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Law Approving The Agreement Of Air Transport Between The European Community And Its Member States, Of The One Part, And The United States Of America, On The Other Hand, Made In Brussels On 25 April 2007 And In Washington April 30, 2007 (1) (2).

Original Language Title: Loi portant assentiment à l'Accord de transport aérien entre la Communauté européenne et ses Etats membres, d'une part, et les Etats-Unis d'Amérique, d'autre part, faits à Bruxelles le 25 avril 2007 et à Washington le 30 avril 2007 (1) (2)

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belgiquelex.be - Carrefour Bank of Legislation

25 FEBRUARY 2013. - An Act to approve the Air Transport Agreement between the European Community and its Member States, on the one hand, and the United States of America, on the other hand, made in Brussels on 25 April 2007 and in Washington on 30 April 2007 (1) (2)



ALBERT II, King of the Belgians,
To all, present and to come, Hi.
The Chambers adopted and We sanction the following:
Article 1er. This Act regulates a matter referred to in Article 77 of the Constitution.
Art. 2. The Air Transport Agreement between the European Community and its Member States, on the one hand, and the United States of America, on the other hand, made in Brussels on 25 April 2007 and in Washington on 30 April 2007, will take effect.
Promulgation of this law, let us order that it be clothed with the seal of the State and published by the Belgian Monitor.
Given in Brussels on 25 February 2013.
ALBERT
By the King:
Deputy Prime Minister and Minister for Foreign Affairs,
Trade and European Affairs,
D. REYNDERS
Deputy Prime Minister and Minister of the Interior,
Ms. J. MILQUET
The Secretary of State for Mobility,
Deputy Minister of the Interior,
Mr. WATHELET
Seen and sealed the state seal:
The Minister of Justice,
Ms. A. TURTELBOOM
____
Notes
(1) Session 2011-2012 and 2012-2013.
Senate.
Documents:
Bill tabled on 11 July 2012, No. 5-1707/1.
Report on behalf of the Commission, No. 5-1707/2.
Annales parlementaire :
Discussion, meeting of 8 November 2012.
Vote, meeting of 8 November 2012.
Room.
Documents:
Project transmitted by the Senate, No. 53-2491/1.
Report on behalf of the Commission, No. 53-2491/2.
Text adopted in plenary and subject to Royal Assent, No. 53-2491/3.
Annales parlementaire :
Discussion, meeting of 19 December 2012.
Vote, meeting of 20 December 2012.
(2) See Decree of the Flemish Region of 30 April 2009 (Moniteur belge du 22 juin 2009), Decree of the Walloon Region of 10 July 2013 (Moniteur belge du 31 juillet 2013), Order of the Brussels Capital Region of 21 December 2012 (Moniteur belge du 8 février 2013 - Ed. 2).
AERIEN TRANSPORT AGREEMENT
UNITED STATES D'AMERIQUE (hereinafter referred to as "the United States")
on the one hand, and
THE REPUBLIC OF AUTRICHE,
BELGIUM,
THE REPUBLIC OF BULGARIA,
THE REPUBLIC OF CHYPRE,
LA REPUBLIQUE TCHEQUE,
DANEMARK,
THE REPUBLIC OF ESTONIA,
THE REPUBLIC OF FINLAND,
THE FRENCH REPUBLIC,
THE GERMANY FEDERAL REPUBLIC,
LA REPUBLIQUE HELLENIQUE,
THE REPUBLIC OF HUNGARY,
IRILAND,
THE ITALIAN REPUBLIC,
THE REPUBLIC OF LETTONIA,
LA REPUBLIQUE DE LITUANIE,
LUXEMBOURG,
MALTE,
ROYAUME DES PAYS-BAS,
THE REPUBLIC OF POLAND,
THE PORTUGAISE REPUBLIC,
THE ROMANIA,
THE SLOVATIC REPUBLIC,
THE REPUBLIC OF SLOVENIA,
SPANISH ROY,
The SUEDE ROYAUME,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTH IRELAND,
parties to the Treaty establishing the European Community and Member States of the European Union (hereinafter referred to as "the Member States")
and the EUROPEAN COMMUNITY,
on the other hand,
ISSUES to promote an international air transport system based on competition between air carriers on a market subject to a minimum of state intervention and regulation;
ISSUES to promote the growth of international air transport, including through the development of air services networks that meet the needs of passengers and service shippers;
ISSUES to allow air carriers to offer competitive rates and services to passengers and shippers in open markets;
ISSUES to take advantage of the benefits of a liberalization agreement to the entire air transportation sector, including air carrier personnel;
REQUESTS to ensure the highest level of safety and security in international air transport, and reaffirming their deep concern at acts and threats against the safety of aircraft, which endanger the safety of persons and goods, hinder the proper operation of air services and undermine public confidence in the security of civil aviation;
NOTING ACTE of the Convention on International Civil Aviation, opened for signature in Chicago on 7 December 1944;
RECOGNIZING that State aids may distort competition between air carriers and jeopardize the achievement of the fundamental objectives of this Agreement;
Acknowledging the importance of protecting the environment as part of the development and implementation of international aviation policy;
Acknowledging the importance of protecting consumers, in particular within the meaning of the Convention for the Unification of Certain International Air Transport Rules, signed in Montreal on 28 May 1999;
AYANT INTENTION to rely on existing agreements to open markets and maximize benefits to consumers, air carriers, personnel and populations on both sides of the Atlantic;
RECOGNIZING the importance of improving the access of air carriers to global capital markets in order to enhance competition and promote the objectives of this Agreement;
AYANT INTENTION to create a global precedent to fully exploit the benefits of liberalization in this critical economic sector;
AGAINST WHO ITS:
ARTICLE 1er
Definitions
For the purposes of this Agreement, unless otherwise provided, the following means:
1. The term "Agreement": this Agreement and its Annexes and Appendix, including any modifications;
2. The term "air service": the transportation by aircraft of passengers, baggage, goods and mail, either separately or jointly, offered to the public on an expensive basis;
3. The term "Convention": the Convention on International Civil Aviation, opened for signature in Chicago on 7 December 1944, which includes:
(a) any amendment applicable in this case which has entered into force in accordance with Article 94, paragraph (a), of the Convention, and ratified by the United States, on the one hand, and the Member State or the Member States concerned, on the other, and
(b) any annex, or amendment to an annex applicable to the present case, adopted under Article 90 of the Convention, to the extent that the annex or amendment applies at any time to both the United States and the Member State or the Member States concerned;
4. The term "full cost of return": costs associated with the provision of the service, plus a reasonable amount for general administrative expenses;
5. The term "international air service": an air service that crosses the airspace above the territory of more than one State;
6. The term "part": the United States, the European Community and its Member States;
7. The term "prices" means the rates, prices or royalties applied by air carriers or their agents for the carriage by aircraft of passengers, baggage and/or goods (excluding mail), including, where applicable, the transport of surface related to international air service, as well as the conditions governing the availability of such tariffs, prices or royalties;
8. The term "non-commercial port of call" means a landing made at an end other than the boarding or landing of passengers, baggage, goods and/or air mail;
9. The term "territory": in the case of the United States, the terrestrial regions (continent and islands), as well as the inland waters and territorial waters under their sovereignty or jurisdiction, and, in the case of the European Community and its member States, the terrestrial regions (continent and islands), as well as the inland waters and territorial waters covered by the Treaty establishing the European Community, in accordance with the provisions of the latter and any subsequent agreement; the application of this agreement at the airport of Gibraltar is without prejudice to the respective legal positions of the Kingdom of Spain and the United Kingdom with respect to their dispute over sovereignty over the territory where the airport is located, and to the maintenance of the suspension of the application at the airport of Gibraltar of the measures for the liberalization of air transport in force on 18 September 2006 between the Member States, in accordance with the ministerial declaration concerning the Gibraltar airport adopted at Cordou and
10. The term "use royalty": a charge imposed on air carriers for the use of airport facilities and services, airport environment, air navigation or aviation safety, including related services and facilities.
ARTICLE 2
Possibility of fair and fair competition
Each party offers air carriers of both parties the opportunity to compete fairly and fairly in the provision of international air services governed by this Agreement.
ARTICLE 3
Granting of rights
1. Each party grants the following rights to the other party for the operation of international air services by the air carriers of the other party:
(a) the right to overflight its territory without landing;
(b) the right to make non-commercial stopovers in its territory;
(c) the right to operate international air services between points on the following routes:
(i) in the case of United States carriers (hereinafter referred to as "United States carriers"): from points below the United States, via the United States and intermediate points, to any point or points of one or more Member States and beyond; for all-cargo services, between any Member State and any point or points (including any other Member State);
(ii) in the case of the carriers of the European Community and its member States (hereinafter referred to as "community carriers"): from points below the Member States, via the Member States and intermediate points, to any point or points in the United States and beyond; for all-cargo services, between the United States and any point or points; for mixed services, between any point or points in the United States and any point or points of any member of the European Common Air Area (hereinafter referred to as the "EACE") on the date of signing this Agreement; and
(d) other rights specified in this Agreement.
2. Each air carrier may, on any or all of its flights and at its convenience:
(a) operate flights in either direction or in both directions;
(b) combine different flight numbers on the same aircraft;
(c) serve the points below, the intermediate points and beyond, and the points within the territory of the parties, in any combination and any order;
(d) omit stopovers into one or more points;
(e) transfer from traffic of any of its aircraft to any of its other aircraft at any point;
(f) serve points below any point in its territory with or without a change in aircraft or flight number, and offer these services to the public as direct services;
(g) make stops on the road at any point located on or outside the territory of one of the parties;
(h) transit traffic through the territory of the other party; and
(i) combine traffic on board the same aircraft independently of the origin of the aircraft;
without limitation of direction or geographic order and without loss of any right to transport traffic otherwise authorized under this Agreement.
3. The provisions of paragraph 1er of this section shall apply provided that:
a) in the case of United States carriers, with the exception of all-cargo services, transportation is part of a service serving the United States, and
(b) in the case of community carriers, with the exception (i) of all-cargo and (ii) mixed services between the United States and any member of the EEACE on the date of the signing of this Agreement, transport shall be part of a service serving a Member State.
4. Each party authorizes each air carrier to define the frequency and capacity of the international air service that it wishes to offer on the basis of commercial market considerations. Under this right, none of the two parties unilaterally limit the volume of traffic, frequency or regularity of services, the type or types of aircraft operated by the air carriers of the other party or require the deposit of their scheduled or chartered flight programs or operating plans, except for customs, technical, operational or environmental reasons (in accordance with Article 15 of the Convention)
5. Any air carrier providing an international air service is free to change, at any point, the type or number of aircraft it uses, provided that (a) in the case of United States carriers, with the exception of all-cargo services, the carriage is part of a service serving the United States, and (b) in the case of community carriers, with the exception (i) of all-cargo and ii services
6. Nothing in this Agreement shall be construed as conferring:
(a) to the carriers of the United States, the right to board passengers, baggage, goods or mail to another point in the territory of the said Member State on an expensive basis;
(b) to community carriers, the right to board passengers, baggage, goods or mail to another point in the territory of the United States on an expensive basis.
7. Access by community carriers to transportation services purchased by the U.S. public authorities is governed by Appendix 3.
ARTICLE 4
Authorization
Upon receipt of applications by an air carrier of one of the parties, in the forms prescribed for operating authorizations and technical approvals, the other party shall grant appropriate authorizations and approvals as soon as possible, provided that:
(a) in the case of an air carrier in the United States, a substantial portion of the ownership and effective control of that air carrier shall be in the hands of the United States, United States nationals, or both, and the carrier shall hold a United States air carrier licence and have its principal place of business in the territory of the United States;
(b) in the case of a community carrier, a substantial portion of the ownership and effective control of that air carrier shall be in the hands of one or more Member States, nationals of that or both Member States, and that the carrier be licensed as a community air carrier and have its principal place of business in the territory of the European Community;
(c) the air carrier is able to meet the conditions set out in the legislation and regulations that are normally applied in the operation of international air services by the party reviewing the application(s); and
(d) the provisions of Article 8 (Security) and Article 9 (Security) shall be maintained in force and applied.
ARTICLE 5
Revocation of operating authorization
1. Each of the parties reserves the right to revoke, suspend or limit operating authorizations or technical approvals, or to suspend or otherwise limit the activities of an air carrier of the other party, where:
(a) in the case of a United States carrier, a substantial portion of the ownership and effective control of that air carrier are not in the hands of the United States, United States nationals, or both, or when the carrier is not licensed as an air carrier of the United States or does not have its principal place of business in the territory of the United States;
(b) in the case of a community carrier, a substantial portion of the ownership and effective control of that air carrier are not in the hands of one or more Member States, nationals of that or those Member States, or both, or when the carrier is not licensed as a community air carrier or has not its principal place of business in the territory of the European Community; or
(c) that air carrier violated the legislative and regulatory provisions referred to in Article 7 (Respect of the legislative and regulatory provisions) of this Agreement.
2. Unless immediate action is required to avoid further breaches of the provisions of paragraph 1 (c) of this article, the rights established by this article shall be exercised only after consultation with the other party.
3. This section does not restrict the rights of each party to refuse, revoke, limit or subject to conditions the authorization of operation or the technical approval of one or more air carriers of the other party in accordance with the provisions of Article 8 (Security) or Article 9 (Security).
ARTICLE 6
Additional issues related to property, investment and control
Notwithstanding any other provision of this Agreement, the parties shall implement the provisions set out in Schedule 4 when they make decisions under their respective laws and regulations relating to property, investment and control.
ARTICLE 7
Compliance with legislative and regulatory provisions
1. The legislative and regulatory provisions of a party governing on its territory the entry and exit of aircraft providing international air navigation, or governing the operation and navigation of such aircraft when they are on its territory, apply to aircraft used by air carriers of the other party and are observed by such aircraft when they enter the territory of the first part, when they are in or when they leave it.
2. During the entry and stay in the territory of one of the parties, as well as the exit of the party, the legislative and regulatory provisions governing the entry and exit of passengers, crew members or cargo on that territory (including those governing the entry formalities, leave, immigration, passports, customs and quarantine, or, in the case of mail, postal regulations) are complied with by passengers
ARTICLE 8
Security
1. The competent authorities of the parties shall recognize, for the purposes of the operation of the air services covered by this Agreement, the validity of the airworthiness certificates, aptitude certificates and licences issued or validated by the other party and shall remain in force, provided that the conditions for obtaining such certificates, patents and licences are equal to or greater than the minimum standards that may be established under the Convention. However, the competent authorities may refuse to recognize the validity, for the purpose of overflighting their own territory, of suitability patents and licences granted or validated for their own nationals by the authorities of the other party.
2. The competent authorities of one party may request consultations with the competent authorities of the other party regarding the safety standards applied by the latter concerning the aeronautical installations, crews, aircraft and the operation of air carriers monitored by the said authorities. These consultations take place within forty-five days of the date on which they were requested, unless the parties agree otherwise. If, as a result of these consultations, the competent authorities who requested them consider that the authorities of the other party do not maintain or effectively apply security standards and requirements at least equal to the minimum standards that may be established in these areas under the Convention, they shall inform the authorities of the other party of these findings and of the measures deemed necessary to comply with these minimum standards, and the authorities of the other party shall adopt the corrective measures that impose them. The competent authorities who requested consultations reserve the right to refuse, revoke or limit the authorization of operation or the technical approval of one or more air carriers whose authorities of the other party provide security control, in the event that the said authorities do not adopt the corrective measures requested within a reasonable time, and to take immediate action against the carrier(s) concerned, if
3. All requests and notifications made under this Article shall be communicated simultaneously to the European Commission.
4. Nothing in this section prevents the competent authorities of the parties from holding discussions on security, including the routine application of security standards and requirements or emergencies that may occur from time to time.
ARTICLE 9
Safety
1. In accordance with their rights and obligations under international law, the parties reaffirm that their mutual obligation to protect the safety of civil aviation from acts of unlawful intervention is an integral part of this Agreement. Without limiting the generality of their rights and obligations under international law, the parties act in particular in accordance with the following agreements: the Convention on Offences and Certain Other Acts Committed on board Aircraft, signed in Tokyo on 14 September 1963, the Convention for the Suppression of the Illicit Capture of Aircraft, signed in The Hague on 16 December 1970, the Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation, signed in Montreal on 23 September 1971,
2. The parties agree, upon request, with all necessary assistance to address any threat to the safety of civil aviation, including to prevent the unlawful capture of aircraft and other unlawful acts against the safety of such aircraft, passengers and crews, airports and air navigation facilities and services.
3. The parties shall act in their mutual relations in accordance with the provisions relating to aviation safety and appropriate recommended practices established by the International Civil Aviation Organization and designated as annexes to the Convention; They require operators of aircraft registered in their territory, aircraft operators who have their principal place of business or permanent residence in their territory, and airport operators located in their territory that they act in accordance with these aviation safety provisions.
4. Each party ensures that adequate measures are effectively applied in its territory to ensure the protection of aircraft, to inspect passengers, crews, cargo and cargo cargo and cargo on board, before and during boarding or loading, in proportion to the increase in the threat. Each party agrees that the safety provisions required by the other party for departure and during stay in its territory must be observed. Each party carefully examines any request from the other party to establish special security measures to deal with a particular threat.
5. While fully taking into account and respecting the sovereignty of the other party, a party may adopt security measures regarding entry into its territory. To the extent possible, this part takes into account the security measures already applied by the other party and the views expressed by the other party. However, each party acknowledges that no provision in this section limits the possibility, for a party, of refusing access to its territory of any flight that it considers to pose a threat to its security.
6. A party may take emergency measures, including the modification of the measures in force, to deal with a specific security threat. Such measures shall be notified immediately to the competent authorities of the other party.
7. The parties emphasize the importance of working together to adopt compatible practices and standards to enhance the safety of air transportation and to reduce the discrepancies between regulations. To this end, the parties fully operate and develop existing channels to discuss current and proposed security measures. The parties expect that the discussions will include, among other things, the new security measures proposed or envisaged by the other party, including the revision of security measures caused by a change of circumstance, the measures proposed by one of the parties to meet the security requirements of the other party, the possibilities of adapting the standards relating to the security measures of the aviation, and, finally, the compatibility of the parties These discussions should be used to promote early communication and pre-discussion of new safety initiatives and requirements.
8. Without prejudice to the need to take immediate action to ensure the safety of air transportation, the parties state that, in reviewing proposed security measures, each party assesses the potential negative effects on international air services and, unless required by law, takes these factors into account to determine what measures are necessary and appropriate to address safety concerns.
9. In the event of the unlawful capture or threat of capture of aircraft or other unlawful acts directed against the safety of passengers, crews, aircraft, airports or air navigation facilities and services, the parties shall mutually assist in facilitating communications and taking other appropriate measures to put an expeditious and safe end to this incident or to this threat of incident.
10. If one of the parties has reasonable grounds to consider that the other party has derogated from the provisions of this article in respect of aviation safety, the competent authorities of the first party may request the competent authorities of the other party from the immediate consultations. The impossibility of reaching a satisfactory agreement within fifteen days of the date of this application constitutes a ground to refuse, revoke, limit or subject to conditions the authorization of operation and the technical approvals of one or more air carriers of that party. In the event of an emergency, a party may take interim measures before the expiry of the fifteen-day period.
11. Regardless of the airport inspections undertaken to determine compliance with the aviation safety standards and practices referred to in paragraph 3, a party may request the cooperation of the other party in order to verify whether specific security measures taken by the latter meet the requirements of the requesting party. The competent authorities of the parties shall coordinate to establish in advance the list of the airports to be inspected and the dates of the inspections, and establish a procedure for the operation of the results of these inspections. Based on the results of the inspections conducted, the requesting party may decide that the security measures applied in the territory of the other party are of a level equivalent to those applied in its own territory, so that passengers, baggage and/or cargo in correspondence may be exempted from a new inspection in the territory of the requesting party. This decision is communicated to the other party.
ARTICLE 10
Commercial activities
1. The air carriers of each party have the right to establish offices in the territory of the other party for the purpose of promoting and selling air services and related activities.
2. Air carriers of each party are authorized, in accordance with the legislative and regulatory provisions of the other party in respect of entry, residence and employment, to enter and reside in the territory of the other part of the commercial, technical, management and operation personnel, or any other specialized personnel necessary to provide air services.
3. (a) Without prejudice to point (b) below, each air carrier has the right, in the territory of the other party:
(i) to provide its own port of call assistance services ("self-help") or, as appropriate,
ii) to choose from competing providers who provide port assistance in whole or in part, where the legislative and regulatory provisions of each party allow market access to these service providers and where such service providers are present on the market.
(b) The rights set out in (a), (i) and (ii) above are subject only to the specific space or capacity constraints resulting from the need to ensure the safe operation of the airport. Where such constraints hinder self-help, and in the absence of effective competition between service providers in port of call, all such services are made available to all air carriers under equal and appropriate conditions; the price of these services does not exceed their full cost of return, given a reasonable return rate on assets, after depreciation.
4. Every air carrier of each party is authorized to proceed with the sale of air services on the territory of the other party, directly and/or, as appropriate, through its agents or any other intermediary of its choice. Each air carrier has the right to sell this service, and any person is free to buy it, in the currency of the territory concerned or in any freely convertible currency.
5. Every air carrier has the right, if requested, to convert and transfer local revenues exceeding the expenditures made on site from the territory of the other party and to its national territory or, unless otherwise provided in the applicable legislative and regulatory provisions, from the country or country of its choice. The conversion and transfer of revenues shall be permitted promptly, without restrictions or taxes, at the current exchange rate on the date on which the carrier submits its initial transfer request.
6. Air carriers of each party are authorized to pay local currency expenses incurred in the territory of the other party (including for the purchase of fuel). They may, at their discretion, pay these expenses in a freely convertible currency, in accordance with national foreign exchange regulations.
7. Any air carrier of a party may, as part of the operation or delivery of air services under this Agreement, enter into commercial cooperation agreements, such as capacity-reservation or code-sharing agreements, with:
(a) any air carrier of the parties;
(b) any air carrier of a third country; and
(c) a surface carrier (land or maritime) of any country;
provided (i) that all participants in such agreements have appropriate authorizations and (ii) that such agreements meet the conditions prescribed by the legislative and regulatory provisions normally applied by the parties to the operation or delivery of international air services.
8. The air carriers of each party have the right to enter into agreements with companies, including air carriers, one of the parties or third countries, provided that air carriers have appropriate authorizations and meet the conditions prescribed by the legislative and regulatory provisions normally applied by the parties to such agreements. Appendix 5 applies to these agreements.
9. Air carriers of each party may enter into agreements for the provision of aircraft with crew for international air services with:
(a) any air carrier of the parties; and
(b) any air carrier of a third country;
provided that all participants in such agreements have appropriate authorizations and meet the conditions prescribed by the legislative and regulatory provisions normally applied by the parties to such agreements. None of the two parties require an air carrier of one of the parties that provides aircraft that it has traffic rights under this Agreement for the routes on which the aircraft will be operated.
10. Notwithstanding any other provision of this Agreement, the air carriers and the indirect cargo service providers of the parties shall be permitted, without restriction, to use in the international air services, any surface transport for the cargo to or from any point located in the territory of the parties or third countries, including the transport to or from any airport with customs facilities, and shall have the right, if any, to transport the prescribed cargo, This cargo, whether transported by surface or air, has access to airport registration operations and customs facilities. Carriers may choose to carry out their surface transport operations themselves, or to entrust them to other surface carriers, including to other air carriers or to indirect air freight service providers. These intermodal cargo services may be offered at a single flat rate covering combined air and surface transport, provided that shippers are not misleading as to the nature and modalities of such transport.
ARTICLE 11
Customs duties and taxes
1. On arrival in the territory of the other party, aircraft used by the air carriers of a party to provide international air services, as well as their normal equipment, equipment on the ground, fuels, lubricants, technical supplies consumables, spare parts (including engines), provisions on board (including, but not limited to, food, beverages and alcohols,
2. Taxes, duties, taxes and royalties referred to in paragraph 1 shall also be exempted on a reciprocal basis.er of this section, except for royalties calculated on the basis of the benefits provided:
(a) the on-board provisions introduced or provided on the territory of a party and, in reasonable quantities, on board an aircraft departing from a carrier of the other party providing international air services, even if such items are intended to be consumed on the part of the flight carried out above that territory;
(b) ground equipment and spare parts (including engines) introduced in the territory of a party for the maintenance, maintenance or repair of aircraft of an air carrier of the other party providing international air services;
(c) the fuel, lubricants and consumable technical supplies introduced or provided on the territory of a party to be used on aircraft belonging to an air carrier of the other party providing international air services, even if such supplies are intended to be used on the part of the flight carried out above that territory; and
(d) prints, in accordance with the customs legislation of each party, introduced or provided on the territory of a party and boarded on board an aircraft departing from an air carrier of the other party providing international air services, even if these items are intended to be used on the part of the flight carried out above the territory of the party in which they were boarded.
3. Equipment and supplies referred to in paragraphs 1 may be requireder and 2 of this article shall be under the supervision or control of the competent authorities.
4. The exemptions provided for in this section are also granted where the air carriers of a party have contracted with another air carrier, with the same exemptions from the other party, for the loan or transfer to the territory of the other party of the items referred to in paragraphs 1er and 2 of this article.
5. None of the provisions of this Agreement prohibits a party from applying taxes, duties, taxes or royalties on the sale of items not intended to be consumed on an aircraft on a part of the air service between two points located in its territory where boarding and landing is permitted.
6. When two or more Member States consider deleting the exemption under Article 14, paragraph 1er, point (b), of Council Directive 2003/96/EC of 27 October 2003 for the fuel supplied on their territory to the aircraft of the United States carriers, for flights between the said Member States, the Joint Committee shall consider this matter in accordance with Article 18, paragraph 4, item (e).
7. A party may request the assistance of the other party, on behalf of its air carrier(s), in order to obtain an exemption from taxes, taxes, fees and royalties collected by any federated, regional, or local authorities of substate level on the property referred to in paragraphs 1er and 2 of this section, as well as an exemption from fuel distribution charges, under the conditions set out in this section, except to the extent that these fees are based on the cost of the service provided. In response to such a request, the other party shall notify the competent authorities of the comments of the requesting party and recommend that they be duly taken into account.
ARTICLE 12
Claims for use
1. User fees that may be imposed by the competent authorities or agencies of a party to the air carriers of the other party are fair, reasonable, unjustly discriminatory and equitably distributed among the categories of users. In all cases, these user fees may not be imposed on air carriers of the other party on conditions less favourable than the most favourable conditions granted to another air carrier at the time of their imposition.
2. The usage charges imposed on air carriers of the other party may, without executing it, reflect the full cost of return assumed by the competent authorities or agencies for the provision of appropriate airport facilities and services, of airport environment, air navigation and aviation safety, at an airport or within an airport system. These user fees may include a reasonable return on assets after depreciation. Facilities and services that are subject to these royalties are provided on an efficient and economic basis.
3. Each party encourages consultations between the competent authorities or agencies in its territory and air carriers using services and facilities, and invites the competent authorities or agencies and air carriers to exchange the information necessary to allow for a precise review of the reasonableness of user fees, in accordance with the principles set out in paragraphs 1er and 2 of this article. Each party encourages the competent authorities to inform users, within a reasonable period of time, of any proposed amendments to user fees, in order to allow them to express their notice before the implementation of these amendments.
4. As part of the dispute resolution procedures set out in section 19, no party is considered to be in contravention of a provision of this section unless (a) it does not examine, within a reasonable time, a royalty or practice that is the subject of a complaint by the other party, or (b) as a result of such a review, it does not take all the measures in its power to amend a royalty or practice that is incompatible with this article.
ARTICLE 13
Rates
1. The rates of air services operated under this Agreement shall be freely established and shall not be subject to approval. Their deposit cannot be imposed.
2. Notwithstanding the provisions of paragraph 1er :
(a) the introduction or maintenance of the tariff that a United States air carrier intends to apply or applies to an international air service between a point in a Member State and a point in another Member State shall be consistent with the provisions of Article 1er, paragraph 3, of Council Regulation (EEC) No. 2409/92 of 23 July 1992, or a subsequent regulation that would not be more restrictive;
(b) pursuant to this paragraph, the air carriers of the parties shall permit the competent authorities of the parties making the request to have immediate access to the information regarding the tariffs in the past, the tariffs in force and the rates proposed for the introduction, in terms and in a manner acceptable to the said authorities.
ARTICLE 14
State subsidies and aids
1. The parties recognize that State subsidies and aids may distort fair and fair competition between air carriers for the provision of international air services governed by this Agreement.
2. If one of the parties considers that a subsidy or State aid that the other party envisages granting or granting to the air carriers of the latter would distort or distort fair and fair competition to the detriment of the air carriers of the first party, it may make representations to that party. It may also request a meeting of the Joint Committee, in accordance with section 18, to consider the matter and to provide appropriate responses to concerns deemed legitimate.
3. Each party may apply to the competent public authorities in the territory of the other party, including any federated, regional or local infra-state entities, if it considers that a subsidy or assistance envisaged or granted by these entities will have on competition the negative effects referred to in paragraph 2. If a party decides to establish these direct contacts, it shall promptly inform the other party through diplomatic channels. She may also request a meeting of the joint committee.
4. Issues raised under this section may include, for example, capital injections, cross-subsidies, donations, guarantees, property, tax reductions or exemptions from any public entity.
ARTICLE 15
Environment
1. The parties recognize the importance of protecting the environment as part of the development and implementation of the international aviation policy. They recognize that the costs and benefits of measures to protect the environment must be carefully weighed as part of the development of international aviation policy.
2. When a party examines projects for environmental protection, it should assess the potential negative effects on the exercise of the rights provided for in this Agreement and, if these measures are adopted, it should take appropriate measures to mitigate any potential negative effects.
3. When environmental protection measures are adopted, the environmental protection standards adopted by the International Civil Aviation Organization in the annexes to the Convention are met, except in cases where differences from these standards have been notified. The parties shall apply any environmental protection measures affecting the air services governed by this Agreement in accordance with Article 2 and Article 3, paragraph 4, of this Agreement.
4. If a party considers that an issue related to the protection of the environment in the context of aviation raises concerns about the application or implementation of this Agreement, it may request a meeting of the Joint Committee, in accordance with Article 18, to consider the matter and to provide appropriate responses to concerns deemed legitimate.
ARTICLE 16
Consumer protection
The parties affirm the importance of consumer protection; each party may request a joint committee meeting to discuss consumer protection issues that it considers important.
ARTICLE 17
Computerized reservation systems
1. Vendors of computerized reservation systems (IRS) operating in the territory of one of the parties have the right to install their IIRs, to maintain them and to make them available to travel agencies or tour operators whose main activity is to distribute products related to travel in the territory of the other party, provided that these IIRs comply with the regulatory requirements in force of the other party.
2. None of the parties impose or authorize the imposition, on its territory, of stricter rules on SIR suppliers of the other party than those imposed on its own SIR suppliers, with respect to SIR displays (including modification and display parameters), activities, practices, sales or ownership.
3. IIR owners or operators of a party that comply with the applicable regulatory requirements of the other party have the same opportunities to own IIRs on the territory of the other party as the owners or operators of the other party.
ARTICLE 18
Joint Committee
1. A joint committee composed of representatives of the parties shall meet at least once a year to consult and review the implementation of this Agreement.
2. Each party may also request the convening of a joint committee meeting to resolve issues relating to the interpretation or application of this agreement. However, with respect to the issues referred to in section 20 or Appendix 2, the Board may only consider matters relating to the refusal of one of the participants to implement the commitments and the impact of competition decisions on the application of this Agreement. The meeting shall be held as soon as possible and no later than 60 days after the date of receipt of the application, unless the parties agree otherwise.
3. The joint committee shall, at the latest at its first annual meeting and as necessary thereafter, consider the overall implementation of the agreement, including the possible effects of the airport infrastructure constraints on the exercise of the rights provided for in Article 3, the effects of the security measures taken under Article 9, the effects on the conditions of competition, particularly in the field of computerized reservation systems, as well as the possible social effects of the agreement
4. The joint committee also develops cooperation:
(a) promoting exchanges among experts on new initiatives and legislative and regulatory developments, including safety, security, environment, airport infrastructure (including time slots) and consumer protection;
(b) examining the social consequences of the agreement as applied, and providing appropriate responses to concerns deemed legitimate;
(c) considering areas that may be included in the agreement, or even recommending possible amendments to the agreement;
(d) holding an inventory of issues related to public subsidies or aids raised by either party in the joint committee;
(e) taking decisions by consensus on any issue relating to the application of Article 11, paragraph 6;
(f) by developing, within one year of the provisional application, lines of conduct relating to regulatory decisions relating to the citizenship and conformity of air carriers in order to obtain the mutual recognition of these decisions;
(g) developing a common understanding of the criteria used by the parties to make their respective decisions in the case of air carrier control, to a extent consistent with the confidentiality requirements;
(h) by encouraging consultation, where appropriate, on issues related to air transport in international organizations and in relations with third countries, including with a view to examining the opportunity to adopt a common approach;
(i) by consensus the decisions referred to in Article 1er, paragraph 3, and section 2, paragraph 3, of Schedule 4.
5. The parties share the objective of maximizing benefits to consumers, air carriers, workers and populations on both sides of the Atlantic by extending this agreement to third countries. To this end, the Joint Committee is working to develop a proposal on the conditions and procedures required, including any necessary amendments to this Agreement, for the accession of third countries to this Agreement.
6. The joint committee operates on the basis of consensus.
ARTICLE 19
Arbitration
1. Any dispute relating to the application or interpretation of this Agreement, unless it relates to matters referred to in section 20 or Schedule 2, which is not resolved by a meeting of the Joint Committee, may be submitted to a person or body for a decision by agreement of the parties. In the absence of agreement by the parties, the dispute shall, at the request of one of the parties, be subject to arbitration in accordance with the procedure set out below.
2. Unless the parties agree otherwise, arbitration shall be rendered by a court composed of three arbitrators and constituted as follows:
(a) within twenty days of receipt of an arbitration application, each party shall designate an arbitrator. Within forty-five days after the appointment of these two arbitrators, they shall jointly designate a third arbitrator, who shall serve as president of the court;
(b) if either party does not designate an arbitrator or the third arbitrator is not designated in accordance with paragraph (a) of this paragraph, either party may request the President of the Council of the International Civil Aviation Organization to make the necessary designation or designations within thirty days of the receipt of that request. If the President of the Council of the International Civil Aviation Organization is a national of the United States or a Member State, the most senior Vice-President of that Council to whom the reason for disqualification does not apply shall make such designation.
3. Unless otherwise agreed by the parties, the court shall determine the extent of its jurisdiction in accordance with this Agreement and establish its procedural rules. At the request of a party, the court may, after being constituted, request the other party to apply interim corrective measures pending its final decision. At the initiative of the court or at the request of one of the parties, a conference shall take place within a maximum period of fifteen days from the full constitution of the court so that the court determines the specific issues that must be the subject of the arbitration and the specific procedures to be followed.
4. Unless otherwise agreed by the parties or other court decisions:
(a) the statement of claim shall be submitted within thirty days of the full constitution of the court, and the defence brief shall be submitted forty days later. Any response from the applicant party shall be submitted within fifteen days after the presentation of the defence brief. Any response from the respondent party is submitted within fifteen days.
(b) The court shall hold a hearing, at the request of a party or its own initiative, within fifteen days of the filing of the last response.
5. The court shall endeavour to make a decision in writing within thirty days of the end of the hearing or, if no hearing has been held, within thirty days after the submission of the last reply. The court shall render its decisions to the majority of its members.
6. Parties may file requests for an explanation of the decision within 10 days of the decision; any explanation is given within fifteen days of this request.
7. If the court finds that there has been a violation of this agreement and that the party responsible for this violation does not remedy it or fails to reach, within forty days of the notification of the court's decision, a mutually acceptable agreement with the other party, the latter may suspend the application of comparable benefits arising out of this agreement, until the parties succeed in resolving the dispute. None of the provisions of this paragraph shall be construed as restricting the right of either party to take proportional measures in accordance with international law.
8. The costs of the court, including the remuneration and expenses of the arbitrators, are shared equally between the parties. Any expenses incurred by the President of the Council of the International Civil Aviation Organization, or by a Vice-President of that Council, as a result of the procedures referred to in paragraph 2, item (b), of this section shall be deemed to be part of the costs of the court.
ARTICLE 20
Competition
1. The parties recognize that competition between air carriers in the transatlantic market is important to promote the objectives of this Agreement, and confirm that they will apply their respective competition regimes in order to protect and strengthen overall competition, not specific competitors.
2. The parties recognize that differences affecting the transatlantic market may arise with respect to the application of their respective competition regimes to international air transport and that competition between air carriers in this market could be stimulated by a reduction in these differences.
3. The parties recognize that cooperation between their respective competition authorities contributes to stimulating competition in the markets and is likely to promote the compatibility of the results of the regulation and to minimize the differences in approach in the competition reviews of inter-transport agreements. This is why the parties deepen this cooperation to the extent possible, taking into account the differences between the responsibilities, competences and procedures of their authorities, in accordance with Annex 2.
4. The Joint Committee is informed annually of the results of the cooperation conducted in Appendix 2.
ARTICLE 21
Negotiations for a second step
1. The parties share the objective of continuing to open market access and maximizing benefits for consumers, air carriers, personnel and populations on both sides of the Atlantic, including by facilitating investments to better reflect the realities of the global aeronautical industry, by strengthening the transatlantic air transportation system and by establishing a framework that will encourage other countries to open their own air services markets. The parties shall enter into negotiations no later than sixty days after the date of provisional application of this Agreement for the speedy preparation of the next step.
2. To this end, the schedule of negotiations for a second stage includes the following points, which are of priority interest to either party:
(a) Continued liberalization of trafficking rights;
(b) opportunities for additional foreign investment;
(c) the impact of environmental measures and infrastructure constraints on the exercise of traffic rights;
(d) Improved access to government-funded air transport; and
(e) provision of aircraft with crew.
3. The parties shall review the progress they have made in the conclusion of a second-step agreement no later than eighteen months from the date on which the negotiations are to begin in accordance with paragraph 1er. If no second-step agreement is reached by the parties within twelve months of the commencement of this review, each party reserves the right to suspend the rights provided for in this Agreement. Such a suspension shall not take effect until the beginning of the IATA season (International Air Transport Association) which begins no later than twelve months after the date on which the suspension notification is given.
ARTICLE 22
Relations with other agreements
1. During the interim period provided for in Article 25 of this Agreement, the bilateral agreements listed in Section 1re Appendix 1re are suspended, except to the extent provided in section 2 of Schedule 1re.
2. When this Agreement comes into force pursuant to Article 26, it replaces the bilateral agreements listed in Section 1re of Schedule 1, except to the extent specified in Section 2 of Schedule 1re.
3. If the parties become parties to a multilateral agreement or apply a decision of the International Civil Aviation Organization or any other international organization dealing with aspects covered by this agreement, they consult with the Joint Committee to determine whether this agreement should be revised in the light of this situation.
ARTICLE 23
Denunciation
Each party may at any time notify the other party in writing, through diplomatic channels, of its decision to terminate this agreement. This notification is communicated simultaneously to the International Civil Aviation Organization. This agreement ends at midnight GMT at the end of the IATA season (International Air Transport Association) in progress one year after the written notification of the denunciation of the agreement, unless this notification is withdrawn by agreement between the parties before the expiry of this period.
ARTICLE 24
Registration to the International Civil Aviation Organization
This Agreement and all its amendments shall be registered with the International Civil Aviation Organization.
ARTICLE 25
Provisional application
Pending the entry into force under section 26:
(1) the parties agree to apply this Agreement from 30 March 2008;
(2) Each party may at any time notify the other party in writing by diplomatic means of its decision not to apply this Agreement. In this case, this application ends at midnight GMT at the end of the IATA season (International Air Transport Association) in progress one year after the written notification date, unless this notification is withdrawn by agreement between the parties before the expiry of this period.
ARTICLE 26
Entry into force
This Agreement comes into force one month after the date of the last note transmitted as part of an exchange of diplomatic notes between the parties to confirm that all procedures required for the entry into force of the Agreement have been completed. For the purpose of this exchange of notes, the United States gives the European Community the diplomatic note intended for the European Community and its member States, and the European Community gives the United States the diplomatic notes or notes of the European Community and its member States. The diplomatic notes or notes of the European Community and its Member States contain communications from each Member State confirming that the procedures necessary for the entry into force of this Agreement have been completed.
IN WITNESS WHEREOF the undersigned, duly authorized to do so, have signed this Agreement.
DONE in Brussels on April 25, 2007, and in Washington on April 30, 2007, in double copy.

Annex 1re
Section 1re
In accordance with the provisions of Article 22 of this Agreement, the following bilateral agreements between the United States and the Member States shall be suspended or replaced by this Agreement:
(a) Republic of Austria: Air Services Agreement signed in Vienna on 16 March 1989; amended on 14 June 1995.
(b) Kingdom of Belgium: air transport agreement, concluded by exchange of notes in Washington on 23 October 1980; amended on 22 September and 12 November 1986; amended on 5 November 1993 and 12 January 1994.
(Amendment entered into on 5 September 1995 (applied provisionally).)
(c) Republic of Bulgaria: Civil Aviation Safety Agreement signed in Sofia on 24 April 1991.
(d) Czech Republic: air transport agreement signed in Prague on 10 September 1996; amended on 14 June 2001 and 14 February 2002.
(e) Kingdom of Denmark: Air Transport Agreement, concluded by exchange of notes in Washington on 16 December 1944; amended on 6 August 1954; amended on 16 June 1995.
(f) Republic of Finland: Air Transport Agreement signed in Helsinki on 29 March 1949; Protocol signed on 12 May 1980; Agreement Amending the 1949 Agreement and the 1980 Protocol entered into on 9 June 1995.
(g) French Republic: Air Transport Agreement signed in Washington on 18 June 1998; amended on 10 October 2000; amended on 22 January 2002.
(h) Federal Republic of Germany: Air Transport Agreement signed in Washington on 7 July 1955; amended on 25 April 1989.
(protocol concluded on 1er November 1978; related agreement reached on 24 May 1994; protocol amending the 1955 agreement entered into on 23 May 1996; Agreement Amending the 1996 Protocol entered into on 10 October 2000 (all provisionally applied).)
(i) Hellenic Republic: Air Transport Agreement signed in Athens on 31 July 1991; extended until 31 July 2007 by exchange of notes of 22 and 28 June 2006.
(j) Republic of Hungary: Air Transport Agreement with Memorandum of Understanding signed in Budapest on 12 July 1989; extended until 12 July 2007 by exchange of notes from 11 and 20 July 2006.
(k) Ireland: Air Transport Agreement, issued by exchange of notes in Washington on 3 February 1945; amended on 25 January 1988 and 29 September 1989; amended on 25 July and 6 September 1990.
(protocol on consultations, signed in Washington, D.C. on October 28, 1993 (applied provisionally). )
(l) Italian Republic: air transport agreement, with protocol and exchange of notes, signed in Rome on 22 June 1970; amended on 25 October 1988; Memorandum of Understanding signed on 27 September 1990; amendments to the 1970 Agreement and the 1990 Memorandum of Understanding entered into on 22 November and 23 December 1991; amendments to the 1970 Agreement and the 1990 Protocol entered into on 30 May and 21 October 1997; agreement supplementing the 1970 agreement concluded on 30 December 1998 and 2 February 1999.
(protocol amending the 1970 agreement entered into on 6 December 1999 (applied provisionally). )
(m) Grand Duchy of Luxembourg: air transport agreement signed in Luxembourg on 19 August 1986; amended on 6 June 1995; amended on 13 and 21 July 1998.
(n) Malta: Air Transport Agreement signed in Washington on 12 October 2000.
(o) Kingdom of the Netherlands: Air Transport Agreement signed in Washington on 3 April 1957; Protocol Amending the 1957 Agreement, concluded on March 31, 1978; Amendment of the 1978 Protocol, concluded on 11 June 1986; amendment of the 1957 agreement, concluded on October 13 and December 22, 1987; amendment of the 1957 agreement, concluded on 29 January and 13 March 1992; Amendment of the 1957 Agreement and the 1978 Protocol, concluded on 14 October 1992.
(p) Republic of Poland: Air Transport Agreement signed in Warsaw on 16 June 2001.
(q) Portuguese Republic: Air Transport Agreement signed in Lisbon on 30 May 2000.
(r) Romania: air transport agreement signed in Washington on 15 July 1998.
(s) Slovak Republic: air transport agreement signed in Bratislava on 22 January 2001.
(t) Kingdom of Spain: air transport agreement signed in Madrid on 20 February 1973; related agreement of 20 February, 31 March and 7 April 1987; Amendment of the 1973 Agreement, concluded on 31 May 1989; Amendment of the 1973 agreement, concluded on 27 November 1991.
(u) Kingdom of Sweden: Air Transport Agreement, concluded by exchange of notes in Washington on 16 December 1944; amended on 6 August 1954; amended on 16 June 1995.
(v) United Kingdom of Great Britain and Northern Ireland: agreement on air services with exchange of letters signed in Bermuda on 23 July 1977; North Atlantic Air Tariff Agreement, signed on March 17, 1978; Agreement Amending the 1977 Agreement, entered into on 25 April 1978; Agreement amending and extending the 1978 North Atlantic Air Tariff Agreement, entered into on November 2, 1978; Agreement Amending the 1977 Agreement, entered into on 4 December 1980; Agreement Amending the 1977 Agreement, entered into on 20 February 1985; Agreement Amending Article 7, Schedule 2 and Schedule 5 to the 1977 Agreement, entered into on 25 May 1989; Agreement concerning the amendments to the 1977 Agreement, the termination of the arbitration between the United States and the United Kingdom concerning the royalties of use of the Heathrow Airport and the arbitration application filed by the United Kingdom in its embassy note No. 87 of 13 October 1993 and the settlement of matters leading to these proceedings, concluded on 11 March 1994; Agreement Amending the 1977 Agreement, entered into on 27 March 1997.
(arrangements, provisionally applied, contained in the Memorandum of Understanding on Consultations dated September 11, 1986; arrangements contained in the exchange of letters dated 27 July 1990; arrangements contained in the Memorandum of Understanding on Consultations of March 11, 1991; arrangements contained in the exchange of letters dated 6 October 1994; arrangements contained in the Memorandum of Understanding on Consultations of 5 June 1995; arrangements contained in the exchange of letters dated 31 March and 3 April 2000 (all provisionally applied). )
Section 2
Notwithstanding section 1 of this annex, with respect to areas not included in the definition of "territory" in Article 1 of this Agreement, the agreements referred to in (e) (Denmark-United States), (g) (France-United States), and (v) (United Kingdom) of that section shall remain applicable in accordance with their provisions.
Section 3
Notwithstanding Article 3 of this Agreement, United States carriers are not entitled to provide all-cargo services that are not part of a service serving the United States to or from points in the Member States, except to or from points located in the Czech Republic, the French Republic, the Federal Republic of Germany, the Grand Duchy of Luxembourg, Malta, the Republic of Portugal and the Slovak Republic.
Section 4
Notwithstanding any other provision of this Agreement, this section applies to mixed air transport, by regular and charter flights, between Ireland and the United States, with effect from the beginning of the 2006/2007 IATA winter season to the end of the 2007/2008 IATA winter season.
(a) (i) Each United States or community carrier can operate three non-stop flights between the United States and Dublin for each non-stop flight it operates between the United States and Shannon. This right to non-stop flights to/from Dublin is based on the average of flights throughout the transition period that spans three seasons. A flight is considered a non-stop flight to/from Dublin, or as a non-stop flight to/from Shannon if the corresponding airport constitutes the first entry point in Ireland or the last exit point in Ireland.
(ii) The requirement to serve Shannon under paragraph (a) (i) of this section shall end if any air carrier initiates a mixed service by regular or charter flights between Dublin and the United States, in either direction, without operating at least one non-stop flight to Shannon for three non-stop flights to Dublin, on average during the transition period.
(b) With respect to services between the United States and Ireland, community air carriers in the United States can only serve the cities of Boston, New York, Chicago, Los Angeles and three additional points to be notified in the United States when they choose or change. These services may include intermediate points in other Member States or third countries.
(c) Code sharing between Ireland and the United States is permitted only via other points in the European Community. Other code-sharing arrangements will be reviewed on a courtesy and reciprocity basis.

Annex 2
Concerning cooperation on competition issues in the air transport sector
Article 1er
The cooperation set out in this annex is implemented by the Ministry of Transport of the United States of America and the Commission of the European Communities (hereinafter referred to as "the participants"), as part of their respective functions, in relation to the treatment of competition problems in the air transport sector involving the United States and the European Community.
Article 2
Subject
The purpose of this cooperation is to:
1) to strengthen mutual understanding of the application by participants of laws, procedures and practices within their respective competition regimes in order to encourage competition in the air transport sector;
2) facilitate the understanding among participants of the impact of developments in the air transport sector on competition in the international air transport market;
3) to reduce the potential for conflict in the application by participants of their respective competition regimes to agreements and other cooperative arrangements that have an impact on the transatlantic market; and
4) promote regulation based on compatible approaches to cooperation agreements and other arrangements, through a better understanding of the methods and techniques of analysis, including the definition of the markets concerned and the analysis of the consequences for competition and the corrections that participants apply in their respective independent competition reviews.
Article 3
Definitions
For the purposes of this annex, the term "competition regime" includes the laws, procedures and practices that govern the exercise by participants of their respective functions regarding the review of agreements and other arrangements for cooperation between air carriers on the international market. For the European Community, the competition regime includes, without the exhaustive list, articles 81, 82 and 85 of the Treaty establishing the European Community and their implementing regulations under the said Treaty, as well as their possible amendments. With respect to the Ministry of Transport, the competition regime includes, without the exhaustive list, sections 41308, 41309, and 41720 of title 49 of the "United States Code", and its enforcement regulations and related jurisprudence.
Article 4
Areas of cooperation
Subject to the provisions of Article 5 (1), (a) and (b), cooperation among participants shall take the following forms:
1) meetings between participants' representatives, including competition experts, in principle on a semi-annual basis, to discuss developments in the air transport sector, issues of common interest in competition policy and methods of analysis for the application of competition law to international air transport, particularly in the transatlantic market. These discussions can lead to a better understanding of the participants' respective approaches to competition issues, including existing common areas, and increased compatibility of these approaches, including inter-transport agreements;
(2) consultations between the participants, organized at any time by mutual agreement or at the request of one of the participants, to discuss any issues related to this annex, including specific cases;
(3) each participant may, at his or her discretion, invite representatives of other government authorities to participate, where appropriate, in any meeting or consultation held under items (1) or (2) above;
(4) the timely notification of the following procedures or events that, according to the participant who makes this notification, may have significant implications for the interests of the other participant in the field of competition:
(a) on the part of the Ministry of Transport, (i) procedures for the review of applications for approval of agreements and other arrangements for cooperation between air carriers in the field of international air services, including requests for exemption from antitrust provisions involving air carriers constituted in accordance with the laws of the United States and the European Community, and (ii) the receipt by the Ministry of Transport of a joint application of a corporate agreement and
(b) on the part of the Commission of the European Communities, (i) procedures for the review of agreements and other arrangements for cooperation between air carriers in the field of international air services, including alliances and other cooperation agreements involving air carriers constituted in accordance with the laws of the United States and the European Community and (ii) the examination of exemptions, individually or by category, of the provisions of competition law of the European Union;
(5) the notification of the availability (and possible terms and conditions governing this availability) of information and data filed with a participant in electronic or other form, which, according to the participant, may have significant implications for the interests of the other participant in competition matters; and
(6) notification of other activities related to competition policy in the field of air transport, and a participant considers it useful to communicate.
Article 5
Use and disclosure of information
1. Notwithstanding any other provision of this Schedule, no participant is expected to provide information to the other participant if the disclosure of this information to the participant who requests it:
(a) is prohibited by the laws, regulations or practices of the participant who holds the information; or
(b) would be incompatible with important interests of the participant who holds the information.
2. To the extent possible, each participant shall maintain the confidentiality of any information that is transmitted to it by the other participant under this annex and refuses any request for the disclosure of this information to a third party without the consent of the participant who provided it. Participants caution each other when information that is proposed to be exchanged during discussions or in any other way may be required to be disclosed in a public proceeding.
3. When a participant provides the other participant, pursuant to this annex, with confidential information for the purposes specified in section 2, that information should be used only for that purpose by the participant who receives it.
Article 6
Implementation
1. Each participant shall designate a representative as the focal point for the activities set out in this annex.
2. This annex and all activities undertaken by a participant pursuant to this annex:
(a) are intended to be implemented only to the extent that they are consistent with all laws, regulations and practices applicable to the participant concerned; and
b) are intended to be implemented without prejudice to the agreement between the European Communities and the Government of the United States of America regarding the application of their competition rules.

Annex 3
Concerning transport services purchased by the United States public authorities
The air carriers of the Community have the right to transport passengers and cargo on regular or charter flights for which a service, agency or official civil organ of the United States (1) obtains the transport service for itself or in the framework of an agreement that the payment is made by the public authorities or from funds made available to the public authorities, or (2) provides the transport service to or on behalf of a third country This subsection does not apply to transportation services obtained or funded by the Secretary of Defence or by the Secretary of a military department.

Annex 4
On additional issues related to property, investment and control
Article 1er
Ownership of a party's air carriers
1. Nationals of one or more Member States are authorized to hold shares of an air carrier of the United States, subject to two limitations. First, all foreign nationals cannot hold more than 25% of the voting shares of a corporation. Secondly, foreign nationals are also not allowed to have real control of an air carrier in the United States. Subject to the total limitation of 25% applied to the detention by foreigners of voting shares:
(a) detention by nationals of one or more Member States:
(1) 25 per cent of voting shares; and/or
(2) 49.9 per cent of total capital;
a U.S. air carrier is not considered as a constitutive of a control of that carrier;
and
(b) the detention by nationals of one or more Member States of 50% or more of the total capital of a United States air carrier is not presumed to constitute a control of that carrier. Such detention is considered on a case-by-case basis.
2. U.S. nationals are authorized to own an air carrier of the Community, subject to two limitations. Firstly, member States and/or nationals of member States must be the majority owner of the said carrier. Secondly, the air carrier must be under the effective control of these States and/or those nationals.
3. For the purposes of Article 4, item (b), and Article 5, paragraph 1er, point (b), of this Agreement, a member of the EECCA on the date of signature of this Agreement and the citizens of that member shall be treated respectively as a Member State and as nationals of a Member State. The joint committee may decide that this provision applies to new EEA members and their citizens.
4. Notwithstanding the provisions of paragraph 2, the European Community and its Member States reserve the right to limit, with respect to the air carriers of the Community, investments in voting shares made by nationals of the United States after the signing of this Agreement to a level equivalent to that authorized by the United States for foreign nationals with respect to the air carriers of the United States, provided that the exercise of this international law is compatible.
Article 2
Ownership and control of air carriers of a third State
1. None of the parties shall exercise the rights that may arise from agreements with a third country with respect to air services to refuse, revoke, suspend or limit authorizations or approvals of an air carrier of that third country on the ground that a substantial portion of the ownership of that air carrier is in the hands of the other party, its nationals, or both.
2. The United States does not exercise the rights that may arise from agreements in the field of air services to refuse, revoke, suspend or limit authorizations or approvals of an air carrier of the Principality of Liechtenstein, the Swiss Confederation or a member of the EECCA on the date of signature of this Agreement, or of an African country that implements an "Open Area" agreement concluded with Member States, nationals of the said or such Member States, or both.
3. The joint committee may decide that none of the parties shall exercise the rights referred to in this section, paragraph 2, with respect to air carriers of one or more specified countries.
Article 3
Control of air carriers
1. The rules applicable in the European Community to the ownership and control of the air carriers of the Community are set out in Article 4 of Regulation (EEC) No 2407/92 of the Council of 23 July 1992 concerning the licences of the air carriers. Under these regulations, the issuance of an operating licence to an air carrier of the Community is the responsibility of the Member States. The Member States shall apply Regulation No. 2407/92 in accordance with their national regulations and procedures.
2. The rules applicable to the United States are set out in the U.S. Code (USC), heading 49, sections 40102(a)(2), 41102 and 41103, which imposes that the licences issued by the Ministry of Transport, be it a certificate, a derogation or a third-level transport licence, to an air carrier to provide "air services" as a public carrier, be held solely by citizens of the United States. According to this section, the president and two-thirds of the board of directors and other members of the board of directors of a society are U.S. citizens, at least 75% of the voting shares or ownership of U.S. citizens and the society is under the real control of U.S. citizens. This condition must be originally fulfilled by the applicant, and it is the responsibility of the licensed U.S. carrier to continue to respect it.
3. The terms and conditions used by each party to implement its legislative and regulatory provisions are specified in the appendix to this annex.
Appendix to Appendix IV
1. In the United States, the citizenship of air carriers applying for a third-level certificate, derogation or transport licence must be determined. A first licence application is registered in an official public registry and processed with statements registered by the applicant and any other party concerned. The Department of Transport makes a final decision with an order based on the official public data of the file, including documents that have been treated confidentially. A record that assesses ongoing compliance may be informally managed by the department or may be used in documented procedures similar to those used for initial applications.
2. The Department's decisions are based on a series of precedents that reflect, inter alia, the fluctuating nature of financial markets and investment structures, as well as the willingness of the Ministry of Transport to take into account new approaches to foreign investment that are in line with United States legislation. The Department of Transport is working with applicants to reflect on the proposed investment modalities and to assist them in developing transactions that comply fully with U.S. citizenship legislation, and applicants regularly consult with the Department of Transport before finalizing their applications. At any time before an official procedure is initiated, the Ministry of Transport may consider questions relating to citizenship or other aspects of the proposed transaction and suggest, where appropriate, solutions that would allow the proposed transaction to meet the obligations of U.S. citizenship legislation.
3. In order to make an initial decision as well as to ensure respect for citizenship and compliance obligations, the Ministry of Transport takes into account the complete situation of the United States air carrier, and the ministry's precedents have taken into account the nature of the relationship established in the airfield between the United States and the country(s) of origin of foreign investors. As part of this agreement, the Ministry of Transport will consider the investments of EU nationals at least as favourable as the investments of nationals from partner countries under a bilateral or multilateral "Open Sky" agreement.
4. With regard to the European Union, Article 4, paragraph 5, of Regulation No. 2407/92 states that the European Commission, acting at the request of a Member State, shall verify compliance with the conditions laid down in Article 4 and shall, where appropriate, decide. In deciding on such decisions, the Commission must ensure respect for procedural rights recognized as general principles of community law by the Court of Justice of the European Communities, including the right of interested parties to be heard in due course.
5. When it applies its laws and regulations, each party ensures that transactions in which nationals of the other party invest in one of its air carriers benefit from a fair and expeditious procedure.

ANNEX 5
Concerning the crossing and the mark
1. The air carriers of each party have the right to enter into agreements for franchising or branding, including in terms of the terms and conditions for the protection of the mark or operational matters, provided that they comply in particular with the legislative and regulatory provisions applicable to the control, that the air carrier's ability to exist outside the franchise is not endangered, that the agreement does not have the effect that the foreign carrier To the extent that these requirements are met, the air carriers of each party and foreign companies are allowed to establish close trade relations and to enter into cooperation agreements. Among the constituent elements of a franchise or brand agreement, the following elements, inter alia, should not as such, except in exceptional circumstances, raise control issues:
(a) use and display a brand or name specific to the franchisor, including stipulations on the geographic area in which the mark or name may be used;
(b) display on the aircraft of the franchisee the colours and logo of the franchisor brand, including the display, in a visible way, of such a mark or name or of such a logo or sign of similar identification on its aircraft or on the uniforms of its personnel;
(c) use and display the mark, name or logo on the airport facilities and equipment of the franchisee or within the framework of these facilities and equipment;
(d) apply customer service standards for marketing purposes;
(e) apply customer service standards designed to protect the integrity of the franchise mark;
(f) provide licence fees based on standard business conditions;
(g) provide for participation in loyalty programs for large travellers, including accumulation of benefits; and
(h) provide in the franchise or brand agreement the right of the franchisor or franchisee to denounce the agreement and withdraw the mark, provided that nationals of the United States or Member States retain control of the air carrier of the United States or the Community respectively.
2. The franchise and brand agreements, while co-existing with a code-sharing agreement, are independent of such an agreement, which presupposes that both air carriers have adequate authorization from the parties, as provided for in Article 10, paragraph 7, of this Agreement.
Joint statement
The representatives of the United States and the European Community and its Member States confirmed that the air transport agreement, which was signed in Brussels on 2 March 2007 and is scheduled to be signed on 30 April 2007, must be authenticated in other languages, according to the terms provided, either by exchange of letters before its signature or by a decision of the joint committee after its signature.
This joint statement is an integral part of the air transport agreement.

Air transport agreement between the European Community and its Member States, on the one hand, and the United States of America, on the other, and annexes, made in Brussels on 25 April 2007 and in Washington on 30 April 2007