AIR TRANSPORT AGREEMENT

BETWEEN

THE GOVERNMENT OF

THE UNITED STATES OF AMERICA

AND

THE GOVERNMENT OF

THE REPUBLIC OF CHAD

The Government of the United States of America and the

Government of the Republic of Chad (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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Article1

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 the Republic of Chad,

the Ministry of Public Works and Transport, and any

person or agency authorized to perform functions

exercised by the said Ministry ;

2 . "Agreement" means this Agreement, its Annexes, and

any amendments thereto ;

3 . "Air transportation" means the public carriage by

aircraft of passengers, baggage, cargo, and mail,

separately or in combination, for remuneration or hire ;

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

 

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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 .

Article2

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. theright 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 .

2 . 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 .

Article3

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 .

2 . 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 ;

 

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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) .

Article4

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 5 (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) .

2 . Unless immediate action is essential to prevent

further noncompliance with subparagraphs lb or lc of

this Article, the rights established by this Article

shall be exercised only after consultation with the

other Party .

3 . 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 5

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 .

2 . 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

 

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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 .

Article6

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 .

2 . 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 Party in the event the other

Party does not take such appropriate corrective action

within a reasonable time .

Article 7

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 14, 1963, the

 

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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

23, 1971, and the Protocol for the Suppression of

Unlawful Acts of Violence at Airports Serving

International Civil Aviation, done at Montreal February

24, 1988 .

2 . 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 .

3 . 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 .

4 . 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 . Each Party shall also give positive

consideration to any request from the other Party for

special security measures to meet a particular threat .

5 . 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 15 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

 

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emergency, a Party may take interim action prior to the

expiry of 15 days .

Article8

Commercial Opportunities

1 . 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 .

2 . 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 .

3 . 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 .

4 . Any airline of each Party may engage in the sale of

air transportation in the territory 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 .

5 . 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

 

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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 .

Article9

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 equipment, fuel, lubricants,

consumable technical supplies, spare parts (including

engines), 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

 

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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 (a)

imposed by the national authorities, and (b) not based

on the cost of services provided, provided that such

equipment and supplies remain on board the aircraft

.

2 . There shall also be exempt, on the basis of

reciprocity, from the taxes, levies, duties, fees and

charges referred to in paragraph 1 of this Article, with

the exception of charges based on the cost of the

service provided :

a . aircraft stores introduced into or supplied in

the territory of a 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 .

3 . Equipment and supplies referred to in paragraphs 1

and 2 of this Article may be required to be kept under

the supervision or control of the appropriate

authorities .

4 . 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

 

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the items specified in paragraphs 1 and 2 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 .

2 . 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 .

3 . 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 2 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 .

4 . Neither Party shall be held, in dispute resolution

procedures pursuant to Article 14, to be in breach of a

provision of this Article, unless (a) it fails to

undertake a review of the charge or practice that is the

subject of complaint by the other Party within a

reasonable amount of time ; or (b) following such a

review it fails to take all steps within its power to

remedy any charge or practice that is inconsistent with

this Article .

 

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Article11

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 .

2 . Each Party shall allow each designated airline to

determine the frequency and capacity of the

international air transportation it offers based upon

commercial 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 15 of the Convention .

3 . 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 .

4 . 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

2 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 .

Article12

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

 

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c . protection of airlines from prices that are

artificially low due to direct or indirect governmental

subsidy or support .

2 . Prices for international air transportation between

the territories of the Parties shall not be required to

be filed . Notwithstanding the foregoing, the designated

airlines of the Parties shall continue to provide

immediate access, on request, to information on

historical, existing, and proposed prices to the

aeronautical authorities of the Parties in a manner and

format acceptable to those aeronautical authorities .

3 . Neither Party shall take unilateral action to

prevent the inauguration or continuation of a price

proposed to be charged or charged by (i) an airline of

either Party for international air transportation

between the territories of the Parties, or (ii) an

airline of one Party for international air

transportation between the territory of the other Party

and any other country, 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 1 of this Article, it shall request

consultations and notify the other Party of the reasons

for its dissatisfaction as soon as possible . These

consultations shall be held not later than 30 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 .

Article13

Consultations

Either Party may, at any time, request consultations

relating to this Agreement . Such 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 14

Settlement of Disputes

1 . Any dispute arising under this Agreement, except

those that may arise under paragraph 3 of Article 12

(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

 

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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 .

2 . Arbitration shall be by a tribunal of three

arbitrators to be constituted as follows :

a . Within 30 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 30 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 .

3 . 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 conference to

determine the precise issues to be arbitrated and the

specific procedures to be followed shall be held not

later than 15 days after the tribunal is fully

constituted .

4 . Except as otherwise agreed or as directed by the

tribunal, each Party shall submit a memorandum within 45

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 15 days after replies are due .

5 . The tribunal shall attempt to render a written

decision within 30 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 15 days after it is rendered and

any clarification given shall be issued within 15 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 .

 

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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 2b of this Article shall be considered to

be part of the expenses of the arbitral tribunal .

Article 15

Termination

Either Party may, at any time, give notice in writing to

the other Party of its decision to terminate this

Agreement . Such notice shall be sent simultaneously to

the International Civil Aviation Organization . This

Agreement shall terminate at midnight (at the place of

receipt of the notice to the other Party) immediately

before the first anniversary of the date of receipt of

the notice by the other Party, unless the notice is

withdrawn by agreement of the Parties before the end of

this period .

Article16

Registration with ICAO

This Agreement and all amendments thereto shall be

registered with the International Civil Aviation

Organization .

 

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Article17

Entry into Force

This Agreement and its Annexes shall provisionally apply

on the date of signature and shall enter into force

after the two Parties have notified one another by

diplomatic note that they have completed their own

required internal legal 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 N'Djamena, Chad, this 31 day of ,

2006, in duplicate, in the English and French nguages,

each text being equally authentic .

FOR THE GOVERNMENT FOR THE GOVERNMENT

OF THE UNITED STATES OF THE REPUBLIC

OF AMERICA : OF CHAD :

MARC WALL ADOUM YOUNOUSMI

AMBASSADOR OF THE MINISTER OF STATE,

UNITED STATES MINISTER OF INFRASTRUCTURE

 

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ANNEXI

Scheduled Air Transportation

Section1

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

Chad and beyond .

2 . For all-cargo service or services, between Chad and

any point or points .

B . Routes for the airline or airlines designated by

the Government of Chad :

1 . From points behind Chad via Chad and intermediate

points to a point or points in the United States and

beyond .

2 . For all-cargo service or services, between the

United States and any point or points .

Section2

Operational Flexibility

Each designated airline may, on any or all flights and

at its option :

a. 1 . operate flights in either or both directions ;

2 . combine different flight numbers within one

aircraft operation ;

b. 3 . serve behind, intermediate, and beyond points and

points in the territories of the Parties on the

routes in any combination and in any order ;

a. 4 . omit stops at any point or points ;

b. 5 . 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

 

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may hold out and advertise such services to the

public as through services ;

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 .

Section3

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 Air Transportation

Section1

A . 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) :

1 . 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

2 . 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 .

B . 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

 

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of either Party ; (2) to carry transit traffic through

the other Party's territory ; (3) 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 (4) 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 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 .

C . 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 .

Section2

A . 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 of such

criteria .

B . 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 .

Section3

Except with respect to the consumer protection rules

referred to in the preceding paragraph, 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 2

of this Annex or of a waiver of these laws, regulations,

or rules granted by the applicable aeronautical

authorities .