ARTICLE 12

CONVERSION AND TRANSFER OF REVENUES

1. Each Party grants tothe airlines of the other Partythe right of free transfer at the

rate of exchange in force on the date of such transfer, in convertible currencies in

which the payment is done, of the excess of receipts over expenditures achieved in

connection with the carriage of passengers, baggage, cargo and mail on the

agreed services in its territory, and in accordance with the domestic law applicable

in the territory of the Party from which the transfer is made.

2. For the purposes of this Article, the law applicable of the Portuguese Republic

includes all measures taken by European Union.

ARTICLE 13

CAPACITY

1. The designated airlines of each Party in operating air services on any of the

specified routes of this Agreement shall have a fair, just and equal opportunity.

2. If one Party considers that the air services provided by any of the designated

airlines of the other Party do not meet the rules and principles foreseen in this

Article, such Party may request consultations under Article 20 of this Agreement, in

order to verify such operations for the establishment, by mutual agreement, of the

appropriate corrective measures.

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