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

designated airlines of one Party the right of embarking, in the territory of the other

Party, traffic carried for remuneration or hire and destined for another point in the

territory of that Party

4. If the designated airlines of one Party are unable to operate services on its

normal routing because of armed conflict, political disturbances, or special and

unusual circumstances the other Party shall make its best efforts to facilitate the

continued operation of such service through appropriate rearrangements of such

routes, including the grant of rights for such time as may be necessary to facilitate

viable operations. This provision shall be applied without discrimination between the

designated airlines of the Parties.

ARTICLE 3 DESIGNATION AND OPERATING AUTHORIZATION OF AIRLINES

1. Each Party shall have the right to designate one or more airlines for the

purpose of operating the agreed services on the routes specified in the Annex and to

withdraw or alter such designations. Those designations shall be made in writing and

shall be transmitted to the other Party through diplomatic channels.

2. On receipt of such a designation, and of applications from a designated airline,

in the form and manner prescribed for operating authorisations and technical

permissions, the other Party shall, subject to Article 4, grant the appropriate

authorisations and permissions with minimum procedural delay, provided that :

a) In the case of an airline designated by the Portuguese Republic;

(i) It is established in the territory of the Portuguese Republic under the EU

Treaties and has a valid operating license in accordance with the

European Union Law; and

(ii) Effective regulatory control of the airline is exercised and maintained by

the EU Member State responsible for issuing its air operator's certificate

and the relevant aeronautical authority is clearly identified in the

designation, and

(iii) The airline has its principal place of business in the territory of the EU

Member State from which it has received the valid operating licence; and

(iv) The airline is owned, directly or through majority ownership, and is

effectively controlled by EU Member States and/or by EFTA States

and/or by nationals of such EU Member States and/or EFTA States.

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