AEROCOMERCIAL TRANSPORT Decree 534/97 Amend the concept of authorized capacity, referred to in article 9 (b) of Act No. 19.030, which established basic principles of air policy in national and international order.

Bs. As., 11/6/97.

VISTO Issue No. 559-000149/97 of the Register of the MINISTERY of ECONOMY AND ARTWS AND PUBLIC SERVICES, and

CONSIDERING:

That Act No. 19,030, as amended by its similar No. 19,534, establishing the basic principles of air policy in national and international order, sets the promotion and protection of national and international air transport and its relationship with other countries as the guiding principle.

That the governing guideline of the said regime finds legal sustenance at the international level in its Article 9 as it gives preminence to the development of bilateral traffics, conditioning them in compliance with the principles of reciprocity and equal distribution for the transporters of both contracting countries.

That in referring to the possibility of granting increases in frequencies or capacities, the norm conditioned that the coefficient of occupation of the transporters of both countries in exercise of 3° and 4° liberties, taking a period of DOCE (12) months prior to the time of computing, exceeds the CINCUENTA and CINCO FOR SCIENTO (55 %) of the total authorized capacity.

There are situations where carriers authorized for bilateral traffic, exercising their rights on a particular route, in turn comply with the same aircraft, other traffics other than the one indicated.

It is necessary to clarify the concept of authorized capacity for the purpose of ensuring what is prescribed in the rule under review.

That by authorised capacity, the one that empowered the carrier to exercise its traffic rights, between the Argentine territory and a particular country, must be construed, the one that was authorized to comply with traffics with and between third States, even those that involve the foreign counterpart.

That the capacity thus determined is consistent with that which, at the request of the carrier, was authorized to affect the international traffic in question.

It is a priority for the National State to promote bilateral relations through the affirmation of policy guidelines that consolidate them.

Without prejudice to this, it is the obligation of the National State to respect and ensure the commitments and guarantees granted, preserving the interests of the users, the latter, which justifies their intervention.

That with the clarification given here, the principle of equal distribution is maintained and the operators are left to adapt their supply to the demand that arises from the market, diluting the concept of the authorized capacity, based on the effective disposition of the carrier for each traffic.

That the Permanent Legal Service of the MINISTERY OF ECONOMY AND ARTWORKS AND SERVICES PUBLICOS has taken the corresponding intervention.

That this act is given in the use of the powers conferred by Article 99(2) of the NATIONAL CONSTITUTION.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1-Please note that the capacity authorized between the Argentine territory and a particular country, referred to in Article 9 (b) of Act No. 19,030 as amended by its similar No. 19,534, is that by virtue of which the carrier is entitled to exercise its rights of 3rd and 4th freedoms, deduced that intake effectively in traffics carried out with third countries. Art. 2°-Contact, post, give to the National Directorate of the Official Register and archvese.- MENEM.- Jorge A Domínguez.- Roque B. Fernandez.