U.S.-Benin Air Transport Agreement of November 28, 2000

BETWEEN

THE GOVERNMENT OF

THE UNITED STATES OF AMERICA

AND

THE GOVERNMENT OF

THE REPUBLIC OF BENIN

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

Benin (hereinafter, "the Parties") ;

Desiring to promote an international aviation system based on competition among airlines in

the marketplace with minimum government interference and regulation ;

Desiring to facilitate the expansion of international air transport opportunities ;

Desiring to make it possible for airlines to offer the traveling and shipping public a variety

of service options at the lowest prices that are not discriminatory and do not represent abuse

of a dominant position, and wishing to encourage individual airlines to develop and

implement innovative and competitive prices ;

Desiring to ensure the highest degree of safety and security in international air transport and

reaffirming their grave concern about acts or threats against the security of aircraft, which

jeopardize the safety of persons or property, adversely affect the operation of air ,

transportation, and undermine public confidence in the safety of civil aviation ; and

Being Parties to the Convention on International Civil Aviation, opened for signature at

Chicago on December 7, 1944;

Have agreed as follows :

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Article 1

Definitions

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

1 .

"Aeronautical authorities" means, in the case of the United States, the Department of

Transportation, or its successor, and in the case of Benin, the Ministry of Public Works and

Transport, or any person or agency authorized to perform functions exercised by the said

Ministry;

2 .

"Agreement" means this Agreement, its Annexes, and any amendments thereto ; the

Annexes are considered to be an integral part of the said Agreement ;

4 .

"Convention" means the Convention on International Civil Aviation, opened for

signature at Chicago on December 7, 1944, and includes :

a . any amendment that has entered into force under Article 94(a) of the Convention

and has been ratified by both Parties, and

b. any Annex or any amendment thereto adopted under Article 90 of the

Convention, insofar as such Annex or amendment is at any given time effective for both

Parties;

5 .

"Designated airline" means an airline designated and authorized in accordance with

Article 3 of this Agreement ;

6 .

"Full cost" means the cost of providing service plus a reasonable charge for

administrative overhead ;

7 .

"International air transportation" means air transportation that passes through the

airspace over the territory of more than one State ;

8 .

"Price" means any fare, rate or charge for the carriage of passengers (and their

baggage) and/or cargo (excluding mail) in air transportation charged by airlines, including

their agents, and the conditions governing the availability of such fare, rate or charge ;

9 .

"Stop for non-traffic purposes" means a landing for any purpose other than taking on

or discharging passengers, baggage, cargo and/or mail in air transportation ;

10 .

"Territory" means the land areas under the sovereignty, jurisdiction, protection, or

trusteeship of a Party, and the territorial waters adjacent thereto ; and

11 .

"User charge" means a charge imposed on airlines for the provision of airport, air

navigation, or aviation security facilities or services including related services and facilities .

Article

Grant Of Rights

1 .

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

international air transportation by the airlines of the other Party :

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

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

c . the rights otherwise specified in this Agreement .

.

Nothing in this Article shall be deemed to confer on the airline or airlines of one

Party the rights to take on board, in the territory of the other Party, passengers, their

baggage, cargo, or mail carried for compensation and destined for another point in the

territory of that other Party .

Article

Designation and Authorization

1 .

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

international air transportation in accordance with this Agreement and to withdraw or alter

such designations. Such designations shall be transmitted to the other Party in writing

through diplomatic channels, and shall identify whether the airline is authorized to conduct

the type of air transportation specified in Annex I or in Annex II or both .

. On receipt of such a designation, and of applications from the designated airline, in

the form and manner prescribed for operating authorizations and technical permissions, the

other Party shall grant appropriate authorizations and permissions with minimum procedural

delay, provided :

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

designating the airline, nationals of that Party, or both ;

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

and regulations normally applied to the operation of international air transportation by the

Party considering the application or applications ; and

c . the Party designating the airline is maintaining and administering the standards set

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

Article

Revocation of Authorization

1 .

Either Party may revoke, suspend or limit the operating authorizations or technical

permissions of an airline designated by the other Party where :

a . substantial ownership and effective control of that airline are not vested in the

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

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

Article (Application of Laws) of this Agreement; or

c . the other Party is not maintaining and administering the standards as set forth in

Article 6 (Safety).

. Unless immediate action is essential to prevent further noncompliance with

subparagraphs 1b or lc of this Article, the rights established by this Article shall be

exercised only after consultation with the other Party.

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

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

airlines of the other Party in accordance with the provisions of Article 7 (Aviation Security) .

Article

Application of Laws

1 .

While entering, within, or leaving the territory of one Party, its laws and regulations

relating to the operation and navigation of aircraft shall be complied with by the other

Party's airlines .

.

While entering, within, or leaving the territory of one Party, its laws and regulations

relating to the admission to or departure from its territory of passengers, crew or cargo on

aircraft (including regulations relating to entry, clearance, aviation security, immigration,

passports, customs and quarantine or, in the case of mail, postal regulations) shall be

complied with by, or on behalf of, such passengers, crew or cargo of the other Party's

airlines.

Article 6

Safety

1 .

Each Party shall recognize as valid, for the purpose of operating the air transportation

provided for in this Agreement, certificates of airworthiness, certificates of competency, and

licenses issued or validated by the other Party and still in force, provided that the

requirements for such certificates or licenses at least equal the minimum standards that may

be established pursuant to the Convention . Each Party may, however, refuse to recognize as

valid for the purpose of flight above its own territory, certificates of competency and

licenses granted to or validated for its own nationals by the other Party .

.

Either Party may request consultations concerning the safety standards maintained by

the other Party relating to aeronautical facilities, aircrews, aircraft, and operation of the

designated airlines. If, following such consultations, one Party finds that the other Party

does not effectively maintain and administer safety standards and requirements in these areas

that at least equal the minimum standards that may be established pursuant to the

Convention, the other Party shall be notified of such findings and the steps considered

necessary to conform with these minimum standards, and the other Party shall take

appropriate corrective action . Each Party reserves the right to withhold, revoke, or limit the

operating authorization or technical permission of an airline or airlines designated by the

other Partyy in the event the other Party does not take such appropriate corrective action

within a reasonable time .

Article7

Aviation Security

1 .

In accordance with their rights and obligations under international law, the Parties

reaffirm that their obligation to each other to protect the security of civil aviation against acts

of unlawful interference forms an integral part of this Agreement . Without limiting the

generality of their rights and obligations under international law, the Parties shall in

particular act in conformity with the provisions of the Convention on Offenses and Certain

Other Acts Committed on Board Aircraft, done at Tokyo September 1 , 196 , the

Convention for the Suppression of Unlawful Seizure of Aircraft, done at The Hague

December 16, 1970, the Convention for the Suppression of Unlawful Acts against the Safety

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

Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation,

done at Montreal February , 1988 .

.

The Parties shall provide upon request all necessary assistance to each other to

prevent acts of unlawful seizure of civil aircraft and other unlawful acts against the safety of

such aircraft, of their passengers and crew, and of airports and air navigation facilities, and

to address any other threat to the security of civil air navigation .

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.

The Parties shall, in their mutual relations, act in conformity with the aviation

security standards and appropriate recommended practices established by the International

Civil Aviation Organization and designated as Annexes to the Convention ; they shall require

that operators of aircraft of their registry, operators of aircraft who have their principal place

of business or permanent residence in their territory, and the operators of airports in their

territory act in conformity with such aviation security provisions .

.

Each Party agrees to observe the security provisions required by the other Party for

entry into, for departure from, and while within the territory of that other Party and to take

adequate measures to protect aircraft and to inspect passengers, crew, and their baggage and

carry-on items, as well as cargo and aircraft stores, prior to and during boarding or loading .

special security measures to meet a particular threat .

.

When an incident or threat of an incident of unlawful seizure of aircraft or other

unlawful acts against the safety of passengers, crew, aircraft, airports or air navigation

facilities occurs, the Parties shall assist each other by facilitating communications and other

appropriate measures intended to terminate rapidly and safely such incident or threat .

6 .

When a Party has reasonable grounds to believe that the other Party has departed

from the aviation security provisions of this Article, the aeronautical authorities of that Party

may request immediate consultations with the aeronautical authorities of the other Party .

Failure to reach a satisfactory agreement within 1 days from the date of such request shall

constitute grounds to withhold, revoke, limit, or impose conditions on the operating

authorization and technical permissions of an airline or airlines of that Party . When required

by an emergency, a Party may take interim action prior to the expiry of 1 days .

Article 8

Commercial Activities

I .

The airlines of each Party shall have the right to establish offices in the territory of

the other Party for the promotion and sale of air transportation .

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

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

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

other specialist staff required for the provision of air transportation .

.

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

the territory of the other Party ("self-handling") or, at its option, select among competing

agents for such services in whole or in part . The rights shall be subject only to physical

constraints resulting from considerations of airport safety . Where such considerations

preclude self-handling, ground services shall be available on an equal basis to all airlines ;

charges shall be based on the costs of services provided; and such services shall be

comparable to the kind and quality of services as if self-handling were possible .

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.

of the other Party directly and, at the airline's discretion, through its agents, except as may be

specifically provided by the charter regulations of the country in which the charter originates

that relate to the protection of passenger funds, and passenger cancellation and refund rights .

Each airline shall have the right to sell such transportation, and any person shall be free to

purchase such transportation, in the currency of that territory or in freely convertible

currencies .

. Each airline shall have the right to convert and remit to its country, on demand, local

revenues in excess of sums locally disbursed . Conversion and remittance shall be permitted

promptly without restrictions or taxation in respect thereof at the rate of exchange applicable

to current transactions and remittance on the date the carrier makes the initial application for

remittance .

6 .

The airlines of each Party shall be permitted to pay for local expenses, including

purchases of fuel, in the territory of the other Party in local currency . At their discretion, the

airlines of each Party may pay for such expenses in the territory of the other Party in freely

convertible currencies according to local currency regulation .

7 .

In operating or holding out the authorized services on the agreed routes, any

designated airline of one Party may enter into cooperative marketing arrangements such as

blocked-space, code-sharing or leasing arrangements, with

a) an airline or airlines of either Party ;

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

c) a surface transportation provider of any country ;

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

meet the requirements normally applied to such arrangements .

8 .

Notwithstanding any other provision of this Agreement, airlines and indirect

providers of cargo transportation of both Parties shall be permitted, without restriction, to

employ in connection with international air transportation any surface transportation for

cargo to or from any points in the territories of the Parties 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 . Airlines may elect to perform their own surface transportation or to provide it

through arrangements with other surface carriers, including surface transportation operated

by other airlines and indirect providers of cargo air transportation . Such intermodal cargo

services may be offered at a single, through price for the air and surface transportation

combined, provided that shippers are not misled as to the facts concerning such

transportation.

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Article 9

Customs Duties and Charges

1 .

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

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

aircraft stores (including but not limited to such items of food, beverages and liquor, tobacco

and other products destined for sale to or use by passengers in limited quantities during

flight), and other items intended for or used solely in connection with the operation or

servicing of aircraft engaged in international air transportation shall be exempt, on the basis

of reciprocity, from all import restrictions, property taxes and capital levies, customs duties,

excise taxes, and similar fees and charges that are (1) imposed by the national authorities,

and ( ) not based on the cost of services provided, provided that such equipment and

supplies remain on board the aircraft .

.

There shall also be exempt, on the basis of reciprocity, from the taxes, levies, duties,

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

based on the cost of the service provided :

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

board, within reasonable limits, for use on outbound aircraft of an airline of the other Party

engaged in international air transportation, even when these stores are to be used on a part of

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

b . ground equipment and spare parts (including engines) introduced into the territory

of a Party for the servicing, maintenance, or repair of aircraft of an airline of the other Party

used in international air transportation ;

c . fuel, lubricants and consumable technical supplies introduced into or supplied in

the territory of a Party for use in an aircraft of an airline of the other Party engaged in

international air transportation, even when these supplies are to be used on a part of the

journey performed over the territory of the Party in which they are taken on board ; and

d. promotional and advertising materials introduced into or supplied in the territory

of one Party and taken on board, within reasonable limits, for use on outbound aircraft of an

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

are to be used on a part of the journey performed over the territory of the Party in which they

are taken on board .

.

Equipment and supplies referred to in paragraphs 1 and of this Article may be

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

.

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

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

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

the items specified in paragraphs I and of this Article .

Article 10

User Charges

1 .

User charges that may be imposed by the competent charging authorities or bodies of

each Party on the airlines of the other Party shall be just, reasonable, not unjustly

discriminatory, and equitably apportioned among categories of users.' In any event, any such

user charges shall be assessed on the airlines of the other Party on terms not less favorable

than the most favorable terms available to any other airline at the time the charges are

assessed .

.

User charges imposed on the airlines of the other Party may reflect, but shall not

exceed, the full cost to the competent charging authorities or bodies of providing the

appropriate airport, airport environmental, air navigation, and aviation security facilities and

services at the airport or within the airport system. Such charges may include a reasonable

return on assets, after depreciation . Facilities and services for which charges are made shall

be provided on an efficient and economic basis .

.

Each Party shall encourage consultations between the competent charging authorities

or bodies in its territory and the airlines using the services and facilities, and shall encourage

the competent charging authorities or bodies and the airlines to exchange such information

as may be necessary to permit an accurate review of the reasonableness of the charges in

accordance with the principles of paragraphs 1 and of this Article . Each Party shall

encourage the competent charging authorities to provide users with reasonable notice of any

proposal for changes in user charges to enable users to express their views before changes

are made .

.

Neither Party shall be held, in dispute resolution procedures pursuant to Article 1 ,

to be in breach of a provision of this Article, unless (1) it fails to undertake a review of the

charge or practice that is the subject of complaint by the other Party within a reasonable

amount of time; or ( ) following such a review it fails to take all steps within its power to

remedy any charge or practice that is inconsistent with this Article .

Article 11

Fair Competition

1 .

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

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

Agreement.

.

Each Party shall allow each designated airline to determine the frequency and

capacity of the international air transportation it offers based upon commercial

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considerations in the marketplace . Consistent with this right, neither Party shall unilaterally

limit the volume of traffic, frequency or regularity of service, or the aircraft type or types

operated by the designated airlines of the other Party, except as may be required for customs,

technical, operational, or environmental reasons under uniform conditions consistent with

Article 1 of the Convention.

.

Neither Party shall impose on the other Party's designated airlines a first-refusal

requirement, uplift ratio, no-objection fee, or any other requirement with respect to capacity,

frequency or traffic that would be inconsistent with the purposes of this Agreement .

.

Neither Party shall require the filing of schedules, programs for charter flights, or

operational plans by airlines of the other Party for approval, except as may be required on a

non-discriminatory basis to enforce the uniform conditions foreseen by paragraph of this

Article or as may be specifically authorized in an Annex to this Agreement . If a Party

requires filings for information purposes, it shall minimize the administrative burdens of

filing requirements and procedures on air transportation intermediaries and on designated

airlines of the other Party .

Article 1

Pricing

1 .

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

designated airline based upon commercial considerations in the marketplace . Intervention

by the Parties shall be limited to :

a. prevention of unreasonably discriminatory prices or practices ;

b . protection of consumers from prices that are unreasonably high or restrictive due

to the abuse of a dominant position ; and

c . protection of airlines from prices that are artificially low due to direct or indirect

governmental subsidy or support.

.

Each Party may require notification to or filing with its aeronautical authorities of

prices to be charged to or from its territory by airlines of the other Party . Notification or

filing by the airlines of both Parties may be required no more than 0 days before the

proposed date of effectiveness . In individual cases, notification or filing may be permitted

on shorter notice than normally required . Neither Party shall require the notification or

filing by airlines of the other Party of prices charged by charterers to the public, except as

may be required on a non-discriminatory basis for information purposes .

.

Neither Party shall take unilateral action to prevent the inauguration or continuation

of a price proposed to be charged or charged by (1) an airline of either Party for international

air transportation between the territories of the Parties, or ( ) an airline of one Party for

international air transportation between the territory of the other Party and any other country,

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including in both cases transportation on an interline or intraline basis . If either Party

believes that any such price is inconsistent with the considerations set forth in paragraph I of

dissatisfaction as soon as possible . These consultations shall be held not later than 0 days

after receipt of the request, and the Parties shall cooperate in securing information necessary

for reasoned resolution of the issue . If the Parties reach agreement with respect to a price for

which a notice of dissatisfaction has been given, each Party shall use its best efforts to put

that agreement into effect. Without such mutual agreement, the price shall go into effect or

continue in effect.

Article 1

Consultations

consultations shall begin at the earliest possible date, but not later than 60 days from the date

the other Party receives the request unless otherwise agreed.

Article 1

Settlement of Disputes

1 .

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

paragraph of Article 1 (Pricing), that is not resolved by a first round of formal

consultations may be referred by agreement of the Parties for decision to some person or

body . If the Parties do not so agree, the dispute shall, at the request of either Party, be

submitted to arbitration in accordance with the procedures set forth below .

.

Arbitration shall be by a tribunal of three arbitrators to be constituted as follows :

a. Within 0 days after the receipt of a request for arbitration, each Party shall name

one arbitrator. Within 60 days after these two arbitrators have been named, they shall by

agreement appoint a third arbitrator, who shall act as President of the arbitral tribunal ;

b . If either Party fails to name an arbitrator, or if the third arbitrator is not appointed

in accordance with subparagraph a of this paragraph, either Party may request the President

of the Council of the International Civil Aviation Organization to appoint the necessary

arbitrator or arbitrators within 0 days. If the President of the Council is of the same

nationality as one of the Parties, the most senior Vice President who is not disqualified on

that ground shall make the appointment.

.

Except as otherwise agreed, the arbitral tribunal shall determine the limits of its

jurisdiction in accordance with this Agreement and shall establish its own procedural rules .

The tribunal, once formed, may recommend interim relief measures pending its final

determination. At the direction of the tribunal or at the request of either of the Parties, a

1

conference to determine the precise issues to be arbitrated and the specific procedures to be

followed shall be held not later than 1 days after the tribunal is fully constituted .

. Except as otherwise agreed or as directed by the tribunal, each Party shall submit a

memorandum within days of the time the tribunal is fully constituted . Replies shall be

due 60 days later. The tribunal shall hold a hearing at the request of either Party or on its

own initiative within 1 days after replies are due .

.

The tribunal shall attempt to render a written decision within 0 days after

completion of the hearing or, if no hearing is held, after the date both replies are submitted .

The decision of the majority of the tribunal shall prevail .

6 .

The Parties may submit requests for clarification of the decision within 1 days after

it is rendered and any clarification given shall be issued within 1 days of such request .

7 .

Each Party shall, to the degree consistent with its national law, give full effect to any

decision or award of the arbitral tribunal .

8 .

The expenses of the arbitral tribunal, including the fees and expenses of the

arbitrators, shall be shared equally by the Parties . Any expenses incurred by the President

of the Council of the International Civil Aviation Organization in connection with the

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

the arbitral tribunal.

Article 1

Amendment

1 .

This Agreement may be amended by written agreement of the Parties .

. In the event of the conclusion of any general multilateral convention concerning air

transportation to which both the Parties become bound, the Parties shall consult to determine

whether and to what extent the present Agreement should be amended .

Article 16

Termination

Either Party may at any time notify the other Party in writing of its decision to terminate this

Agreement . This notification shall be sent simultaneously to the International Civil Aviation

Organization (ICAO) . This Agreement shall be terminated 1 months following the date on

which the other Party receives the notification, unless said notification is withdrawn, by

agreement of the Parties, prior to the expiration of this period .

FOR THE GOVERNMENT OF

THE UNITED STATES OF,AMERICA:

1

Article 17

Registration with ICAO

This Agreement and all amendments thereto shall be registered with the International Civil

Aviation Organization .

Article 18

Entry into Force

This Agreement shall enter into force as soon as the Government of the Republic of Benin

has acceded to the Convention on offenses and certain other acts committed on board

aircraft, signed at Tokyo September 1 , 196 ; the Convention for the suppression of

unlawful acts against the safety of civil aviation, signed at Montreal September , 1971 ;

and the Protocol for the suppression of unlawful acts of violence at airports serving

international civil aviation, done at Montreal February , 1988, supplementary to the

above-mentioned Convention for the suppression of unlawful acts against the safety of civil

aviation ; and upon an exchange of notes indicating that the Government of the Republic of

Benin has completed these accessions and that the Parties have completed all necessary

internal procedures for entry into force of the Agreement .

IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective

Governments, have signed this Agreement .

DONE at Washington, this twenty-eighth day of November, 000, in duplicate, in the

English and French languages, each text being equally authentic .

FOR THE GOVERNMENT OF

THE REPUBLIC OF BENIN:

1

ANNEXI

Scheduled Air Transportation

Section 1

Routes

Airlines of each Party designated under this Annex shall, in accordance with the terms of

their designation, be entitled to perform scheduled international air transportation between

points on the following routes :

A.

Routes for the airline or airlines designated by the Government of the United States :

1 .

From points behind the United States via the United States and intermediate points to

a point or points in Benin and beyond .

.

For all-cargo service or services, between Benin and any point or points .

B.

Routes for the airline or airlines designated by the Government of Benin :

1 .

From points behind Benin via Benin and intermediate points to a point or points in

the United States and beyond.

.

For all-cargo service or services, between the United States and any point or points.

Section

Operational Flexibility

Each designated airline may, on any or all flights and at its option :

1 .

operate flights in either or both directions ;

.

combine different flight numbers within one aircraft operation ;

.

serve behind, intermediate, and beyond points and points in the territories of the

Parties on the routes in any combination and in any order ;

.

omit stops at any point or points ;

.

transfer traffic from any of its aircraft to any of its other aircraft at any point on the

routes ; and

6 .

serve points behind any point in its territory with or without change of aircraft or

flight number and may hold out and advertise such services to the public as through services ;

I

1

without directional or geographic limitation and without loss of any right to carry traffic

otherwise permissible under this Agreement ; provided that, with the exception of all-cargo

services, the service serves a point in the territory of the Party, designating the airline .

Section

Change of Gauge

On any segment or segments of the routes above, any designated airline may perform

international air transportation without any limitation as to change, at any point on the route,

in type or number of aircraft operated ; provided that, with the exception of all-cargo

services, in the outbound direction, the transportation beyond such point is a continuation of

the transportation from the territory of the Party that has designated the airline and, in the

inbound direction, the transportation to the territory of the Party that has designated the

airline is a continuation of the transportation from beyond such point .

ANNEX II

Charter Flights

Section 1

Airlines of each Party designated under this Annex shall, in accordance with the terms of

their designation, have the right to carry international charter traffic of passengers (and their

accompanying baggage) and/or cargo (including, but not limited to, freight forwarder, split,

and combination (passenger/cargo) charters) :

Between any point or points in the territory of the Party that has designated the airline and

any point or points in the territory of the other Party ; and

Between any point or points in the territory of the other Party and any point or points in a

third country or countries, provided that, except with respect to cargo charters, such service

constitutes part of a continuous operation, with or without a change of aircraft, that includes

service to the homeland for the purpose of carrying local traffic between the homeland and

the territory of the other Party .

In the performance of services covered by this Annex, airlines of each Party designated

under this Annex shall also have the right : (1) to make stopovers at any points whether

within or outside of the territory of either Party ; ( ) to carry transit traffic through the other

Party's territory; ( ) to combine on the same aircraft traffic originating in one Party's

territory, traffic originating in the other Party's territory, and traffic originating in third

countries ; and ( ) to perform international air transportation without any limitation as to

change, at any point on the route, in type or number of aircraft operated; provided that,

except with respect to cargo charters, in the outbound direction, the transportationbeyond

such point is a continuation of the transportation from the territory of the Party that has

designated the airline and in the inbound direction, the transportation to the territory of the

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Party that has designated the airline is a continuation of the transportation from beyond such

point .

Each Party shall extend favorable consideration to applications by airlines of the other Party

to carry traffic not covered by this Annex on the basis of comity and reciprocity .

Section

Any airline designated by either Party performing international charter air transportation

originating in the territory of either Party, whether on a one-way or round-trip basis, shall

have the option of complying with the charter laws, regulations, and rules either of its

homeland or of the other Party . If a Party applies different rules, regulations, terms,

conditions, or limitations to one or more of its airlines, or to airlines of different countries,

each designated airline shall be subject to the least restrictive ofsuch criteria.

However, nothing contained in the above paragraph shall limit the rights of either Party to

require airlines designated under this Annex by either Party to adhere to requirements

relating to the protection of passenger funds and passenger cancellation and refund rights .

Section

Except with respect to the consumer protection rules referred to in the preceding paragraph

above, neither Party shall require an airline designated under this Annex by the other Party,

in respect of the carriage of traffic from the territory of that other Party or of a third country

on a one-way or round-trip basis, to submit more than a declaration of conformity with the

applicable laws, regulations and rules referred to under section of this Annex or of a

waiver of these laws, regulations, or rules granted by the applicable aeronautical authorities .

ANNEX III

Principles of Non-Discrimination Within

and Competition among Computer Reservations Systems

Recognizing that Article 11 (Fair Competition) of this Agreement guarantees the airlines of

both Parties "a fair and equal opportunity to compete,"

Considering that one of the most important aspects of the ability of an airline to compete is

its ability to inform the public of its services in a fair and impartial manner, and that,

therefore, the quality of information about airline services available to travel agents who

directly distribute such information to the traveling public and the ability of an airline to

offer those agents competitive computer reservations systems (CRSs) represent the

foundation for an airline's competitive opportunities, and

Considering that it is equally necessary to ensure that the interests of the consumers of air

transport products are protected from any misuse of such information and its misleading

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presentation and that airlines and travel agents have access to effectively competitive

computer reservations systems :

1 .

The Parties agree that CRSs will have integrated primary displays for which :

a. Information regarding international air services, including the construction of

connections on those services, shall be edited and displayed based on non-discriminatory

identity . Such criteria shall apply uniformly to all participating airlines.

b . CRS data bases shall be as comprehensive as possible,

c . CRS vendors shall not delete information submitted by participating airlines ; such

information shall be accurate and transparent ; for example, code-shared and change-ofgauge

flights and flights with stops should be clearly identified as having those

characteristics .

d. All CRSs that are available to travel agents who directly distribute information

about airline services to the traveling public in either Party's territory shall not only be

obligated to, but shall also be entitled to, operate in conformance with the CRS rules that

apply in the territory where the CRS is being operated .

e . Travel agents shall be allowed to use any of the secondary displays available

through the CRS so long as the travel agent makes a specific request for that display .

.

A Party shall require that each CRS vendor operating in its territory allow all airlines

willing to pay any applicable non-discriminatory fee to participate in its CRS . A Party shall

require that all distribution facilities that a system vendor provides shall be offered on a nondiscriminatory

basis to participating airlines . A Party shall require that CRS vendors

display, on a non-discriminatory, objective, carrier-neutral and market-neutral basis, the

international air services of participating airlines in all markets in which they wish to sell

those services . Upon request, a CRS vendor shall disclose details of its data base update and

storage procedures, its criteria for editing and ranking information, the weight given to such

criteria, and the criteria used for selection of connect points and inclusion of connecting

flights .

.

CRS vendors operating in the territory of one Party shall be entitled to bring in,

maintain, and make freely available their CRSs to travel agencies or travel companies whose

principal business is the distribution of travel-related products in the territory of the other

Party if the CRS complies with these principles .

.

Neither Party shall, in its territory, impose or permit to be imposed on the CRS

vendors of the other Party more stringent requirements with respect to access to and use of

communication facilities, selection and use of technical CRS hardware and software, and the

technical installation of CRS hardware, than those imposed on its own CRS vendors .

J

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.

Neither Party shall, in its territory, impose or permit to be imposed on the CRS

vendors of the other Party more restrictive requirements with respect to CRS displays

(including edit and display parameters), operation, or sale than those imposed on its own

CRS vendors .

6 .

CRSs in use in the territory of one Party that comply with these principles and other

relevant non-discriminatory regulatory, technical, and security standards shall be entitled to

effective and unimpaired access in the territory of the other Party . One aspect of this is that

a designated airline shall participate in such a system as fully in its homeland territory as it

does in any system offered to travel agents in the territory of the other Party .

Owners/operators of CRSs of one Party shall have the same opportunity to own/operate

CRSs that conform to these principles within the territory of the other Party as do

owners/operators of that Party . Each Party shall ensure that its airlines and its CRS vendors

do not discriminate against travel agents in their homeland territory because of their use or

possession of a CRS also operated in the territory of the other Party .