AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES AND THE GOVERNMENT OF NEW ZEALAND ON AIR SERVICES
The Government of the Republic of the Philippines and the Government
of New Zealand (hereinafter referred to as “the Contracting Parties”);
Being parties of the Convention on International Civil Aviation and
the International Air Services Transit Agreement both opened for
signature at Chicago, on the 7th day of December, 1944;
Desiring to conclude an agreement for the purpose of establishing air services between and beyond their respective territories;
Desiring to ensure the highest degree of safety and security in international air transport;
Have agreed as follows:
ARTICLE 1
DEFINITIONS
For the purpose of this Agreement, unless the context otherwise requires:
(a) the term “aeronautical authorities” means, in the case of the
Republic of the Philippines, the Civil Aeronautics Board and other
agencies performing civil aviation-related functions and in the case of
New Zealand, the Minister responsible for the subject of Civil Aviation
or, in both cases, any other authority or person empowered to perform,
the functions now exercised by the said authorities;(b) the term “agreed services” means scheduled air services on the
routes specified in the Annex to this Agreement for the transport of
passengers, cargo and mail, separately or in combination;(c) the term “Agreement” means this Agreement, its Annex, and any amendments thereto;
(d) the term “Convention” means the Convention on International
Civil Aviation opened for signature at Chicago on the seventh day of
December 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 so far as those Annexes and amendments have
been adopted or ratified by both Contracting Parties;(e) the term “designated airline” means an airline which has been
designated and authorised in accordance with Article 3 of this Agreement
to provide air services on the routes specified in the Annex thereto;(f) the term “tariffs” means the prices to be paid for the carriage
of passengers, baggage and cargo and the conditions under which those
prices apply, but excluding remuneration and conditions for the carriage
of mail;(g) the term “air services”, “international air service”, “airline”
and “stop for non-traffic purposes” have the meanings respectively
assigned to them in Article 96 of the Convention; and(h) the term “territory”, in respect of the Philippines, means the
territory as defined in Article 1 of the 1987 Constitution of the
Republic of the Philippines, and, in respect of New Zealand, has the
meaning assigned to it in Article 2 of the Convention, provided that the
term “territory” shall exclude Tokelau.
ARTICLE 2
GRANT OF RIGHTS
1. Each Contracting Party grants to the other Contracting Party the
following rights for the conduct of international air services by the
airline designated by the other Contracting Party:
(a) to fly without landing across the territory of the other Contracting Party;
(b) to make stops in the said territory for non-traffic purposes; and
(c) to make stops in the said territory for the purpose of taking
up and discharging, while serving the routes specified in the Annex,
international traffic in passengers, cargo and mail, separately or in
combination.
2. Nothing in paragraph 1 of this Article shall be deemed to confer
on a designated airline of one Contracting Party the privilege of taking
up, in the territory of the other Contracting Party, passengers, cargo
and mail carried for remuneration or hire and destined for another point
in the territory of that other Contracting Party.
ARTICLE 3
DESIGNATION AND AUTHORISATION
1. Each Contracting Party shall have the right to designate in
writing to the other Contracting Party one or more airlines to conduct
the agreed services on the specified routes and to withdraw or alter
such designations.
2. On receipt of such designation and’ subject to the provisions of
Article 4 of this Agreement, the aeronautical authorities of the other
Contracting Party shall grant without delay to the airline or airlines
so designated the appropriate authorisations to commence the agreed
services for which that airline has been designated.
3. Upon receipt of such authorisations the airline may begin at any
time to conduct the agreed services, in whole or in part provided that
the airline complies with the applicable provisions of this Agreement,
in particular, that tariffs are established in accordance with the
provisions of Article 10 of this Agreement.
ARTICLE 4
REVOCATION AND LIMITATION OF AUTHORIZATION
1. The aeronautical authorities of each Contracting Party shall have
the right to withhold the authorisations referred to in Article 3 of
this Agreement with respect to an airline designated by the other
Contracting Party, to revoke or suspend such authorisations or impose
conditions, temporarily or permanently:
(a) in the event that they are not satisfied the airline is
incorporated and has its principal place of business in the territory of
the Contracting Party designating the airline;(b) in the event that they are not satisfied effective control of
that airline is vested in the Contracting Party designating the airline,
nationals of that Contracting Party, or both;(c) in event of failure by such airline to qualify before the
aeronautical authorities of that Contracting Party under the laws,
regulations and rules normally and reasonably applied by these
authorities in conformity with the Convention; and(d) in case the airline otherwise fails to operate in accordance with the conditions prescribed under this Agreement.
2. Unless immediate action is essential to prevent further
infringement of the laws, regulations and rules referred to above, the
rights enumerated in paragraph 1 of this Article shall be exercised only
after consultations with the aeronautical authorities of the other
Contracting Party in conformity with Article 14 of this Agreement
ARTICLE 5
APPLICATION OF LAWS, REGULATIONS AND RULES
1. The laws, regulations, rules and procedures of one Contracting
Party relating to the admission to, remaining in, or departure from its
territory of aircraft engaged in international air navigation or to the
operation and navigation of such aircraft shall be complied with by the
airline or airlines of the other Contracting Party upon entrance into,
departure from and while within the said territory.
2. While entering, within, or leaving the territory of one
Contracting Party, its laws, regulations and rules relating to the
admission to or departure from its territory of passengers, crew or
cargo on aircraft (including regulations relating to entry, clearance,
aviation security, immigration, passports, customs and quarantine or, in
the case of mail, postal regulations) shall be complied with by, or
on behalf of, such passengers, crew or cargo of the airlines of the
other Contracting Party.
3. Neither of the Contracting Parties shall give preference to its
own or any other airline over an airline of the other Contracting Party
engaged in similar international air services in the application of its
customs, immigration, quarantine and similar regulations.
4. Passengers, baggage and cargo in direct transit through the
territory of either Contracting Party and not leaving the area of the
airport reserved for such purpose shall be subject to no more than a
simplified control. Baggage and cargo in direct transit shall be exempt
from customs duties and other similar taxes.
ARTICLE 6
SAFETY STANDARDS, CERTIFICATES AND LICENCES
1. Certificates of airworthiness, certificates of competency and
licences, issued or rendered valid by the aeronautical authorities of
one Contracting Party and still in force, shall be recognised as valid
by the aeronautical authorities of the other Contracting Party for the
purpose of operating the agreed services provided that such certificates
or licences were issued or rendered valid pursuant to, and in
conformity with, as a minimum, the standards established under the
Convention. The aeronautical authorities of each Contracting Party
reserve the right, however, to refuse to recognise, for the purpose of
flights above its own territory, certificates of competency and
licences granted to its own nationals by the other Contracting Party.
2. If the privileges or conditions of the licences or certificates
referred to in paragraph 1 above, issued by the aeronautical authorities
of one Contracting Party to any person or designated airline or in
respect of an aircraft used in the operation of the agreed services,
should permit a difference from the minimum standards established under
the Convention, and which difference has been filed with the
International Civil Aviation Organization, the other Contracting Party
may request consultations between the aeronautical authorities in
conformity with Article 14 of this Agreement with a view to clarifying
the practice in question.
3. Consultations concerning the safety standards and requirements
maintained and administered by the aeronautical authorities of the other
Contracting Party relating to aeronautical facilities, crew members,
aircraft, and operation of the designated airlines shall be held within
fifteen (15) days of receipt of a request from either Contracting Party,
or such other period as may be mutually determined. If, following such
consultations, the aeronautical authorities of one Contracting Party
find that the aeronautical authorities of the other Contracting Party do
not effectively maintain and administer safety standards and
requirements in these areas that are at least equal to the minimum
standards established pursuant to the Convention, the aeronautical
authorities of the other Contracting Party shall be notified of such
findings and the steps considered necessary to conform with these
minimum standards. Failure to take appropriate corrective action within
fifteen (15) days, or such other period as may be accepted by the
aeronautical authorities of the Contracting Party that made the
findings, shall constitute grounds for withholding, revoking, suspending
or imposing conditions on the authorisations of the airlines designated
by the other Contracting Party.
4. Pursuant to Article 16 of the Convention, each Contracting Party
accepts that any aircraft operated by, or, where approved, on behalf of,
an airline of one Contracting Party, may, while within the territory of
the other Contracting Party, be the subject of an examination by the
aeronautical authorities of the other Contracting Party, on board and
around the aircraft to verify the validity of the relevant aircraft
documents and those of its crew members and the apparent condition of
the aircraft and its equipment (in this Article called “ramp
inspection”), provided such ramp inspection does not cause an
unreasonable delay in the operation of the aircraft.
5. If the aeronautical authorities of one Contracting Party, after carrying out a ramp inspection, find that:
(a) an aircraft or the operation of an aircraft does not comply
with the minimum standards established at that time pursuant to the
Convention; and/or(b) there is a lack of effective maintenance and administration of
safety standards established at that time pursuant to the Convention,
the aeronautical authorities of that Contracting Party may, for the
purposes of Article 33 of the Convention and at their discretion,
determine that the requirements under which the certificates or licences
in respect of that aircraft or its crew members had been issued or
rendered valid, or that the requirements under which that aircraft is
operated, are not equal to or above the minimum standards established
pursuant to the Convention. This same determination may be made in the
case of denial of access for ramp inspection.
6. The aeronautical authorities of each Contracting Party shall have
the right, without consultation, to withhold, revoke, suspend or impose
conditions on the authorisations of an airline of the other Contracting
Party in the event the aeronautical authorities of the first Contracting
Party conclude that immediate action is essential to the safety of
airline operations.
7. Any action by the aeronautical authorities of one Contracting
Party in accordance with paragraphs 3 or 6 above shall be discontinued
once the basis for the taking of that action ceases to exist.
ARTICLE 7
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 an 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
provision of the:
• Convention on Offences and Certain Other Acts Committed on Board Aircraft, signed at Tokyo on 14 September 1963;
• Convention for the Suppression of Unlawful Seizure of Aircraft, signed at The Hague on 16 December 1970;
• Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation, signed at Montreal on 23 September 1971;
• Montreal Supplementary Protocol for the Suppression of Unlawful
Acts of Violence at Airports Serving International Civil Aviation,
signed at Montreal on 24 February 1988;• Convention on the 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 the 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 on International Civil Aviation to the extent that such
security provisions are applicable to the Contracting Parties; they
shall require that operators of aircraft of their registry or operators
of aircraft who have their principal place of business or permanent
residence in their territory and the operators of airports in their
territory act in conformity with such aviation security provisions.
4. Each Contracting Party agrees that such operators of aircraft may
be required to observe the aviation security provisions referred to in
paragraph 3 above required by the other Contracting Party for entry
into, departure from, or while within, the territory of that other
Contracting Party. Each Contracting Party shall ensure that adequate
measures are effectively applied within its territory to protect the
aircraft and to inspect passengers, crew, carry-on items, baggage, cargo
and aircraft stores prior to and during boarding or loading. Each
Contracting Party shall also give positive consideration to any request
from the other Contracting Party for reasonable special security
measures to meet a particular threat.
5. Each Contracting Party shall also give sympathetic consideration
to a request from the other Contracting Party to enter into reciprocal
administrative arrangements whereby the aeronautical authorities of one
Contracting Party could make in the territory of the other Contracting
Party their own assessment of the security measures being carried out by
aircraft operators in respect of flights destined for the territory of
the Contracting Party making such a request.
6. When an incident or threat of an incident of unlawful seizure of
civil aircraft or other unlawful acts against the safety of such
aircraft, their passengers and crew, airports or 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.
7. When a Contracting Party has reasonable grounds to believe that
the other Contracting Party has departed from the aviation security
provisions of this Article, the aeronautical authorities of that
Contracting Party may request immediate consultation with the
aeronautical authorities of the other Contracting Party. Failure to
reach a satisfactory agreement on the issues involved within 30 days
from the date of such request shall constitute grounds to withhold,
revoke, limit, or impose conditions on the operating authorization of an
airline or airlines of that Contracting Party. When required to do so
by an emergency, a Contracting Party may take interim action prior to
the expiry of 30 days.
ARTICLE 8
CUSTOMS DUTIES AND OTHER CHARGES
1. On arriving in the territory of one Contracting Party, aircraft
operated in international air transport by the designated airlines of
the other Contracting Party, their regular equipment, ground equipment,
fuel, lubricants, consumable technical supplies, spare parts (including
engines), aircraft stores (including but not limited to such items of
food, beverages and liquor, tobacco and other products destined for sale
to or use by passengers in limited quantities during flight), and other
items intended for or used solely in connection with the operation or
servicing of aircraft engaged in international air transport shall be
exempt, on the basis of reciprocity, from all import restrictions,
property taxes and capital levies, customs duties, excise taxes, and
similar fees and charges that are (1) imposed by the national
authorities, and (2) not based on the cost of the services provided,
provided that such equipment and supplies remain on board the aircraft.
2. The following shall also be exempt, on the basis of reciprocity,
from the taxes, levies, duties, fees and charges referred to in
paragraph 1 of this Article, with the exception of charges based on the
cost of the service 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 an airline of the other Contracting Party
engaged in international air transport, even when these stores are to be
used on a part of the journey performed over the territory of the
Contracting Party in which they are taken on board;(b) ground equipment and spare parts (including engines) introduced
into the territory of a Contracting Party for the servicing,
maintenance, or repair of aircraft of an airline of the other
Contracting Party used in international airtransport;(c) fuel, lubricants and consumable technical supplies introduced
into or supplied in the territory of a Contracting Party for use in an
aircraft of an airline of the other Contracting Party engaged in
international air transport, even when these supplies are to be used on a
part of the journey performed over the territory of the Contracting
Party in which they are taken on board.
3. 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 appropriate authorities.
4. The exemptions provided by this Article shall also be available
where the designated 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.
ARTICLE 9
PRINCIPLES GOVERNING THE OPERATION OF AGREED SERVICES
1. There shall be fair and equal opportunity and equal capacity
entitlement for the designated airlines of both Contracting Parties to
conduct the agreed services on the routes specified in the Annex.
2. In conducting the agreed services, the designated airlines of both
Contracting Parties shall consider the interests of the designated
airline of the other Contracting Party so as not to affect unduly the
agreed services of the latter on the whole or part of the same route.
3. The agreed services provided by the designated airlines of the
Contracting Parties shall bear a close relationship to the requirements
of the public for transportation on the specified routes. They shall
have as their primary objective the provision at a reasonable load
factor or capacity adequate for the current and reasonably anticipated
requirements of true origin and destination traffic between the
territories of the Contracting Parties.
4. Provision for the carriage of passengers, cargo and mail both
taken up and discharged at points on the specified routes in the
territories of third countries, if so agreed by aeronautical authorities
of both Contracting Parties, shall be made in accordance with the
general principles that capacity shall be related to:
(a) traffic requirements to and from the territory of the Contracting Party which has designated the airline;
(b) traffic requirements of the areas through which the airline
passes, local and regional air services being taken Into account; and(c) the requirements of through airline operations.
5. The aeronautical authorities of the Contracting Parties shall from
time to time jointly determine the practical application of the
principles contained in the foregoing paragraphs of this Article for the
conduct of the agreed services by the designated airlines.
6. The total capacity to be provided on the agreed services by the
designated airlines of the Contracting Parties shall be jointly
determined in accordance with the above-mentioned principles by the
Contracting Parties.
ARTICLE 10
TARIFFS
1. The tariffs applicable between the territories of the two
Contracting Parties shall be established at reasonable levels, due
regard being paid to all relevant factors including the cost of
operation, the interests of users, reasonable profit, class of service
and when it is deemed suitable, the tariffs of other airlines operating
over whole or part of the routes specified in the Annex.
2. The Contracting Parties shall permit the tariffs referred to in
this Article to be developed by the designated airlines individually or,
at the option of the airlines, through coordination with each other or
with other airlines.
3. The aeronautical authorities of either Contracting Party may
require tariffs for an agreed service to be filed for approval (in such
form as they may separately require), in which case such filing shall be
submitted at least thirty (30) days before the proposed effective date,
unless those aeronautical authorities permit the filing to be made on a
shorter notice.
4. Where any tariffs are required to be filed, they shall become
effective only after their approval, as necessary, by the aeronautical
authorities of the Contracting Parties. In the event that the period
for submission is reduced, as provided for in paragraph (3) above, the
aeronautical authorities of the two Contracting Parties may agree that
the period within which any disapproval must be notified shall be less
than thirty (30) days.
5. If the aeronautical authorities do not agree on any tariff
submitted to them under the provisions of this Article, the dispute may
be settled in accordance with the provisions of Article 15 of this
Agreement.
6. Where it is proposed that the aeronautical authorities of one or
either of the Contracting Parties proposes to intervene in a tariff that
has been filed, the primary objectives of such intervention shall be:
(a) prevention of unreasonably discriminatory prices or practices;
(b) protection of consumers from prices that are unreasonably high or restrictive because of the abuse of a dominant position;
ARTICLE 11
AIRLINE REPRESENTATIVES
1 The designated airline or airlines of one Contracting Party shall
be allowed, on the basis of reciprocity, to bring into and to maintain
in the territory of the other Contracting Party their representatives
and commercial operational and technical staff as required in connection
with the operation of agreed services.
2. These staff requirements may, at the option of the designated
airline or airlines of one Contracting Party, be satisfied by its
own personnel or by using the services of any other organisation,
company or airline operating in the territory of the other Contracting
Party, and authorised to perform such services in the territory of
that Contracting Party.
3. The representatives and staff shall be subject to the laws and
regulations in force of the other Contracting Party, and, consistent
with such laws and regulations, each Contracting Party shall, on the
basis of reciprocity and with the minimum of delay, grant the necessary
employment authorisations, visitor visas or other similar documents to
the representatives and staff referred to in paragraph 1 of this
Article.
ARTICLE 12
COMMERCIAL OPPORTUNITIES AND TRANSFER OF FUNDS
1. Each designated airline shall have the right to engage in the sale
of air transportation in the territory of the other Contracting Party
directly and, at its discretion, through its agents. Each designated
airline shall have the right to sell transportation in freely
convertible currencies, and to the same extent any person shall be
free to purchase such transportation in currencies accepted for sale
by that airline.
2. Each Contracting Party grants to any designated airline of the
other Contracting Party the right of free transfer at the official rate
of exchange of the excess of receipts over expenditure earned by that
airline in its territory in connection with the carriage of passengers,
mail and cargo.
3. In operating or holding out international air transport pursuant
to this Agreement, a designated airline of a Contracting Party may enter
into code-sharing or leasing arrangements. Code-sharing shall be
limited to arrangements with designated airlines of the other
Contracting Party.
4. Notwithstanding any other provision of this Agreement, airlines
and indirect providers of cargo transport of the Contracting Parties
shall be permitted, without restriction, to employ in connection with
international air transport any surface transport for cargo to or from
any points in the territories of the Contracting Parties or in third
countries, including transport to and from all airports with customs
facilities, and including, where applicable, the right to transport
cargo in bond under applicable laws and regulations. Access to airport
customs processing and facilities shall be provided for such cargo,
whether moving by surface or by air. Subject to the internal laws of the
Contracting Parties, airlines may elect to perform their own surface
transport or to provide it through arrangements with other surface
carriers, including surface transport operated by other airlines and
indirect providers of cargo air transport. Such intermodal cargo
services may be offered at a single, through price for the air and
surface transport combined, provided that shippers are not misled as to
the facts concerning such transport.
ARTICLE 13
STATISTICS
The aeronautical authorities of either Contracting Party shall supply
to the aeronautical authorities of the other Contracting Party at their
request, such periodic or other statements of statistics as may be
reasonably required for the purpose of reviewing the capacity provided
on the agreed services.
ARTICLE 14
CONSULTATIONS
1. In a spirit of close cooperation, the aeronautical authorities of
the Contracting Parties shall consult each other from time to time with a
view to ensuring the implementation of, and satisfactory compliance
with, the provisions of this Agreement and of its Annex, and shall also
consult when necessary to provide for modification thereof.
2. Either Contracting Party may request, through diplomatic channels,
consultations, which may be through discussion or by correspondence and
shall begin within a period of sixty (60) days of receipt of a written
request, unless both Contracting Parties agree to an extension of this
period.
ARTICLE 15
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 negotiation.
2. If the Contracting Parties fail to reach a settlement by
negotiation they may agree to refer the dispute for decision to some
person or body, or either Contracting Party may submit the dispute for
decision to a Tribunal of three arbitrators, one to be nominated by each
Contracting Party and the third to be appointed by the two arbitrators.
Each of the Contracting Parties shall nominate an 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 and the third arbitrator shall be appointed
within a further period of sixty (60) days. If either of the
Contracting Parties fails to nominate an 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 be requested by either Contracting Party
to appoint an arbitrator or arbitrators as the case requires. In all
cases the third arbitrator shall be a national of a third State and
shall act as President of the arbitral tribunal.
3. The Contracting Parties shall comply with any decision given under paragraph 2 of this Article.
ARTICLE 16
MODIFICATION OF AGREEMENT
If either of the Contracting Parties considers it desirable to modify
any provision of this Agreement, it may request consultations with the
other Contracting Party. Such consultations, which may be through
discussion or by correspondence, shall begin within a period of sixty
(60) days of receipt of a written request unless both Contracting
Parties agree to an extension of this period. Any modifications so
agreed shall come into force when they have been approved through the
respective internal procedures of each Contracting Party and have been
confirmed by an exchange of diplomatic notes.
ARTICLE 17
TERMINATION
Either Contracting Party may at any time give notice in writing
through diplomatic channels to the other Contracting Party of its
decision to terminate this Agreement; such notice shall be communicated
simultaneously to the Internationa! Civil Aviation Organization. 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 agreement before the expiry of this period. In
the absence of acknowledgement of receipt by the other Contracting
Party the notice shall be deemed to have been received fourteen (14)
days after the receipt of the notice by the International Civil Aviation
Organization.
ARTICLE 18
REGISTRATION
This Agreement and any amendment thereto shall be registered with the International Civil Aviation Organization.
ARTICLE 19
ENTRY INTO FORCE
This Agreement shall enter into force on the date of the exchange of
diplomatic notes stating that the respective internal procedures of each
Contracting Party have been complied with.
In witness whereof the undersigned, being duly authorised thereto by
their respective Governments, have signed the present Agreement.
Done in duplicate at Singapore on this 20th day of November 2007 in the English language.
THE REPUBLIC OF THE
PHILIPPINES
NEW ZEALAND
ANNEX
ROUTE SCHEDULE
I. Routes for the designated airlines of New Zealand:
ZealandII. Routes for the designated airlines of the Republic of the Philippines:
Notes:
(a) The designated airline of either Contracting Party may, on any or
all flights, omit calling at any of the above points, provided that the
service on this route starts and terminates in the territory of that
Contracting Party.(b) The right of the designated airline of either Contracting Party
to transport passengers, cargo and mail between the points in the
territory of the other Contracting Party and points in the territory of
Third Parties shall be discussed and mutually decided upon by the
aeronautical authorities of the two Contracting Parties.