Contracting Party is not satisfied that substantial ownership and effective control

of that airlines are vested in the Contracting Party designating the airline or in its

nationals.

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6. When an airline (s) has been so designated and authorized, it may at any time begin

to operate the agreed services, provided that a tariff established in accordance with

the provisions of Article (X) of the present Agreement is in force and an

agreement in accordance with the provisions of article (V) of the present

Agreement has been reached in respect of that service.

ARTICLE IV

SUSPENSION AND REVOCATION

1. Each Contracting Party shall have the right to suspend the operating authorization or

to suspend the exercise of the right specified in Article II of the present Agreement

by the airline (s) designated by the other Contracting Party, or to impose such

conditions as it may deem necessary on the exercise of these rights:

a. in any case where it is not satisfied that substantial ownership and effective

control of that airline (s) are vested in the Contracting Party designating the

airline (s) or in nationals of such Contracting Party, or

b. in the case of failure by that airline (s) to comply with the laws or

regulations of the Contracting Party granting these rights, or

c. in case the airline (s) otherwise fails to operate the agreed services in

the accordance with the airline) the conditions of the prescribed under the present Agreement.

2. Unless immediate revocation, suspension or imposition of the conditions

mentioned in paragraph (1) of this Article is essential to prevent further

s laws of laws or regulations, such right shall be exercised only after

With the other Contracting Party. In such a case of words shall

begin within a period of sixty (60) days from the date of request made by either

Contracting Party for example.

ARTICLE V

CAPACITY

1. The designated airline (s) of each Contracting Party shall, in all respect, enjoy fair

and equal opportunity for the carriage of international traffic between and beyond

the territories of the two parties.

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2. In operating the agreed services, the airline (s) of each Contracting Party shall take

into account the interest of the airline (s) of the other Contracting Party so as not to

affect unduly the services which the letter provides on the whole or part of the

same route.

3. The capacity to be provided, the frequency of services to be operable and the

nature of air service, that is, transiting through or terminating in the territory of the.

Contracting Parties shall be agreed between the aeronautical. authorities in

accordance with the principles of the principles laid down in this Article.

4. Any increase in the capacity to be provided or frequency of services to be operated

by the designated airline (s) of the other Contracting Party shall be agreed between

the aeronautical authorities on the basis of the estimated requirements of traffic

between the territories of the two parties and any other traffic to be involved agreed

and determined. Pending such agreement or settlement, the capacity and frequency

entitlements already in force shall prevail.

5. The capacity to be provided, the frequency of services to be operated and the

nature of air service, that is transiting through or terminating in the territory of the territory of the provisions of this

Article shall be specified in an exchange of letters between the aeronautical

authorities of the Contracting Party.

ARTICLE VI

CERTIFICATES AND LICENSES

1. Certificates of airworthiness, certificates of competency and licences issued or

Valid by one Contracting Party and still in force shall be recognized as

valid by the other Contracting Party for the purpose of operating the agreed

services on the specified routes in the Annex to this Agreement, provided that the

requirements under which such certificates and licences were issued or rendered

valid are equal to or above the minimum standrs which may be established

pursuant to the International Civil Aviation Convention.

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2. Each Contracting Party reserves the right, however, of refusing to recognize the

validity of the certificates of competency and the licences granted to its own

nationals by the other Contracting Party, for the purpose of overflying its own

territory.

ARTICLE VII

AVIATION SECURITY

1. Consistent with their rights and obligations under international law, the

Contracting Parties reafirm that their obligations to each other to protect the

security of civil aviation against acts of unlawful interference forms an integral role.

part of this Agreement. Without limiting the gererality of the rights and obligations

under international law, the Contracting Parties shall in particular act in conformity

with the provisions of the Convention on Offencaking on or putting down, on

international traffic, passengers, cargo and mail in accordance with the provisions

of the Annex to this Agreement, to or from the territory of either Contracting

Party.

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3. Nothing in paragraph (2) of this Article shall be deemed to confer on the airline (s)

of one Contracting Party the privilege of taking up in the territory of the other

Contracting Party, passengers, cargo or mail carried with or without remuneration

or hire and destined for another point in the territory of that Contracting Party.

4. The provisions of the provisions of paragraphs (1) and (2) of this Article the

operation of the agreed services in areas of hostilities or military occupation, or in

areas affected by the law, shall, in accordance with Antracting Parties and

confirmed by exchange of diplomatic notes.

ARTICLE XVII

CONFORMITY WITH MULTILATERAL CONVENTIONS

In the event of the conclusion of any general multilateral conventions concerning water

transport by which both Contracting Parties become bound, the present Agreement shall

be amended so as to conform with the provisions of such convention.

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ARTICLE XVIII

SETTLEMENT OF DISPUTES

1. If any dispute arises between the Contracting Parties to the interpretation or

application of this Agreement it shall be settled by direct cooperation in the spirit

of close cooperation and mutual understanding between aeronautical authorities of

both Contracting Parties.

In the case, where such direct settings are not successful, both Contracting

Parties shall settle the dispute through diplomatic channels. tue of this paragraph for more

than twelve months after the date on which it otherwise would have expired.

ARTICLE XI

FINANCIAL PROVISIONS

1. Subject to their foreign currency exchange control, each Contracting Party grants

the designated airline (s) of the other Contracting Party the right of free transfer of

the excess of receipts over expenditure, earned on its territory in connection with

the carriage of passengers, baggage, mail, freight by the designated airline (s) of the

other Contracting Party, in a freely convertible currency at the prevailing rate of

exchange. Transfer shall be effected immediately, at the latest within sixty (60)

days after the date of request.

2. Where a special payment agreement exists between the Contracting Parties,

payments shall be effected in accordance with the provision of that agreement.

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ARTICLE XII

TECHNICAL AND COMMERCIAL ACTIVITIES

Subject to the laws and regulations of the other Contracting Party, the designated airline

(5) of each Contracting Party shall have an equal opportunity:

1. to open its representation in the territory of the other Contracting Party and in this

purpose to enter, reside and employ in the other Contracting Party, or to bring in

and maintain in the territory of the other Contracting Party those of their own

managerial and other specialist staff who are required for the provision of air

services;

2. to issue all kinds of documents of carriage, and to advertise and to promote sales in

the territory of the other Contracting Party, to engage in the sale of air

transportation in that territory directly or at the airline discretion, through its

agents. Each airline shall have the right to sell such transportation in the currency.

of that territory or in freely convertible currencies of other countries, in accordance

with the monetary regulations of each Government.

ARTICLE XIII

LAWS AND REGULATIONS

1. The laws and regulations of each Contrcating Party controlling the admission to or

departure from its own territory of aircraft engaged in international air services or

related to the operation of aircraft while within its territory, shall be applied to the

aircraft of the designated airline (s) of the other Contracting Party.

2. The laws and regulations controlling the entry, stay and departure of passengers,

crew, baggage, mail and cargo, over the territory of each Contracting Party, and

also the regulations related to the requirements of entry and departure. from the

country, immigration, customs and sanitary rules, shall be applied in such territory

to the operations of the designated airline (s) of the other Contracting Party.

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ARTICLE XIV

COMPUTER RESERVATION SYSTEMS

1. A Computer Reservation Systems (CRS) means a computerized system containing

information about airline schedule (5) schedule, seat availability, fares and related services

and through which reservations can be made and/or tickets can be issued and

which makes some or all of these facilities available to travel agents.

2. Contracting Parties agree that:

a. the interest of cunsumers of air transport products will be protected from

any misuse of such information including misleading presentation companies;

b. the designated airline (s) of a Contracting Party and the airline's agents will

have unrestricted and non-discriminatory access to and use of the CRS (' s) in the

territory of the other Contracting Party;

c. in this respect the CRS-Code of Conduct adopted by the EEC will prevail in

the territory of the EEC, whereas in the territory of the other Contracting Party the

ICAO CRS-Code of Conduct will be corrected. Pending the adoption of this

ICAO Code of Conduct by the ICAO Assembly the ICAO Guidelines on CRS, as

published in ICAO Circular 214-AT/84, will apply in the territory of that other

Contracting Party.

3. A Contracting Party guarantees the CRS (' s) chosen as its primary system by the

designated carrier of the other Contracting Party free and unimpaired access in its

territory. Neither Contracting Party will, in its territory, impose or permit to be

imposed on the CRS of the designated carrier of the other Contracting Party more

stringent requirements than those imposed on the CRS of its own designated

carrier, such as with respect to:

a. the operation and sale of the CRS services including CRS display and

editing rules; and

b. the access to and use of communications facilities, selection and use of

technical hardware and software or software or the installation of hardware.

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ARTICLE XV

COMMAND

1. In a spirit of close co-operation, the Aeronautical Authorities of the Contracting

Parties shall consult each from time to time with a view to create the

implementation of, and closing compliance with, the provisions of the present

Agreement and the Annex thereto.

2. Such as include: such as shall begin within a period of sixty (60) days from the date of

receipt of the request, unless otherwise agreed by the Contracting Parties.

ARTICLE XVI

MODIFICATIONS

1. If either Contracting Party considers it desirable to be modified any of the provisions of

this Agreement, it may request consultation with the other Contracting Party. Such

consultation may be between the Aeronautical Authorities and may be conducted

by law or corespondence and shall begin within a period of sixty days (60) days

from the date of request. Any modifications so agreed to come into force when

they have been confirmed by an exchange of diplomatic notes.

2. Modification to the Annex to this Agreement may be made by direct agreement

between the competent Aeronautical Authorities of the Co

terms with paragraph (3) of this Article, these tariffs shall be considered as

approved. In the event of the period for submission being reduced, as provided for

in paragraph (3), the Aeronautical Authorities may agree that the period within

which any disapproval must be notified shall be less than thirty (30) days.

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5. If a tariff can not be agreed in accordance with paragraph (2) of this Article, or if, or if,

during the period it is held in accordance with paragraph (4) of this Article, one

Aerona

2. If the Contracting Parties fail to reach a settlement by negotiations, the dispute

may, at the request of either Contracting Party, be corrected for a decision to a

tribunal of three arbitrators, one to be nominated by each Contracting Party and the

third to be appointed by the two so nominated. Each of the Contracting Parties

shall nominate an arbitrator within a period of sixty (60) days from the date of

receipt by either Contracting Party from the other of a notice through the

diplomatic channel requesting The arbitration of the dispute, and the third arbitrator

shall be appointed within a further period of sixty (60) days. If either of the

Contracting Parties fails to nominate and arbitrator within the period specified, or

if the third arbitrator is not appointed within the period specified, the President of

the Council of the International Civil Aviation Organisation may be requested by

either Contracting Party to appoint an abitrator or arbitrators as the case requires.

3. The Contracting Parties undertakes to comply with any decision given under

paragraph (2) of this Article.

4. If and so long as either Contracting Party or a designated airline (s) of either

Contracting party fails to comply with a decision given under paragraph (2) of this

Article, the other Contracting Party may limit, withold or revoke any rights or

privileges which it has granted by virtue of the present Agreement to the

Contracting Party in default or to the designated airline or airlines of that

Contracting Party or to the designated airline (s) in default.

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ARTICLE XIX

EXCHANGE OF STATISTICAL DATA

The Aeronautical Authority of either Contracting Party shall supply to the Aeronautical

Authority of the other Contracting Party upon their request such informations or other

statements of statistics as may be reasonably required for the purpose of magnitude the

capacity provided on the agreed services by the designated airline (s) of the Contracting

Parties.

ARTICLE XX

TERMINATION

Either Contracting Party may at any time give written notice through diplomatic channels

to the other Contracting Party of its decision to terminate the present Agreement; such

notice. Shall be made available to the International Civil Aviation, the International Civil Aviation

Organization.

In such case the Agreement shall terminate twelve (12) months after the date of the notice

by the other Contracting Party, unless the notice to terminate is terminated by agreement

before the expiry of this period. In the absence of acknowledgement of receipt by the

other Contracting Party, notice shall be deemed to have been received fourteen (14) days

after the receipt of the notice by the International Civil Aviation Organization.

ARTICLE XXI

REGISTRATION

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

Civil Aviation Organization.

ARTICLE XXII

ENTRY INTO FORCE

This Agreement shall enter. into force on the first day of the second month after the

Contracting Parties have notified each other through diplomatic channels that the

procedures necessary for the entry into force of this Agreement have been completed.

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

the following Governments, have signed the present Agreements.

DONE in duplicate at Vientiane on this twentieth day of February in the year one

thousand nine hundred and ninety-seven, in the English language, both texts being equally

authentic.

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF THE GOVERNMENT

THE REPUBLIC OF INDONESIA LAO PEOPLE ' S DEMOCRATIC

REPUBLIC

ALI ALOVER SOMSAVAT LENGSAVAD

---------- ----------------------

Minister for Foreign Affairs Minister for Foreign Affairs

ANNEX

1. Section 1

Routers to be served by the designated airline (s) of the Republic of Indonesia in

both directions:

Points of Intermediate Points of Points

Departure Points Destination

Beyond

--------- ------------ ----------- -------

Points in Any (3) points Vientiane Any (3) Indonesia

points

2. Section II

Routers to be served by the designated airline (s) of the Lao PDR

Points of Intermediate Points of Points

Departure Points Destination Beyond

--------- ------------ ----------- ----------- -------

Points in Any (3) points Jakarta Any (3) Lao PDR

points

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3. The designated airline (s) of either Contracting Party may, on any or all flights omit

calling at any of the above points, provided that the agreed services on this route

start and terminate in the territory of that Contracting party;

4. The right of the designated airline (s) of either Contracting Party to transport

passengers, cargo and mail between the points in the territory of either Contracting

Party and the points in the territory of the Third Parties shall be subject to an

agreement between the Aeronautical Authorities of the Contracting Parties.