8. Neither Party shall provide or permit state subsidy or support for or to its designated airline or
airlines in such way that would adversely affect the fair and equal opportunity of the airlines of
the other Party to compete in providing international air transportation.
9. State subsidy or support means the provision of support on a discriminatory basis to a
designated airline, directly or indirectly, by a State or by a public or private body designated or
controlled by the State. Without limitation, it may include the setting-off of operational losses; the
provision of capital, non-refundable grants or loans on privileged terms; the granting of financial
advantages by forgoing profits or the recovery of sums due; the forgoing of a normal return on
public funds used; tax exemptions; compensation for financial burdens imposed by the public
authorities; or discriminatory access to airport facilities, fuels or other reasonable facilities
necessary for the normal operation of air services.
10. Where a Party provides state subsidy or support to a designated airline in respect of services
operated under this Agreement, it shall require that airline to identify the subsidy or support clearly
and separately in its accounts.
11. In the event that the aeronautical authorities of the Parties fail to agree upon the capacity, or
if concerns arise regarding competition, as referred to in this Article, the matters shall be dealt
with in accordance with Article 18 of this Agreement.
APPROVAL OF SCHEDULES
The designated airlines of each Party shall submit their envisaged flight schedules for approval
to the aeronautical authorities of the other Party at least sixty (60) days prior to the introduction
of the agreed new services on the specified routes. Any modification to such schedules shall also
be submitted to the aeronautical authorities of the other Party for approval at least thirty (30) days
in advance. In special cases this time limit may be reduced subject to the consent of the said
II SÉRIE-A — NÚMERO 88_________________________________________________________________________________________________________________