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Air Transport Agreement between the Government of Canada and the Government of the Kingdom of Saudi Arabia [1991] CATSer 17 (9 June 1991)

E100238 - CTS 1991 No. 20

AIR TRANSPORT AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE KINGDOM OF SAUDI ARABIA

The Government of the Kingdom of Saudi Arabia and the Government of Canada 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, and

Desiring to conclude an agreement for the purpose of establishing and operating air services between and beyond their respective territories hereby agree as follows:

ARTICLE 1

Definitions

For the purpose of the present Agreement, unless the context otherwise requires:

(a) the term "aeronautical authorities" means, in the case of the Kingdom of Saudi Arabia, the Presidency of Civil Aviation and/or any person or body authorized to perform functions exercised by the said Presidency or similar functions, and, in the case of Canada, the Minister of Transport and the National Transport Agency and or any person or body authorized to perform functions exercised by the said authorities or similar functions;

(b) the term "designated airline" means an airline which one Contracting Party has designated, by Diplomatic Note to the other Contracting Party, in accordance with Article 3 of the present Agreement and authorized for the operation of the agreed air services on the routes specified in the Annex hereto;

(c) the term "territory" in relation to a Contracting Party means the land areas and territorial waters adjacent thereto under the sovereignty, suzerainty, protection, trusteeship or administration of that Contracting Party;

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

(e) the terms "air services", "international air services", "airline" and "stop for non-traffic purposes" have the meanings respectively assigned to them in Article 96 of the Convention;

(f) the term "agreed services" means scheduled air services operated on the routes specified in the Annex to the present agreement for the transportation of passengers, cargo and mail, separately or in combination;

(g) the term "tariff" means the prices to be paid for the carriage of passengers, baggage, cargo and the conditions under which those prices apply, including prices and conditions for other ancillary services;

(h) the term "Agreement" means this Agreement, the Annex attached thereto, and any amendments to the Agreement or to the Annex.

ARTICLE 2

Grant of Rights

(1) Each Contracting Party grants to the other Contracting Party the following rights for the conduct of international air services by the designated airline or airlines:

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

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

(c) to make stops in the said territory at the points specified in the Annex to this Agreement for the purpose of putting down and taking on international traffic in passengers, cargo and mail, separately or in combination to the extent established in the Annex.

(2) The airline or airlines of each Contracting Party, other than those designated under Article 3 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 the airlines of one Contracting Party the privilege of taking up, in the territory of the other Contracting Party, passengers, cargo and mail carried for remuneration or hire and destined for another point in the territory of that Contracting Party.

ARTICLE 3

Designation and Authorization

(1) Each Contracting Party shall have the right to designate by diplomatic note an airline or airlines for the purpose of operating the agreed services on the routes specified in the Annex for such a Contracting Party and to substitute another national airline for that previously designated.

(2) Following receipt of such designation or substitution, the other Contracting Party, through its aeronautical authorities shall, subject to the provisions of paragraphs (3) and (4) of this Article, and consistent with its laws and regulations grant without delay to the airline or airlines designated the appropriate authorization to operate the agreed services for which that airline has been designated.

(3) The aeronautical authorities of one Contracting Party may require an airline designated by the other Contracting Party to satisfy them that it is qualified to fulfill the conditions prescribed under the law and regulations normally and reasonably applied by them in a manner consistent with the Convention for the operation of international commercial air services.

(4) When an airline has been so designated and authorized, it may begin at any time to operate the agreed services, in whole or in part, provided that the airline complies with the applicable provisions of this Agreement and particularly that tariffs are established in accordance with the provisions of Article 12 of this Agreement.

(5) The aeronautical authorities of each Contracting Party shall have the right to withhold the authorizations referred to in this Article 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;

(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.

(6) 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 in conformity with Article 18 of this Agreement.

ARTICLE 4

Application of Laws

(1) The laws and regulations of one Contracting Party relating to the admission to, remaining in or departure from its territory of aircraft engaged in international air services, or to the operation and navigation of such aircraft while within its territory, shall be applied to the aircraft of an airline designated by the other Contracting Party, and shall be complied with by such aircraft upon entering into or departing from or while within the territory of the first Contracting Party.

(2) The laws and regulations of one Contracting Party as to the entrance into, stay within, or departure from its territory of passengers, crew, or cargo of aircraft, such as regulations relating to entry, clearance, transit, immigration, passports, customs, and quarantine shall be complied with by a designated airline of the other Contracting Party upon entrance into or departure from or while within the territory of the first Contracting Party.

ARTICLE 5

Recognition of Certificates and Licenses

(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 18 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 3 of this Agreement.

ARTICLE 6

Aviation Security

(1) In accordance with their rights and obligations under international law the Contracting Parties reaffirm that their obligation to protect, in their mutual relationship, the security of civil aviation against acts of unlawful interference forms an integral part of this Agreement.

(2) The Contracting Parties shall provide upon request all necessary assistance to each other to prevent acts of unlawful seizure of aircraft and other unlawful acts against the safety of passengers, crew, aircraft, airports and air navigation facilities, and any other threat to aviation security.

(3) The Contracting Parties shall 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 on aviation security binding on both Contracting Parties.

(4) The Contracting Parties shall, in their mutual relations, act in conformity with the aviation security provisions established by the International Civil Aviation Organization and designated as Annexes to the Convention on International Civil Aviation; they shall require that operators of aircraft of their registry or operators 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 to observe the security provisions required by the other Contracting Party for entry into the territory of that other Contracting Party and to take adequate measures to protect aircraft and to inspect passengers, crew, their carry-on items as well as cargo (including baggage), and aircraft stores prior to and during boarding or loading. Each Contracting Party shall also give positive consideration to any request from the other Contracting Party for special security measures to meet a particular threat.

(6) When an incident or threat of an incident of unlawful seizure of aircraft or other unlawful acts against the safety of passengers, crew, aircraft, airports and 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, provided that it will not violate the other State's regional sovereignty.

(7) When a Contracting party has reasonable grounds to believe that the other Contracting Party has departed from the aviation security provisions of this Article, the aeronautical authorities of that Contracting Party may request immediate consultations with the aeronautical authorities of the other Contracting Party. Failure to reach a satisfactory agreement within ninety (90) days from the date of such request shall constitute grounds to withhold, revoke, limit, or impose conditions on the operating authorization or technical permission of an airline or airlines of the other Contracting Party. Such action may be taken beforehand only if required to meet an immediate and extraordinary threat to the safety of passengers, crew, or aircraft.

ARTICLE 7

Utilization of Airports and Facilities

(1) The charges imposed in the territory of either Contracting Party on a designated airline of the other Contracting Party for use of airports and other aviation facilities shall be in accordance with Article 15 of the Convention.

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

ARTICLE 8

Capacity Provisions

(1) There shall be fair and equal opportunity for the designated airlines of both Contracting Parties to operate the agreed services on the specified routes.

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

(3) The agreed services provided by the designated airlines of the Contracting Parties shall bear reasonable relationship to the requirements of the public for transportation on the specified routes and shall have as their primary objective the provisions, at a reasonable load factor, of capacity adequate to meet the current and reasonably anticipated requirements for the carriage of passengers, cargo and mail between the territory of the Contracting Party which has designated the airline and the countries of ultimate destination of the traffic.

(4) Provision for the carriage of passengers, cargo and mail both taken up and discharged at points on the specified routes in the territories of States other than that designating the airline shall be made in accordance with the general principle that capacity shall be related to:

(a) traffic requirements between the country of origin and the countries of destination;

(b) traffic requirements of the area through which the airline passes after taking account of other transport services established by airlines of the States comprising the area; and

(c) the requirements of through airline operation.

(5) Except as otherwise specified in the Annex to this Agreement, the capacity to be provided on the specified routes shall be agreed between the designated airlines in accordance with the principles laid down in this Article and subject to the approval of the aeronautical authorities of the Contracting Parties. In the absence of an agreement between the designated airlines, the matter shall be referred to the aeronautical authorities of the Contracting Parties which will endeavour to resolve the problem, if necessary, pursuant to Article 18 of this Agreement.

ARTICLE 9

Change of Aircraft

A designated airline of one Contracting Party may make a change of aircraft at any point on the specified route only on the following conditions:

(a) that it is justified by reason of economy of operation;

(b) that the capacity of the aircraft used on the section of the route more distant from the territory of the Contracting Party designating the airline is not larger than that used on the nearer section;

(c) that the aircraft of smaller capacity shall operate only in connection with the aircraft of larger capacity and shall be scheduled to do so; the former shall arrive at the point of change for the purpose of carrying traffic transferred from, or to be transferred into, the aircraft of larger capacity; and their capacity shall be determined with primary reference to this purpose;

(d) that there is an adequate volume of through traffic;

(e) that the airline shall not hold itself out to the public by advertisement or otherwise as providing a service which originates at the point where the change of aircraft is made, unless otherwise permitted by the Annex;

(f) that in connection with any one aircraft flight into the territory of the other Contracting Party, only one flight may be made out of that territory unless the airline is authorized by the aeronautical authorities of the other Contracting Party to operate more than one flight; and

(g) that the provisions of Article 8 of the present Agreement shall govern all arrangements made with regard to change of aircraft.

ARTICLE 10

Statistics

(1) 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, including, but not limited to, statements of statistics related to the traffic carried by its designated airlines between points on the routes specified in the Annex to this Agreement showing the initial origins and final destinations of the traffic.

(2) The details of the methods by which such statistics shall be provided shall be agreed upon between the aeronautical authorities and implemented without delay after a designated airline of one or both Contracting Parties commences operation, in whole or in part, on the agreed services.

ARTICLE 11

Exemption from Customs and Other Duties

(1) Each Contracting Party shall on the 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 beverages, 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 the 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.

(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 12

Tariffs

(1) The tariffs to be applied by the designated airline or airlines of one Contracting Party for carriage to and from the territory of the other Contracting Party shall be established on the basis of market considerations. In the application of their powers under paragraphs 3 and 4 of this Article, the aeronautical authorities of the two Contracting Parties shall have as their primary objective to ensure that tariffs are not:

(a) predatory or discriminatory;

(b) excessive, restrictive, or introduced in an attempt to exploit a dominant market position.

(2) The tariffs referred to in paragraph 1 of this Article shall be agreed upon, if possible, between the designated airlines of the Contracting Parties. Such agreement may be reached through coordination with other airlines. However, in the event the designated airlines cannot agree, a designated airline shall not be precluded from submitting any proposed tariff unilaterally if circumstances so warrant. Unless otherwise determined in the application of paragraph 4 of this Article, each designated airline shall be responsible only to its aeronautical authorities for the justification and reasonableness of the tariffs so agreed.

(3) Tariffs referred to in paragraph 2 of this Article shall be submitted to and received by the aeronautical authorities of the Contracting Parties at least forty-five (45) days before the proposed date of their introduction, unless the aeronautical authorities of both Contracting Parties permit the filing to be made on shorter notice. Prompt and sympathetic consideration shall be given to applications for short notice filing, particularly if effected for the purpose of matching tariffs. Any proposed tariff shall be filed by a designated airline with the aeronautical authorities of both Contracting Parties in such a form as the aeronautical authorities of each Contracting Party may require. If within thirty (30) 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 tariff submitted to them, such tariff shall be considered to be accepted or approved and shall come into effect on the date stated in the proposed tariff. In the event that a shorter period for the submission of a tariff is permitted by the aeronautical authorities, they may also agree that the period for giving notice of dissatisfaction be less than thirty (30) days.

(4) If a tariff cannot be established in accordance with the provisions of paragraph 2 of this Article or if during the period applicable, in accordance with paragraph 3 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. Consultations between the aeronautical authorities will be held in accordance with Article 18 of this Agreement.

(5) If the aeronautical authorities cannot agree on the determination of a tariff under paragraph 4 of this Article, either Contracting Party may require that the dispute be settled in accordance with the provisions of Article 19 of this Agreement.

(6) (a) No tariff shall come into force if the aeronautical authorities of either Contracting Party have given notice of dissatisfaction or a decision on the tariff is not taken under the provisions of paragraph 3 of Article 19 of this Agreement.

(b) The tariffs established in accordance with the provisions of this Article shall remain in force until new tariffs have been established in accordance with the provisions of this Article or of Article 19 of this Agreement.

(7) The aeronautical authorities of both Contracting Parties shall endeavour to ensure that: (a) the tariffs charged and collected conform to the tariffs accepted or approved by both aeronautical authorities; and (b) no airline rebates any portion of such tariffs by any means.

(8) The tariffs held out to the public through advertisement, charged and collected by a designated airline in the territory of other Contracting Party for carriage between the territory of that other Contracting Party and the territory of a third country may match but not undercut at prices lower or conditions less restrictive than publicly available lawful tariffs charged and collected in the territory of that other Contracting Party by other airlines.

ARTICLE 13

Flight Schedules

A designated airline of one Contracting Party shall submit its flight schedule and subsequent amendments to its flight schedule to the aeronautical authorities of the other Contracting Party at least thirty (30) days prior to the beginning of the operation/planned operations. The submission of the schedule shall include the timetables, the frequency of the services and the types of aircraft to be used including flights mentioned under Article 2 paragraph 2 of this Agreement. In special cases, a shorter period may be accepted by the aeronautical authorities.

ARTICLE 14

Financial Provisions

(1) Each designated airline shall have the right to engage in the sale of air transportation in the territory of the other Contracting Party directly and, at its discretion, through its agents. Each designated airline shall have the right to sell transportation in 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.

(2) Each designated airline shall have the right to convert and remit to its country on demand, without restrictions, local revenues in excess of sums locally disbursed. Conversion and remittance shall be effected on the basis of the official exchange rates for current payments, or where there are no official exchange rates, at the prevailing foreign exchange market rates for current payments applicable on the day of submission of the request for transfer.

(3) Whenever the payments system between Contracting Parties is governed by a special agreement, such agreement shall apply.

(4) No charges other than normal bank charges shall be applicable to such transfers.

ARTICLE 15

Taxation

Pending the signature and entry into force of a double taxation agreement between the Contracting Parties, revenues, gross receipts, 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. Additionally airline capital and assets shall be exempt from taxes or charges.

ARTICLE 16

Airline Representation

(1) Each Contracting Party grants to the designated airlines of the other Contracting Party, on the basis of reciprocity, the right to maintain in its territory their representatives including office, administrative, commercial, and technical personnel as may be necessary for the requirements of the designated airline concerned according to the laws and regulations of the Contracting Party in whose territory the representatives are being maintained.

(2) These staff requirements may, at the option of the designated airline or airlines of one Contracting Party, be satisfied by its own personnel or by using the services of any other 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 for personnel performing certain temporary duties not exceeding ninety (90) days.

(5) Subject to the national laws and regulations, the designated airline or airlines of one Contracting Party may provide ground handling services for other airlines operating at the same airport in the territory of the other Contracting Party.

ARTICLE 17

Applicability to Charter Services

(1) The provisions set out in Articles 4, 5, 6, 7, 10, 11, 14, 15, 16 and 18 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 18

Consultations and Modifications

(1) In the spirit of close cooperation, the aeronautical authorities of the Contracting Parties shall consult each other from time to time with a view to ensuring the implementation of, and satisfactory compliance with the provisions of the present Agreement and the Annex hereto.

(2) Either Contracting Party may request consultation, which may be through discussion or by correspondence and shall begin within a period of ninety (90) days of the date of receipt of the request unless both Contracting Parties agree to an extension of this period.

(3) If either of the Contracting Parties considers it desirable to modify the terms of the present Agreement, it may request consultation with the other Contracting Party. Such consultation, which may be between aeronautical authorities and which may be through discussion or correspondence, shall begin within a period of ninety (90) days from the date of the request. Any modification so agreed shall come into effect after confirmation thereof by an exchange of diplomatic notes.

(4) Modifications to the Annex to this Agreement may be made by direct agreement between the aeronautical authorities of the Contracting Parties.

ARTICLE 19

Settlement of Disputes

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

(2) If the Contracting Parties fail to reach a settlement by negotiation, they may agree to refer the dispute for decision by some person or body, or the dispute may at the request of either Contracting Party be submitted 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 so nominated. 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 such case, the third arbitrator shall be a national of a third State and shall act as president of the arbitral body.

(3) The Contracting Parties shall comply with any decision given under paragraph (2) of this Article.

(4) The expenses of the arbitral tribunal shall be shared equally by the Contracting Parties.

ARTICLE 20

Termination

Either Contracting Party may at any time give notice to the other Contracting Party of its decision to terminate the present Agreement. Such notice shall be communicated simultaneously to the International Civil Aviation Organization. If such notice is given, the present Agreement shall terminate twelve (12) months after the date of receipt of the notice by the other Contracting Party, unless the notice to terminate is withdrawn by agreement between the Contracting Parties before the expiration of that period. In the absence of acknowledgement of receipt by the other Contracting Party, notice shall be deemed to have been received fourteen (14) days after the receipt of the notice by the International Civil Aviation Organization.

ARTICLE 21

Registration

The present Agreement and any modification thereto in accordance with Article 18 hereof shall be registered with the International Civil Aviation Organization.

ARTICLE 22

Multilateral Convention

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 18 of this Agreement may be held with a view to determining the extent to which this Agreement is affected by the provisions of the multilateral convention.

ARTICLE 23

Entry into Force

The present Agreement shall enter into force on the date of the exchange of diplomatic notes indicating that the formalities required by each Contracting Party have been met.

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

DONE in triplicate at Riyadh on this 14th day of November, 1990 (27^th Rabi ' II 1411 H) in the Arabic, English, and French languages, each version being equally authentic.

William Hunter McKnight

FOR THE GOVERNMENT OF CANADA

Sultan Bin Abdulaziz

FOR THE GOVERNMENT OF THE KINGDOM OF SAUDI ARABIA

ANNEX

Schedule of Routes

Section I

The following route may be operated in each direction by an airline or airlines designated by the Government of the Kingdom of Saudi Arabia:

Notes:

1. Any point or points may at the option of the designated airline or airlines be omitted on any or all flights provided that the point of origin is in Saudi Arabia.

2. Fifth Freedom rights in both directions between New York and Montreal shall be available when the designated airline of Canada exercises Fifth Freedom rights at the intermediate point to and from Saudi Arabia.

3. The capacity to be operated by each designated airline shall be two B-747 or three L-1011 passenger combination flights weekly in each direction unless otherwise agreed in accordance with the provisions of Article 8 of the Agreement. Not more than one weekly service shall be on B-747 Combi aircraft.

ANNEX

Schedule of Routes

Section II

The following route may be operated in each direction by an airline or airlines designated by the Government of Canada:

Notes:

1. Any point or points may at the option of the designated airline or airlines be omitted on any or all flights provided that the point of origin is in Canada.

2. Fifth Freedom rights in both directions between Cairo and Jeddah shall be available when the designated airlines of both Contracting Parties commence passenger combination services.

3. The capacity to be operated by each designated airline shall be two B-747 or three L-1011 passenger combination flights weekly in each direction unless otherwise agreed in accordance with the provisions of Article 8 of the Agreement. Not more than one weekly service shall be on B-747 Combi aircraft.