MacauLITES Home | Databases | WorldLII | Search | Feedback

Macau Bilateral Treaty Series

You are here:  MacauLITES >> Databases >> Macau Bilateral Treaty Series >> 2006 >> [2006] MOBTSer 2

Database Search | Name Search | Recent Decisions | Noteup | LawCite | Help

Agreement between the Government of the Macao Special Administrative Region of the People's Republic of China and the Government of the Democratic Socialist Republic of Sri Lanka For Air Services between their Respective Areas [2006] MOBTSer 2 (8 June 2006)

AGREEMENT BETWEEN THE GOVERNMENT OF THE MACAO SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR AIR SERVICES BETWEEN THEIR RESPECTIVE AREAS

The Government of the Macao Special Administrative Region of the People’s Republic of China («the Macao Special Administrative Region») and the Government of the Democratic Socialist Republic of Sri Lanka, the former having been duly authorized to conclude this Agreement by the Central People’s Government of the People's Republic of China (hereinafter referred to as the «Contracting Parties»);

Desiring to conclude an Agreement for the purpose of establishing air services between and beyond their respective areas;

Acknowledging the importance of air transportation as a means of creating and preserving friendship, understanding and co-operation between peoples of the two parties;

Desiring to contribute to the progress of international civil aviation;

HAVE AGREED AS FOLLOWS:

Article 1

Definitions

1. For the purpose of this Agreement, unless the context otherwise requires;

(a) The term «aeronautical authority» means in the case of the Government of the Democratic Socialist Republic of Sri Lanka, the Minister in Charge of Civil Aviation and in the case of the Government of the Macao Special Administrative Region, the Civil Aviation Authority or in either case any person or body authorized to perform any function to which this Agreement relates;

(b) The term «agreed services» means scheduled international air services on «specified routes» for the transport of passengers, baggage and cargo, separately or in combination in accordance with agreed capacity entitlements; The term «specified routes» means a route specified in the Annex to this Agreement;

(c) The term «Agreement» means this Agreement, its Annex drawn up in application thereof, and any amendment to the Agreement or to the Annex;

(d) The terms «air service» «international air service», «airline» and «stop for non-traffic purposes» have the meanings respectively assigned to them in Article 96 of the Convention on International Civil Aviation, opened for signature at Chicago on the seventh day of December 1944;

(e) The term «Annex» shall mean the route schedules attached to the present Agreement and any clauses or notes appearing in such Annex, and any modification made thereto;

(f) The term «capacity» in relation to an aircraft means the pay load of that aircraft available on a route or section of a route; The term «capacity» in relation to an agreed service means the capacity of the aircraft used on such service, multiplied by the frequency of the flights operated by such aircraft over a given period on a route or section of a route;

(g) The term «cargo» includes mail;

(h) The term «Convention» means the Convention on International Civil Aviation, opened for signature at Chicago on the seventh day of December 1944, and includes: (i) any amendment thereto which has entered into force under Article 94(a) of the Convention and has been ratified by and/or is applicable to both Contracting Parties; and (ii) any annex or amendment adopted thereto under Article 90 of that Convention, insofar as such annex or amendment is at any given time effective for both Contracting Parties;

(i) The term «designated airline» means an airline that has been designated and authorized in accordance with Article 3 of this Agreement;

(j) The term «security equipment» has the meaning assigned to it in annex 9 to the Convention;

(k) The term «tariffs» means the prices which the designated airlines charge for the transport of passengers and cargo and the conditions under which those prices apply but excluding remuneration and conditions for carriage of mail;

(l) The term «area» in relation to the Macao Special Administrative Region includes Macao Peninsula and the Taipa and Coloane islands and in relation to the Democratic Socialist Republic of Sri Lanka has the meaning assigned to «territory» in Article 2 of the Convention; and

(m) The term «user charges» means charges made to airlines by the competent authorities or permitted by them to be made for the provision of airport property or of air navigation facilities, including related services and facilities for aircraft, their crews, passengers and cargo.

2. The Annex to this Agreement is considered an integral part thereof.

3. In implementing this Agreement, the Contracting Parties shall act in conformity with the provisions of the Convention on International Civil Aviation, opened for signature at Chicago on 7 December 1944, including the Annexes and any amendments to the Convention or to its Annexes which apply to both Contracting Parties, in so far as those provisions are applicable to international air services.

Article 2

Grant of Rights

1. Each Contracting Party grants to the other Contracting Party the rights specified in this Agreement to enable its designated airline to establish and operate agreed services on the specified routes.

2. Subject to the provisions of this Agreement, the airline designated by each Contracting Party shall enjoy the following rights;

(a) to fly across the area of the other Contracting Party without landing;

(b) to make stops in the said area for non-traffic purposes; and

(c) to make stops in the said area at points specified in the Annex, for the purpose of taking on board and discharging passengers, baggage and cargo coming from or destined for points on the specified routes while operating an agreed service.

3. The airlines of each Contracting Party, other than those designated under Article 3, shall also enjoy the rights specified in paragraph 2(a) and 2(b) of this Article.

4. Nothing in this Article shall be deemed to confer on the designated airline of one Contracting Party the privilege of taking up, in the area of the other Contracting Party, passengers, baggage and cargo carried for remuneration or hire and destined for another point in the area of that other Contracting Party.

5. If because of armed conflict, political disturbances or developments or special and unusual circumstances the designated airline of one Contracting Party is unable to operate a service on its normal routing, the other Contracting Party shall use its best efforts to facilitate the continued operation of such service through appropriate temporary rearrangement of routes as is mutually decided by the Contracting Parties.

6. At points in the specified routes, the designated airline shall have the right to use all airways, airports and other facilities provided by the Contracting Parties on a non-discriminatory basis.

Article 3

Designation and Authorisation

1. Each Contracting Party shall have the right to designate one airline for the purpose of operating the agreed services on the specified routes. The notification of such designation shall be made in writing, by the aeronautical authority of the Contracting Party having designated the airline to the aeronautical authority of the other Contracting Party through appropriate channels.

2. On receipt of such notification the other Contracting Party shall, subject to the provisions of paragraphs 3, 4 and 5 of this Article, without delay grant to the airline designated the appropriate operating authorizations.

3. The aeronautical authority of one Contracting Party may require the airline designated by the other Contracting Party to satisfy them that it is qualified to fulfill the conditions prescribed under the laws and regulations normally and reasonably applied to the operation of international air services by such authority in conformity with the provisions of the Convention.

4. a) The Government of the Democratic Socialist Republic of Sri Lanka shall have the right to refuse to grant the operating authorizations referred to in paragraph 2 of this Article or to impose such conditions as it may deem necessary on the exercise by a designated airline of the rights specified in Article 2 of this Agreement, in any case where it is not satisfied that, that airline is incorporated and has its principal place of business in the Macao Special Administrative Region.

b) The Government of the Macao Special Administrative Region shall have the right to refuse to grant the operating authorizations referred to in paragraph 2 of this Article or to impose such conditions as it may deem necessary on the exercise by a designated airline of the rights specified in Article 2 of this Agreement, in any case where it is not satisfied that substantial ownership and effective control of that airline are vested in the Government of the Democratic Socialist Republic of Sri Lanka or its nationals.

5. Each Contracting Party shall also have the right to refuse to grant the operating authorizations referred to in paragraph 2 of this Article or to impose such conditions as it may deem necessary on the exercise by a designated airline of the rights specified in Article 2 of this Agreement in any case where it is not satisfied that such airline holds a current Air Operator's Certificate or similar License issued by the aeronautical authority of the Contracting Party designating the airline.

6. The agreed services may begin at any time, in whole or in part, but not before:

(a) the Contracting Party to whom the rights have been granted shall have designated an airline for the specified route; and

(b) the Contracting Party granting the rights shall have given, with the least possible delay, the appropriate operating authorizations to the designated airline concerned (subject to the provisions of Article 4 of this Agreement).

7. When an airline has been so designated and authorized it may begin to operate the agreed services, provided that the airline complies with the applicable provisions of this Agreement.

8. Each Contracting Party shall have the right to withdraw, by written notification from its aeronautical authority to the aeronautical authority of the other Contracting Party, the designation of an airline and to substitute it by the designation of another airline.

Article 4

Revocation, Suspension and Limitation of Authorisation

1. The aeronautical authority of each Contracting Party shall, with respect to the airline designated by the other Contracting Party, have the right to revoke an operating authorization or to suspend the exercise of the rights specified in Article 2 of this Agreement, or to impose conditions, temporarily or permanently as it may deem necessary on the exercise of those rights;

(a) in the case of failure by that airline to comply with the laws and regulations normally and reasonably applied by the aeronautical authority of the Contracting Party granting those rights in conformity with the Convention; or

(b) in case the airline otherwise fails to operate in accordance with the conditions prescribed under this Agreement; or

(c) in any case where it is not satisfied that it holds a current Air Operator Certificate or similar Licence issued by the aeronautical authority of the Contracting Party designating the airline; or

(d) in accordance with paragraph 6 of Article 9 of this Agreement; or

(e) in the case of failure by the other Contracting Party to take appropriate action to improve safety in accordance with paragraph 2 of Article 9 of this Agreement; or

(f) in the case of failure to reach satisfactory agreement in accordance with paragraph 3 of Article 8 of this Agreement; or

(g) in accordance with paragraph 9 of Article 11 of this Agreement; or

(h) (i) in the case of the Government of the Democratic Socialist Republic of Sri Lanka, in any case where it is not satisfied that, that airline is incorporated and has its principal place of business in the Macao Special Administrative Region; and

(ii) in the case of the Government of the Macao Special Administrative Region, in any case where it is not satisfied that substantial ownership and effective control of that airline are vested in the Government of the Democratic Socialist Republic of Sri Lanka or its nationals.

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 or regulations, such right shall be exercised only after consultation with the aeronautical authority of the other Contracting Party, as provided for in Article 16.

3. In the event of action by one Contracting Party under this Article, the rights of the other Contracting Party under Article 17 shall not be prejudiced.

Article 5

Principles Governing Operation of Agreed Services

1. Each Contracting Party shall take all appropriate action within its jurisdiction to eliminate all forms of discrimination and unfair, anti-competitive or predatory practices adversely affecting the competitive position of the designated airline of the other Contracting Party in the exercise of its rights and entitlements set out in this Agreement.

2. The aeronautical authorities of the two Contracting Parties shall agree on the capacity to be operated in accordance with the following principles:

a) There shall be fair and equal opportunity for the designated airlines of both Contracting Parties to operate the agreed services on the specified routes between their respective areas.

b) In operating the agreed services the designated airline of each Contracting Party shall take into account the interests of the designated airline of the other Contracting Party so as not to affect unduly the services which the latter provides on the whole or part of the same routes.

c) 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 and shall have as their primary objective the provision at a reasonable load factor of capacity adequate to carry the current and reasonably anticipated requirements for the carriage of passengers and/or cargo, coming from or destined for the area of the Contracting Party which has designated the airline. Provision for the carriage of passengers and cargo both taken on board and discharged at points on the specified routes in the areas of third parties shall be made in accordance with the general principles that capacity shall be related to:

1) traffic requirements to and from the area of the Contracting Party which has designated the airline;

2) traffic requirements of the area through which the agreed service passes, after taking account of local and regional services; and

3) the requirements of through airline operation.

3. The capacity which may be provided in accordance with this Article by the designated airline of each Contracting Party on the agreed services shall be such as is decided between the aeronautical authorities of the Contracting Parties before the commencement by the designated airline concerned of the agreed services and from time to time thereafter.

Article 6

Customs Duties and Other Charges

1. Aircraft operated on agreed services by the designated airline of one Contracting Party, as well as its regular equipment, supplies of fuels, lubricating oils (including hydraulic fluids) and lubricants, consumable technical supplies, spare parts (including engines), aircraft stores (including but not limited to such items as food, beverages, liquor, tobacco and other products for sale to or use by passengers during flight) and other items intended for or used solely in connection with the aviation operation or servicing, which are on board such aircraft, shall on entering into the area of the other Contracting Party, be exempt from customs duties, excise duties, inspection fees and similar charges and fees, provided such equipment, supplies and stores remain on board the aircraft until they are re-exported or consumed during flight over that area.

2. The following shall be exempt from customs duties, excise duties, inspection fees and other duties and similar charges and fees:

(a) aircraft stores taken on board in the area of one Contracting Party, and intended for use on board the aircraft operated on an international service by the designated airline of the other Contracting Party;

(b) spare parts (including engines) and regular airborne equipment imported into the area of one Contracting Party for the maintenance or repair of aircraft operating agreed services;

(c) fuels, lubricating oils (including hydraulic fluids) and lubricants destined for the designated airline of one Contracting Party to supply aircraft operating agreed services, even when these supplies are to be used on any part of a journey performed over the area of the other Contracting Party in which they have been taken on board.

3. Printed ticket stock, air waybills, any printed material which bears insignia of the designated airline of one Contracting Party and usual publicity material distributed without charge by that designated airline, introduced into the area of the other Contracting Party by or on behalf of that designated airline or taken on board the aircraft operated by that designated airline, shall be exempted by the other Contracting Party from all customs duties, inspection fees, excise duties and similar charges and fees.

4. The regular equipment and such other items referred to in paragraph 1 of this Article retained on board the aircraft operated by the designated airline of one Contracting Party may be unloaded in the area of the other Contracting Party with the approval of the customs authorities of that other Contracting Party. In these circumstances, such equipment and items shall enjoy the exemptions provided for by paragraph 1 of this Article provided they are re-exported or otherwise disposed of in accordance with customs regulations and procedures. The customs authorities of that other Contracting Party may however require that such equipment and items be placed under their supervision up to such time as they are re-exported or otherwise disposed of in accordance with customs regulations and procedures.

5. The exemptions provided for by this Article shall also be available in situations where the designated airline of either Contracting Party has entered into arrangements with another airline or airlines, for the loan or transfer in the area of the other Contracting Party, of the regular equipment and the other items referred to in paragraphs 1 and 2 of this Article, provided that such other airline or airlines similarly enjoy such exemptions from that other Contracting Party.

Article 7

Entry and Clearance Laws and Regulations

1. The laws, regulations and procedures of a Contracting Party relating to the admission to, sojourn in, or departure from its area of aircraft engaged in international air navigation, or to the operation and navigation of such aircraft while within its area shall be applied to aircraft of both Contracting Parties without distinction as to nationality and shall be complied with by such aircraft upon entering into or departing from or while within the area of that Contracting Party.

2. The laws, regulations and procedures of one Contracting Party as to the admission to, sojourn in, or departure from its area of passengers, baggage, crew and cargo, transported on board the aircraft, such as regulations relating to entry, clearance, aviation security, immigration, passports, customs, currency, health and quarantine or in the case of mail, postal laws and regulations shall be applicable to the passengers, baggage, crew and cargo of the designated airline of the other Contracting Party, upon entering into or departing from or while within the area of the first Contracting Party.

3. Neither Contracting Party may grant any preference to its own or any other airline over the designated airline of the other Contracting Party in the application of the laws and regulations provided for in this Article.

4. Passengers, baggage and cargo in direct transit across the area of either Contracting Party and not leaving the area of the airport reserved for such purpose shall, except in respect of security measures against violence, air piracy and narcotics control, be subject to no more than a simplified control. Such baggage and cargo shall be exempt from customs duties, excise taxes and similar fees and charges not based on the cost of services provided on arrival.

Article 8

Certificates of Airworthiness & Competency

1. Certificates of airworthiness, certificates of competency and licenses issued, or rendered valid by one Contracting Party and still in force, shall be recognised as valid by the other Contracting Party for the purpose of operating the agreed services provided always that such certificates or licenses were issued, or rendered valid, pursuant to and in conformity with the minimum standards established under the Convention.

2. Each Contracting Party reserves the right, however, to refuse to recognize as valid, for flights above its own area, certificates of competency and licenses granted to its own nationals, in the case of the Democratic Socialist Republic of Sri Lanka and to its own residents, in the case of the Macao Special Administrative Region, by the other Contracting Party.

3. If the privileges or conditions of the licences or certificates issued or rendered valid by one Contracting Party permit a difference from the standards established under the Convention, whether or not such difference has been filed with the International Civil Aviation Organization, the aeronautical authority of the other Contracting Party may, without prejudice to its rights under paragraph 2 of Article 9, request consultations with the aeronautical authority of the first Contracting Party in accordance with Article 16, with a view to satisfying themselves that the practice in question is acceptable to them. Failure to reach satisfactory agreement shall constitute grounds for the application of paragraph 1 of Article 4 of this Agreement.

Article 9

Safety

1. Each Contracting Party may request consultations at any time concerning safety standards in any area relating to aircrew, aircraft or their operation adopted by the other Contracting Party. 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 any such area 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 steps considered necessary to conform with those minimum standards, and that other Contracting Party shall take appropriate corrective action. Failure by the other Contracting Party to take appropriate action within fifteen (15) days or such longer period as may be agreed, shall be grounds for the application of paragraph 1 of Article 4 of this Agreement.

3. It is agreed that any aircraft operated by an airline of one Contracting Party on services to or from the area of the other Contracting Party may, while within the area of the other Contracting Party, be made the subject of an examination by the authorized representatives 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, be free to conclude that the requirements under which the certificate or licences in respect of that aircraft or in respect of the crew of that aircraft 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.

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

6. Each Contracting Party reserves the right to suspend or vary the operating authorization of an airline 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 otherwise, that immediate action is essential to the safety of an airline operation.

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

Article 10

User Charges

1. Each Contracting Party shall use its best efforts to ensure that the user charges imposed or permitted to be imposed by its competent charging bodies on the designated airline of the other Contracting Party for the use of airports and other aviation facilities, are just and reasonable. These charges shall be based on sound economic principles and shall not be higher than those paid by other airlines for such services.

2. Neither Contracting Party shall give preference to its own or to any other airline engaged in similar international air services and shall not impose or permit to be imposed, on the designated airline of the other Contracting Party user charges higher than those imposed on its own designated airline operating similar international air services using similar aircraft and associated facilities and services.

3. Each Contracting Party shall encourage consultations between its competent charging bodies and the designated airline using the services and facilities. Reasonable notice shall be given whenever possible to such users of any proposal for changes in user charges together with relevant supporting information and data, to enable it to express its views before the charges are revised.

Article 11

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.

2. 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, and its Supplementary Protocol for the Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation, signed at Montreal on 24 February 1988, and any other agreement governing civil aviation security binding upon both Contracting Parties.

3. 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.

4. 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.

5. In addition, the Contracting Parties 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 area and the operators of airports in their area act in conformity with such aviation security provisions as are applicable to the Contracting Parties.

6. Each Contracting Party agrees that its operators of aircraft may be required to observe the aviation security provisions referred to in paragraph 4 above applied by the other Contracting Party for entry into, departure from, or while within the area of that other Contracting Party. Each Contracting Party shall ensure that adequate measures are effectively applied within its area to protect the aircraft and to apply security controls on 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 in its area to meet a particular threat to civil aviation.

7. 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 and air navigation facilities occurs, the Contracting Parties shall assist each other by facilitating communications and other appropriate measures intended to terminate such incident or threat as rapidly as possible commensurate with minimum risk to life.

8. Each Contracting Party shall take such measures as it may find practicable to ensure that an aircraft of the other Contracting Party subjected to an act of unlawful seizure or other acts of unlawful interference which is on the ground in its area is detained thereon unless its departure is necessitated by the overriding duty to protect the lives of its passengers and crew.

9. When a Contracting Party has reasonable grounds to believe that the other Contracting Party has departed from the provisions of this Article, the aeronautical authority of the first Contracting Party may request immediate consultations with the aeronautical authority of the other Contracting Party. Failure to reach a satisfactory agreement within fifteen (15) days from the date of such request shall constitute grounds for the application of paragraph 1 of Article 4 of this Agreement. When required by an emergency, a Contracting Party may take action under paragraph 1 of Article 4 of this Agreement prior to the expiry of fifteen (15) days. 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 12

Commercial Activities

1. The designated airline of each Contracting Party shall have the right to establish in the area of the other Contracting Party offices for the purpose of provision and sale of air services as well as for other matters incidental to the provision of air transportation.

2. The designated airline of each Contracting Party shall have the right, in accordance with the laws and regulations of the other Contracting Party relating to entry, residence and employment, to bring into and maintain in the area of that other Contracting Party those of their own managerial, commercial, operational, sales, technical and other specialist staff and representatives who are required in connection with the operation of agreed services.

3. These representative staff requirements may, at the option of the designated airline, be satisfied by its own personnel of any nationality or by using the services of any other airline, organization or company operating in the area of the other Contracting Party and authorized to perform such services in the area of such other Contracting Party.

4. Consistent with the laws and regulations in force, each Contracting Party shall, on the basis of reciprocity and with the minimum of delay, grant the necessary work permits, employment visas or other similar documents to the representatives and staff referred to in paragraph 2 of this Article. To the extent permitted under their laws, both Contracting Parties shall dispense with the requirement of work permits or employment visas or other similar documents for personnel performing such temporary services and duties.

5. The designated airline of each Contracting Party shall, either directly and at its discretion, through agents, have the right to engage in the sale of air transportation in the area of the other Contracting Party. Each designated airline shall have the right to use for this purpose its own transportation documents. The designated airline of each Contracting Party shall have the right to sell, and any person shall be free to purchase, such transportation in local currency or in any other freely convertible currency. The designated airline of one Contracting Party shall have the right to pay for local expenses in the area of the other Contracting Party in local currency or provided this accords with local currency regulations, in freely convertible currencies.

6. Each Contracting Party shall apply the ICAO Code of Conduct for the regulation and operation of Computer Reservation Systems within its area consistent with other applicable regulations and obligations concerning Computer Reservation Systems.

7. Each Contracting Party shall grant to the designated airline of the other Contracting Party the right of free transfer of the excess of receipts over expenditure earned by such airline in its area in connection with the carriage of passengers, baggage, and cargo, as well as from any other activity relating to air transport which may be permitted under the relevant regulations. Such transfers shall be effected at the rate of exchange in accordance with the respective applicable laws and regulations governing current payments, but where there is no official exchange rate, such transfers shall be effected on the basis of the prevailing foreign exchange market rates for current payments.

8. If a Contracting Party imposes restrictions on the transfer of excess of receipts over expenditure by the designated airline of the other Contracting Party, the latter shall have a right to impose reciprocal restrictions on the designated airline of the first Contracting Party.

Article 13

Approval of Timetables

1. The designated airline of each Contracting Party shall submit for approval to the aeronautical authority of the other Contracting Party not later than thirty (30) days prior to the inauguration of services on the specified routes, the timetable of intended services, specifying the frequency, the type of aircraft, configuration, nature of the service and the number of seats made available to the public. This shall likewise apply to later changes. In special cases, this time limit may be reduced subject to the consent of the said authority.

2. If a designated airline wishes to operate ad-hoc flights supplementary to those covered in the approved timetables, it shall obtain prior permission of the aeronautical authority of the Contracting Party concerned.

Article 14

Tariffs

1. Each Contracting Party shall have the right to approve or disapprove tariffs for one way or round trip carriage between the areas of the two Contracting Parties which commence in its own area (according to the information in the transport documents).

Neither Contracting Party shall take unilateral action to prevent the inauguration of proposed tariffs or the continuation of effective tariffs for one way or round trip carriage between the areas of the two Contracting Parties commencing in the area of the other Contracting Party.

2. In determining the tariffs, the designated airline of each Contracting Party shall take into account the cost of operation, a reasonable profit, the prevailing conditions of competition and of the market as well as the interests of transport users.

3. The Contracting Parties agree to pay particular attention to tariffs which may be objectionable because they appear unreasonably discriminatory, unduly high or restrictive because of the abuse of a dominant position; artificially low because of direct or indirect subsidy; or because it is predatory.

4. The tariffs shall be submitted by each designated airline to the competent aeronautical authority for approval at least one month prior to the envisaged date of their introduction.

5. If the competent aeronautical authority does not consent to a tariff submitted for its approval, it shall inform the airline concerned within twenty one (21) days after the date of submission of the tariff. In such case, this tariff shall not be applied. The tariff applied up to that time which was to be replaced by the new tariff shall continue to be applied. If no tariff existed at that time, the decision of the competent aeronautical authority shall prevail.

6. Pending the decision of the competent aeronautical authority, the airline concerned may undertake marketing, advertising and sales at the proposed tariffs for carriage to be commenced on or after the proposed date of effectiveness provided such is qualified as being «subject to government approval».

Article 15

Exchange of Information

1. The aeronautical authorities of both Contracting Parties shall exchange information, as promptly as possible, concerning the current authorizations extended to their respective designated airline to render service to, through, and from the area of the other Contracting Party. This will include copies of current certificates and authorizations for services on specified routes, together with amendments or exemption orders.

2. Each Contracting Party shall cause its designated airline to provide to the aeronautical authority of the other Contracting Party upon request, such periodic or other statements of statistics relating to the traffic carried on the agreed services showing the points of embarkation and disembarkation as may be reasonably required for the purpose of reviewing the operations on the agreed services.

Article 16

Consultation

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 the Annex thereto and either Contracting Party may at any time request consultations on the implementation, interpretation, application or amendment of this Agreement.

2. Subject to Articles 4, 9 and 11 such consultations which may be through discussion or correspondence, shall begin within a period of sixty (60) days of the date of receipt of such a request, unless otherwise agreed by both Contracting Parties.

Article 17

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 endeavor 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 for mediation.

3. If the Contracting Parties do not agree for mediation, or if a settlement is not reached, the dispute shall, at the request of either Contracting Party be submitted for decision to a tribunal of three (3) arbitrators.

4. Each Contracting Party shall nominate one arbitrator and the third arbitrator is to be appointed by the two so nominated. Such third arbitrator who would act as the President of the Tribunal shall be a national of a third Party.

5. 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 appropriate channels requesting arbitration of the dispute by such a tribunal, and the third arbitrator shall be appointed within a further period of sixty (60) days.

6. 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 at the request of either Contracting Party appoint an arbitrator or arbitrators as the case requires. In such cases, the third arbitrator shall be a national of a third Party and shall act as President of the arbitration tribunal.

7. The Contracting Parties shall comply with any provisional ruling or final decision of the tribunal.

8. The tribunal shall determine the place where the proceedings will be held and the limits of its jurisdiction in accordance with this Agreement. It shall establish its own procedure.

9. Subject to the final decision of the tribunal, the Contracting Parties shall bear in equal proportion the interim costs of arbitration.

10. If, and as long as, either Contracting Party fails to comply with a decision contemplated in paragraph 7 above, the other Contracting Party may limit, suspend or revoke any rights or privileges which it has granted under this Agreement to the Contracting Party in default.

Article 18

Amendment of Agreement

1. If either of the Contracting Parties considers it desirable to amend any provision of this Agreement, such amendment, if agreed to between the Contracting Parties, may be applied provisionally from the date on which it is so agreed and shall enter into force when confirmed by both Contracting Parties in writing.

2. Notwithstanding the provisions of paragraph 1 above, amendments to the Annex to this Agreement may be agreed directly between the aeronautical authorities of the Contracting Parties. Such amendment shall enter into force when confirmed through appropriate channels.

3. This Agreement shall, mutatis mutandis, be deemed to have been amended by those provisions of any international convention or multilateral agreement which becomes binding on both Contracting Parties.

Article 19

Registration with the International Civil Aviation Organisation

The present Agreement and any amendments thereto, shall be submitted by the Contracting Parties to the International Civil Aviation Organization for registration.

Article 20

Termination

1. Either Contracting Party may at any time give notice in writing through appropriate channels to the other Contracting Party of its decision to terminate this Agreement. Such notice shall be simultaneously communicated to the International Civil Aviation Organization. In such case the Agreement shall terminate twelve (12) months after the date of receipt of notice by the other Contracting Party, unless the notice to terminate is withdrawn by agreement before the expiry of this period.

2. In the absence of acknowledgment of receipt of a notice of termination by the other Contracting Party, notice shall be deemed to have been received fourteen (14) days after the receipt of the notice by the International Civil Aviation Organization.

Article 21

Entry into Force

This Agreement shall be approved according to the legal requirements of each Contracting Party. It shall be provisionally applicable from the date of its signature and shall come into force on the first day of the second month after the Contracting Parties have notified each other confirming that the legal formalities required for approval have been fulfilled.

IN WITNESS THEREOF the undersigned plenipotentiaries being duly authorized thereto by their respective Governments, have signed this Agreement.

Done this 8th day of June 2006 at Macao in duplicate in the Chinese, Portuguese, Sinhala and English Languages, all texts being equally authentic. In the event of there being any dispute as to the interpretation and/or the application of this Agreement, the English text shall prevail.

For the Government of the For the Government of
Macao Special Administrative Region the Democratic Socialist
of the People's Republic of China Republic of Sri Lanka
   
Ao Man Long Nihal Rodrigo
Secretary for Transport and Ambassador to the
Public Works People’s Republic of China

———

ANNEX

ROUTE SCHEDULE

1. Routes to be operated by the designated airline of the Democratic Socialist Republic of Sri Lanka:

FROM INTERMEDIATE POINTS TO BEYOND POINTS
Colombo Any Point or Points Macao Any Point or Points

No fifth freedom rights shall be exercised between intermediate or beyond points and Macao unless agreed to by the aeronautical authorities of both Contracting Parties.

2. Routes to be operated by the designated airline of the Macao Special Administrative Region:

FROM INTERMEDIATE POINTS TO BEYOND POINTS
Macao Any Point or Points Colombo Any Point or Points

No fifth freedom rights shall be exercised between intermediate or beyond points and Colombo unless agreed to by the aeronautical authorities of both Contracting Parties.

3. No points in inland of China, Taiwan and Hong Kong may be served either as intermediate points or beyond points.

———

 


MacauLITES: Copyright Policy | Disclaimers | Privacy Policy | Feedback
URL: http://www.macaulites.org/mo/other/MOBTSer/2006/2.html