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Agreement between Canada and the Kingdom of the Netherlands relating to Air Transport between Canada and the Netherlands [1990] CATSer 2 (1 February 1990)

E104771 - CTS 1990 No. 12

AGREEMENT BETWEEN CANADA AND THE KINGDOM OF THE NETHERLANDS RELATING TO AIR TRANSPORT BETWEEN CANADA AND THE NETHERLANDS

THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE KINGDOM OF THE NETHERLANDS hereinafter referred to as the Contracting Parties,

BEING Parties to the Convention on International Civil Aviation opened for signature at Chicago on the 7th day of December 1944,

DESIRING to promote an efficient international aviation system in such a way that the travelling public and shippers are offered a variety of service options,

DESIRING to facilitate the expansion of international air transport services between and beyond their respective territories,

DESIRING to ensure the highest degree of safety and security in international air transport,

DESIRING to conclude a new Agreement on Air Transport, replacing, as regards the air transport services between the Netherlands and Canada, the Air Transport Agreement between the Government of Canada and the Government of the Kingdom of the Netherlands, done at Ottawa on the 17th day of June 1974,

HAVE AGREED as follows:

ARTICLE I

For the purpose of this Agreement, unless otherwise stated:

a) "Aeronautical authorities" means in the case of the Netherlands, the Minister of Transport and Public Works and, in the case of Canada, the Minister of Transport and the National Transportation Agency of Canada, or in both cases, any other authority or person empowered to perform the functions now exercised by the said authorities;

b) "Agreed services" means scheduled air services on the routes specified in the Annex to this Agreement for the transport of passengers, cargo and mail, separately or in combination;

c) "Agreement" means this Agreement, the Annex drawn up in application thereof and attached thereto, and any amendments to the Agreement or to the Annex;

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

e) "Designated airline" means an airline which has been designated and authorized in accordance with Articles IV and V of this Agreement;

f) "Tariffs" means the prices to the paid for the carriage of passengers, baggage and cargo and the conditions under which those prices apply, including prices and conditions for other services performed by the carrier in connection with air transportation, but excluding remuneration and conditions for the carriage of mail;

g) "Territory", "Air service", "International Air Service", "Airline" and "Stop for non-traffic purposes" have the meaning respectively assigned to them in Articles 2 and 96 of the Convention;

h) "Change of gauge" means the operation of one of the agreed services by a designated airline in such a way that one or more sectors of the route are flown, in accordance with Article III of this Agreement, by aircraft different in capacity from those used on another sector.

ARTICLE II

1. Each Contracting Party grants to the other Contracting Party, except as otherwise specified in the Annex, the following rights for the conduct of international air services by the airline or airlines designated by the other Contracting Party:

a) to fly without landing across its territory;

b) to land in its territory for non-traffic purposes; and

c) to land in its territory for the purpose of taking up and discharging, while operating the routes specified in the Annex, international traffic in passengers and cargo, including mail, separately or in combination.

2. The airlines of each Contracting Party, other than those designated under Article IV of this Agreement, shall also enjoy the rights specified in paragraph 1(a) and (b) of this Article.

3. Nothing in paragraph 1 of this Article shall be deemed to confer on a designated airline of one Contracting Party the privilege of taking up, in the territory of the other Contracting Party, passengers and cargo, including mail, carried for remuneration or hire and destined for another point in the territory of that other Contracting Party.

ARTICLE III

1. Each designated airline may on any or all flights on the agreed services and at its option, change aircraft in the territory of the other Contracting Party or at any point along the specified routes, provided that:

a) aircraft used beyond the point of change of aircraft shall be scheduled in coincidence with the inbound or outbound aircraft, as the case may be.

b) in the case of change of gauge in the territory of the other Contracting Party and when more than one aircraft is operated beyond the point of change, not more than one such aircraft may be of equal size and none may be larger than the aircraft used on the third and fourth freedom sector.

2. For the purpose of change of gauge operations, a designated airline may use its own equipment and, subject to national regulations, leased equipment, and may operate under commercial arrangements with another airline.

3. A designated airline may use different or identical flight numbers for the sectors of its change of gauge operations.

ARTICLE IV

Each Contracting Party shall have the right to designate, by diplomatic note, an airline or airlines to operate air services on the routes specified in the Annex and to substitute another airline for an airline previously designated. Designation of more than one airline for each Contracting Party will be subject to any conditions specified in the Annex to this Agreement.

ARTICLE V

1. Following receipt of a notice of designation or of substitution pursuant to Article IV of this Agreement, the aeronautical authorities of the other Contracting Party shall, subject to the provisions of Article VI of this Agreement grant without delay to an airline so designated the appropriate authorizations to operate the air services for which the airline has been designated.

2. Upon receipt of such authorizations the airline may begin at any time to operate the air services, partly or in whole, provided that it complies with the applicable provisions of this Agreement and that the tariffs are established in accordance with the provisions of Article XII of this Agreement.

ARTICLE VI

1. The aeronautical authorities of each Contracting Party shall have the right to withhold the authorizations referred to in Article V with respect to an airline designated by the other Contracting Party, to revoke or suspend such authorizations or impose conditions, temporarily or permanently:

a) in the event of failure by such airline to qualify before the aeronautical authorities of that Contracting Party under the laws and regulations normally and reasonably applied by these authorities in conformity with the Convention;

b) in the event of failure by such airline to comply with the laws and regulations of that Contracting Party, normally and reasonably applied in conformity with the Convention;

c) in the event that they are not satisfied that substantial ownership and effective control of the airline are vested in the Contracting Party designating the airline or in its nationals; and

d) in case the airline otherwise fails to operate in accordance with the conditions prescribed under this Agreement.

2. Unless immediate action is essential to prevent infringement of the laws and regulations referred to above, the rights enumerated in paragraph 1 of this Article shall be exercised only after consultations with the aeronautical authorities of the other Contracting Party. Unless otherwise agreed by the aeronautical authorities of the Contracting Parties, such consultations shall begin within a period of sixty (60) days from the date of receipt of the request.

ARTICLE VII

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 September 14, 1963, the Convention for the Suppression of Unlawful Seizure of Aircraft, signed at The Hague on December 16, 1970, and the Convention for the Suppression of Unlawful Acts Against the Safety of Civil Aviation, signed at Montreal on September 23, 1971 and any other multilateral agreement governing 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 act in conformity with the aviation security provisions established by the International Civil Aviation Organization and designated as Annexes to the Convention on International Civil Aviation to the extent that such security provisions are applicable to the Contracting Parties; they shall require that operators of aircraft of their registry, operators of aircraft who have their principal place of business or permanent residence in their territory, and the operators of airports in their territory act in conformity with such aviation security provisions.

5. Each Contracting Party agrees that its operators of aircraft may be required to observe the aviation security provisions referred to in paragraph 4 above required by the other Contracting Party for entry into, departure from, or while within the territory of that other Contracting Party. Each Contracting Party shall ensure that adequate measures are effectively applied within its territory to protect the aircraft and to inspect passengers, crew, carry-on items, baggage, cargo and aircraft stores prior to and during boarding and loading.

6. Each Contracting Party shall give sympathetic consideration to any request from the other Contracting Party for reasonable special security measures to meet a particular threat.

7. Each Contracting Party shall also give sympathetic consideration to a request from the other Contracting Party to enter into reciprocal administrative arrangements whereby the aeronautical authorities of one Contracting Party could make in the territory of the other Contracting Party their own assessment of the security measures being carried out by aircraft operators in respect of flights destined to the territory of the first Contracting Party.

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

9. When a Contracting Party has reasonable grounds to believe that the other Contracting Party has departed from the provisions of this Article, the first Contracting Party may request immediate consultations with the other Contracting Party. Failure to reach a satisfactory agreement will constitute grounds for the application of Article VI of this Agreement.

ARTICLE VIII

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

2. The laws and regulations of a Contracting Party respecting entry, clearance, transit, immigration, passports, customs and quarantine shall be complied with by or on behalf of crews, passengers, cargo and mail upon transit of, entrance into, departure from and while within the territory of such a Contracting Party.

3. Passengers in transit across the territory of either Contracting Party shall be subject to no more than a simplified control. Baggage and cargo in direct transit shall be exempt from customs duties and other similar taxes.

ARTICLE IX

1. Certificates of airworthiness, certificates of competency and licences, issued or rendered valid by one Contracting Party and still in force, shall be recognized as valid by the other Contracting Party for the purpose of operating the agreed services on the routes specified in the Annex provided that such certificates or licences were issued or rendered valid pursuant to, and in conformity with, the standards established under the Convention. Each Contracting Party reserves the right, however, to refuse to recognize, for the purpose of flights above its own territory, certificates of competency and licences granted to its own nationals by the other Contracting Party.

2. If the privileges or conditions of the licences or certificates referred to in paragraph 1 above, issued by the aeronautical authorities of one Contracting Party to any person or designated airline or in respect of an aircraft operating the agreed services on the routes specified in the Annex, should permit a difference from the standards established under the Convention, and which difference has been filed with the International Civil Aviation Organization, the aeronautical authorities of the other Contracting Party may request consultations in accordance with Article XIX of this Agreement with the aeronautical authorities of that Contracting Party with a view to satisfying themselves that the practice in question is acceptable to them. Failure to reach a satisfactory agreement in matters regarding flight safety will constitute grounds for the application of Article VI of this Agreement.

ARTICLE X

1. Each Contracting Party shall allow a fair and equal opportunity for the designated airlines of both Parties to compete in the international air transportation covered by this Agreement.

2. Each Contracting Party shall take all appropriate action within its jurisdiction to eliminate all forms of discrimination or unfair competitive practices adversely affecting the competitive position of the airlines of the other Contracting Party.

3. Each Contracting Party shall use its best efforts to avoid at any time situations arising or continuing which unduly affect the opportunity for the designated airlines to perform air transportation under this Agreement and to compete in such transportation under conditions of fair competition.

4. Neither Contracting Party shall, in respect of air transportation performed under this Agreement by a designated airline of the other Contracting Party, without the agreement of the other Contracting Party limit or restrict, or permit any person or entity under its jurisdiction to limit or restrict that airline's traffic, capacity, frequency of service, regularity of service, aircraft type(s), aircraft configuration(s), or rights specified in this Agreement, except as may reasonably be required for customs, technical, operational or environmental reasons under the uniform conditions envisaged in Article 15 of the Convention, provided that:

a) such conditions do not affect fair competition as described in paragraph 1 of this Article,

b) such conditions are applied without discrimination to the designated airlines of both Contracting Parties to this Agreement, and

c) the Contracting Party wishing to apply such conditions provides as soon as possible appropriate evidence to the other Contracting Party of the need for such conditions, so as to allow for any consultations pursuant to Article XIX of this Agreement prior to the date of effectiveness of such conditions.

5. No Contracting Party shall impose, or permit any person or entity under its jurisdiction to impose, on the scheduled flights by a designated airline of the other Contracting Party any requirement or condition, including a first refusal requirement, uplift ratio or no-objection fee, which is inconsistent with the purposes of this Agreement.

6. Both Contracting Parties shall as much as possible facilitate the conduct by the designated airlines of air transportation under this Agreement, in particular by minimizing administrative requirements and procedures.

ARTICLE XI

1. The charges imposed in the territory of either Contracting Party for the use of airports and other aviation facilities on the aircraft of a designated airline of the other Contracting Party shall not be higher than those imposed on aircraft of a national airline engaged in similar international air services.

2. Each Contracting Party shall encourage consultations between its competent charging authorities and the designated airlines using the services and facilities, and where practicable, through the airlines' representative organizations. Reasonable notice should be given to users of any proposals for changes in user charges to enable them to express their views before changes are made.

3. Neither of the Contracting Parties shall give a preference to its own or any other airline over an airline of the other Contracting Party in the application of its customs, immigration, quarantine and similar regulations or in the use of airports, airways and air traffic services and associated facilities under its control.

ARTICLE XII

1. a) each Contracting Party shall permit the designated airline or airlines of either Contracting Party to establish any or all of its prices for transportation to or from the territory of the other Contracting Party, including transportation on an inter-line or intra-line basis, individually or at the option of the airline or airlines, through co-ordination with other airlines.

b) Each designated airline may meet any lawful tariff publicly available from any other airline or charged on charters for air transportation between the territories of the two Contracting Parties.

c) Airlines of each Contracting Party other than designated airlines may meet any publicly available lawful tariff of any designated airline of either Contracting Party for air transportation between the territories of the two Contracting Parties on an inter-lining basis over comparable routings, where there is a deviation of not more than 20% from the great circle distance between the points to which the tariff which is being met applies.

2. Each Contracting Party may require the filing with its aeronautical authorities of tariffs to be charged for transportation of traffic to or from its territory. Such filing shall be made at least thirty (30) days before the proposed date of the introduction of tariffs. The aeronautical authorities of a Contracting Party requiring filing of tariffs shall give prompt and sympathetic consideration to applications for short-notice filing, particularly if effected for the purpose of meeting tariffs for if tariffs changes are related mainly to circumstances beyond the control of the airline.

3. No tariff shall come into force if the aeronautical authorities of either Contracting Party have given notice of dissatisfaction with it except as provided in subparagraphs 1(b), 1(c) and paragraph 9 of this Article or under the provisions of paragraph 3 of Article XXII of this Agreement.

4. If within fifteen (15) days from the date of receipt the aeronautical authorities of one Contracting Party have not notified the aeronautical authorities of the other Contracting Party that they are dissatisfied with the tariffs submitted to them, such tariffs shall be considered to be accepted or approved and shall come into effect on the date stated in the proposed tariffs. In the event that a shorter period for the submission of a tariff is accepted by the aeronautical authorities, any notice of dissatisfaction shall be given without delay.

5. If in accordance with paragraphs 3 and 4 of this Article a notice of dissatisfaction has been given, the aeronautical authorities of the Contracting Parties shall endeavour to determine the tariff by agreement between themselves within thirty (30) days.

6. If the aeronautical authorities cannot agree on any tariff submitted to them under paragraph 4 of this Article or on the determination of any tariff under paragraph 5 of this Article, the dispute shall be settled in accordance with the provisions of Article XXII of this Agreement.

7. When tariffs have been established in accordance with the provisions of this Article, they shall remain in force until new tariffs have been established in accordance with the provisions of this Article or Article XXII of this Agreement.

8. The aeronautical authorities of both Contracting Parties shall endeavour to ensure that:

a) the tariffs charged and collected conform to the tariffs accepted by both aeronautical authorities, and

b) no airline rebates any portion of such tariffs by any means.

9. Each designated airline may meet any lawful tariff publicly available for air transportation between the territory of the other Contracting Party and points in third countries over comparable routing, where there is a deviation of not more than 20% from the great circle distance between the points to which the tariff which is being met applies.

10. For the purposes of this Article the term "meet" means the right for an airline to establish at any time, using the expedited filing or notification procedure as provided in paragraph 2 (as may be necessary), for transportation between the same points, a tariff (price and conditions) identical to that of any scheduled airline(s) of either Contracting Party or the scheduled airline(s) of the third country concerned except for differences in conditions relating to routing, intra-lining, inter-lining or aircraft type or in the case of cargo transportation, mode of transportation, and without regard to the right of such airline to perform such transportation, or to establish such price through a combination of prices. Scheduled tariffs and charter prices shall not be combined as a basis for meeting tariffs.

11. If a tariff of a designated airline which was met by another airline under the provisions of subparagraph 1(c) or a tariff which was met under the provisions of paragraph 9, is no longer in effect, the meeting tariff shall cease to be in effect ten (10) days after the expiry date of the tariff which was met.

ARTICLE XIII

1. Each Contracting Party shall on a basis of reciprocity exempt the designated airline or airlines of the other Contracting Party to the fullest extent possible under its national law from import restrictions, customs duties, excise taxes, inspection fees and other national duties and charges on aircraft, fuel, lubricating oils, consumable technical supplies, spare parts including engines, regular aircraft equipment, aircraft stores (including liquor, tobacco and other products destined for sale to passengers in limited quantities during the flight) and other items intended for use or used solely in connection with the operation or servicing of aircraft of the designated airline or airlines of such other Contracting party operating the agreed services, as well as printed ticket stock, air way bills, any printed material which bears the insignia of the company printed thereon and usual publicity material distributed without charge by that designated airline.

2. The exemptions granted by this Article shall apply to the items referred to in paragraph 1 of this Article:

a) introduced into the territory of one Contracting Party by or on behalf of the designated airline or airlines of the other Contracting Party;

b) retained on board aircraft of the designated airline or airlines of one Contracting Party upon arriving in or leaving the territory of the other Contracting Party;

c) taken on board aircraft of the designated airline or airlines of one Contracting Party in the territory of the other Contracting Party and intended for use in operating the agreed services whether or not such items are used or consumed wholly within the territory of the Contracting Party granting the exemption, provided such items are not alienated in the territory of the said Contracting Party. This provision cannot be interpreted in such a way that a Contracting Party can be made subject to the obligation to refund customs duties which already have been levied on the materials referred to above.

3. The regular airborne equipment, as well as the materials and supplies normally retained on board the aircraft of the designated airline or airlines of either Contracting Party may be unloaded in the territory of the other Contracting Party only with the approval of the Customs authorities of that territory. In such case, they may be placed under the supervision of the said authorities up to such time as they are re-exported or otherwise disposed of in accordance with Customs regulations.

ARTICLE XIV

Each Contracting Party grants to the airline or airlines of the other Contracting Party the right of free transfer of funds obtained by each in the normal course of its operations. Such transfers shall be made on the basis of prevailing foreign exchange market rates for current payments and shall be subject only to the respective foreign currency regulations applicable to all countries in like circumstances. The transfer of funds shall not be subject to any charges except those normally collected by banks for such operations.

ARTICLE XV

Income or profits from the operation of aircraft in international traffic derived by a designated airline, which is resident for purposes of income taxation in the territory of one Contracting Party, shall be exempt from any income tax and all other taxes on profits imposed by the government of the other Contracting Party.

ARTICLE XVI

Each designated airline shall have the right to engage in the sale of air transportation in the territory of the other Contracting Party directly and, at its discretion, through agents. Each designated airline shall have the right to sell transportation in the currency of that territory or, at its discretion, in freely convertible currencies of other countries and any person shall be free to purchase such transportation in currencies accepted for sale by that airline.

ARTICLE XVII

1. The designated airline or airlines of one Contracting Party shall be allowed, on the basis of reciprocity, to maintain in the territory of the other Contracting Party their representatives and commercial, operational and technical staff as required in connection with the operation of agreed services.

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

3. The representatives and staff shall be subject to the laws and regulations in force of the other Contracting Party, and, consistent with such laws and regulations, each Contracting Party shall, on the basis of reciprocity and with the minimum of delay, grant the necessary employment authorizations, visitor visas or other similar documents to the representatives and staff referred to in paragraph 1 of this Article.

4. Both Contracting Parties shall dispense with the requirement of employment authorizations or visitor visas or other similar documents for personnel performing certain temporary services and duties except in special circumstances determined by the national authorities concerned. Where such authorizations, visas or documents are required, they shall be issued promptly free of charge so as not to delay the entry into the State of the personnel concerned.

ARTICLE XVIII

The aeronautical authorities of each Contracting Party shall provide or shall cause their designated airlines to provide the aeronautical authorities of the other Contracting Party, upon request, periodic or other statements of statistics as may be reasonably required for the purpose of reviewing the operation of the agreed services.

ARTICLE XIX

1. In a spirit of close co-operation, the aeronautical authorities of the Contracting Parties shall consult each other from time to time with a view to ensuring the implementation of, and satisfactory compliance with, the provisions of this Agreement and of its Annex.

2. Such consultations shall begin within a period of sixty (60) days of the date of receipt of such a request, unless otherwise agreed by the Contracting Parties.

ARTICLE XX

1. The provisions set out in Articles VII, VIII, IX, XI, XIII, XIV, XV, XVII, XVIII and XIX of this Agreement shall be applicable also to charter flights operated by an air carrier of one Contracting Party into or from the territory of the other Contracting Party and to the air carrier operating such flights.

2. The provision of paragraph 1 of this Article shall not affect national laws and regulations governing the right of air carriers to operate charter flights or the conduct of air carriers or other parties involved in the organization of such operations.

ARTICLE XXI

1. If either of the Contracting Parties considers it desirable to modify any provision of the present Agreement, or its Annex, it may request consultations with the other Contracting Party. Such consultations, which may be between the aeronautical authorities and which may be through discussion or by correspondence, shall begin within a period of sixty (60) days from the date of the request.

2. Any modifications of the Agreement agreed pursuant to such consultations shall come into force on the date on which the Contracting Parties have informed each other in writing that the formalities constitutionally required therefor in their respective countries have been complied with.

3. Any modification of the Annex agreed pursuant to such consultations shall come into force when it has been confirmed by an exchange of diplomatic notes.

ARTICLE XXII

1. If any dispute arises between the Contracting Parties relating to the interpretation or application of this Agreement, the Contracting Parties shall in the first place endeavour to settle it by negotiation.

2. If the Contracting Parties fail to reach a settlement by negotiation, they may agree to refer the dispute for decision to some person or body, or either Contracting Party may submit the dispute for decision to a Tribunal of three arbitrators, one to be nominated by each Contracting Party and the third to be appointed by the two arbitrators. Each of the Contracting Parties shall nominate an arbitrator within a period of sixty (60) days from the date of receipt by either Contracting Party from the other of a notice through diplomatic channels requesting arbitration of the dispute and the third arbitrator shall be appointed within a further period of sixty (60) days. If either of the Contracting Parties fails to nominate an arbitrator within the period specified, or if the third arbitrator is not appointed within the period specified, the President of the Council of the International Civil Aviation Organization may be requested by either Contracting Party to appoint an arbitrator or arbitrators as the case requires. In all cases, the third arbitrator shall be a national of a third state, shall act as President of the Tribunal and shall determine the place where arbitration will be held.

3. The Contracting Parties undertake to comply with any decision given under paragraph 2 of this Article.

4. The expenses of the Tribunal will be shared equally between the Contracting Parties.

5. If and so long as either Contracting Party fails to comply with any decision given under paragraph 2 of this Article, the other Contracting Party may limit, withhold or revoke any rights or privileges which it has granted by virtue of this Agreement to the Contracting Party in default or to the designated airline in default.

ARTICLE XXIII

Either Contracting Party may at any time give notice in writing through diplomatic channels to the other Contracting Party of its decision to terminate this Agreement: such notice shall be communicated simultaneously to the International Civil Aviation Organization. The Agreement shall terminate one (1) year after the date of receipt of the notice by the other Contracting Party, unless the notice to terminate is withdrawn by agreement before the expiry of this period. In the absence of acknowledgement of receipt by the other Contracting Party, the notice shall be deemed to have been received fourteen (14) days after the receipt of the notice by the International Civil Aviation Organization.

ARTICLE XXIV

This Agreement and any amendment thereto shall be registered with the International Civil Aviation Organization.

ARTICLE XXV

If a general multilateral air convention comes into force in respect of both Contracting Parties, the provisions of such convention shall prevail.

Consultations in accordance with Article XIX of this Agreement may be held with a view to determining the extent to which the present Agreement is affected by the provisions of the multilateral convention.

ARTICLE XXVI

1. The Agreement shall enter into force on a date to be laid down in an exchange of diplomatic notes, which shall state that the formalities required by the national legislation of each Contracting Party have been accomplished.

2. As regards the Kingdom of the Netherlands, this Agreement shall apply to the Kingdom in Europe.

3. Upon entry into force this Agreement shall replace, as regards air transport services between Canada and the Netherlands, the Air Transport Agreement between the Government of the Kingdom of the Netherlands and the Government of Canada done at Ottawa on the 17th day of June 1974.

IN WITNESS WHEREOF, the undersigned, duly authorized by their respective Governments, have signed this Agreement.

DONE in duplicate at Ottawa, this 2nd day of June 1989, in the English, French and Dutch languages, each version being equally authentic.

Benoit Bouchard

FOR THE GOVERNMENT OF CANADA

Jan F. E. Breman
N. Smit-Kroes

FOR THE GOVERNMENT OF
THE KINGDOM OF THE NETHERLANDS

ANNEX

ROUTE SCHEDULE

A. The Netherlands

Routes to be operated by an airline or airlines designated by the Government of the Netherlands:

1) The Netherlands - Montreal - New York (NY)* - points in the United States** to be named by the Netherlands and Mexico City*** and vice versa.

* for all- cargo services only

** fifth freedom rights shall only be available on services between Montreal and Houston and between Montreal and Orlando

*** fifth freedom rights shall not be available on services between Montreal and Mexico City, unless otherwise agreed.

2) The Netherlands-Montreal and/or Toronto and/or Halifax and/or Ottawa and vice versa.

3) The Netherlands-Calgary and/or Vancouver and vice versa.

B. Canada

Routes to be operated by an airline or airlines designated by the Government of Canada:

1) Canada - intermediate points to be named by Canada - Amsterdam and two other points in the Netherlands to be named by Canada - points beyond the Netherlands to be named by Canada in Europe, Africa north of the Sahara, Near and Middle East, Asia and beyond, and beyond to Canada and vice versa.

Note 1: Points named may be changed every 6 months at 60 days notice to the aeronautical authorities of the other Contracting Party.

Note 2: Intra-airline connections in the Netherlands and in Canada shall be permitted provided that the passenger/cargo remains in transit.

Note 3: Each designated airline may, on any and all flights and at its option, operate scheduled flights in either or both directions, combine different flight numbers within one aircraft operation, serve points on the routes in any combination and in any order, without directional or geographic limitation, and omit stops at any point or points without loss of any right to uplift or discharge and carry traffic, provided each flight originates in or terminates in the territory of the Contracting Party designating the airline.

Note 4: Neither Contracting Party shall exercise the right to designate more than two airlines pursuant to Article IV of this Agreement without the prior agreement of the other Contracting Party.

Note 5: In the event of the designation of a second Canadian airline pursuant to Article IV of this Agreement, the fifth freedom rights available to the second designated airline shall be limited to two points to be named by Canada. Such fifth freedom points, once chosen, may only be changed subject to agreement by the aeronautical authorities of the Netherlands.

Note 6: In the event of the designation of a second airline by the Netherlands pursuant to Article IV of this Agreement, the second designated airline shall be limited to operating to/from two of the points in Canada named in the Route Schedule A above.