AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES AND THE GOVERNMENT OF THE FRENCH REPUBLIC RELATING TO AIR SERVICES

Bilateral
The Government of the Republic of the Philippines and the
Government of the French Republic (hereinafter referred to as “the
Contracting Parties”),

Being parties to the Convention on International Civil Aviation opened for signature at Chicago on December 7, 1944 and,

Desiring to conclude an Agreement complementary to the said
Convention for the purpose of establishing air services between and
beyond their respective territories,

Have agreed as follows:

ARTICLE 1

DEFINITIONS

1. For the purpose of this Agreement, unless otherwise stated:

(a) the term “Convention” means the Convention on International
Civil Aviation opened for signature at Chicago on December 7, 1944 and
includes any Annex adopted under Article 90 of that Convention and any
amendment of the Annexes or of the Convention under Articles 90 and 94
thereof, in so far as those Annexes and amendments have been adopted by
both Contracting Parties;

(b) the term “Aeronautical Authorities” means, in the case of
the Republic of the Philippines, the Civil Aeronautics Board, and in the
case of the French Republic, la Direction Général, de l’Aviation
Civile, or any person or body authorised to perform functions exercised
by the above-mentioned Authorities or similar functions;

(c) the term “designated airline” means an airline which has been designated in accordance with Article 3 of this Agreement;

(d) the term “territory” has the meaning assigned to it in Article 2 of the Convention;

(e) the terms “air service”, “international air service”,
“airline” and “stop for non­traffic purposes” have the meanings
respectively assigned to them in Article 96 of the Convention;

(f) the term “specified routes” means the routes specified in the route schedule attached to this Agreement;

(g) the term “agreed services” means scheduled air services
performed for the transport of passengers, mail and cargo, separately or
in combination, for compensation, on the specified routes;

(h) the term “tariff’ means the prices to be paid, applied by
the airlines directly or through their agents, for the carriage of
passengers, baggage and cargo, and the conditions under which those
prices apply, including the remuneration and conditions offered to
agencies, but excluding remuneration or conditions for the carriage of
mail;

(i) the term “user charges” means a charge made to airlines
by the relevant authorities for the use of an airport or of air
navigation facilities for aircraft, their crews, passengers and cargo;

(j) the term “Agreement” means this Agreement, the Annex
attached thereto and any amendments to the Agreement or to the Annex
agreed upon according to the provisions of Article 20 of this Agreement.

2. The Annex forms an integral part of this Agreement. All
references to the Agreement shall include the Annex unless explicitly
agreed otherwise.

ARTICLE 2

GRANT OF RIGHTS

1. Each Contracting Party grants to the other Contracting
Party the following rights for the conduct of scheduled and
non-scheduled international air services by airlines of the other
Contracting Party:

(a) the right to fly across its territory without landing;

(b) the right to make stops in its territory for non-traffic purposes;

(c) to make stops at the points specified for that
route in the Annex to the present Agreement for the purpose of
disembarking and embarking international passengers, cargo, and mail
coming from or destined for other points so specified.

2. Each Contracting Party grants to the other Contracting Party the
rights specified in this Agreement for the purpose of establishing and
operating scheduled international air services on the routes specified
in the Annex to this Agreement. While operating agreed services on
specified routes, an airline designated by one Contracting Party shall
enjoy, in addition to the rights specified in paragraph 1 of this
Article, the right to make stops in the territory of the other
Contracting Party at the points specified on the specified routes for
the purpose of taking on board and discharging passengers and cargo
including mail, separately or in combination, to or from the territory
of the first Contracting Party.

3. Nothing in this Agreement shall be deemed to confer on the
airline of one Contacting Party the right to take on board, in the
territory of the other Contracting Party, passengers, their baggage; and
cargo including mail, carried for hire or remuneration for discharge at
another point within the territory of that other Contracting Party.

ARTICLE 3

DESIGNATION AND AUTHORISATION OF AIRLINES

1. Each Contracting Party shall have the right to designate in
writing to the other Contracting Party one or more airlines for the
purpose of operating the agreed services on the specified routes.

2. On receipt of a designation by one Contracting Party made in
accordance with the provisions of paragraph 1 of this Article, and if
so requested by the designated airline, in the form and manner
prescribed, the Aeronautical Authorities of the other Contracting Party
shall grant, with minimum delay, the appropriate operating
authorisations, provided:

(a) in the case of an airline designated by the French Republic:
   
i.
it is established in the territory of the French Republic under the Treaty on European Union and the Treaty on the functioning of the European Union and has a valid Operating License in accordance with European Union law; and
   
ii.
effective regulatory control of the airline is exercised and maintained by the European Union Member State responsible for issuing its Air Operator’s Certificate and the relevant Aeronautical Authorities are clearly identified in the designation; and
   
iii.
the airline is owned, directly or through majority ownership, by European Union member States or European Free Trade Association Member States and/or by nationals of such states, and is effectively controlled by such states and/or nationals of such states.
 
(b) in the case of an airline designated by the Republic of the Philippines:
   
i.
the airline is established in the territory of the Republic of the Philippines and has a valid Operating License in accordance with the applicable law of the Republic of the Philippines; and
   
ii.
the Republic of the Philippines has and maintains effective regulatory control of the airline; and
   
iii.
the airline is owned directly or through majority ownership by the Republic of the Philippines and/or nationals of the Republic of the Philippines and is effectively controlled by such state and/or its nationals.
 
(c) the designated airline is qualified to meet the conditions prescribed under the laws and regulations normally and reasonably applied to the operation of international air transportation by the Contracting Party considering the application or applications in conformity with the provisions of the Convention; and
 
(d) the standards set forth in Articles 8 and 9 are being maintained and administered.

3. When an airline has been so designated and authorised it may
begin at any time to operate the agreed services, subject to compliance
with the provisions of this Agreement.

ARTICLE 4

WITHDRAWAL OR SUSPENSION OF AN OPERATING AUTHORISATION

1. Each Contracting Party shall have the right to revoke an
operating authorisation, suspend the exercise of the rights granted in
this Agreement to an airline designated by the other Contracting Party,
or impose such conditions on the exercise of these rights as it may deem
necessary where:

(a) in the case of an airline designated by the French Republic:

i. the airline is not established in the territory of the French
Republic under the Treaty on European Union and the Treaty on the
functioning of the European Union or has not a valid Operating License
in accordance with European Union law; or

ii. effective regulatory control of the airline is not exercised
or not maintained by the European Union Member State responsible for
issuing its Air Operator’s Certificate, or the relevant Aeronautical
Authorities are not clearly identified in the designation; or

iii. the airline is not owned, directly or through majority
ownership, by European Union Member States or European Free Trade
Association Member States and/or nationals of such states, or is not at
all times effectively controlled by such states and/or nationals of such
states; or

iv. the airline is already authorized to operate under a
bilateral agreement between the Republic of the Philippines and another
European Union Member State and the Republic of the Philippines
demonstrates that, by exercising traffic rights under this Agreement on a
route that includes a point in that other Member State, the airline
would in effect be circumventing restrictions on the traffic rights
imposed by that other agreement; or

v. the. airline holds an Air Operator’s Certificate issued by
another European Union Member State and there is no bilateral air
services agreement between the Republic of the Philippines and that
European Union Member State and the traffic rights necessary to conduct
the operation proposed by such designated airline are not reciprocally
available to the designated carriers of the Republic of the Philippines.

In exercising its right under this paragraph, the Republic of the
Philippines shall not discriminate between European Union airlines on
the grounds of nationality.

(b) in the case of an airline designated by the Republic of the Philippines:

i. the airline is not established in the territory of the
Republic of the Philippines or has not a valid Operating License in
accordance with the applicable law of the Republic of the Philippines;
or

ii. the Republic of the Philippines is not having and maintaining effective regulatory control of the airline; or

iii. the airline is not owned directly or through majority
ownership by the Republic of the Philippines and/or nationals of the
Republic of the Philippines or is not at all times effectively
controlled by such state and/or its nationals.

(c) in the case of failure by that airline to comply with the laws
or regulations normally and uniformly applied to the operation of
international air transportation by the Contracting Party granting those
rights;

(d) in any case the standards set forth in this Agreement,
especially in Articles 8 and 9, are not being maintained and
administered.

2. Unless immediate revocation, suspension or imposition of the
conditions mentioned in paragraph 1 of this Article is essential to
prevent further infringements of laws and regulations, or of the
provisions of this Agreement, such right shall be exercised only after
consultation with the other Contracting Party. Such consultations shall
take place prior to the expiry or thirty (30) days following the request
by one Contracting Party, unless both Contracting Parties otherwise
agree.

ARTICLE 5

PRINCIPLES GOVERNING OPERATION OF AGREED SERVICES

1. Each Contracting Party shall ensure for the
designated airlines of both Contracting Parties fair and equal
opportunities to compete in the operation of the agreed services
governed by this Agreement. Each Contracting Party shall make sure that
its designate airline or airlines operate(s) in conditions permitting
the respect of this principle and shall, when appropriate, take steps to
ensure such respect.

2. The agreed services to be operated by the
designated airlines of the Contracting Parties between their respective
territories on the specified routes shall bear close relationship to the
requirements of the public for transportation and shall have as their
primary objective the provision, at a reasonable load factor compatible
with tariffs in compliance with the provisions of Article 16 of this
Agreement, of appropriate capacity to meet the current and reasonably
anticipated requirements for the carriage of passengers, cargo and mail
in order to encourage orderly development of air services between the
territories of the Contracting Parties.

ARTICLE 6

APPLICATION OF LAWS AND REGULATIONS

1. The laws, regulations and procedures of one
Contracting Party relating to the admission to or departure from its
territory of aircraft engaged in international air services or relating
to the operation and navigation of such aircraft, while within the
territory, shall apply to aircraft of the designated airline or airlines
of the other Contracting Party and shall be applied to such aircraft
upon entrance into or departure from, or while within the territory of
the first Contracting Party.

2. The laws and regulations of one Contracting Party
relating to the admission to or departure from its territory of
passengers, baggage, crew and cargo of aircraft shall be complied with
by or on behalf of such passengers, baggage, crew and cargo of the
airline or airlines of the other Contracting Party upon entrance into or
departure from the territory of one Contracting Party.

3. The laws and regulations mentioned in paragraphs 1
and 2 of this Article are the same as those applying to the national
aircraft engaged in similar international air services as well as those
applying to passengers, baggage, crew, cargo and mail carried by those
aircraft.

ARTICLE 7

CERTIFICATES OF AIRWORTHINESS,
CERTIFICATES OF COMPETENCY AND LICENCES

1. Certificates of airworthiness, certificates of
competency and licenses issued or rendered valid in accordance with the
laws and regulations of one Contracting Party shall be recognised as
valid by the other Contracting Party for the purpose of operating air
services on specified routes provided always that the requirements under
which such certificates or licences were issued or rendered valid are
at least equal to the standards which may be established pursuant to the
Convention.

2. Each Contracting Party, however, reserves the right not to
recognise as valid, for the purpose of flight over its own territory,
certificates of competency and licences granted to its own nationals by
the other Contracting Party.

ARTICLE 8

AVIATION SAFETY

1. Each Contracting Party may request consultations
at any time concerning the safety standards maintained by the other
Contracting Party in areas relating to aeronautical facilities, flight
crew, aircraft and their operation. Such consultations shall take place
within thirty (30) days of that request.

2. If, following such consultations, one Contracting
Party finds that the other Contracting Party does not effectively
maintain and administer safety standards in the areas referred to in
paragraph 1 that are at least equal to the minimum standards established
at that time pursuant to the Convention, the first Contracting Party
shall notify the other Contracting Party of those findings and the other
Contracting Party shall take appropriate corrective action. Failure by
the other Contracting Party to take appropriate action within a
reasonable time, and in any case within fifteen (15) days or such longer
period as may be agreed, shall be grounds for the application of
Article 4 of this Agreement.

3. Notwithstanding the obligations mentioned in
Article 33 of the Convention, it is agreed that any aircraft operated or
leased by the airline or airlines of one Contracting Party on services
to or from the territory of the other Contracting Party may, while
within the territory of the other Contracting Party, be made the subject
of an examination by the authorities representative of the other
Contracting Party on board and around the aircraft to check both the
validity of the aircraft documents and those of its crew and the
apparent condition of the aircraft and its equipment (in this Article
called “ramp inspection”), provided this does not lead to unreasonable
delay.

4. If any such ramp inspection or series of ramp inspections gives rise to:

(a) Serious concerns that an aircraft or the operation
of an aircraft does not comply with the minimum standards established
at that time pursuant to the Convention, or,

(b) Serious concerns that there is a lack of effective
maintenance and administration of safety standards established at that
time pursuant to the Convention, the Contracting Party carrying out the
inspection shall, for the purposes of Article 33 of the Convention,

the Contracting Party carrying out the inspection
shall, for the purpose of Article 33 of the Convention, be free to
conclude that the requirements under which certificates or licences in
respect of that aircraft or in respect of the operator or crew of that
aircraft had been issued or rendered valid are not equal to or above the
minimum standards established at that time pursuant to the Convention.

5. In the event that access for the purpose of
undertaking a ramp inspection of an aircraft operated by the airline or
airlines of one Contracting Party in accordance with paragraph 3 above
is denied, the other Contracting Party shall be free to infer that
serious concerns of the type referred to in paragraph 4 above arise and
draw the conclusions referred to in that paragraph.

6. Each Contracting Party reserves the right to
suspend or vary the operating authorisation of an airline or airlines of
the other Contracting Party immediately in the event the first
Contracting Party concludes, whether as a result of a ramp inspection, a
series of ramp inspections, a denial of access for ramp inspection,
consultation or other form of dialogue, that immediate action is
essential to the safety of an airline or airlines operation.

7. Any action by one Contracting Party in accordance
with paragraphs 2 or 6 above shall be discontinued once the basis for
the taking of that action ceases to exist.

8. Where the French Republic has designated an
airline whose regulatory control is exercised and maintained by another
Member State of the European Union, the rights of the Republic of the
Philippines under this Article shall apply equally in respect of the
maintenance, exercise or administration of safety standards by that
Member State of the European Union and in respect of the operating
authorisation of that airline.

ARTICLE 9

AVIATION SECURITY

1. Consistent with their rights and obligations under
international law, the Contracting Parties reaffirm that their
obligation to each other to protect the security of Civil Aviation
against acts of unlawful interference forms and integral part of this
Agreement. Without limiting the generality of their rights and
obligations under international law, the Contracting Parties shall in
particular act in conformity with the provisions of the Convention on
Offences and Certain Other Acts Committed on Board Aircraft, signed at
Tokyo on 14 September 1963, the Convention for the Suppression of
Unlawful Seizure of Aircraft, signed at the Hague on 16 December 1970,
the Convention for the Suppression of Unlawful Acts against the Safety
of Civil Aviation, signed at Montreal on 23 September 1971, the Protocol
for the Suppression of Unlawful Acts of Violence at Airports Serving
International Civil Aviation, Supplementary to the Convention for the
Suppression of Unlawful Acts against the Safety of Civil Aviation,
opened for signature at Montreal on 24 February 1988, the Convention on
Marking of Plastic Explosives for the Purpose of Detection signed at
Montreal on 1 March 1991, and any other multilateral agreement governing
civil aviation security binding upon both Contracting Parties.

2. The Contracting Parties shall provide upon
request all necessary assistance to each other to prevent acts of
unlawful seizure of civil aircraft and other unlawful acts against the
safety of such aircraft, their passengers and crew, airports and air
navigation facilities, and any other threat to the security of civil
aviation.

3. The Contracting Parties shall, in their mutual
relations, act in conformity with the aviation security provisions
established by the International Civil Aviation Organization and
designated as Annexes to the Convention to the extent that such security
provisions are applicable to the Contracting Parties; they shall
require that operators of aircraft that have their principal place of
business or permanent residence in their territory and, in the case of
the French Republic, operators that are established in its territory and
have an operating licence in accordance with European Union law, as
well as the operators of airports in their territory, act in conformity
with such aviation security provisions. In this paragraph, reference to
the aviation security provisions includes any difference notified by the
Contracting Party concerned. Each Contracting Party shall give advance
information to the other Contracting Party of its intention to notify
any difference concerning these provisions.

4. Each Contracting Party agrees that its operators of
aircraft may be required to observe, for departure from, or while
within the territory of the other Contracting Party, the aviation
security provisions in conformity with the law in force in that country,
in accordance with Article 6 of this Agreement. Each Contracting Party
shall ensure that adequate measures are effectively applied within its
territory to protect the aircraft and to inspect passengers, crew, their
baggage, cargo and aircraft stores prior to and during boarding or
loading. Each Contracting Party shall also give sympathetic
consideration to any request from the other Contracting Party for
reasonable special security measures to meet a particular threat.

5. When an incident or threat of an incident of
unlawful seizure of civil aircraft or other unlawful acts against the
safety of passengers, crew, aircraft, airports and air navigation
facilities occurs, the Contracting Parties shall assist each other by
facilitating communications and other appropriate measures intended to
terminate rapidly and safely such incident or threat thereof.

6. When a Contracting Party has reasonable grounds to
believe that the other Contracting Party has departed from the
provisions related to aviation security provided for in this Article,
the first Contracting Party may request immediate consultations with the
other Contracting Party. Without prejudice to the provisions of
Article 4 of this Agreement, failure to reach a satisfactory agreement
within fifteen (15) days from the date of such request shall constitute
grounds for suspension of the rights granted to the Contracting Parties
under this Agreement. When required by an emergency presenting a direct
and exceptional threat to the security of passengers, crew or aircraft
of one Contracting Party and if the other Contracting Party has not
adequately fulfilled its obligations under paragraphs 4 and 5 of this
Article, a Contracting Party may take immediately the appropriate
provisional protection measures to ward off the threat. Any action taken
in accordance with this paragraph shall be discontinued upon compliance
by the other Contracting Party with the security provisions of this
Article.

ARTICLE 10

USER CHARGES

1. User charges that may be imposed by the relevant
Authorities or bodies from one Contracting Party on the designated
airline or airlines of the other Contracting Party for the use of
airport facilities and services, safety, security, air navigation and
other facilities under their control shall be just, reasonable, non
discriminatory and equitably apportioned among categories of users. They
shall not be higher than those imposed for the use of such services and
facilities by any other airline operating the same or similar
international services.

2. These charges may reflect, but shall not exceed, an
equitable proportion of the total cost incurred for the provision of
airport facilities and services as well as the safety, security and air
navigation services and facilities. The services and facilities for
which charges are made, shall be provided on an economic and efficient
basis. The Authorities or relevant bodies of each Contracting Party
shall notify the designated airline or airlines of the other Contracting
Party of any proposed significant change concerning these charges; such
notification shall take place within a reasonable period of time before
the change enters into force. In case of an increase of charges, each
Contracting Party shall encourage consultations between the Authorities
or relevant bodies in its territory and the airlines using the services
and facilities.

ARTICLE 11

CUSTOMS DUTIES AND TAXES

1. Upon entering the territory of one Contracting
Party, aircraft operated on international air services by the designated
airline or airlines of the other Contracting Party, as well as their
regular equipment, fuel and lubricants, consumable technical supplies,
spare parts including engines, and aircraft stores (including but not
limited to such items as food, beverages and liquor, tobacco and other
products for sale to or use by passengers in limited quantities during
the flight), equipment as well as other items intended for or used
solely in connection with the operation or maintenance of aircraft
operating an international air service, shall be, on a temporary basis
and until their re-exportation, on the basis or reciprocity, exempt from
all customs duties, import restrictions, property taxes, capital
levies, inspection fees; excise taxes, and similar fees and charges
imposed by the national or local authorities, provided such equipment
and supplies remain on board the aircraft.

2. There shall also be exempt, on the basis of
reciprocity, from the taxes, duties, inspection fees and charges
referred to in paragraph 1 of this Article, with the exception of
charges based on the cost of the services provided:

(a) aircraft stores introduced into or supplied in the
territory of a Contracting Party and taken on board, within reasonable
limits, for use on outbound aircraft of the designated airline or
airlines of the other Contracting Party operating international air
services, even when these stores are to be used on part of the journey
performed over the territory of the Contracting Party in which they are
taken on board;

(b) regular equipment, spare parts, including
engines, introduced into the territory of a Contracting Party and for
the servicing, maintenance, repair and supplying of aircraft of a
designated airline of the other Contracting Party engaged in
international air services;

(c) fuel, lubricants and technical consumable
supplies, introduced into or supplied in the territory of one
Contracting Party for use on an aircraft of a designated airline of a
Contracting Party engaged in international air services, even when these
supplies are to be used on part of the journey performed over the
territory of the Contracting Party in which they are taken on board;

(d) printed documents and promotional advertising
materials including but not limited to, timetables, brochures, printed
forms introduced into the territory of one Contracting Party and
intended to be given away for free on board the aircraft by the
designated airline or airlines of the other Contracting Party.

3. The equipment and supplies referred to in
paragraphs 1 and 2 of this Article may be required to be kept under the
supervision or control of the relevant Authorities.

4. The exemptions provided by this Article shall also
be available where the designated airline or airlines of one
Contracting Party have contracted with another airline, which similarly
enjoys such exemptions from the other Contracting Party, for the loan or
transfer in the territory of the other Contracting Party of the items
specified in paragraphs 1 and 2 of this Article.

5. In conformity with European Union legislation,
nothing in this Agreement shall prevent the French Republic from
imposing, on a non discriminatory basis, taxes, levies, duties, fees or
charges on fuel supplied in its territory for use in an aircraft of a
designated airline of the Republic of the Philippines that operates
between a point in the territory of the French Republic and another
point in the territory of the French Republic or of another European
Union Member State.

ARTICLE 12

COMMERCIAL OPPORTUNITIES

1. The designated airline or airlines of one
Contracting Party have the right, on the basis of reciprocity, to
establish offices in the territory of the other Contracting Party in
order to promote and sell air services.

2. The designated airline or airlines of one
Contracting Party shall be entitled, on the basis of reciprocity, to
bring in and maintain in the territory of the other Contracting Party
its or their own managerial, operational and commercial staff and other
specialist staff required for the provision of air transportation.

3. Each Contracting Party shall grant the necessary
staff of the designated airline or airlines of the other Contracting
Party, on the basis of reciprocity, authorised access in its territory
to the airport and the areas concerned by the aircraft operations, crew,
passengers and cargo of a designated airline of the other Contracting
Party.

4. Each Contracting Party shall grant the designated
airline or airlines of the other Contracting Party, on the basis of
reciprocity, the right to bring in and maintain in its territory,
additional staff required by such designated airline or airlines of the
other Contracting Party for its or their operations for short periods
not exceeding ninety (90) days.

5. The Contracting Parties shall make sure that
passengers, without regard to nationality, may purchase tickets from the
airline of their choice, in local currency or in freely convertible
currency accepted by that airline. These principles shall also apply to
cargo transportation.

6. The designated airline or airlines of one
Contracting Party shall be granted, on the basis of reciprocity, in the
territory of the other Contracting Party, the right to engage, in local
currency or in any freely convertible currency, with its or their
tickets, in the sale of passenger and cargo air transportation in its or
their own offices and through accredited agents of its or their choice.
The designated airline or airlines of one Contracting Party shall have
the right to open and maintain, in the territory of the other
Contracting Party, nominative bank accounts in the currency of either
Contracting Party or in any freely convertible currency at its or their
discretion.

ARTICLE 13

COOPERATIVE MARKETING ARRANGEMENTS

1. For the conduct of agreed services, the designated
airline(s) of each Contracting Party may enter into cooperative
marketing arrangements such as blocked-space, code-sharing, leasing or
any other joint venture arrangements, with an airline or airlines of
either Contracting Party.

2. The operating airline(s) involved in the
cooperative marketing arrangements shall hold the appropriate authority
and the underlying traffic rights, including the route rights and the
capacity entitlements, and meet the requirements normally applied to
such arrangements.

3. All marketing airline(s) involved in the
cooperative marketing arrangements shall hold the appropriate authority
and the underlying traffic rights, including the route rights, and meet
the requirements normally applied to such arrangements.

4. The total capacity operated by the air
services performed under such arrangements shall be counted only against
the capacity entitlement of the Contracting Party designating the
operating airline(s). The capacity offered by the marketing airline(s)
on such services shall not be counted against the capacity entitlement
of the Contracting Party designating that airline.

5. In addition to the operating airline(s), the
Aeronautical Authorities of each Contracting Party may require the
marketing airline(s) to file schedules for approval.

6. When holding out services for sale under such
arrangements, the concerned airline or its agent shall make it clear to
the purchaser at the point of sale as to which airline shall be the
operating airline on each sector of the service and with which
airline(s) the purchaser is entering into a contractual relationship.

ARTICLE 14

TRANSFER OF EARNINGS IN EXCESS

1. Each Contracting Party shall grant upon request,
on the basis of reciprocity, to the designated airline or airlines of
the other Contracting Party, the right to convert and to remit to the
territory or territories of its or their choice the excess of local
receipts from the sale of air transportation services and related
activities in the territory of the other Contracting Party. Conversion
and remittance shall be permitted expeditiously, without restriction or
taxation, at the exchange rate applicable to day-to-day operations and
remittances at the time the airline makes the initial application for
remittance.

2. Each Contracting Party shall grant the designated
airline or airlines of the other Contracting Party the right to use part
or all of its or their receipts earned in its territory, for the
payment of all charges related to its or their transportation activity
(including purchases of fuel) and other activities related to air
transportation.

3. In so far as payment services between the
Contracting Parties are governed by a special agreement, the said
agreement shall apply.

ARTICLE 15

GROUND HANDLING

Subject to the laws and regulations of each
Contracting Party, each airline shall have in the territory of the other
Contracting Party the right to perform its own ground handling
(“self-handling”) or, at its option, the right to select among competing
suppliers that provide ground handling services in whole or in part.
Where such laws and regulations limit or preclude self-handling and
where there is no effective competition between suppliers that provide
ground handling services, each designated airline shall be treated on a
non-discriminatory basis as regards their access to self­-handling and
ground handling services provided by a supplier or suppliers.

ARTICLE 16

TARIFFS

1. Each Contracting Party shall allow tariffs for air
services to be established independently by each designated airline
based upon commercial considerations in the market place. Neither
Contracting Party shall require their airlines to consult other airlines
about the tariffs they charge or propose to charge for the services
covered by this Agreement.

2. Unless required by the national law of a
Contracting Party, neither Contracting Party shall require notification
for approval of any tariff to be charged by the designated airline or
airlines of the other Contracting Party. Where the national law of a
Contracting Party requires the designated airline or airlines of the
other Contracting Party to file tariffs for approval, the Contracting
Party shall act on such filing with a minimum of administrative delay.
Tariffs may remain in effect unless subsequently disapproved under
paragraph 4 below.

3. Intervention by the Contracting Parties shall be limited to:

(a) Protection of consumers from prices that are unreasonably high or restrictive due to the abuse of a dominant position;

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

(c) Protection of airlines from prices that are
artificially low where evidence exists as to an intent to eliminate
competition.

4. Neither Contracting Party shall take unilateral
action to prevent the coming into effect or continuation of a tariff
charged or proposed to be charged by an airline of the other Contracting
Party. If one Contracting Party believes any such tariff is
inconsistent with the considerations set out in paragraph 3 above, it
may require consultation and notify the other Contracting Party of the
reasons for its dissatisfaction. These consultations shall be held not
later than fourteen (14) days after receipt of the request. Without a
mutual agreement the tariff shall take effect or continue in effect.

ARTICLE 17

APPROVAL OF FLIGHT SCHEDULES

1. The flight schedules of the designated airline or
airlines of one Contracting Party may be requested for approval by the
Aeronautical Authorities of the other Contracting Party.

2. These flight schedules shall be communicated at
least thirty (30) days prior to the beginning of the operations and
shall specify in particular the timetables, frequency of services, types
of aircraft, configurations and numbers of seats to be made available·
to the public. In some cases, this period of thirty (30) days may be
reduced subject to an agreement between the Aeronautical Authorities of
both Contracting Parties.

3. Any change to the approved flight schedules of a
designated airline of one Contracting Party shall be submitted for
approval to the Aeronautical Authorities of the other Contracting Party.

ARTICLE 18

TRANSIT

1. Passengers and cargo in transit through the territory of one Contracting Party shall be subject to a simplified control.

2. Cargo and baggage in transit through the territory
of one Contracting Party shall be exempt from all customs duties,
inspection fees and other duties and charges.

ARTICLE 19

STATISTICS

The Aeronautical Authorities of one Contracting Party
shall provide or shall cause their designated airline or airlines to
provide the Aeronautical Authorities of the other Contracting Party,
upon request, statements of statistics as may be reasonably required for
the purpose of reviewing the operation of the agreed services.

ARTICLE 20

CONSULTATIONS AND MODIFICATIONS

1. In a spirit of close co-operation, the
Aeronautical Authorities of the Contracting Parties shall consult as
often as deemed necessary with a view to ensuring the satisfactory
implementation of the principles and provisions of this Agreement. Such
consultations shall begin within a period of sixty (60) days of the date
of receipt of a request for consultations by a Contracting Party.

2. Each Contracting Party may at any time request
consultations with the other Contracting Party with a view to
interpreting the provisions of this Agreement or to make any amendment
or modification to the provisions of this Agreement or its Annex it
considers desirable. Such consultations may be held between Aeronautical
Authorities and may be through discussion or by correspondence. These
consultations shall begin within a period of sixty (60) days from the
date of receipt of the request for consultations by one Contracting
Party.

3. The amendments or modifications to this Agreement
agreed upon according to the provisions of paragraph 2 of this Article
shall, where appropriate, come into effect after confirmation, through
diplomatic channels, that the internal procedures required in each
Contracting Party have been completed.

ARTICLE 21

SETTLEMENT OF DISPUTES

1. If any dispute arises between the Contracting
Parties relating to the interpretation or application of this Agreement,
the Contracting Parties shall in the first place endeavour to settle it
by direct negotiations between the Aeronautical Authorities in
accordance with the provisions of Article 20 of this Agreement.

2. If the Aeronautical Authorities of the Contracting
Parties fail to reach an agreement, the dispute shall be settled through
diplomatic consultations. Such consultations shall begin within a
period of no more than sixty (60) days following the date of receipt of a
request for consultations by one Contracting Party.

3. If the Contracting Parties fail to reach a
settlement though negotiations in accordance with paragraphs 1 and 2 of
this Article, they may agree to refer the dispute for decision to some
person or body mutually agreed upon; or, at the request of either
Contracting Party, to refer it for decision to a tribunal of three
arbitrators. In such case, each Contracting Party shall nominate an
arbitrator and the third arbitrator, who shall not be a national of
either Contracting Party, shall be appointed by the two arbitrators so
nominated and shall act as a President of the tribunal. Each of the
Contracting Parties shall nominate its arbitrator within a period of
sixty (60) days from the date of receipt by either Contracting Party
from the other of a notice through diplomatic channels requesting
arbitration of the dispute; the third arbitrator shall be appointed
within a period of sixty (60) days following the nomination of the first
two arbitrators. If either Contracting Party fails to nominate its
arbitrator within the period specified, or if the third arbitrator is
not appointed within the period specified, the President of the Council
of the International Civil Aviation Organization may at the request of
either Contracting Party appoint an arbitrator or arbitrators as the
case requires.

4. The arbitral tribunal shall freely determine its
procedures. The expenses of each national arbitrator shall be borne by
the Contracting Party that nominated him. All other expenses of the
arbitral tribunal shall be shared equally between the Contracting
Parties.

5. The Contracting Parties shall comply with any decisions under paragraph 3 of this Article.

6. In any case where one of the Contracting Parties
does not comply with a decision under paragraph 3 of this Article and
for as long as it so does, the other Contracting Party may limit, refuse
or revoke any right or privilege granted under this Agreement.

ARTICLE 22

MULTILATERAL AGREEMENTS

If, after the entry into force of this Agreement,
both Contracting Parties become bound by a multilateral agreement that
addresses matters covered by this Agreement, the provisions of such
agreement shall prevail. Both Contracting Parties may hold consultations
in accordance with Article 20 of this Agreement with a view to
determining the extent to which this Agreement is affected by the
provisions of such multilateral agreement and whether this Agreement
should be revised to take account of this multilateral agreement.

ARTICLE 23

TERMINATION

Each Contracting Party may at any time give notice in
writing through diplomatic channels of its decision to terminate this
Agreement. Such notice shall be communicated simultaneously to the
International Civil Aviation Organization. In such case the Agreement
shall terminate twelve (12) months after the date of receipt of the
notice by the other Contracting Party, unless the notice to terminate is
withdrawn by mutual agreement before the expiry of this period. If the
other Contracting Party fails to acknowledge receipt, the notice shall
be deemed to have been received fifteen (15) days after the date on
which the International Civil Aviation Organization acknowledged receipt
thereof.

ARTICLE 24

REGISTRATION WITH THE INTERNATIONAL CIVIL AVIATION ORGANIZATION

This Agreement shall be registered with the International Civil Aviation Organization.

ARTICLE 25

ENTRY INTO FORCE

This Agreement shall replace the Air Transport
Agreement between the Government of the Republic of the Philippines and
the Government of the French Republic signed in Paris on 29 October
1968.

Each Contracting Party shall notify the other
Contracting Party through diplomatic channels of the completion of the
constitutional procedures it requires to give effect to this Agreement,
which shall enter into force on the first day of the. second month
following the date of receipt of the latter of these notifications.

In witness whereof, the undersigned, being duly authorised by their respective Governments, have signed this Agreement.

Done at Paris in duplicate this 17 September 2014 in the English and the French languages, both texts being equally authentic.
 

(Sgd.) (Sgd.)
   
FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF THE
REPUBLIC OF THE PHILIPPINES FRENCH REPUBLIC

 
ANNEX

ROUTE SCHEDULE

1. Route to be operated by the designated airline or airlines the French Republic:

From points in the French Republic to points in the
Republic of the Philippines and vice versa, with two (2) roving points
in the Middle East/Gulf, three (3) roving points in the sub-Asian
continent, four (4) roving points in Southeast Asia, one (1) point in
Thailand as intermediate points, and four (4) roving points in Southeast
Asia as beyond points.

Notes:

a) Except for the points of departure and
destination points, points on the routes may, at the option of the
designated airline(s), be omitted or not on all flights.

  b) The designated airline(s) shall have the right,
on part or whole of the agreed services, to modify the order of service
of the points.

c) The term “roving point” means that the French
Aeronautical Authorities may change the points already selected for
another point in the country or region concerned as often Aeronautical
Authorities they may wish but not more frequently than every IATA
schedule period.

d) The point and/or roving points stipulated above
as intermediate points and points beyond shall be selected by the French
Aeronautical Authorities.

e) The four (4) roving points in Southeast Asia
selected and operated as intermediate points shall be the same four (4)
roving points beyond in Southeast Asia that may be operated by the
designated airline(s) of the French Republic every IATA schedule period.

2. Route to be operated by the designated airline or airlines of the Republic of the Philippines:

From points in the Republic of the Philippines to
points in the French Republic and vice versa, with one (1) point in
Thailand, three (3) roving points in the sub-Asian continent, two (2)
roving points in the Middle East/Gulf, and five (5) roving points in
Europe as intermediate points, and five (5) roving points in Europe as
beyond points.

Notes:

a) Except for the points of departure and
destination points, points on the routes may, at the option of the
designated airline(s), be omitted or not on all flights.

b) The designated airline(s) shall have the right,
on part or whole of the agreed services, to modify the order of service
of the points.

c) The term “roving points” means that the
Philippine Aeronautical Authorities may change the points already
selected for other points in the country or region concerned as often as
they may wish but not more frequently than every IATA schedule period.

d) The point and/or roving points stipulated above
as intermediate points and points beyond shall be selected by the
Philippine Aeronautical Authorities.

e) The five (5) roving points in Europe selected and
operated as intermediate points shall be the same five (5) roving
points beyond in Europe that may be operated by the designated
airline(s) of the Republic of the Philippines every IATA schedule
period.

3. The countries included in the regions of Southeast
Asia, South Asian sub­ continent, the Middle East/Gulf, and Europe are
listed below:

SOUTHEAST ASIA EUROPE
Brunei United Kingdom
Malaysia Italy
Indonesia Germany
Singapore Netherlands
Cambodia Spain
Laos Greece
Vietnam Portugal
Myanmar Belgium
Hong Kong SAR Luxembourg
Macau SAR Denmark
Taiwan Iceland
  Switzerland
  Austria
  Sweden
  Norway
  Finland
  Ireland
  Turkey
  Malta
  Cyprus
   
SOUTH ASIAN SUB-CONTINENT MIDDLE EAST/GULF
Bangladesh Iran
India Kuwait
Nepal Saudi Arabia
Bhutan Qatar
Sri Lanka Bahrain
Maldives United Arab Emirates
Pakistan Oman
Afghanistan Yemen
  Syria
  Jordan
  Lebanon
  Israel
  Egypt

Except as otherwise provided in this Annex, the
number of points referred to in each region in the schedule of routes
are not limited per country within the ceiling authorized to each
Contracting Party for each region.

Entry into Force: March 1, 2018