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the agreed services on the specified routes between their respective territories.

2. The agreed services provided by the designated airlines of both Parties shall strive to meet the

requirements of the public for transportation on the specified routes and shall have as their primary objective

the provision of capacity adequate to carry the current and reasonably anticipated traffic requirements,

including seasonal variations for the carriage of traffic embarked and disembarked in the territory of the Party

which has designated the airlines.

3. The frequency and capacity to be provided for the carriage between the territories of the Parties shall be

notified to the aeronautical authorities of both Parties.

4. Provision for the carriage of passengers and cargo including mail both taken on board and discharged at

points on the specified routes in the territories of States other than that designating the airline shall be agreed

between the two Parties since capacity is related to:

a) traffic requirements to and from the territory of the Party, which has designated the airline;

b) traffic requirements of the area through which the agreed service passes, after taking into account of

other transport services established by airlines of the States comprising the area;

c) the requirements of through airline operation.

Article 13

Establishment of tariffs

1. Each Party shall allow tariffs for air services to be established by each designated airline based on

commercial considerations in the market place, including the cost of operation, the characteristics of the

service, the interests of users, a reasonable profit and other market considerations.

2. Each Party may require notification to or filing with its aeronautical authorities of tariffs to be charged to or

from its territory by airlines of the other Party. Such notification or filing by the airlines of both Parties may be

required to be made no later than the initial offering of a price.

3. Without prejudice to the applicable competition and consumer protection laws prevailing in each Party,

neither Party shall take unilateral action to prevent the commencement or continuation of a tariff proposed to be

charged or charged by a designated airline of the other Party in connection with the international air services

provided for under this Agreement. Intervention, as described in paragraph 4 below, by the Parties shall be

limited to:

a) Prevention of unreasonably discriminatory prices or practices;

b) Protection of consumers from prices that is unreasonably high or restrictive due to the abuse of a

dominant position or due to concerted practice among airlines;

c) Protection of airlines from prices that are artificially low due to direct or indirect subsidy or support;

d) Protection of airlines from prices that is artificially low, where evidence exists as to an intent to eliminate

competition.

4. Without prejudice to the provisions of paragraph 3 of this Article, the aeronautical authorities of either

Party may expressly disapprove tariff submitted by the designated airlines of the other Party, where such

aeronautical authorities find that a tariff proposed to be charged by such airlines falls within the categories set

forth in paragraph 3.a), 3.b), 3.c) or 3.d). In such event, the concerned aeronautical authority:

a) Shall send notification of its dissatisfaction to the aeronautical authorities of the other Party, and to the

airline involved, as soon as possible, and in no event later than thirty (30) days after the date of notification or

filing of the tariff in question; and

b) May request consultations in accordance with the procedures established under paragraph 5 of this

Article. Unless both aeronautical authorities have agreed to disapprove the tariff in question in writing, the tariff

shall be treated as having been approved.

5. The aeronautical authorities of each Party may request consultations with the aeronautical authorities of