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Exchange of Letters between the Government of Canada and the Government of the United States of America constituting an Agreement concerning an Experimental Transborder Air Services Programme [1986] CATSer 10 (13 March 1986)

E103550 - CTS 1986 No. 32

EXCHANGE OF LETTERS BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA CONSTITUTING AN AGREEMENT CONCERNING AN EXPERIMENTAL TRANSBORDER AIR SERVICES PROGRAMME

I

The Ambassador of Canada to the Secretary of Transportation for the United States of America

WASHINGTON, March 13, 1986

The Honourable Elizabeth H. Dole,
Secretary of Transportation,
Washington

Dear Madam Secretary:

I have the honour to refer to the Air Transport Agreement between the Government of Canada and the Government of the United States of America of January 17, 1966, as amended, and to the Experimental Transborder Air Services Programme which entered into force on August 21, 1984 by a diplomatic exchange of notes (Canadian Note Number ETT-1482 and U.S. Note Number 299).

Based on the continuing desire of our governments to foster and improve new transborder air services through innovative pricing and service mechanisms, I propose by this letter that the following Experimental Transborder Air Services Programme (The Programme) supercede the above mentioned exchange of notes.

An airline or airlines designated by the Government of Canada or the Government of the United States of America (the Contracting Parties) under this Programme shall be licensed automatically by the aeronautical authorities of the other Contracting Party. The provisions of Articles VI (b) and VII of the 1966 Agreement shall apply to such licensing.

An airline or airlines designated by either of the Contracting Parties under this Programme shall have the right to operate air services for the carriage of passengers, or passengers, cargo, and mail in combination and to make scheduled landings at the points permitted on the following route: Montreal (Mirabel) to and from any specified point or points in the United States.⁽¹⁾ Any number of designated airlines may serve a particular city-pair.

Airlines of both Contracting Parties shall have fair and equal opportunity to operate services under this Programme. The Contracting Parties agree to exercise their best efforts to assist airlines to obtain the necessary access to airports and airport terminal facilities. This Programme shall not impose any obligations on the Contracting Parties to upgrade or expand existing airport facilities or services, including the provision of customs and immigration services.

Flexible pricing provisions shall apply to the carriage of passengers under this Programme. Any fare proposed by an airline designated by either Contracting Party shall be filed with the aeronautical authorities of both Contracting Parties at least 15 days before the proposed date of introduction, unless permitted to be filed on shorter notice. Any such fare shall come into effect on the proposed date of introduction unless the aeronautical authorities of both countries, within 10 days of filing, have notified one another of their dissatisfaction with the proposed fare. Should the aeronautical authorities of both Contracting Parties disapprove the fare they shall endeavour to reach agreement on the appropriate fare as soon as practicable and the previous fare in effect shall continue in effect until such agreement is reached. Should the Programme be terminated by either Contracting Party, tariffs reflecting such fares shall remain in effect through the period of their validity not to exceed one year from the date of termination of this Programme.

Should this Programme be terminated or changed so as to affect services initiated under it, the Governments of Canada and the United States of America shall endeavour to provide for such services in the Schedules of the 1966 Agreement. In any case, services initiated under this Programme shall be allowed to continue for at least one year from the date of such termination or change.

This Programme shall be in effect for three years from August 21, 1984, unless terminated by either Contracting Party on six months' written notice to the other Contracting Party. The Contracting Parties shall review this Programme at the end of thirty months from August 21, 1984, to determine whether it should be continued, changed or terminated. Either Contracting Party may at any time request consultation, on questions concerning the interpretation, application or amendment of this agreement. Such consultation should commence as soon as practicable but in any event not later than sixty days from the date of receipt of the request for consultation, unless otherwise agreed by the Contracting Parties.

If, during the review at the end of thirty months, the total benefits of all experimental transborder air services programs established by our two countries are found to have accrued disproportionately to one of the countries, any appropriate adjustments shall be made.

In providing services under this Programme the operating airline or airlines shall be subject to the obligations and entitled to the privileges embodied in Article III (d), VIII, IX, X and XI of the 1966 Agreement.

If the foregoing is acceptable to the Government of the United States of America, I propose that this letter, which is authentic in English and French, together with your reply to that effect, shall constitute an agreement between our two governments which shall enter into force on the date of your reply and shall supercede the agreement of August 21, 1984.

Yours sincerely,

Allan Gotlieb

Ambassador

(1) Boston (Logan), New York (John F. Kennedy), Chicago (O'Hare), Los Angeles (International), San Francisco (International), Miami (International), And Seattle (Seattle-Tacoma) may not be served on this route: however, this shall not preclude U.S. designated carriers from serving these airports behind a U.S. point with a change of flight number at such point.

II

The Secretary of Transportation of the United States of America to the Ambassador of Canada

WASHINGTON, March 13, 1986

His Excellency Allan E. Gotlieb,
Ambassador of Canada

Dear Mr. Ambassador:

I have the honor to refer to your letter dated March 13, 1986, which states:

"(See Canadian Note of March 13, 1986)"

I wish to inform you that the Government of the United States concurs in the foregoing provisions and agrees that your letter and this letter in reply shall constitute an agreement between our governments which shall enter into force on the date of this reply.

Sincerely,

Elizabeth Hanford Dole

Secretary of Transportation