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

and it is effectively controlled by Member States of the EU or the

European Free Trade Association and/or by nationals of such

States.

b) In the case of anairline designated by the Republic of Peru:

(i) It is established and has its headquarters in the territory

of the Republic of Peru, and has a valid Air Operator´s

Certificate in accordance with Peruvian law; and

(ii) Effective regulatory control of the airlines is exercised and

maintained by the Republic of Peru.

c) The designated airline is qualified to meet the conditions prescribed under the

legislation normally applied to the operation of international air services by the

Party considering the application or applications.

ARTICLE 4

REFUSAL, REVOCATION, SUSPENSION AND LIMITATION OF RIGHTS

1. Each Party shall have the right to refuse, revoke, suspend or limit the operating

authorizations or technical permissions of an airline designated by the other Party

of the rights specified in Article 2 of the present Agreement, or to submit the

exercise of those rights to the conditions considered necessary, where:

II SÉRIE-A — NÚMERO 125_________________________________________________________________________________________________________

1338