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Agreement between the Government of Canada and the Government of Spain on Air Transport [1991] CATSer 21 (15 August 1991)

E100079 - CTS 1991 No. 59

AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF SPAIN ON AIR TRANSPORT

THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF SPAIN hereinfater 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 conclude an agreement to promote air transportation and cooperation supplementary to the said Convention on air transport between and beyond their respective territories;

HAVE AGREED as follows:

ARTICLE I

Definitions

For the purpose of the interpretation and application of the Agreement, except as otherwise provided herein:

a) 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, any amendment of the Annexes of Convention under Articles 90 and 94 thereof so far as those Annexes and amendments have become effective for or have been ratified or adopted by both Contracting Parties, according to their respective national laws;

b) the term “aeronautical authorities” means in the case of Canada the Minister of Transport and the National Transportation Agency of Canada and in the case of Spain, the Ministry of Transport, Tourism and Communications (Direction General of Civil Aviation), or in both cases any person or body duly authorized to perform any functions exercised by the said authorities;

c) the term “designated airline” means the airline that each Contracting Party has designated and authorized to operate the agreed services as specified in the Annex to this Agreement and in accordance with Article III and IV of this Agreement;

d) the terms “territory”, “air service”, “international air service”, “airline” and “stop for non-traffic purposes” have the meaning specified in Articles 2 and 96 of the Convention;

e) the term “Agreement” means this Agreement, its Annex and any amendments thereto;

f) the terms “specified routes” means the routes established or to be established in the Annex to the Agreement;

g) the term “agreed services” means the international air services which can be operated, according to the provisions of the Agreement, on the specified routes for the transport of passengers, cargo and mail, separately or in combination;

h) the terms “tariff” means the prices to be paid for the carriage of passengers, luggage and freight and the conditions under which those prices apply, including to the extent required by respective national laws and regulations, prices and conditions for agency services and other services performed by the carrier in connection with air transportation, but excluding remuneration or conditions for the carriage of mail.

ARTICLE II

Grant of Rights

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 airlines designated by the other Contracting Party;

a) to fly without landing across its territory;

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

c) to make stops in its territory for the purpose of taking up and discharging, while operating the routes specified in the Annex, international traffic in passengers, cargo and mail, separately or in combination, to, or from the territory of the other Contracting Party and to, or from the territory of other States.

2. The airlines of each Contracting party, other than those designated under Article III 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, cargo and mail carried for remuneration or hire and destined for another point in the territory of that other Contracting Party.

ARTICLE III

Designation

Each Contracting Party shall have the right to designate, by diplomatic note, an airline or airlines to operate the agreed services on the routes specified in the Annex for such a Contracting party and to substitute another airline for that previously designated.

ARTICLE IV

Authorization

1. Following receipt of a notice of designation or of substitution pursuant to Article III of this Agreement, the aeronautical authorities of the other Contracting Party shall, consistent with its laws and regulations, grant without delay to the airline or airlines so designated the appropriate authorizations to operate the agreed services for which that airline has been designated.

2. Upon receipt of such authorizations the airline 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 that tariffs are established in accordance with the provisions of Article XIII of this Agreement.

ARTICLE V

Revocation and Limitation of Authorization

1. The aeronautical authorities of each Contracting Party shall have the right to withhold the authorizations referred to in Article IV of this Agreement 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.

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 in conformity with Article XIX of this Agreement.

ARTICLE VI

Application of Laws

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 one Contracting Party respecting entry, clearance, transit, immigration, passports, customs and quarantine shall be complied with by the designated airline or airlines of the other Contracting Party and by or on behalf of its crews, passengers, cargo and mail upon transit of, admission to, departure from and while within the territory of such a Contracting Party.

ARTICLE VII

Certificates and Licences

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 specified routes in the Annex to the Agreement, provided that the requirements under which such certificates and licences were issued or rendered valid are equal to or above the minimum standards which may be established pursuant to the International Civil Aviation Convention.

2. Each Contracting Party reserves the right, however, of refusing to recognize the validity of the certificates of competency and the licences granted to its own nationals by the other Contracting Party, for the purpose of overflying its own territory.

3. If the privileges or conditions of the licences or certificates referred to in paragraphs 1 and 2 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 V of this Agreement.

ARTICLE VIII

Aviation Security

1. Consistent with their rights and obligations under international law, the Contracting Parties reaffirm that their obligation to each other to protect the security of civil aviation against acts of unlawful interference forms an integral part of this Agreement.

2. Without limiting the generality of their rights and obligations under international law, the Contracting Parties shall in particular act in conformity with the provisions of the Convention on Offences and Certain Other Acts Committed on Board Aircraft, signed at Tokyo on September 14, 1963, 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 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 also give sympathetic consideration to any request from the other Contracting Party for reasonable special measures to meet a particular threat.

7. When an incident or threat of an incident of unlawful seizure of civil aircraft or other unlawful acts against the safety of such aircraft, their passengers and crew, airports 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.

8. 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 V of this Agreement.

ARTICLE IX

Airport and Facility Charges

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

Capacity

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 interest 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 route.

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 specified routes and shall have as their primary objective the provision, at a reasonable load factor, of capacity adequate to meet the current and reasonable 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. The capacity to be provided on the specified routes shall be agreed, if possible, between the designated airlines in accordance with the principles laid down in this Article and shall be subject to approval by the aeronautical authorities of the Contracting Parties. In cases where the aeronautical authorities cannot agree on the level of capacity to be provided on the routes specified in the Annex, the matter shall be settled in accordance with the provisions of Article XXI of this Agreement.

ARTICLE XI

Statistics

1. The aeronautical authorities of each Contracting Party shall provide or shall cause their designated airline or 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 origins and 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 XII

Exemptions

1. Aircraft operated on international air services by the designated airline or airlines of either Contracting Party, as well as their regular equipment, supplies of fuels and lubricants, and aircraft stores (including food, beverages and tobacco) which are on board such aircraft shall be exempt, to the fullest extent possible under national law, on the basis of reciprocity, from all customs duties, inspection fees and other duties or taxes on arriving in the territory of the other Contracting Party, provided such equipment and supplies remain on board the aircraft up to such time as they are re-exported.

2. There shall also be exempt from the same duties and taxes, with the exception of charges corresponding to the service performed:

a) aircraft stores taken on board in the territory of either Contracting Party, within the limits fixed by the authorities of the said Contracting Party, and for use on board the aircraft engaged in an international air service of the other Contracting Party,

b) regular aircraft equipment, spare parts including engines, brought into the territory of either Contracting Party for the maintenance or repair of aircraft used on international air services by the designated airline or airlines of the other Contracting Party,

c) fuels, lubricants and consumable technical supplies destined to supply aircraft operated on international air services by the designated airline of the Contracting Party, even when these supplies are to be used on the part of the journey performed over the territory of the Contracting Party in which they are taken on board, and

d) 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.

Items referred to in sub-paragraphs a), b), c) and d) above may be required to be kept under Customs supervision or control of the appropriate authorities.

3. Regular airborne equipment, as well as materials and supplies mentioned above, may be unloaded in the territory of the other Contracting Party only with the approval of the Customs Authorities of such territory. In such a 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.

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

ARTICLE XIII

Tariffs

1. The tariffs for carriage on agreed services to and from the territory of the other Contracting Party shall be established at reasonable levels, due regard being paid to all relevant factors including cost of operation, reasonable profit, characteristics of service (such as standards of speed and accommodation) and, where it is deemed suitable, the tariffs of other airlines for any part of the specified route.

2. The designated airlines of the Contracting Parties shall consult and endeavour to reach agreement, whenever possible, on the tariffs referred to in paragraph 1 of this Article; such agreement shall be reached whenever possible, through coordination with each other or through an appropriate international tariff coordination mechanism.

3. The tariffs 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; in special cases, a shorter period may be accepted by aeronautical authorities. 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 acceptable 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 accepted 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 XIX of this Agreement.

5. If the aeronautical authorities cannot agree on any tariff submitted to them under paragraph 3 of this Article or on the determination of any tariff under paragraph 4 of this Article the dispute shall be settled in accordance with the provisions of Article XXI of this Agreement.

6. a) No tariff shall come into force if the aeronautical authorities of either Contracting Party are dissatisfied with it except under the provisions of paragraph 3 of Article XXI of this Agreement.

b) When tariffs have been established in accordance with the provisions of this Article, those tariffs shall remain in force until new tariffs have been established in accordance with the provisions of this Article or Article XXI of this Agreement. Nevertheless, a tariff shall not be prolonged by virtue of this paragraph for more than twelve (12) months after the date on which it would otherwise have expired.

7. If the aeronautical authorities of one of the Contracting Parties become dissatisfied with an established tariff they shall so notify the aeronautical authorities of the other Contracting Party and the designated airlines shall attempt where required, to reach an agreement. If within the period of ninety (90) days from the day of receipt of such notification, a new tariff cannot be established in accordance with the provisions of paragraphs 2 and 3 of this Article, the procedure as set out in paragraphs 4 and 5 of this Article shall apply.

8. The designated airline or airlines of each Contracting Party shall have the right to match on routes between the territories of the two Contracting Parties any tariff which is a publicly available lawful tariff on scheduled services or on charter services of another carrier on a basis which would not necessarily be identical but would be broadly equivalent. The tariffs of a designated airline of one Contracting Party for carriage between the territory of the other Contracting Party and points on the agreed services in third countries, can, for the same class of service, match but shall not be lower or their conditions less restrictive than the tariffs of any scheduled airline of the other Contracting Party.

9. 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.

ARTICLE XIV

Sales and Transfer of Funds

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 funds obtained in the normal course of its operations. Conversion and remittance shall be permitted in either of the national currencies of the Contracting Parties, at the option of the designated airlines, without restrictions at the foreign exchange market rates for current payments prevailing at the time of submission of the request for transfer and shall not be subject to any charges except normal service charges collected by banks for such transactions.

ARTICLE XV

Taxation

The Contracting Parties shall act in accordance with the relevant provisions of the Convention between Canada and Spain for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital signed on November 23, 1976 and any amendments thereto in respect of the operation of aircraft in international traffic.

ARTICLE XVI

Airline Representatives and Personnel

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 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 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.

5. The designated airline or airlines of one Contracting Party may provide its own ground handling services in the territory of the other Contracting Party.

ARTICLE XVII

Applicability to Charter Services

1. The provisions set out in Articles VI, VII, VIII, IX, XI, XII, XIV, XV, XVI, 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 right of the aeronautical authorities of each Contracting Party to approve or disapprove charter flights in accordance with their respective national laws and regulations shall not be affected by the provisions of paragraph 1 of this Article.

ARTICLE XVIII

Prohibited Areas

For military reasons or public security, each Contracting Party shall have the rights to restrain or forbid the flights of the aircraft belonging to the airline designated by the other Contracting Party above certain zones of its territory provided such restrictions and prohibitions are applied equally to the aircraft of the airline or airlines designated by the first Contracting Party or the airlines of the other States which operate on international scheduled air services.

ARTICLE XIX

Consultations

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.

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

Modification of Agreement

If either Contracting Party considers it desirable to modify any provision of this Agreement, it may request consultations with the other Contracting Party. Such consultations, which may be between 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. Any modification agreed pursuant to such consultations shall come into force when it has been confirmed by an exchange of diplomatic notes.

ARTICLE XXI

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 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 shall 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 a designated airline in default.

ARTICLE XXII

Termination

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

Registration with ICAO

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

ARTICLE XXIV

Multilateral Conventions

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 XX 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 XXV

Entry into Force

This Agreement shall be applied provisionally from the date of its signature, and shall enter into force on the later of the dates on which the Contracting Parties shall each have notified the other by Diplomatic Note that they have fulfilled whatever constitutional requirements or procedures necessary to give effect to this Agreement in each country.

ANNEX A

SCHEDULE OF ROUTES

SECTION I

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

NOTES

1. The total number of intermediate and beyond points named by Spain shall not exceed two at any one time.

2. No Fifth Freedom rights shall be available except between Montreal and Mexico City.

3. No services shall be operated beyond Montreal on the basis of traffic rights leased or subcontracted from other countries or their airlines.

4. Intermediate points named by Spain may be changed every six months on sixty days’ notice to the aeronautical authorities of Canada.

5. Any point or points may, at the option of the designated airline, be omitted on any or all flights provided the point of origin is in Spain.

SCHEDULE OF ROUTES

SECTION II

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

NOTES

1. The total number of intermediate and beyond points named by Canada shall not exceed two at any one time.

2. The named points may be served either intermediate to or beyond the points in Spain.

3. No services shall be operated beyond Spain on the basis of traffic rights leased or subcontracted from other countries or their airlines.

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

5. Fifth Freedom rights at Frankfurt and/or Nice shall not be available while Fifth Freedom rights are exercised at Amsterdam and/or Lisbon.

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

DONE in duplicate at Ottawa, this 15th day of September 1988, in the English, French and Spanish languages, all texts being equally authentic.

Benoit Bouchard

FOR THE GOVERNMENT OF CANADA

Antonio Jose Fournier Berjemo

FOR THE GOVERNMENT OF SPAIN