2006-(1O)

II SÉRIE-A — NÚMERO 70

other Contracting Party, offices for the promotion of

air transportation and sale of air tickets as well as other facilities required for the provision of air transportation.

2 — A designated airline of one Contracting Party shall be allowed to bring in and maintain in the territory of the other Contracting Party its managerial, commercial, operational and technical staff as it may require in connection with the provision of air transportation. These staff requirements may, at the option of a designated airline, be satisfied by its own personnel or by using the services of any other organization, company or airline operating in the territory of the other Contracting Party and authorized to perform such services in the territory of that Contracting Party. The above personnel shall be subject to the laws and regulations relating'to the admission to, and stay in, the territory of that Contracting Party.

3 — Each designated airline shall have the right to engage in the sale of air transportation in the territory of the other Contracting Party directly and, at its discretion, through its agents. Such airline shall have the right to sell such transportation and any person shall be free to purchase such transportation.

4 — Each designated airline shall have the right to convert and remit to its country on demand, at the official rate, of exchange, the excess of receipts over expenditures achieved in connection with the carriage of passengers and cargo. 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.

5 — The designated airlines of one Contracting Party shall have the right, at its discretion, to pay for local expenses in the territory of the other Contracting Party in local currency, or provided these accord with local currency regulations, in freely convertible currencies.

Article 10 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.

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 with the other airlines operating over the whole or part of the route, and such agreement shall, wherever possible, be reached by the use of the procedures of the International Air Transport Association for determining 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 neithe:: 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, 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, after consultation with the aeronautical authorities of any other State whose advice they consider useful, 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 provided for in article 17 («Settlement of disputes»).

7 — A tariff established in accordance with the provisions of this article shall remain in force until a new tariff has been established. Nevertheless, a tariff shall not be prolonged by virtue of this paragraph for more than 12 months after the date on which it otherwise would have expired.

Article 11 Capacity

1 — Each Contracting Party shall allow a fair and equal opportunity for the designated airlines of both Contracting Parties to compete in the international air transportation covered by this Agreement.

2 — The capacity to be provided by the designated airlines of each Contracting Party will bear a close re/a-tionship to the requirements of the public for transportation on the agreed routes and will have as its primary objective the provision, at a reasonable load factor, of capacity adequate to meet the current and reasonab/y anticipated requirements for the carriage of passengers and cargo between South Africa and Portugal.

3 — Prevision by designated airlines for the carriage of traffic originating in or destined for points on its specified routes in the territories of third countries shall be made in accordance with the general principles that capacity shall be related to:

a) The requirements of traffic originating in or destined for the territory of the Contracting Parry which has designated the airlines;

b) The traffic requirements of the area through which the airline passes, after taking account of local and regional services; and

c) The requirements of through airline operations.

4 — The capacity to be provided, in accordance with this article, by the designated airlines of both Contracting Parties, shall be submitted to the approval of the aeronautical authorities of both Contracting Parties.

Article 12 Flight schedules

The flight schedules of the agreed services and in general, the conditions of their operations, shall be submitted by the designated airlines 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 mod-