OF 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, 

being  parties  to  the  Treaty  on  European  Union  and  to  the  Treaty  on  the  Functioning  of  the 
European Union and being Member States of the European Union (hereinafter, the "Member 
States"), 

and 

THE EUROPEAN UNION, 

ICELAND, 

and 

of the first part; 

of the second part; 

THE KINGDOM OF NORWAY (hereinafter, "Norway"), 

of the third part; 

NOTING that the European Commission has negotiated, on behalf of the European Union and 
of  the  Member  States,  an  Agreement  on  Air  Transport  with  the  United States  of  America 
in accordance with the Council Decision authorising the Commission to open negotiations, 

NOTING  that  the  Air  Transport  Agreement  between  the  United States  of  America  and  the 
European  Community  and  its  Member  States  (hereinafter,  "the  Air  Transport  Agreement") 
was initialled on 2 March 2007, signed at Brussels on 25 April 2007 and at Washington, D.C. 
on 30 April 2007 and provisionally applied from 30 March 2008, 

NOTING that the Air Transport Agreement was amended by the Protocol to amend the Air 
Transport Agreement between the United States of America and the European Union and its 

EN 

18 

   EN 

 
 
 
 
Member  States  (hereinafter,  "the  Protocol"),  initialled  on  2 March 2010,  and  signed  at 
Luxembourg on 24 June 2010, 

NOTING  that  Iceland  and  Norway,  being  fully  integrated  members  of  the  single  European 
Aviation Market through the Agreement on the European Economic Area, have adhered to the 
Air  Transport  Agreement  as  amended  by  the  Protocol  through  an  Agreement  between  the 
United States of America, of the first part, the European Union and its Member States, of the 
second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part, of even 
date,  (hereinafter,  "the Agreement"),  which  incorporates  the  Air  Transport  Agreement  as 
amended by the Protocol. 

RECOGNISING  that  it  is  necessary  to  lay  down  procedural  arrangements  for  deciding, 
if appropriate, how to take measures pursuant to Article 21 paragraph 5 of the Air Transport 
Agreement as amended by the Protocol. 

RECOGNISING that it is furthermore necessary to lay down procedural arrangements for the 
participation of Iceland and Norway in the Joint Committee set up under Article 18 of the Air 
Transport Agreement as amended by the Protocol and in the arbitration procedures provided 
for  in  Article  19  of  the  Air  Transport  Agreement  as  amended  by  the  Protocol.  These 
procedural  arrangements  should  ensure  the  necessary  cooperation,  flow  of  information  and 
consultation  before  Joint  Committee  meetings,  as  well  as  the  implementation  of  certain 
provisions  of  the  Air  Transport  Agreement  as  amended  by  the  Protocol,  including  those 
concerning  security,  safety,  the  granting  and  revocation  of  traffic  rights  and  government 
support, 

HAVE AGREED AS FOLLOWS: 

ARTICLE 1 

Notification 

Should  the  European  Union  and  its  Member  States  decide  to  terminate  the  Agreement  in 
accordance with Article 3 of the Agreement or to discontinue its provisional application, or to 
withdraw notices to that effect, the Commission shall, before giving notice through diplomatic 
channels  to  the  United States  of  America,  immediately  notify  Iceland  and  Norway  thereof. 
Iceland  and/or Norway  shall  likewise  immediately  notify  the  Commission  of  any  such 
decision(s). 

ARTICLE 2 

Suspension of Traffic Rights 

A decision not to allow airlines of the other Party to operate additional frequencies or enter 
new markets under the Agreement and give notice thereof to the United States of America, or 
to  agree  to  lift  any  such  decision,  taken  in  accordance  with  Article  21  paragraph  5  of  the 
Air Transport  Agreement  as  amended  by  the  Protocol,  shall  be  adopted  by  the  Council,  on 
behalf of the European Union and of the Member States, acting unanimously in accordance 
with the relevant Treaty provisions, and by Iceland and Norway. The president of the Council, 
acting on behalf of the European Union and of the Member States, Iceland and Norway shall 
then give notice to the United States of America of any such decision. 

EN 

ARTICLE 3 

19 

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Joint Committee 

1. 
The European Union, the Member States, Iceland and Norway shall be represented in 
the Joint Committee established under Article 18 of the Air Transport Agreement as amended 
by  the  Protocol  by  representatives  of  the  Commission,  the  Member  States,  Iceland  and 
Norway. 

2. 
The position of the European Union, the Member States, Iceland and Norway within 
the Joint Committee shall be presented by the Commission, except in areas that within the EU 
fall  exclusively  within  Member  States’  competence,  in  which  case  it  shall  be  presented  by 
the Presidency of the Council or by the Commission, Iceland and Norway as appropriate. 

The position to be taken by Iceland and Norway within the Joint Committee as regards 
3. 
matters  falling  within  Articles 14  or 20  of  the  Air  Transport  Agreement  as  amended  by  the 
Protocol or matters that do not require the adoption of a decision having legal effects shall be 
adopted by Iceland and Norway in agreement with the Commission. 

4. 
For  other  Joint  Committee  decisions  concerning  matters  that  fall  within  regulations 
and  directives  that  are  incorporated  in  the  Agreement  on  the  European  Economic  Area,  the 
position to be taken by the European Union, the Member States, Iceland and Norway, shall be 
adopted by the Commission in agreement with Iceland and Norway. 

5. 
For  other  Joint  Committee  decisions  concerning  matters  that  fall  outside  regulations 
and  directives  that  are  incorporated  in  the  Agreement  on  the  European  Economic  Area,  the 
position  to  be  taken  by  Iceland  and  Norway,  shall  be  adopted  by  Iceland  and  Norway  in 
agreement with the Commission. 

The Commission shall take adequate measures to ensure full participation of Iceland 
6. 
and Norway in any coordination, consultation or decision shaping meetings with the Member 
States and access to the relevant information in preparation to Joint Committee meetings to be 
held. 

ARTICLE 4 

Arbitration 

1. 
The Commission shall represent the European Union, the Member States, Iceland and 
Norway  in  arbitration  proceedings  under  Article  19  of  the  Air  Transport  Agreement  as 
amended by the Protocol. 

The  Commission  shall,  as  appropriate,  take  measures  to  ensure  the  involvement  of 

2. 
Iceland and Norway in the preparation and coordination of arbitration proceedings. 

3. 
If the Council decides to suspend benefits in accordance with Article 19 paragraph 7 
of the Air Transport Agreement as amended by the Protocol that decision shall be notified to 
Iceland  and  Norway.  Iceland  and/or  Norway  shall  likewise  inform  the  Commission  of  any 
such decision(s) made. 

4. 
Any  other  appropriate  action  to  be  taken  under  Article 19  of  the  Air  Transport 
Agreement as amended by the Protocol on matters which within the EU fall within the Union 
competence  shall  be  decided  upon  by  the  Commission,  with  assistance  of  a  Special 

EN 

20 

   EN 

 
Committee of representatives of the Member States appointed by the Council, of Iceland and 
of Norway. 

ARTICLE 5 

Exchange of Information 

1. 
Iceland and Norway shall promptly inform the Commission of any decision to refuse, 
revoke, suspend or limit the authorisations of an airline of the United States of America that 
they  have  adopted  under  Article  4  or  5  of  the  Air  Transport  Agreement  as  amended  by  the 
Protocol. The  Commission  shall  likewise promptly inform Iceland and  Norway of  any such 
decision taken by Member States. 

2. 
Iceland  and  Norway  shall  inform  the  Commission  immediately  of  any  requests  or 
notifications  made  or  received  by  them  under  Article  8  of  the  Air  Transport  Agreement  as 
amended  by  the  Protocol.  The Commission  shall  likewise  immediately  inform  Iceland  and 
Norway of any such requests or notifications made or received by Member States. 

3. 
Iceland  and  Norway  shall  inform  the  Commission  immediately  of  any  requests  or 
notifications  made  or  received  by  them  under  Article  9  of  the  Air  Transport  Agreement  as 
amended  by  the  Protocol.  The Commission  shall  likewise  immediately  inform  Iceland  and 
Norway of any such requests or notifications made or received by Member States. 

ARTICLE 6 

Government subsidies and support 

Should  Iceland  or  Norway  believe  that  a  subsidy  or  support  being  considered  or 
1. 
provided by a governmental entity in the territory of the United States of America will have 
the  adverse  competitive  effects  referred  to  in  Article 14  paragraph  2  of  the  Air  Transport 
Agreement  as  amended  by  the  Protocol,  it  shall  bring  the  matter  to  the  attention  of  the 
Commission.  Should  a  Member  State  have  brought  a  similar  matter  to  the  attention  of  the 
Commission, the Commission shall likewise bring the matter to the attention of Iceland and 
Norway. 

The Commission, Iceland and Norway may approach such entity or request a meeting 
2. 
of  the  Joint  Committee  established  under  Article  18  of  the  Air  Transport  Agreement  as 
amended by the Protocol. 

3. 
The Commission, Iceland and Norway shall inform each other immediately when they 
are  contacted  by  the  United States  of  America  under  Article  14  paragraph  3  of  the  Air 
Transport Agreement as amended by the Protocol. 

ARTICLE 7 

Termination 

1. 
A  Party  may,  at  any  time,  give  notice  in  writing  through  diplomatic  channels  to  the 
other  Parties  of  its  decision  to  terminate  this  Ancillary  Agreement  or  to  end  its  provisional 
application.  This  Ancillary Agreement  shall  terminate  or  shall  cease  to  be  provisionally 
applied  at  midnight GMT  six months  following  the  date  of  the  written  notification  of 

EN 

21 

   EN 

 
termination  or  of  cessation  of  provisional  application,  unless  the  notice  is  withdrawn  by 
agreement of the Parties before the end of this period. 

2. 
Notwithstanding any other provision of this Article, if the Agreement is terminated or 
its provisional application is ended, this Ancillary Agreement shall simultaneously terminate 
or cease to be provisionally applied. 

ARTICLE 8 

Provisional application 

into  force  pursuant 

Pending  entry 
this 
Ancillary Agreement  provisionally  in  accordance  with  the  national  laws  of  the  Parties  from 
the later of the date of the signature of this Ancillary Agreement or of the date of provisional 
application specified in Article 5 of the Agreement. 

the  Parties  agree 

to  Article  9, 

to  apply 

ARTICLE 9 

Entry into force 

This Ancillary Agreement shall enter into force either (a) one month after the date of the latest 
note  in  exchange  of  diplomatic  notes  between  the  Parties  confirming  that  all  necessary 
procedures  for  entry  into  force  of  this  Ancillary  Agreement  have  been  completed,  or (b)  on 
the date of entry into force or provisional application of the Agreement, whichever is the later. 

IN  WITNESS  WHEREOF,  the  undersigned, duly  authorized to  that effect, have signed this 
Ancillary Agreement. 

DONE  at  ………  in  triplicate,  this  ……….  day  of  …………….,  2011  in  the  Bulgarian, 
Czech,  Danish,  Dutch,  English,  Estonian,  Finnish,  French,  German,  Greek,  Hungarian, 
Icelandic,  Irish,  Italian,  Latvian,  Lithuanian,  Maltese,  Norwegian,  Polish,  Portuguese, 
Romanian, Slovak, Slovenian, Spanish and Swedish languages, all texts being authentic.  

FOR THE KINGDOM OF BELGIUM 

FOR THE REPUBLIC OF BULGARIA 

FOR THE CZECH REPUBLIC 

FOR THE KINGDOM OF DENMARK 

FOR THE FEDERAL REPUBLIC OF GERMANY 

FOR THE REPUBLIC OF ESTONIA 

FOR IRELAND 

FOR THE HELLENIC REPUBLIC 

FOR THE KINGDOM OF SPAIN 

FOR THE FRENCH REPUBLIC 

EN 

22 

   EN 

 
FOR THE ITALIAN REPUBLIC 

FOR THE REPUBLIC OF CYPRUS 

FOR THE REPUBLIC OF LATVIA 

FOR THE REPUBLIC OF LITHUANIA 

FOR THE GRAND DUCHY OF LUXEMBOURG 

FOR THE REPUBLIC OF HUNGARY 

FOR THE REPUBLIC OF MALTA 

FOR THE KINGDOM OF THE NETHERLANDS 

FOR THE REPUBLIC OF AUSTRIA 

FOR THE REPUBLIC OF POLAND 

FOR THE PORTUGUESE REPUBLIC 

FOR ROMANIA 

FOR THE REPUBLIC OF SLOVENIA 

FOR THE SLOVAK REPUBLIC 

FOR THE REPUBLIC OF FINLAND 

FOR THE KINGDOM OF SWEDEN 

FOR THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND 

FOR THE EUROPEAN UNION 

FOR ICELAND 

FOR THE KINGDOM OF NORWAY 

EN 

23 

   EN