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 an airline designated by the Republic of Mauritius:

i) The airline is incorporated in the territory of the Republic of Mauritius and its substantial ow-nership and effective control are in the hands of the Republic of Mauritius or its nationals;

ii) The airline holds a valid Air Services License and an Air Operator Certificate issued by the competent authority of the Republic of Mauritius; and

iii) Effective regulatory control of the designated airline is exercised and maintained by the Republic of Mauritius responsible for issuing its Air Operator’s Certificate;

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.

3 — When an airline has been designated and authorized in accordance with this Article, it may operate the agreed services for which it has been designated, provided that the airline complies with the applicable provisions of this Agreement.

Article 5

Refusal, revocation, suspension and limitation of rights

1 — Each Party shall have the right to refuse, revoke, suspend or limit the operating authori-zations or technical permissions of an airline designated by the other Party of the rights specified in Article 3 of the present Agreement, or to submit the exercise of those rights to the conditions considered necessary, where:

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

i) It is not established in the territory of the Portuguese Republic under the EU Treaties or does not have a valid Operating License in accordance with the law of the European Union; or

ii) Effective regulatory control of the designated airline is not exercised or not maintained by the EU Member State responsible for issuing its Air Operator’s Certificate, or the relevant aeronautical authority is not clearly identified in the designation; or

iii) The airline is not owned, directly or through majority ownership, or it is not effectively con-trolled by Member States of the EU or the European Free Trade Association and/or by nationals of such States;

b) In the case of an airline designated by the Republic of Mauritius:

i) The airline is not incorporated in the territory of the Republic of Mauritius and its substantial ownership or effective control is not in the hands of the Republic of Mauritius or its nationals, or

ii) The airline does not hold a valid Air Services License or an Air Operator Certificate issued by the competent authority of the Republic of Mauritius; and

iii) Effective regulatory control of the designated airline is exercised and maintained by the Republic of Mauritius responsible for issuing its Air Operator’s Certificate;

c) In the case the designated airline fails 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; or

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