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Article 3

Designation and authorization

1. Each Party shall have the right to designate in writing through diplomatic channels to the other Party one

or more airline(s) to operate the agreed services on the specified routes and to withdraw or alter such

designation, in accordance with this Agreement.

2. On receipt of such a designation, and of application from the designated airline, in the form and manner

prescribed for operating authorization, each Party shall grant the appropriate operating authorization 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 Licence in accordance with the law of the European Union; 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 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 Kenya:

i) Substantial ownership and effective control is vested in the Republic of Kenya, its nationals, or both;

ii) The designated airline meets other conditions prescribed under the legislation and procedures

normally applied in conformity with the provisions of the Convention to the operation of international air

services by the Party receiving the designation.

3. On receipt of the operating authorization of paragraph 2, a designated airline may at any time begin to

operate the agreed services for which it is so designated, provided that the airline complies with the applicable

provisions of this Agreement.

Article 4

Withholding, revocation and limitation of authorization

1. The aeronautical authorities of each Party shall have the right to withhold the authorizations referred to in

Article 3 of this Agreement with respect to an airline designated by the other Party, and to revoke, suspend or

impose conditions on such authorizations, temporarily or permanently, 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 Licence 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 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 Kenya its substantial ownership and effective

control is not vested in the Republic of Kenya, its nationals, or both;

c) in the event of failure of the Party designating the airline to comply with the provisions set forth in Article

8 (Safety) and Article 9 (Aviation Security); and