12 DE NOVEMBRO DE 1998

294-(105)

Article 12 Conversion and transfer of revenues

Each Contracting Party grants to the designated airline of the other Contracting Party the right of free transfer at the official rate of exchange, of the excess of receipts over expenditures achieved in connection with the carriage of passengers, baggage, cargo and mail. In the absence of the appropriate provisions of a payments agreement, the above mentioned transfer shall be made in convertible currencies and in accordance with the national laws and foreign exchange regulations applicable.

Article 13 Capacity

1 — There shall be fair and equal opportunity, and equal capacity entitlement, for the designated airlines of both Contracting Parties to operate the agreed services on the specified routes between their respective territories.

2 — In operating the agreed services, the designated airline of each Contracting Party shall take into account the interests of the designated airline of the other Contracting Party so as not to affect unduly the services which the latter provides on the whole or part of the same routes.

3 —The agreed services provided by the designated airline of the Contracting Parties shall bear a close relationship to the requirements of the public for transportation on the specified routes and shall have as their primary objective the provision, at a reasonable load factor, of capacity adequate to carry the current and reasonably anticipated traffic requirements, including seasonal variations for the carriage of passengers, baggage, cargo and mail between the territories of the Contracting Parties.

4 — The frequency and capacity shall be subject to the approval of the aeronautical authorities of both Contracting Parties. Such capacity shall be adjusted from time to time to traffic requirements and such adjustments shall also be submitted to the approval of the aeronautical authorities of both Contracting Parties.

5 —In the event that the aeronautical authorities of the Contracting Parties do not fall in agreement upon the capacity to be offered, the matter shall be dealt with in accordance with article 17 of this Agreement.

6 — If, on review, the aeronautical authorities of the Contracting Parties fail to agree on the capacity to be provided on the agreed services, the capacity that may be provided by the designated airlines of the Contracting Parties shall not exceed the total capacity, including seasonal variations, previously agreed to be provided.

Article 14 Approval of conditions of operation

1 — The flight schedules of the agreed services and in general the conditions of their operation shall be submitted by the designated airline of one Contracting Party .to the approval of the aeronautical authorities of the other Contracting Party at least 30 days before the intended date of their implementation. Any significant modification to such schedules or conditions of their operation shall also be submitted to the aeronautical authorities for approval. In special cases, the above

set time limit may be reduced subject to the agreement of the said authorities.

2 — For minor ad hoc modifications or in case of ad hoc supplementary flights, the designated airline of one Contracting Party shall request prior permission to the aeronautical authorities of the other Contracting Party, at least seven-working days before their intended operation. In special cases, this time limit may be reduced subject to agreement of the said authorities.

Article 15 Provision of statistics

The aeronautical authorities of one Contracting Party shall supply the aeronautical authorities of the other Contracting Party, at their request, with such statistics as may be reasonably required for the purpose of reviewing the capacity provided on the agreed services.

Article 16 Tariffs

1 — The tariffs to be charged by the designated airline of one Contracting Party for carriage to or from the territory of the other Contracting Party shall be established at reasonable levels, due regard being paid to all relevant factors, including cost of operation, reasonable profit and the tariffs of other airlines operating the whole or part of the same route.

2 — The tariffs referred to in paragraph 1 of this article shall, if possible, be agreed by the designated airlines of both Contracting Parties, after consultation, if necessary, with other airlines operating over the whole or part of the same route, and such agreement shall, wherever possible, be reached by the use of the procedures of the International Air Transport Association for the working out of tariffs.

3 — The tariffs so agreed shall be submitted for the approval of the aeronautical authorities of both Contracting Parties at least 45 days before the proposed date of their introduction. In special cases, this period may be reduced, subject to the agreement of the said authorities.

4 — This approval may be given expressly. If neither of the aeronautical authorities has expressed disapproval within 30 days from the date of submission, in accordance 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 of this article, the aeronautical authorities may agree that the period within which any disapproval must be notified shall be less than 30 days.

5 — If a tariff cannot be agreed in accordance with paragraph 2 of this article, or if, during the period applicable in accordance with paragraph 4 of this article, one aeronautical authority gives the other aeronautical authority notice of its disapproval of any tariff agreed in accordance with the provisions of paragraph 2, the aeronautical authorities of the two Contracting Parties shall endeavour to determine the tariff by mutual agreement.

6 — If the aeronautical authorities cannot agree on any tariff submitted to them under paragraph 3 of this article, or on the determination of any tariff under paragraph 5 of this article, the dispute shall be settled in accordance with the provisions of article 20 of this Agreement for the settlement of disputes.