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MEMORANDUM OF UNDERSTANDING RELATING TO THE AIR SERVICES

AGREEMENT BETWEEN THE FRENCH REPUBLIC AND THE UNITED ARAB EMIRATES

Parls, 16 September 2004

Following their meeting of 9-10 February 2004, delegations representing the Aeronautical

Authorities of the French Republic and the Aeronautical Authorities of the United Arab

Emirates met in Paris on 16 September 2004, to discuss matters of common interest related to the bilateral Air Services Agreement signed between the two countries in Paris on 9

September 1991 (hereafter referred to as the "Agreement").

The discussions were held in the friendly and cordial atmosphere that characterises the good relationship between the two countries.

The list of delegations is attached as Annex A.

Both delegations addressed the following issues:

1)

Designation of airlines

a) Articles 4 and 5 of the Agreement

Both delegations agreed to recommend to their respective governments that article 4.4 and 5.1. a of the existing Agreement be replaced by the clauses as attached in Annex B.

The adoption of these designation and revocation clauses is without prejudice to the numbe of airlines which can be designated and to the frequency entitlements agreed between bott

Parties.

Bahrain and/or their nationals.

b) designation on route Abu Dhabi - Paris

Both delegations agreed that, notwithstanding the provisions of the CMOU of 30 October

1986. the designation of Etihad Airlines would be possible on the route Abu Dhabi-Paris and the French delegation agreed with this designation in corformity with articles 4 and 5 of

Il)

Capacity and frequencies

Both Parties agreed that the designated airlines of each contracting Party shall be allowed to operate, without any restriction on the aircraft type used :

• - a) on the Dubai-Paris sector (by each of Emirates Airline and the airline designated by

France):

• up to twelve (12) weekly frequencies as from IATA Summer Season 2005

• up to fourteen (14) weekly frequencies as from IATA Summer Season 200€

• -b) on the Dubai-Nice sector (by each of Emirates Airline and the airline designated by

France):

• up to three (3) weekly frequencies;

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• -c) on the Abu Dhabi-Paris/Lyons/Nice sectors:

• up to ten (10) weekly frequencies as from IATA Winter Season 2004/2005.

Accordingly, delegations agreed to remove the restriction stipulated in the MOU date 19

September 2001 in respect of the maximum number of frequencies that can be operated by a designated airline between the territories of the two countries on any given city pair.

Furthermore both Parties agreed to resume talks on the issue of additional frequency entitlement on the above sectors within two years in relation to market demand between the two countries.

川）

Code sharing operations

Both delegations agreed that in operating or holding out the authorised services on the agreed routes any designated airline of one Party may enter into co-operative arrangements such as blocked-space, code-sharing or leasing arrangements, with :

i)

її)

an airline or airlines of either Party:

an airline or airlines of a third country, provided that all airlines in such arrangements (a) hold the appropriate authority and (b) meet the requirements normally applied to such arrangements.

Notwithstanding the provisions of the Agreement, for the application of the code-sharing arrangements:

• the designated airline(s) of each Party may change gauge at any point from one aircraft to one or several aircraft;

- the marketing frequencies shall not be counted against the frequency entitlements of each Party.

IV) Route Schedule

In reference to the Route Schedule annexed to the Agreement, the French delegation nominated Amsterdam as one of the three additional intermediate points to be used by the designated airline(s) of the Republic of France.

V)

Intermodal transportation

In connection with international air transportation, designated airlines of each Party shall be permitted to hold out passenger services under their own name, through co-operative arrangements with surface transportation providers holding the appropriate authority to provide such surface transportation to and from any points in the territories of the Parties.

Surface transportation providers shall not be subject to laws and regulations governing air transportation on the sole basis that such surface transportation is held out by an airline under its own name. Such intermodal services may be offered at a single through price for the air and surface transportation combined, provided that passengers are not misled as to the facts concerning such transportation.

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Surface transportation providers have the discretion to decide whether to enter into cooperative arrangements. In deciding on any particular arrangement, surface transportation providers may consider, among other things, consumer interests and technical, economic.

VI) 5th freedom traffic rights

Both delegations agreed to defer discussions on this issue until the next round of bilateral consultations.

Provisions of Annex B shall be confirmed through the diplomatic channel.

Done at Paris on 16 September 2004, in duplicate both texts being equally authentic.

For the delegation

For the delegation of the French Republic

of the United Arab Emirates

Philippe DUMONT

Mohamed Yahya AL SUWEIDI
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ANNEX A

FRENCH DELEGATION

---.

M. Philippe DUMONT

Sous-directeur des affaires internationales

Direction générale de l'aviation civile

Chef de délégation

M. Jean-Claude NOLLA

Sous-directeur énergie, transports, infrastructures

Direction des affaires économiques et financières

Ministère des affaires étrangères

M. Emmanuel VIVET

Chef du bureau du transport aérien international

Direction générale de l'aviation civile

Mme Danièle GENDRE

Chargé des questions de transport aérien

Ministère des affaires étrangères

M. Jean-Paul GHONEIM

Rédacteur géographique

Ministère des affaires étrangères

Mme Aïcha HAMDI

Adjointe au Chef de bureau de l'exploitation

Direction générale de l'aviation civile

M. Olivier BOULNOIS

Chargé de zone

Direction générale de l'aviation civile

M. Gilles GAUTIER

Direction des affaires internationales et des alliances

Air France

M. Hervé MOULIN

Direction des lignes Afrique Moyen-Orient

Air France

M. Jonathan CLEMENTS

Interprète

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UAE DELEGATION

Mr. Mohamed Yahya AL-SUWEIDI

Assistant Undersecretary for Civil Aviation

Ministry of Communications, Abu Dhabi

Head of delegation

Mr Mohamed A. AHLI

Operations Director

Department of Civil Aviation, Dubai

Mr Senarah D. LIYANAGE

Air Transport Adviser

Ministry of Communications

Mr Buty Ahmad BIN SOLAIMAN

General Manager

Airport Operation Services

Department of Civil Aviation, Dubai

Mr Mohamed Khadem AI HAMELI

Manager

Department of Civil Aviation, Abu Dhabi

Mr Tony M. TAYEH

Senior Vice President Planning

International & Industry Affairs

Emirates Airline

Mr David BROZ

Manager International Affairs & Airline cooperation (Europe and Americas)

Emirates Airline

Mr Jean-Luc GRILLET

Area Manager, France & Benelux

Emirates Airline

Mr Radih YOUSIF

Head international Relations & Alliances

Gulf Air

Mr Khaled AI MEHAIRBI

Head International & Government Relations

Etihad Airways

Mr. Ali ALUMEYRI

General Manager France

Gulf Air
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ANNEX B

Amendments to Articles 4 and 5

1- Article 4.4 is replaced by:

cach contracting Party shall have the right to refuse to grant the operating authorisation:

eferred to in paragraph (2) of this article, or to impose such conditions as it may deen necessary on the exercise by the designated air carrier of the rights specified in article 3 of this Agreement, in any case where the said Contracting Party is not satisfied that:

a) In respect an air carrier designated by the Republic of France:

(1)

it is not established in the territory of the Republe of France under the Treaty

Siablishing the European Community and has hot a valid Operating Licenc n accordance with European Community law; o

(3)

effective regulatory control of the air carrier is not exercised and maintained by the European Community Member State responsible for issuing its Air

Operator's Certificate or the relevant aeronautical authority is not clearly identified in the designation; or the air carrier is not owned directly or through majority ownership by European

Community Member States and/or nationals of Buropean Community Member

States, or by other states listed in an Annex to the Agreement and/or nationals of such other states, or is not at all times effectively controlled by such states and/or such nationals; or (4)

the air carrier so designated is already authorised to operate under a bilateral air services agreement between the United Arab Emirates and another

European Community Member State and, by exercising traffic rights under this

Agreement on a specified route under this Agreement, it would be circumventing restrictions on traffic rights imposed by that other agreement; or (5)

the air carrier designated holds an AOC issued by a Member State with which the United Arab Emirates has no bilateral Air Services Agreement and traffic rights have been denied to an air carrier of the United Arab Emirates to operate flights to this Member State.

b) In respect of an air carrier designated by the United Arab Emirates:

(1) it is not established in the territory of the UAE or has not a valid Operating

Licence in accordance with United Arab Emirates law; or (2)

effective regulatory control of the air carrier is not exercised by the United Arab

Emirates; or (3)

the air carrier is not owned directly or through majority ownership by the

United Arab Emirates, the Kingdom of Bahrain and/or the Sultanate of Oman or nationals thereof, or the air carrier is not at all times effectively controlled by such states and/or such nationals; or (4)

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it would be circumventing restrictions on traffic rights imposed under the

French - UAE Agreement."

2- Article 5.1.a of the Agreement is replaced by:

"in any case where the said Contracting Party is not satisfied that:

1) in respect of an air carrier designated by the Republic of France:

(1)

it is not established in the territory of the Republic of France under the Treaty establishing the European Community and has not a valid Operating Licenc in accordance with European Community law; o (2)

(3)

(4)

effective regulatory control of the air carrier is not exercised and maintained by the European Community Member State responsible for issuing its Air

Operator's Certificate or the relevant aeronautical authority is not clearly identified in the designation; or the air carrier is not owned directly or through majority ownership by European

Community Member States and/or nationals of European Community Member

States, or by other states listed in an Annex to the Agreement and/or nationals of such other states, or is not at all times effectively contralled by such states and/or such nationals: or the air carrier so designated is already authorised to operate under a bilateral air services agreement between the United Arab Emirates and another

European Community Member State and, by exercising traffic rights under this

Agreement on

specified route under this Agreement, it would be

circumventing restrictions on traffic rights imposed by that other agreement; or (5)

the air carrier designated holds an AOC issued by a Member State with which the United Arab Emirates has no bilateral Air Services Agreement and traffic rights have been denied to an air carner of the United Arab Emirates lo operate flights to this Member State.

Il) in respect of an air carrier designated by the United Arab Emirates:

(1)

(2)

(3)

it is not established in the territory of the UAE or has not a valid Operating

Licence in accordance with United Arab Emirates law; or effective regulatory control of the air carier is no exercised by the United Arab

Emirates; or the air carrier is not owned directly or through majority ownership by the

United Arab Emirates, the Kingdom of Bahrain and/or the Sultanate of Oman, or nationals thereof, or the air carrier is not at all times effectively controlled by (4)

the air carrier is already authorised to operate under a bilateral agreement between a third country and the Republic of France and the Republic of

France can demonstrate that, by exercising traffic rights under this agreement, it would be circumventing restrictions on traffic rights imposed under the

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3-List to be included as an Annex into the Agreement

Let of courtis father a European county aer by sle win and whose (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 Europear

Community and the Swiss Confederation on Air Transport)

!