U.S.-EU Air Transport Agreement signed April 30, 2007
U.S.-EU AirTransport Agreement signed April 30, 2007
Air Transport Agreement
THE UNITED STATES OF AMERICA (hereinafter the "United States"),
of the one part; and
THE REPUBLIC OF AUSTRIA,
THE KINGDOM OF BELGIUM,
THE REPUBLIC OF BULGARIA,
THE REPUBLIC OF CYPRUS,
THE CZECH REPUBLIC,
THE KINGDOM OF DENMARK,
THE REPUBLIC OF ESTONIA,
THE REPUBLIC OF FINLAND,
THE FRENCH REPUBLIC,
THE FEDERAL REPUBLIC OF GERMANY,
THE HELLENIC REPUBLIC,
THE REPUBLIC OF HUNGARY,
THE ITALIAN REPUBLIC,
THE REPUBLIC OF LATVIA,
THE REPUBLIC OF LITHUANIA,
THE GRAND DUCHY OF LUXEMBOURG,
THE KINGDOM OF THE NETHERLANDS,
THE REPUBLIC OF POLAND,
THE PORTUGUESE REPUBLIC,
THE SLOVAK REPUBLIC,
THE REPUBLIC OF SLOVENIA,
THE KINGDOM OF SPAIN,
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
being parties to the Treaty establishing the European Community and beingMember States of the
European Union (hereinafter the "Member States"),
and the EUROPEAN COMMUNITY,
of the other part ;
DESIRING to promote an international aviation system based on competitionamong airlines in the
marketplace with minimum government interference and regulation ;
DESIRING to facilitate the expansion of international air transportopportunities, including through
the development of air transportation networks to meet the needs ofpassengers and shippers for
convenient air transportation services ;
DESIRING to make it possible for airlines to offer the traveling andshipping public competitive
prices and services in open markets;
DESIRING to have all sectors of the air transport industry, includingairline workers, benefit in a
liberalized agreement ;
DESIRING to ensure the highest degree of safety and security ininternational air transport and
reaffirming their grave concern about acts or threats against the securityof aircraft, which
jeopardize the safety of persons or property, adversely affect theoperation of air transportation, and
undermine public confidence in the safety of civil aviation ;
NOTING the Convention on International Civil Aviation, opened forsignature at Chicago on
December 7, 1944;
RECOGNISING that government subsidies may adversely affect airlinecompetition and may
jeopardize the basic objectives of this Agreement;
AFFIRMING the importance of protecting the environment in developing andimplementing
international aviation policy;
NOTING the importance of protecting consumers, including the protectionsafforded by the
Convention for the Unification of Certain Rules for International Carriageby Air, done at
Montreal May 28, 1999 ;
INTENDING to build upon the framework of existing agreements with the goalof opening access
to markets and maximizing benefits for consumers, airlines, labor, andcommunities on both sides
of the Atlantic ;
RECOGNISING the importance of enhancing the access of their airlines toglobal capital markets
in order to strengthen competition and promote the objectives of thisAgreement ;
INTENDING to establish a precedent of global significance to promote thebenefits of liberalization
in this crucial economic sector ;
HAVE AGREED AS FOLLOWS :
For the purposes of this Agreement, unless otherwise stated, the term :
1 . "Agreement" means this Agreement, its Annexes and Appendix,and any amendments thereto ;
"Air transportation" means the carriage by aircraft ofpassengers, baggage, cargo, and mail,
separately or in combination, held out to the public for remuneration orhire ;
"Convention" means the Convention on International CivilAviation, opened for signature at
Chicago on December 7, 1944, and includes :
(a) any amendment that has entered into force under Article 94(a) of theConvention and has been
ratified by both the United States and the Member State or Member Statesas is relevant to the
issue in question, and
(b) any Annex or any amendment thereto adopted under Article 90 of theConvention, insofar as
such Annex or amendment is at any given time effective for both the UnitedStates and the
Member State or Member States as is relevant to the issue in question;
"Full cost" means the cost of providing service plus areasonable charge for administrative
"International air transportation" means air transportation thatpasses through the airspace
over the territory of more than one State ;
"Party" means either the United States or the European Communityand its Member States;
"Price" means any fare, rate or charge for the carriage ofpassengers, baggage and/or cargo
(excluding mail) in air transportation, including surface transportationin connection with
international air transportation, if applicable, charged by airlines,including their agents, and the
conditions governing the availability of such fare, rate or charge ;
"Stop for non-traffic purposes" means a landing for any purposeother than taking on or
discharging passengers, baggage, cargo and/or mail in air transportation ;
"Territory" means, for the United States, the land areas(mainland and islands), internal waters
and territorial sea under its sovereignty or jurisdiction, and, for theEuropean Community and its
Member States, the land areas (mainland and islands), internal waters andterritorial sea in which
the Treaty establishing the European Community is applied and under theconditions laid down in
that Treaty and any successor instrument; application of this Agreement toGibraltar airport is
understood to be without prejudice to the respective legal positions ofthe Kingdom of Spain and the
United Kingdom with regard to the dispute over sovereignty over theterritory in which the airport
is situated, and to the continuing suspension of Gibraltar Airport fromEuropean Community
aviation measures existing as at 18 September 2006 as between MemberStates, in accordance with
the Ministerial statement on Gibraltar Airport agreed in C6rdoba on 18September 2006 ; and
10. "User charge" means a charge imposed on airlines for theprovision of airport, airport
environmental, air navigation, or aviation security facilities or servicesincluding related services
Fair and Equal Opportunity
Each Party shall allow a fair and equal opportunity for the airlines ofboth Parties to compete in
providing the international air transportation governed by this Agreement.
Grant of Rights
Each Party grants to the other Party the following rights for the conductof international air
transportation by the airlines of the other 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) the right to perform international air transportation between pointson the following routes :
(i) for airlines of the United States (hereinafter "U .S . airlines"),from points behind the
United States via the United States and intermediate points to any pointor points in any
Member State or States and beyond; and for all-cargo service, between anyMember
State and any point or points (including in any other Member States) ;
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(ii) for airlines of the European Community and its Member States(hereinafter
"Community airlines"), from points behind the Member States viathe Member States
and intermediate points to any point or points in the United States andbeyond ; for
all-cargo service, between the United States and any point or points ;and, for
combination services, between any point or points in the United States andany point or
points in any member of the European Common Aviation Area (hereinafter
the "ECAA") as of the date of signature of this Agreement; and
(d) the rights otherwise specified in this Agreement .
Each airline may on any or all flights and at its option :
(a) operate flights in either or both directions;
(b) combine different flight numbers within one aircraft operation ;
(c) serve behind, intermediate, and beyond points and points in theterritories of the Parties in any
combination and in any order ;
(d) omit stops at any point or points ;
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serve points behind any point in its territory with or without change ofaircraft or flight
number and hold out and advertise such services to the public as throughservices ;
(g) make stopovers at any points whether within or outside the territoryof either Party ;
(h) carry transit traffic through the other Party's territory ; and
(i) combine traffic on the same aircraft regardless of where such trafficoriginates ;
without directional or geographic limitation and without loss of any rightto carry traffic otherwise
permissible under this Agreement .
The provisions of paragraph 1 of this Article shall apply subject to therequirements that :
(a) for U.S . airlines, with the exception of all-cargo services, thetransportation is part of a service
that serves the United States, and
(b) for Community airlines, with the exception of (i) all-cargo servicesand (ii) combination
services between the United States and any member of the ECAA as of thedate of signature
of this Agreement, the transportation is part of a service that serves aMember State .
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Each Party shall allow each airline to determine the frequency andcapacity of the
international air transportation it offers based upon commercialconsiderations in the marketplace .
Consistent with this right, neither Party shall unilaterally limit thevolume of traffic, frequency or
regularity of service, or the aircraft type or types operated by theairlines of the other Party, nor
shall it require the filing of schedules, programs for charter flights, oroperational plans by airlines
of the other Party, except as may be required for customs, technical,operational, or environmental
(consistent with Article 15) reasons under uniform conditions consistentwith Article 15 of the
5 . Any airline may perform international air transportation without anylimitation as to change,
at any point, in type or number of aircraft operated ; provided that, (a)for U.S . airlines, with the
exception of all-cargo services, the transportation is part of a servicethat serves the United States,
and (b) for Community airlines, with the exception of (i) all-cargoservices and (ii) combination
services between the United States and a member of the ECAA as of the dateof signature of this
Agreement, the transportation is part of a service that serves a MemberState .
6 . Nothing in this Agreement shall be deemed to confer on :
(a) U.S . airlines the right to take on board, in the territory of anyMember State, passengers,
baggage, cargo, or mail carried for compensation and destined for anotherpoint in the
territory of that Member State ;
7. Community airlines' access to U .S . Government procured transportationshall be governed by
Annex 3 .
On receipt of applications from an airline of one Party, in the form andmanner prescribed for
operating authorizations and technical permissions, the other Party shallgrant appropriate
authorizations and permissions with minimum procedural delay, provided :
(a) for a U .S . airline, substantial ownership and effective control ofthat airline are vested in the
United States, U.S. nationals, or both, and the airline is licensed as aU.S . airline and has its
principal place of business in U .S. territory ;
for a Community airline, substantial ownership and effective control ofthat airline are vested
in a Member State or States, nationals of such a state or states, or both,and the airline is
licensed as a Community airline and has its principal place of business inthe territory of the
European Community ;
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Community airlines the right to take on board, in the territory of theUnited States,
passengers, baggage, cargo, or mail carried for compensation and destinedfor another point in
the territory of the United States .
the airline is qualified to meet the conditions prescribed under the lawsand regulations
normally applied to the operation of international air transportation bythe Party considering
the application or applications ; and
(d) the provisions set forth in Article 8 (Safety) and Article 9(Security) are being maintained and
Revocation of Authorization
Either Party may revoke, suspend or limit the operating authorizations ortechnical
permissions or otherwise suspend or limit the operations of an airline ofthe other Party where :
for a U.S . airline, substantial ownership and effective control of thatairline are not vested in
the United States, U .S . nationals, or both, or the airline is notlicensed as a U .S . airline or does
not have its principal place of business in U.S . territory ;
for a Community airline, substantial ownership and effective control ofthat airline are not
vested in a Member State or States, nationals of such a state or states,or both, or the airline is
not licensed as a Community airline or does not have its principal placeof business in the
territory of the European Community ; or
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(c) that airline has failed to comply with the laws and regulationsreferred to in Article 7
(Application of Laws) of this Agreement .
Unless immediate action is essential to prevent further noncompliance withsubparagraph 1(c)
of this Article, the rights established by this Article shall be exercisedonly after consultation with
the other Party.
3 . This Article does not limit the rights of either Party to withhold,revoke, limit or impose
conditions on the operating authorization or technical permission of anairline or airlines of the
other Party in accordance with the provisions of Article 8 (Safety) or Article9 (Security) .
Additional Matters related to Ownership, Investment, and Control
Notwithstanding any other provision in this Agreement, the Parties shallimplement the provisions
of Annex 4 in theirdecisions under their respective laws and regulations concerning ownership,
investment and control .
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Application of Laws
The laws and regulations of a Party relating to the admission to ordeparture from its territory
of aircraft engaged in international air navigation, or to the operationand navigation of such aircraft
while within its territory, shall be applied to the aircraft utilized bythe airlines of the other Party,
and shall be complied with by such aircraft upon entering or departingfrom or while within the
territory of the first Party .
While entering, within, or leaving the territory of one Party, the lawsand regulations
applicable within that territory relating to the admission to or departurefrom its territory of
passengers, crew or cargo on aircraft (including regulations relating toentry, clearance,
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 theother Party's airlines .
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The responsible authorities of the Parties shall recognize as valid, forthe purposes of
operating the air transportation provided for in this Agreement,certificates of airworthiness,
certificates of competency, and licenses issued or validated by each otherand still in force, provided
that the requirements for such certificates or licenses at least equal theminimum standards that may
be established pursuant to the Convention . The responsible authoritiesmay, however, refuse to
recognize as valid for purposes of flight above their own territory,certificates of competency and
licenses granted to or validated for their own nationals by such otherauthorities .
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The responsible authorities of a Party may request consultations withother responsible
authorities concerning the safety standards maintained by thoseauthorities relating to aeronautical
facilities, aircrews, aircraft, and operation of the airlines overseen bythose authorities . Such
consultations shall take place within 45 days of the request unlessotherwise agreed . If following
such consultations, the requesting responsible authorities find that thoseauthorities do not
effectively maintain and administer safety standards and requirements in theseareas that at least
equal the minimum standards that may be established pursuant to theConvention, the requesting
responsible authorities shall notify those authorities of such findingsand the steps considered
necessary to conform with these minimum standards, and those authoritiesshall take appropriate
corrective action . The requesting responsible authorities reserve theright to withhold, revoke or
limit the operating authorization or technical permission of an airline orairlines for which those
authorities provide safety oversight in the event those authorities do nottake such appropriate
corrective action within a reasonable time and to take immediate action asto such airline or airlines
if essential to prevent further noncompliance with the duty to maintainand administer the
aforementioned standards and requirements resulting in an immediate threatto flight safety .
The European Commission shall simultaneously receive all requests andnotifications under
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Nothing in this Article shall prevent the responsible authorities of theParties from conducting
safety discussions, including those relating to the routine application ofsafety standards and
requirements or to emergency situations that may arise from time to time .
In accordance with their rights and obligations under international law,the Parties reaffirm
that their obligation to each other to protect the security of civilaviation against acts of unlawful
interference forms an integral part of this Agreement . Without limitingthe generality of their rights
and obligations under international law, the Parties shall in particularact in conformity with the
following agreements : the Convention on Offenses and Certain Other ActsCommitted on Board
Aircraft, done at Tokyo September 14, 1963, the Convention for theSuppression of Unlawful
Seizure of Aircraft, done at The Hague December 16, 1970, the Conventionfor the Suppression of
Unlawful Acts against the Safety of Civil Aviation, done at MontrealSeptember 23, 1971, and the
Protocol for the Suppression of Unlawful Acts of Violence at AirportsServing International Civil
Aviation, done at Montreal February 24, 1988 .
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2 . The Parties shall provide upon request all necessary assistance toeach other to address any
threat to the security of civil aviation, including the prevention of actsof unlawful seizure of civil
aircraft and other unlawful acts against the safety of such aircraft, oftheir passengers and crew, and
of airports and air navigation facilities .
The Parties shall, in their mutual relations, act in conformity with theaviation security
standards and appropriate recommended practices established by theInternational Civil Aviation
Organization and designated as Annexes to the Convention ; they shallrequire that operators of
aircraft of their registries, operators of aircraft who have theirprincipal place of business or
permanent residence in their territory, and the operators of airports intheir territory act in
conformity with such aviation security provisions .
Each Party shall ensure that effective measures are taken within itsterritory to protect aircraft
and to inspect passengers, crew, and their baggage and carry-on items, aswell as cargo and aircraft
stores, prior to and during boarding or loading ; and that those measuresare adjusted to meet
increased threats to the security of civil aviation. Each Party agreesthat the security provisions
required by the other Party for departure from and while within theterritory of that other Party must
be observed. Each Party shall give positive consideration to any requestfrom the other Party for
special security measures to meet a particular threat .
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5 . With full regard and mutual respect for each other's sovereignty, aParty may adopt security
measures for entry into its territory . Where possible, that Party shalltake into account the security
measures already applied by the other Party and any views that the otherParty may offer . Each
Party recognizes, however, that nothing in this Article limits the abilityof a Party to refuse entry
into its territory of any flight or flights that it deems to present athreat to its security .
6 . A Party may take emergency measures including amendments to meet aspecific security
threat. Such measures shall be notified immediately to the responsibleauthorities of the other
The Parties underline the importance of working towards compatiblepractices and standards
as a means of enhancing air transport security and minimising regulatorydivergence . To this end,
the Parties shall fully utilize and develop existing channels for thediscussion of current and
proposed security measures . The Parties expect that the discussions willaddress, among other
issues, new security measures proposed or under consideration by the otherParty, including the
revision of security measures occasioned by a change in circumstances ;measures proposed by one
Party to meet the security requirements of the other Party ; possibilitiesfor the more expeditious
adjustment of standards with respect to aviation security measures ; andcompatibility of the
requirements of one Party with the legislative obligations of the otherParty. Such discussions
should serve to foster early notice and prior discussion of new securityinitiatives and requirements .
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Without prejudice to the need to take immediate action in order to protecttransportation
security, the Parties affirm that when considering security measures, aParty shall evaluate possible
adverse effects on international air transportation and, unlessconstrained by law, shall take such
factors into account when it determines what measures are necessary andappropriate to address
those security concerns .
When an incident or threat of an incident of unlawful seizure of aircraftor other unlawful acts
against the safety of passengers, crew, aircraft, airports or airnavigation facilities occurs, the Parties
shall assist each other by facilitating communications and otherappropriate measures intended to
terminate rapidly and safely such incident or threat .
10 . When a Party has reasonable grounds to believe that the other Partyhas departed from the
aviation security provisions of this Article, the responsible authoritiesof that Party may request
immediate consultations with the responsible authorities of the otherParty . Failure to reach a
satisfactory agreement within 15 days from the date of such request shallconstitute grounds to
withhold, revoke, limit, or impose conditions on the operatingauthorization and technical
permissions of an airline or airlines of that Party . When required by anemergency, a Party may
take interim action prior to the expiry of 15 days .
11 . Separate from airport assessments undertaken to determine conformitywith the aviation
security standards and practices referred to in paragraph 3 of thisArticle, a Party may request the
cooperation of the other Party in assessing whether particular securitymeasures of that other Party
meet the requirements of the requesting Party . The responsibleauthorities of the Parties shall
coordinate in advance the airports to be assessed and the dates ofassessment and establish a
procedure to address the results of such assessments . Taking into accountthe results of the
assessments, the requesting Party may decide that security measures of anequivalent standard are
applied in the territory of the other Party in order that transferpassengers, transfer baggage, and/or
transfer cargo may be exempted from re-screening in the territory of therequesting Party . Such a
decision shall be communicated to the other Party .
The airlines of each Party shall have the right to establish offices inthe territory of the other
Party for the promotion and sale of air transportation and relatedactivities .
2 . The airlines of each Party shall be entitled, in accordance with thelaws and regulations of the
other Party relating to entry, residence, and employment, to bring in andmaintain in the territory of
the other Party managerial, sales, technical, operational, and otherspecialist staff who are required
to support the provision of air transportation .
3 .(a) Without prejudice to subparagraph (b) below, each airline shallhave in relation to
groundhandling in the territory of the other Party :
(i) the right to perform its own groundhandling("self-handling") or, at its option
the right to select among competing suppliers that provide groundhandlingservices in whole
or in part where such suppliers are allowed market access on the basis ofthe laws and
regulations of each Party, and where such suppliers are present in themarket .
(b) The rights under (i) and (ii) in subparagraph (a) above shall be subjectonly to specific
constraints of available space or capacity arising from the need tomaintain safe operation of the
airport. Where such constraints preclude self-handling and where there isno effective competition
between suppliers that provide groundhandling services, all such servicesshall be available on both
an equal and an adequate basis to all airlines ; prices of such servicesshall not exceed their full cost
including a reasonable return on assets, after depreciation .
Any airline of each Party may engage in the sale of air transportation inthe territory of the
other Party directly and/or, at the airline's discretion, through itssales agents or other intermediaries
appointed by the airline . Each airline shall have the right to sell suchtransportation, and any person
shall be free to purchase such transportation, in the currency of thatterritory or in freely convertible
Each airline shall have the right to convert and remit from the territoryof the other Party to its
home territory and, except where inconsistent with generally applicablelaw or regulation, the
country or countries of its choice, on demand, local revenues in excess ofsums locally disbursed .
Conversion and remittance shall be permitted promptly without restrictionsor taxation in respect
thereof at the rate of exchange applicable to current transactions andremittance on the date the
carrier makes the initial application for remittance.
The airlines of each Party shall be permitted to pay for local expenses,including purchases of
fuel, in the territory of the other Party in local currency. At theirdiscretion, the airlines of each
Party may pay for such expenses in the territory of the other Party infreely convertible currencies
according to local currency regulation .
7 . In operating or holding out services under the Agreement, any airlineof a Party may enter
into cooperative marketing arrangements, such as blocked-space orcode-sharing arrangements,
(a) any airline or airlines of the Parties ;
(b) any airline or airlines of a third country ; and
(c) a surface (land or maritime) transportation provider of any country;
provided that (i) all participants in such arrangements hold theappropriate authority and (ii) the
arrangements meet the conditions prescribed under the laws and regulationsnormally applied by the
Parties to the operation or holding out of international airtransportation .
The airlines of each Party shall be entitled to enter into franchising orbranding arrangements
with companies, including airlines, of either Party or third countries,provided that the airlines hold
the appropriate authority and meet the conditions prescribed under thelaws and regulations
normally applied by the Parties to such arrangements . Annex 5 shall applyto such arrangements .
9 . The airlines of each Party may enter into arrangements for theprovision of aircraft with crew
for international air transportation with :
(a) any airlines or airlines of the Parties ; and
(b) any airlines or airlines of a third country ;
provided that all participants in such arrangements hold the appropriateauthority and meet the
conditions prescribed under the laws and regulations normally applied bythe Parties to such
arrangements . Neither Party shall require an airline of either Partyproviding the aircraft to hold
traffic rights under this Agreement for the routes on which the aircraftwill be operated .
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10 . Notwithstanding any other provision of this Agreement, airlines andindirect providers of
cargo transportation of the Parties shall be permitted, withoutrestriction, to employ in connection
with international air transportation any surface transportation for cargoto or from any points in the
territories of the Parties, or in third countries, including transport toand from all airports with
customs facilities, and including, where applicable, the right totransport cargo in bond under
applicable laws and regulations . Such cargo, whether moving by surface orby air, shall have
access to airport customs processing and facilities . Airlines may electto perform their own surface
transportation or to provide it through arrangements with other surfacecarriers, including surface
transportation operated by other airlines and indirect providers of cargoair transportation . Such
intermodal cargo services may be offered at a single, through price forthe air and surface
transportation combined, provided that shippers are not misled as to thefacts concerning such
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Customs Duties and Charges
On arriving in the territory of one Party, aircraft operated ininternational air transportation by
the airlines of the other Party, their regular equipment, groundequipment, fuel, lubricants,
consumable technical supplies, spare parts (including engines), aircraftstores (including but not
limited to such items of food, beverages and liquor, tobacco and otherproducts destined for sale to
or use by passengers in limited quantities during flight), and other itemsintended for or used solely
in connection with the operation or servicing of aircraft engaged ininternational air transportation
shall be exempt, on the basis of reciprocity, from all importrestrictions, property taxes and capital
levies, customs duties, excise taxes, and similar fees and charges thatare (a) imposed by the
national authorities or the European Community, and (b) not based on thecost of services provided,
provided that such equipment and supplies remain on board the aircraft .
2 . There shall also be exempt, on the basis of reciprocity, from thetaxes, levies, duties, fees and
charges referred to in paragraph 1 of this Article, with the exception ofcharges based on the cost of
the service provided :
(a) aircraft stores introduced into or supplied in the territory of aParty and taken on board, within
reasonable limits, for use on outbound aircraft of an airline of the otherParty engaged in
international air transportation, even when these stores are to be used ona part of the journey
performed over the territory of the Party in which they are taken onboard;
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(b) ground equipment and spare parts (including engines) introduced intothe territory of a Party
for the servicing, maintenance, or repair of aircraft of an airline of theother Party used in
international air transportation;
(c) fuel, lubricants and consumable technical supplies introduced into orsupplied in the territory I
of a Party for use in an aircraft of an airline of the other Party engagedin international air
transportation, even when these supplies are to be used on a part of thejourney performed
over the territory of the Party in which they are taken on board ; and
(d) printed matter, as provided for by the customs legislation of eachParty, introduced into or
supplied in the territory of one Party and taken on board for use onoutbound aircraft of an
airline of the other Party engaged in international air transportation,even when these stores
are to be used on a part of the journey performed over the territory ofthe Party in which they
are taken on board .
Equipment and supplies referred to in paragraphs 1 and 2 of this Articlemay be required to be
kept under the supervision or control of the appropriate authorities.
The exemptions provided by this Article shall also be available where theairlines of one
Party have contracted with another airline, which similarly enjoys suchexemptions from the other
Party, for the loan or transfer in the territory of the other Party of theitems specified in paragraphs 1
and 2 of this Article.
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Nothing in this Agreement shall prevent either Party from imposing taxes,levies, duties, fees
or charges on goods sold other than for consumption on board to passengersduring a sector of an
air service between two points within its territory at which embarkationor disembarkation is
In the event that two or more Member States envisage applying to the fuelsupplied to aircraft
of U .S . airlines in the territories of such Member States for flightsbetween such Member States any
waiver of the exemption contained in Article 14 .1 (b) of CouncilDirective 2003/96/EC of
27 October 2003, the Joint Committee shall consider that issue, inaccordance with paragraph 4(e)
of Article 18 .
A Party may request the assistance of the other Party, on behalf of itsairline or airlines, in
securing an exemption from taxes, duties, charges and fees imposed bystate and local governments
or authorities on the goods specified in paragraphs I and 2 of thisArticle, as well as from fuel
through-put charges, in the circumstances described in this Article,except to the extent that the
charges are based on the cost of providing the service . In response tosuch a request, the other Party
shall bring the views of the requesting Party to the attention of therelevant governmental unit or
authority and urge that those views be given appropriate consideration .
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1 . User charges that may be imposed by the competent charging authoritiesor bodies of each
Party on the airlines of the other Party shall be just, reasonable, notunjustly discriminatory, and
equitably apportioned among categories of users . In any event, any suchuser charges shall be
assessed on the airlines of the other Party on terms not less favorablethan the most favorable terms
available to any other airline at the time the charges are assessed .
User charges imposed on the airlines of the other Party may reflect, butshall not exceed, the
full cost to the competent charging authorities or bodies of providing theappropriate airport, airport
environmental, air navigation, and aviation security facilities andservices at the airport or within
the airport system . Such charges may include a reasonable return onassets, after depreciation .
Facilities and services for which charges are made shall be provided on anefficient and economic
Each Party shall encourage consultations between the competent chargingauthorities or
bodies in its territory and the airlines using the services andfacilities, and shall encourage the
competent charging authorities or bodies and the airlines to exchange suchinformation as may be
necessary to permit an accurate review of the reasonableness of thecharges in accordance with the
principles of paragraphs I and 2 of this Article . Each Party shallencourage the competent charging
authorities to provide users with reasonable notice of any proposal forchanges in user charges to
enable users to express their views before changes are made .
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Neither Party shall be held, in dispute resolution procedures pursuant toArticle 19, to be in
breach of a provision of this Article, unless (a) it fails to undertake areview of the charge or
practice that is the subject of complaint by the other Party within areasonable amount of time ;
or (b) following such a review it fails to take all steps within its powerto remedy any charge or
practice that is inconsistent with this Article .
Prices for air transportation services operated pursuant to this Agreementshall be established
freely and shall not be subject to approval, nor may they be required tobe filed .
Notwithstanding paragraph 1 :
(a) The introduction or continuation of a price proposed to be charged orcharged by a
U.S . airline for international air transportation between a point in oneMember State and a
point in another Member State shall be consistent with Article 1(3) ofCouncil
Regulation (EEC) 2409/92 of 23 July 1992, or a not more restrictivesuccessor regulation .
(b) Under this paragraph, the airlines of the Parties shall provideimmediate access, on request, to
information on historical, existing, and proposed prices to theresponsible authorities of the
Parties in a manner and format acceptable to those authorities .
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Government Subsidies and Support
1 . The Parties recognize that government subsidies and support mayadversely affect the fair and
equal opportunity of airlines to compete in providing the internationalair transportation governed
by this Agreement .
2 . If one Party believes that a government subsidy or support beingconsidered or provided by
the other Party for or to the airlines of that other Party would adverselyaffect or is adversely
affecting that fair and equal opportunity of the airlines of the firstParty to compete, it may submit
observations to that Party . Furthermore, it may request a meeting of theJoint Committee as
provided in Article 18, to consider the issue and develop appropriateresponses to concerns found to
3 . Each Party may approach responsible governmental entities in theterritory of the other Party,
including entities at the state, provincial or local level, if it believesthat a subsidy or support being
considered or provided by such entities will have the adverse competitiveeffects referred to in
paragraph 2 . If a Party decides to make such direct contact it shallinform promptly the other Party
through diplomatic channels. It may also request a meeting of the JointCommittee .
Issues raised under this Article could include, for example, capitalinjections,
cross-subsidization, grants, guarantees, ownership, relief or taxexemption, by any governmental
The Parties recognize the importance of protecting the environment whendeveloping and
implementing international aviation policy. The Parties recognize that thecosts and benefits of
measures to protect the environment must be carefully weighed indeveloping international aviation
2 . When a Party is considering proposed environmental measures, it shouldevaluate possible
adverse effects on the exercise of rights contained in this Agreement,and, if such measures are
adopted, it should take appropriate steps to mitigate any such adverseeffects .
3 . When environmental measures are established, the aviationenvironmental standards adopted
by the International Civil Aviation Organization in Annexes to theConvention shall be followed
except where differences have been filed . The Parties shall apply anyenvironmental measures
affecting air services under this Agreement in accordance with Article 2and 3(4) of this Agreement .
USA/CE/en 3 5
If one Party believes that a matter involving aviation environmentalprotection raises concerns
for the application or implementation of this Agreement, it may request ameeting of the Joint
Committee, as provided in Article 18, to consider the issue and developappropriate responses to
concerns found to be legitimate .
The Parties affirm the importance of protecting consumers, and eitherParty may request a meeting
of the Joint Committee to discuss consumer protection issues that therequesting Party identifies as
Computer Reservation Systems
Computer Reservation Systems (CRS) vendors operating in the territory ofone Party shall be
entitled to bring in, maintain, and make freely available their CRSs totravel agencies or travel
companies whose principal business is the distribution of travel-relatedproducts in the territory of
the other Party provided the CRS complies with any relevant regulatoryrequirements of the other
2 . Neither Party shall, in its territory, impose or permit to be imposedon the CRS vendors of the
other Party more stringent requirements with respect to CRS displays(including edit and display
parameters), operations, practices, sales, or ownership than those imposedon its own CRS vendors .
3 . Owners/Operators of CRSs of one Party that comply with the relevantregulatory
requirements of the other Party, if any, shall have the same opportunityto own CRSs within the
territory of the other Party as do owners/operators of that Party .
The Joint Committee
A Joint Committee consisting of representatives of the Parties shall meetat least once a year
to conduct consultations relating to this Agreement and to review itsimplementation .
2 . A Party may also request a meeting of the Joint Committee to seek toresolve questions
relating to the interpretation or application of this Agreement. However,with respect to Article 20
or Annex 2, the Joint Committee may consider questions only relating tothe refusal by either
Participant to implement the commitments undertaken, and the impact ofcompetition decisions on
the application of this Agreement . Such a meeting shall begin at theearliest possible date, but not
later than 60 days from the date of receipt of the request, unlessotherwise agreed .
USA/CE/en 3 7
The Joint Committee shall review, no later than at its first annualmeeting and thereafter as
appropriate, the overall implementation of the Agreement, including anyeffects of aviation
infrastructure constraints on the exercise of rights provided for inArticle 3, the effects of security
measures taken under Article 9, the effects on the conditions ofcompetition, including in the field
of Computer Reservation Systems, and any social effects of theimplementation of the Agreement .
The Joint Committee shall also develop cooperation by:
(a) fostering expert-level exchanges on new legislative or regulatoryinitiatives and
developments, including in the fields of security, safety, theenvironment, aviation
infrastructure (including slots), and consumer protection ;
(b) considering the social effects of the Agreement as it is implementedand developing
appropriate responses to concerns found to be legitimate ;
(c) considering potential areas for the further development of theAgreement, including the
recommendation of amendments to the Agreement ;
(d) maintaining an inventory of issues regarding government subsidies orsupport raised by either
Party in the Joint Committee;
(e) making decisions, on the basis of consensus, concerning any matterswith respect to
application of paragraph 6 of Article 11 ;
USA/CE/en 3 8
developing, within one year of provisional application, approaches toregulatory
determinations with regard to airline fitness and citizenship, with thegoal of achieving
reciprocal recognition of such determinations ;
developing a common understanding of the criteria used by the Parties inmaking their
respective decisions in cases concerning airline control, to the extentconsistent with
confidentiality requirements ;
(h) fostering consultation, where appropriate, on air transport issuesdealt with in international
organizations and in relations with third countries, includingconsideration of whether to
adopt a joint approach ;
(i) taking, on the basis of consensus, the decisions to which paragraph 3of Article 1 of Annex 4
and paragraph 3 of Article 2 of Annex 4 refer .
5 . The Parties share the goal of maximizing the benefits for consumers,airlines, labor, and
communities on both sides of the Atlantic by extending this Agreement toinclude third countries.
To this end, the Joint Committee shall work to develop a proposalregarding the conditions and
procedures, including any necessary amendments to this Agreement, thatwould be required for
third countries to accede to this Agreement .
The Joint Committee shall operate on the basis of consensus .
USA/CE/en 3 9
I . Any dispute relating to the application or interpretation of thisAgreement, other than issues
arising under Article 20 or under Annex 2, that is not resolved by ameeting of the Joint Committee
may be referred to a person or body for decision by agreement of theParties . If the Parties do not
so agree, the dispute shall, at the request of either Party, be submittedto arbitration in accordance
with the procedures set forth below .
Unless the Parties otherwise agree, arbitration shall be by a tribunal ofthree arbitrators to be
constituted as follows :
(a) Within 20 days after the receipt of a request for arbitration, eachParty shall name one
arbitrator . Within 45 days after these two arbitrators have been named,they shall by
agreement appoint a third arbitrator, who shall act as President of thetribunal .
(b) If either Party fails to name an arbitrator, or if the thirdarbitrator is not appointed in
accordance with subparagraph (a) of this paragraph, either Party mayrequest the President of
the Council of the International Civil Aviation Organization to appointthe necessary
arbitrator or arbitrators within 30 days of receipt of that request . Ifthe President of the
Council of the International Civil Aviation Organization is a national ofeither the
United States or a Member State, the most senior Vice President of thatCouncil who is not
disqualified on that ground shall make the appointment .
Except as otherwise agreed, the tribunal shall determine the limits of itsjurisdiction in
accordance with this Agreement and shall establish its own proceduralrules . At the request of a
Party, the tribunal, once formed, may ask the other Party to implementinterim relief measures
pending the tribunal's final determination . At the direction of thetribunal or at the request of either
Party, a conference shall be held not later than 15 days after thetribunal is fully constituted for the
tribunal to determine the precise issues to be arbitrated and the specificprocedures to be followed .
Except as otherwise agreed or as directed by the tribunal :
(a) The statement of claim shall be submitted within 30 days of the timethe tribunal is fully
constituted, and the statement of defense shall be submitted 40 daysthereafter . Any reply by
the claimant shall be submitted within 15 days of the submission of thestatement of defense .
Any reply by the respondent shall be submitted within 15 days thereafter.
USA/CE/en 4 1
(b) The tribunal shall hold a hearing at the request of either Party, ormay hold a hearing on its
own initiative, within 15 days after the last reply is filed .
5 . The tribunal shall attempt to render a written decision within 30 daysafter completion of the
hearing or, if no hearing is held, within 30 days after the last reply issubmitted . The decision of the
majority of the tribunal shall prevail .
The Parties may submit requests for clarification of the decision within10 days after it is
rendered and any clarification given shall be issued within 15 days ofsuch request.
If the tribunal determines that there has been a violation of thisAgreement and the responsible
Party does not cure the violation, or does not reach agreement with theother Party on a mutually
satisfactory resolution within 40 days after notification of thetribunal's decision, the other Party
may suspend the application of comparable benefits arising under thisAgreement until such time as
the Parties have reached agreement on a resolution of the dispute .Nothing in this paragraph shall
be construed as limiting the right of either Party to take proportionalmeasures in accordance with
international law .
The expenses of the tribunal, including the fees and expenses of thearbitrators, shall be
shared equally by the Parties . Any expenses incurred by the President ofthe Council of the
International Civil Aviation Organization, or by any Vice President of thatCouncil, in connection
with the procedures of paragraph 2(b) of this Article shall be consideredto be part of the expenses
of the tribunal .
The Parties recognize that competition among airlines in the transatlanticmarket is important
to promote the objectives of this Agreement, and confirm that they applytheir respective
competition regimes to protect and enhance overall competition and notindividual competitors .
2 . The Parties recognize that differences may arise concerning theapplication of their respective
competition regimes to international aviation affecting the transatlanticmarket, and that competition
among airlines in that market might be fostered by minimising thosedifferences .
The Parties recognize that cooperation between their respectivecompetition authorities serves
to promote competition in markets and has the potential to promotecompatible regulatory results
and to minimise differences in approach with respect to their respectivecompetition reviews of
inter-carrier agreements . Consequently, the Parties shall further thiscooperation to the extent
feasible, taking into account the different responsibilities, competenciesand procedures of the
authorities, in accordance with Annex 2 .
4 . The Joint Committee shall be briefed annually on the results of thecooperation under
Annex 2 .
Second Stage Negotiations
The Parties share the goal of continuing to open access to markets and tomaximise benefits
for consumers, airlines, labor, and communities on both sides of theAtlantic, including the
facilitation of investment so as to better reflect the realities of aglobal aviation industry, the
strengthening of the transatlantic air transportation system, and theestablishment of a framework
that will encourage other countries to open their own air services markets. The Parties shall begin
negotiations not later than 60 days after the date of provisionalapplication of this Agreement, with
the goal of developing the next stage expeditiously .
To that end, the agenda for the second stage negotiations shall includethe following items of
priority interest to one or both Parties :
(a) further liberalization of traffic rights ;
(b) additional foreign investment opportunities ;
(c) effect of environmental measures and infrastructure constraints on theexercise of traffic
(d) further access to Government-financed air transportation ; and
(e) provision of aircraft with crew .
The Parties shall review their progress towards a second stage agreementno later than
18 months after the date when the negotiations are due to start inaccordance with paragraph 1 . If
no second stage agreement has been reached by the Parties within twelvemonths of the start of the
review, each Party reserves the right thereafter to suspend rightsspecified in this Agreement . Such
suspension shall take effect no sooner than the start of the InternationalAir Transport
Association (IATA) traffic season that commences no less than twelvemonths after the date on
which notice of suspension is given .
Relationship to Other Agreements
i 1 .
During the period of provisional application pursuant to Article 25 ofthis Agreement, the
bilateral agreements listed in section 1 of Annex 1, shall be suspended,except to the extent
provided in section 2 of Annex 1 .
2 . Upon entry into force pursuant to Article 26 of this Agreement, thisAgreement shall
supersede the bilateral agreements listed in section 1 of Annex 1, exceptto the extent provided in
i section 2 of Annex 1 .
If the Parties become parties to a multilateral agreement, or endorse adecision adopted by the
International Civil Aviation Organization or another internationalorganization, that addresses
matters covered by this Agreement, they shall consult in the JointCommittee to determine whether
this Agreement should be revised to take into account such developments .
USA/CE/en 4 6
Either Party may, at any time, give notice in writing through diplomaticchannels to the other Party
of its decision to terminate this Agreement . Such notice shall be sentsimultaneously to the
International Civil Aviation Organization . This Agreement shall terminateat midnight GMT at the
end of the International Air Transport Association (IATA) traffic seasonin effect one year
following the date of written notification of termination, unless thenotice is withdrawn by
agreement of the Parties before the end of this period.
Registration with ICAO
This Agreement and all amendments thereto shall be registered with theInternational Civil Aviation
USA/CE/en 4 7
Pending entry into force pursuant to Article 26 :
1) The Parties agree to apply this Agreement from 30 March 2008 .
2) Either Party may at any time give notice in writing through diplomaticchannels to the other
Party of a decision to no longer apply this Agreement . In that event,application shall cease at
midnight GMT at the end of the International Air Transport Association(IATA) traffic season
in effect one year following the date of written notification, unless thenotice is withdrawn by
agreement of the Parties before the end of this period .
Entry into Force
This Agreement shall enter into force one month after the date of thelater note in an exchange of
diplomatic notes between the Parties confirming that all necessaryprocedures for entry into force of
this Agreement have been completed. For purposes of this exchange, the UnitedStates shall deliver
to the European Community the diplomatic note to the European Communityand its Member
States, and the European Community shall deliver to the United States thediplomatic note or notes
from the European Community and its Member States . The diplomatic note ornotes from the
European Community and its Member States shall contain communications fromeach Member
State confirming that its necessary procedures for entry into force ofthis Agreement have been
IN WITNESS WHEREOF the undersigned, being duly authorized, have signedthis Agreement .
DONE at Brussels on the twenty-fifth day of April, 2007 and at Washingtonon the thirtieth day of
April, 2007, in duplicate .
Pour le Royaume de Belgique
Voor het Koninkrijk Belgia
Far das KOnigreich Belgien
Cette signature engage dgalement In Communautd francaiee, la Cotnmunautdflarmnde, la Count unautd getmanophone, la Region
wallonne, Is Region flannnde et la Region de Bruxella-Capimk .
Deze handtekening verbindt eveneens de Vlumae Cxrrcenachap, de FranceGemeenachap, de Duitatalige Gemeenachap, het
Vlaamae Geweal, het Wube Gewat en bet Bruniela Hoofdatedehjk Geweat .
Dime Unterachnf bindet zugleich die Deutachaprachige Gemeinachaft, dieFlamiache Gemeinachaf, die Franzdaiachc
Gemeinschaf, die Walloniache Region, die Flimiache Region and die RegionBrOnel-Hauptatadt .
Za Ceskou republiku
Thar cheann Na hEireann
Per la epubblica italiana
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Latvijas Republikas varda
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For the European Community
Por la Comunidad Europea
Za Evropsk6 spolebenstvi
For Det Europa:iske F&lesskab
For die Europgische Gemeinschaft
Euroopa Uhenduse nimel
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Pour la Communaut6 europ6enne
Per la Comuniti europea
Eiropas Kopienas vArd6
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az Eur6pai Kbzoss6g r6szerSl
Voor de Europese Gemeenschap
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Pela Comunidade Europeia
Pentru Comunitatea Europeans
Za Eur6pske spolobenstvo
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Euroopan yhteison puolesta
P9 Europeiska gemenskapens vognar
As provided in Article 22 of this Agreement, the following bilateralagreements between the
United States and Member States shall be suspended or superseded by thisAgreement :
The Republic of Austria: Air services agreement, signed at Vienna March16, 1989 ;
amended June 14, 1995 .
b . The Kingdom of Belgium : Air transport agreement, effected by exchangeof notes at
Washington October 23, 1980 ; amended September 22 and November 12, 1986 ;
amended November 5, 1993 and January 12, 1994 .
(amendment concluded on September 5, 1995 (provisionally applied) .)
The Republic of Bulgaria : Civil aviation security Agreement, signed atSofia April 24, 1991 .
The Czech Republic : Air transport agreement, signed at Prague September10, 1996 ;
amended June 4, 2001 and February 14, 2002 .
USA/CE/ANNEX 1/en 1
The Kingdom of Denmark : Agreement relating to air transport services,effected by
exchange of notes at Washington December 16, 1944 ; amended August 6,1954;
amended June 16, 1995 .
The Republic of Finland: Air transport agreement, signed at Helsinki March29, 1949; related
protocol signed May 12, 1980 ; agreement amending 1949 agreement and 1980protocol
concluded June 9, 1995 .
The French Republic: Air transport agreement, signed at Washington June18, 1998 ;
amended October 10, 2000 ; amended January 22, 2002 .
The Federal Republic of Germany : Air transport agreement and exchanges ofnotes, signed at
Washington July 7, 1955 ; amended April 25, 1989 .
(related protocol concluded November 1, 1978 ; related agreement concludedMay 24, 1994 ;
protocol amending the 1955 agreement concluded on May 21191) ; agreementamending
the 1996 protocol concluded on October 10, 2000 (all provisionallyapplied) .)
The Hellenic Republic : Air transport agreement, signed at Athens July 31,1991 ; extended
until July 31, 2007 by exchange of notes of June 22 and 28, 2006 .
USA/CE/ANNEX 1/en 2
J . The Republic of Hungary : Air transport agreement and memorandum ofunderstanding,
signed at Budapest July 12, 1989; extended until July 12, 2007 by exchangeof notes of
July 11 and 20, 2006 .
Ireland: Agreement relating to air transport services, effected byexchange of notes at
Washington February 3, 1945 ; amended January 25, 1988 and September 29,1989 ; amended
July 25 and September 6, 1990 .
(Memorandum of consultations, signed at Washington October 28, 1993(provisionally
The Italian Republic: Air transport agreement, with memorandum andexchange of notes,
signed at Rome June 22, 1970; amended October 25, 1988 ; relatedmemorandum of
understanding signed September 27, 1990 ; amendment of 1970 agreement and1990 MOU
concluded November 22 and December 23, 1991 ; amendment of 1970 agreementand
1990 MOU concluded May 30 and October 21, 1997; agreement supplementingthe
1970 agreement concluded December 30, 1998 and February 2, 1999 .
(Protocol amending the 1970 agreement concluded December 6, 1999(provisionally
USA/CF/ANNEX 1/en 3
m. The Grand Duchy of Luxembourg: Air transport agreement, signed atLuxembourg
August 19, 1986 ; amended June 6, 1995 ; amended July 13 and 21, 1998 .
n. Malta: Air transport agreement, signed at Washington October 12, 2000.
o. The Kingdom of the Netherlands: Air transport agreement, signed atWashington April 3,
1957 ; protocol amending the 1957 agreement concluded on March 31, 1978 ;amendment
of 1978 protocol concluded June 11, 1986 ; amendment of 1957 agreementconcluded
October 13 and December 22, 1987; amendment of 1957 agreement concludedJanuary 29
and March 13, 1992 ; amendment of 1957 agreement and 1978 protocolconcluded
October 14, 1992.
p . The Republic of Poland: Air transport agreement, signed at Warsaw June16, 2001 .
q . The Portuguese Republic : Air transport agreement, signed at LisbonMay 30, 2000.
Romania: Air transport agreement, signed at Washington July 15, 1998 .
The Slovak Republic : Air transport agreement, signed at BratislavaJanuary 22, 2001 .
USA/CE/ANNEX 1 /en 4
The Kingdom of Spain : Air transport agreement signed at Madrid February20, 1973 ; related
agreement of February 20, March 31 and April 7, 1987 ; amendment of 1973agreement
concluded May 31, 1989; amendment of 1973 agreement concluded November 27,1991 .
The Kingdom of Sweden : Agreement relating to air transport services,effected by
exchange of notes at Washington December 16,1944 ; amended August 6,1954 ;
amended June 16, 1995 .
v. The United Kingdom of Great Britain and Northern Ireland : Agreementconcerning air
services, and exchange of letters, signed at Bermuda July 23, 1977 ;agreement relating to
North Atlantic air fares, concluded March 17, 1978 ; agreement amendingthe 1977 agreement,
concluded April 25, 1978 ; agreement modifying and extending the 1978agreement relating to
North Atlantic air fares, concluded November 2 and 9, 1978 ; agreementamending the 1977
agreement, concluded December 4, 1980 ; agreement amending the 1977agreement,
concluded February 20, 1985 ; agreement amending Article 7, Annex 2, andAnnex 5 of
the 1977 agreement, concluded May 25, 1989; agreement concerning amendmentsof the
1977 agreement, termination of the US/UK Arbitration Concerning HeathrowAirport User
Charges and the request for arbitration made by the United Kingdom in itsembassy's
note no . 87 of 13 October 1993 and settlement of the matters which gaverise to those
proceedings, concluded March 11, 1994 ; agreement amending the 1977agreement,
concluded March 27, 1997 .
USA/CE/ANNEX 1/en 5
Notwithstanding section 1 of this Annex, for areas that are notencompassed within the definition of
"territory" in Article 1 of this Agreement, the agreements inparagraphs (e)
(Denmark-United States), (g) (France-United States), and (v) (UnitedKingdom-United States) of
that section shall continue to apply, according to their terms .
Notwithstanding Article 3 of this Agreement, U.S . airlines shall not havethe right to provide
all-cargo services, that are not part of a service that serves the UnitedStates, to or from points in the
Member States, except to or from points in the Czech Republic, the FrenchRepublic,
the Federal Republic of Germany, the Grand Duchy of Luxembourg, Malta, theRepublic of Poland,
the Portuguese Republic, and the Slovak Republic .
USA/CE/ANNEX 1/en 6
(Arrangements, being provisionally applied, contained in the memorandum ofconsultations
dated September 11, 1986 ; arrangements contained in the exchange ofletters dated July 27,
1990; arrangements contained in the memorandum of consultations of March11, 1991 ;
arrangements contained in the exchange of letters dated October 6, 1994 ;arrangements
contained in the memorandum of consultations of June 5, 1995 ;arrangements contained in the
exchange of letters dated March 31 and April 3, 2000 (all provisionallyapplied) .)
Notwithstanding any other provisions of this Agreement, this section shallapply to scheduled and
charter combination air transportation between Ireland and the UnitedStates with effect from the
beginning of IATA Winter season 2006/2007 until the end of the IATA Winterseason 2007/2008 .
Each U.S. and Community airline may operate 3 non-stop flights between the
United States and Dublin for each non-stop flight that the airlineoperates between the
United States and Shannon. This entitlement for non-stop Dublin flightsshall be based
on an average of operations over the entire three-season transitionalperiod . A flight
shall be deemed to be a non-stop Dublin, or a non-stop Shannon, flight,according to the
first point of entry into, or the last point of departure from, Ireland .
(ii) The requirement to serve Shannon in subparagraph (a)(i) of thisSection shall terminate
if any airline inaugurates scheduled or charter combination servicebetween Dublin and
the United States, in either direction, without operating at least onenon-stop flight to
Shannon for every three non-stop flights to Dublin, averaged over thetransition period.
USA/CE/ANNEX 1/en 7
For services between the United States and Ireland, Community airlines mayserve only
Boston, New York, Chicago, Los Angeles, and 3 additional points in theUnited States, to be
notified to the United States upon selection or change . These servicesmay operate via
intermediate points in other Member States or in third countries.
c . Code sharing shall be authorized between Ireland and the United Statesonly via other points
in the European Community . Other code-share arrangements will beconsidered on the basis
of comity and reciprocity .
USA/CE/ANNEX I/en 8
Cooperation With Respect to Competition Issues in the Air TransportationIndustry
The cooperation as set forth in this Annex shall be implemented by theDepartment of
Transportation of the United States of America and the Commission of theEuropean Communities
(hereinafter referred to as "the Participants"), consistent withtheir respective functions in
addressing competition issues in the air transportation industry involvingthe United States and the
European Community .
The purpose of this cooperation is :
To enhance mutual understanding of the application by the Participants ofthe laws,
procedures and practices under their respective competition regimes toencourage competition
in the air transportation industry ;
To facilitate understanding between the Participants of the impact of airtransportation
industry developments on competition in the international aviation market;
USA/CE/ANNEX 2/en 1
To reduce the potential for conflicts in the Participants' application oftheir respective
competition regimes to agreements and other cooperative arrangements whichhave an impact
on the transatlantic market ; and
4 . To promote compatible regulatory approaches to agreements and othercooperative
arrangements through a better understanding of the methodologies,analytical techniques
including the definition of the relevant market(s) and analysis ofcompetitive effects, and
remedies that the Participants use in their respective independentcompetition reviews .
For the purpose of this Annex, the term "competition regime"means the laws, procedures and
practices that govern the Participants' exercise of their respectivefunctions in reviewing agreements
and other cooperative arrangements among airlines in the internationalmarket . For the European
Community, this includes, but is not limited to, Articles 81, 82, and 85of the Treaty Establishing
the European Community and their implementing Regulations pursuant to thesaid Treaty, as well
as any amendments thereto . For the Department of Transportation, thisincludes, but is not limited
to, sections 41308, 41309, and 41720 of Title 49 of the United StatesCode, and its implementing
Regulations and legal precedents pursuant thereto .
USA/CE/ANNEX 2/en 2
ITW M .
Areas of Cooperation
Subject to the qualifications in subparagraphs 1(a) and 1(b) of Article 5,the types of cooperation
between the Participants shall include the following :
Meetings between representatives of the Participants, to includecompetition experts, in
principle on a semi-annual basis, for the purpose of discussingdevelopments in the air
transportation industry, competition policy matters of mutual interest,and analytical
approaches to the application of competition law to internationalaviation, particularly in the
transatlantic market . The above discussions may lead to the developmentof a better
understanding of the Participants' respective approaches to competitionissues, including
existing commonalities, and to more compatibility in those approaches, inparticular with
respect to inter-carrier agreements .
(2) Consultations at any time between the Participants, by mutualagreement or at the request of
either Participant, to discuss any matter related to this Annex, includingspecific cases .
Each Participant may, at its discretion, invite representatives of othergovernmental authorities
to participate as appropriate in any meetings or consultations heldpursuant to paragraphs I
or 2 above.
USA/CE/ANNEX 2/en 3
(4) Timely notifications of the following proceedings or matters, which inthe judgment of the
notifying Participant may have significant implications for thecompetition interests of the
With respect to the Department of Transportation, (i) proceedings forreview of
applications for approval of agreements and other cooperative arrangementsamong
airlines involving international air transportation, in particular forantitrust immunity
involving airlines organized under the laws of the United States and theEuropean
Community, and (ii) receipt by the Department of Transportation of a jointventure
agreement pursuant to section 41720 of Title 49 of the United States Code; and
With respect to the Commission of the European Communities, (i)proceedings for
review of agreements and other cooperative arrangements among airlinesinvolving
international air transportation, in particular for alliance and othercooperative
agreements involving airlines organized under the laws of the UnitedStates and the
European Community, and (ii) consideration of individual or blockexemptions from
European Union competition law ;
Notifications of the availability, and any conditions governing thatavailability, of information
and data filed with a Participant, in electronic form or otherwise, that,in the judgment of that
Participant, may have significant implications for the competitioninterests of the other
USA/CE/ANNEX 2/en 4
(6) Notifications of such other activities relating to air transportationcompetition policy as may
seem appropriate to the notifying Participant .
Use and Disclosure of Information
Notwithstanding any other provision of this Annex, neither Participant isexpected to provide
information to the other Participant if disclosure of the information tothe requesting
is prohibited by the laws, regulations or practices of the Participantpossessing the
would be incompatible with important interests of the Participantpossessing the
(2) Each Participant shall to the extent possible maintain theconfidentiality of any information
provided to it in confidence by the other Participant under this Annex andto oppose any
application for disclosure of such information to a third party that isnot authorized by the
supplying Participant to receive the information . Each Participantintends to notify the other
Participant whenever any information proposed to be exchanged indiscussions or in any other
manner may be required to be disclosed in a public proceeding .
USA/CE/ANNEX 2 /en 5
(3) Where pursuant to this Annex a Participant provides information on aconfidential basis to the
other Participant for the purposes specified in Article 2, thatinformation should be used by
the receiving Participant only for that purpose .
(1) Each Participant is designating a representative to be responsible forcoordination of activities
established under this Annex .
(2) This Annex, and all activities undertaken by a Participant pursuant toit, are
intended to be implemented only to the extent consistent with all laws,regulations, and
practices applicable to that Participant ; and
intended to be implemented without prejudice to the Agreement between theEuropean
Communities and the Government of the United States of America Regardingthe
Application of their Competition Laws .
U.S . Government Procured Transportation
Community airlines shall have the right to transport passengers and cargoon scheduled and charter
flights for which a U .S . Government civilian department, agency, orinstrumentality (I) obtains the
transportation for itself or in carrying out an arrangement under whichpayment is made by the
Government or payment is made from amounts provided for the use of theGovernment, or (2)
provides the transportation to or for a foreign country or internationalor other organization without
reimbursement, and that transportation is (a) between any point in theUnited States and any point
in a Member State, except - with respect to passengers only - betweenpoints for which there is a
city-pair contract fare in effect, or (b) between any two points outsidethe United States . This
paragraph shall not apply to transportation obtained or funded by theSecretary of Defense or the
Secretary of a military department .
USA/CE/ANNEX 3/en 1
Additional Matters Related to Ownership, Investment and Control
Ownership of Airlines of a Party
1 . Ownership by nationals of a Member State or States of the equity of aU .S . airline shall be
permitted, subject to two limitations . First, ownership by all foreignnationals of more than
25 percent of a corporation's voting equity is prohibited . Second, actualcontrol of a U .S .
airline by foreign nationals is also prohibited . Subject to the overall25 percent limitation on
foreign ownership of voting equity:
ownership by nationals of a Member State or States of :
(1) as much as 25 percent of the voting equity ; and/or
(2) as much as 49 .9 percent of the total equity
of a U .S . airline shall not be deemed, of itself, to constitute controlof that airline ;
b . ownership by nationals of a Member State or States of 50 percent ormore of the total
equity of a U .S . airline shall not be presumed to constitute control ofthat airline . Such
ownership shall be considered on a case-by-case basis.
USA/CE/ANNEX 4/en 1
2 . Ownership by U.S . nationals of a Community airline shall be permittedsubject to two
limitations . First, the airline must be majority owned by Member Statesand/or by nationals
of Member States. Second, the airline must be effectively controlled bysuch states and/or
such nationals .
For the purposes of paragraph (b) of Article 4 and subparagraph 1(b) ofArticle 5 of this
Agreement, a member of the ECAA as of the date of signature of this Agreementand citizens
of such a member shall be treated as a Member State and its nationals,respectively . The Joint
Committee may decide that this provision shall apply to new members of theECAA and their
4 . Notwithstanding paragraph 2, the European Community and its MemberStates reserves the
right to limit investments by U .S . nationals in the voting equity of aCommunity airline made
after the signature of this Agreement to a level equivalent to thatallowed by the United States
for foreign nationals in U.S . airlines, provided that the exercise ofthat right is consistent with
international law .
Ownership and Control of Third-Country Airlines
Neither Party shall exercise any available rights under air servicesarrangements with a
third country to refuse, revoke, suspend or limit authorizations orpermissions for any airlines
of that third country on the grounds that substantial ownership of thatairline is vested in the
other Party, its nationals, or both .
The United States shall not exercise any available rights under airservices arrangements to
refuse, revoke, suspend or limit authorizations or permissions for anyairline of the
Principality of Liechtenstein, the Swiss Confederation, a member of theECAA as of the date
of signature of this Agreement, or any country in Africa that isimplementing an Open-Skies
air services agreement with the United States as of the date of signatureof this Agreement, on
the grounds that effective control of that airline is vested in a MemberState or States,
nationals of such a state or states, or both .
The Joint Committee may decide that neither Party shall exercise therights referred to in
paragraph 2 of this Article with respect to airlines of a specific countryor countries .
USA/CE/ANNEX 4/en 3
Control of Airlines
The rules applicable in the European Community on ownership and control ofCommunity air
carriers are currently laid down in Article 4 of Council Regulation (EEC)No . 2407/92
of 23 July 1992 on licensing of air carriers. Under this Regulation,responsibility for granting
an Operating Licence to a Community air carrier lies with the MemberStates . Member States
apply Regulation 2407/92 in accordance with their national regulations andprocedures .
The rules applicable in the United States are currently laid down inSections 40102(a)(2),
41102 and 41103 of Title 49 of the United States Code (U .S .C .), whichrequire that licenses
for a U .S . "air carrier" issued by the Department ofTransportation, whether a certificate, an
exemption, or commuter license, to engage in "airtransportation" as a common carrier, be
held only by citizens of the United States as defined in 49 U .S.C§40102(a)(15). That section
requires that the president and two-thirds of the board of directors andother managing
officers of a corporation be U .S . citizens, that at least 75 percent ofthe voting stock be owned
by U.S . citizens, and that the corporation be under the actual control ofU .S . citizens. The
requirement must be met initially by an applicant, and continue to be metby a U .S . airline
holding a license.
The practice followed by each Party in applying its laws and regulationsis set out in the
Appendix to this Annex .
USA/CE/ANNEX 4/en 4
Anuendix to Annex 4
In the United States, citizenship determinations are necessary for all U.S . air carrier applicants
for a certificate, exemption, or commuter license . An initial applicationfor a license is filed
in a formal public docket, and processed "on the record" with filingsby the applicant and any
other interested parties. The Department of Transportation renders a finaldecision by an
Order based on the formal public record of the case, including documentsfor which
confidential treatment has been granted . A "continuing fitness"case may be handled
informally by the Department, or may be set for docketed proceduressimilar to those used for
initial applications .
The Department's determinations evolve through a variety of precedents,which reflect,
among other things, the changing nature of financial markets andinvestment structures and
DOT's willingness to consider new approaches to foreign investment thatare consistent with
U.S . law. DOT works with applicants to consider proposed forms ofinvestment and to assist
them in fashioning transactions that fully comply with U .S . citizenshiplaw, and applicants
regularly consult with DOT staff before finalising their applications . Atany time before a
formal proceeding has begun, DOT staff may discuss questions concerningcitizenship issues
or other aspects of the proposed transaction and offer suggestions, whereappropriate, as to
alternatives that would allow a proposed transaction to meet U .S .citizenship requirements .
USA/CE/ANNEX 4/APPENDIX/en 1
In making both its initial and continuing citizenship and fitnessdeterminations,
DOT considers the totality of circumstances affecting the U .S . airline,and Department
precedents have permitted consideration of the nature of the aviationrelationship between the
United States and the homeland(s) of any foreign investors . In thecontext of this Agreement,
DOT would treat investments from EU nationals at least as favorably as itwould treat
investments from nationals of bilateral or multilateral Open-Skies partners.
4. In the European Union, paragraph 5 of Article 4 of Regulation 2407/92provides that the
European Commission, acting at the request of a Member State, shallexamine compliance
with the requirements of Article 4 and take a decision if necessary . Intaking such decisions
the Commission must ensure compliance with the procedural rightsrecognized as general
principles of Community law by the European Court of Justice, includingthe right of
interested parties to be heard in a timely manner .
5 . When applying its laws and regulations, each Party shall ensure thatany transaction involving
investment in one of its airlines by nationals of the other Party isafforded fair and expeditious
USA/CE/ANNEX 4/APPENDIX/en 2
Franchising and Branding
The airlines of each Party shall not be precluded from entering intofranchise or branding
arrangements, including conditions relating to brand protection andoperational matters,
provided that : they comply, in particular, with the applicable laws andregulations concerning
control ; the ability of the airline to exist outside of the franchise isnot jeopardized ; the
arrangement does not result in a foreign airline engaging in cabotageoperations ; and
applicable regulations, such as consumer protection provisions, includingthose regarding the
disclosure of the identity of the airline operating the service, arecomplied with. So long as
those requirements are met, close business relationships and cooperativearrangements
between the airlines of each Party and foreign businesses are permissible,and each of the
following individual aspects, among others, of a franchise or brandingarrangement would
not, other than in exceptional circumstances, of itself raise controlissues :
a) using and displaying a specific brand or trademark of a franchisor,including
stipulations on the geographic area in which the brand or trademark may beused ;
b) displaying on the franchisee's aircraft the colors and logo of thefranchisor's brand,
including the display of such a brand, trademark, logo or similaridentification
prominently on its aircraft and the uniforms of its personnel ;
USA/CE/ANNEX 5/en I
using and displaying the brand, trademark or logo on, or in conjunctionwith, the
franchisee's airport facilities and equipment;
d) maintaining customer service standards designed for marketing purposes;
maintaining customer service standards designed to protect the integrityof the franchise
providing for license fees on standard commercial teens;
g) providing for participation in frequent flyer programs, including theaccrual of benefits ;
h) providing in the franchise or branding agreement for the right of thefranchisor or
franchisee to terminate the arrangement and withdraw the brand, providedthat nationals
of the United States or the Member States remain in control of the U .S .or Community
Franchising and branding arrangements are independent of, but may coexistwith, a
code-sharing arrangement that requires that both airlines have theappropriate authority from
the Parties, as provided for in paragraph 7 of Article 10 of thisAgreement .
USA/CE/ANNEX 5/en 2
Representatives of the United States and of the European Community and itsMember States
confirmed that the Air Transport Agreement initialled in Brussels on 2March 2007 and envisioned
for signature on 30 April 2007 is to be authenticated in other languages,as provided either by
exchange of letters, before signature of the Agreement, or by decision ofthe Joint Committee, after
signature of the Agreement .
This Joint Declaration is an integral part of the Air Transport Agreement.
For the United States:
For the European Community
and its Member States ; ad referendum
[signed. John Byerly]
[signed . Daniel Calleja]
Date : 18 April 2007
Date: 18 April 2007
USA/CE/JOINT DECLARATION/en 1