Home | Databases | WorldLII | Search | Feedback Canadian Treaty Series

Exchange of Notes constituting an Agreement amending the Agreement between the Government of Canada and the Government of Finland for Air Services between and beyond their Respective Territories, done at Helsinki on May 28, 1990 [1999] CATSer 37 (1 October 1999)

E103303 - CTS 1999 No. 56

EXCHANGE OF NOTES CONSTITUTING AN AGREEMENT AMENDING THE AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF FINLAND FOR AIR SERVICES BETWEEN AND BEYOND THEIR RESPECTIVE TERRITORIES, DONE AT HELSINKI ON MAY 28, 1990

I

The Minister of Foreign Affairs of Canada to the Minister of Foreign Affairs of Finland

HELSINKI, September 01, 1999

Note No. 28

Mrs. T. Halonen
Minister for Foreign Affairs
Ministry for Foreign Affairs
Helsinki, Finland

Excellency:

I have the honour to refer to the Agreement between the Government of Canada and the Government of Finland for Air Services between and beyond their Respective Territories signed in Helsinki May 28, 1990 and to negotiations between representatives of our two Governments held in Ottawa May 14, 1999.

I have the further honour to propose, on behalf of the Government of Canada, that the above-mentioned Agreement be amended as follows:

1. Amend the Annex to the Agreement by adding Sections III and Section IV as attached in Annex A;

2. Article XIV on tariffs is superseded in its entirety and replaced by Article XIV as attached in Annex B;

3. Article X is amended by the addition of a third and fourth paragraph as attached in Annex C;

4. Article XI is amended as attached in Annex D; and

5. The Confidential Memorandum of Understanding of May 28, 1990 is also amended as attached in Annex E, whereby paragraphs 1 to 3 are deleted and paragraphs 4, 5 and 6 are renumbered 1,2 and 3.

If the foregoing is acceptable to your Government, I have the honour to propose that this Note in English and French, Annexes A, B, C and D in English, French, Finnish and Swedish and Annexe E in English and French, the text of which are equally authentic and your affirmative reply thereto shall constitute an Agreement between our two Governments to amend the Agreement on Air Services between and beyond their Respective Territories which shall enter into force thirty days from the date of your reply.

Accept, Excellency, the renewed assurances of my highest consideration.

Lloyd Axworthy

Minister of Foreign Affairs

Annex A

Add to ANNEX of Agreement:

ANNEX
SCHEDULE OF ROUTES

Code-share services only

SECTION III

Code-sharing services may be provided on the following route in either or both directions by the airline or airlines designated
by the Government of Finland:

NOTES:

1. Subject to the regulatory requirements normally applied by the aeronautical authorities of Canada, the designated airline or airlines of Finland shall have the right to enter into cooperative arrangements for the purpose of operating agreed services by code-sharing, that is, selling transportation under its/their own code on flights operated by the designated airline or airlines of Canada and/or on flights operated by any third country airline(s). Such operations on agreed services may include the selling of transportation on domestic flights in Canada operated by any designated airline or airlines of Canada. All airlines involved in code-sharing arrangements shall hold the appropriate underlying authority.

2. Notwithstanding Article III of the Agreement, the designated airline or airlines of Finland shall be permitted to transfer traffic between aircraft involved in code-sharing operations without restriction as to number, size and type of aircraft.

3. Notwithstanding Article XI, paragraph 5 of the Agreement, there shall be no limitation on capacity, i.e., frequency and type of aircraft, offered on code-share services by the airline or airlines designated by the Government of Finland.

4. Fifth freedom rights shall not be exercised by a designated airline on flights on which that airline operates a code-share service. Intransit rights shall be available at Intermediate Points and at Points in Canada. Own stopover rights shall be available at Intermediate Points.

5. Any of the Intermediate Points or the Points Beyond may be omitted on all or any services provided that all services originate or terminate in Finland. Points in Canada may be served separately or in combination.

6. The following limitations shall apply only until the end of the 1999/2000 IATA Winter season:

Points in Canada shall be limited to Toronto;

Intermediate Points shall be limited to London, U.K. and two points to be named by Finland. These points may be named and changed before each IATA season or on 30 days notice to the aeronautical authorities of Canada;

There shall be no Points Beyond; and

Notwithstanding Note 3 above, the frequency of service in both directions to and from Toronto via London shall be limited to 14 flights per week and the frequency of service in both directions to and from Toronto via the other two points to be named, shall be 7 flights per week each.

ANNEX

SCHEDULE OF ROUTES

Code-share services only

SECTION IV

Code-sharing services may be provided on the following route in either or both directions by the airline or airlines designated by the Government of Canada:

NOTES:

1. Subject to the regulatory requirements normally applied by the aeronautical authorities of Finland, the designated airline or airlines of Canada shall have the right to enter into cooperative arrangements for the purpose of operating agreed services by code-sharing, that is, selling transportation under its/their own code on flights operated by the designated airline or airlines of Finland and/or flights operated by any third country airline or airlines. Such operations on agreed services may include the selling of transportation on domestic flights in Finland operated by any designated airline or airlines of Finland. All airlines involved in code-sharing arrangements shall hold the appropriate underlying authority.

2. Notwithstanding Article III of the Agreement, the designated airline or airlines of Canada shall be permitted to transfer traffic between aircraft involved in code-sharing operations, without restriction as to number, size and type of aircraft.

3. Notwithstanding Article XI, paragraph 5 of the Agreement, there shall be no limitation on capacity, i.e., frequency and type of aircraft, offered on code-share services by the airline or airlines designated by the Government of Canada.

4. Fifth freedom rights shall not be exercised by a designated airline on flights on which that airline operates a code-share service. Intransit rights shall be available at Intermediate Points and at Points in Finland. Own stopover rights shall be available at Intermediate Points.

5. Any of the Intermediate Points or the Points Beyond may be omitted on all or any services provided that all services originate or terminate in Canada. Points in Finland may be served separately or in combination.

6. The following limitations shall apply only until the end of the 1999/2000 IATA Winter season:

Points in Finland shall be limited to Helsinki;

Intermediate Points shall be limited to London, U.K., Frankfurt, Germany and Copenhagen, Denmark.

There shall be no Points Beyond; and

Notwithstanding Note 3 above, the frequency of service in both directions to and from Helsinki via London shall be limited to 14 flights per week and the frequency of service in both directions to and from Helsinki via Frankfurt and Copenhagen, shall be 7 flights per week each.

Annex B

Replace Article XIV (Tariffs) of the Agreement with the following:

ARTICLE XIV

(Tariffs)

1. For purposes of this Article,

a) “Price” means any fare, rate or charge contained in tariffs (including frequent flyer plans or other benefits provided in association with air transportation) for the carriage of passengers (including their baggage) and/or cargo (excluding mail) on scheduled air services and the conditions directly governing the availability or applicability of such fare, rate or charge but excluding general terms and conditions of carriage.

b) “General Terms and Conditions of Carriage” means those terms and conditions contained in tariffs which are broadly applicable to air transportation and not directly related to any price; and

c) The term “match” means the continuation or introduction, on a timely basis, of an identical or similar (but not lower) price.

2. Prices for carriage by the designated airline or airlines of one Contracting Party to or from the territory of the other Contracting Party shall be established at reasonable levels due regard being paid to all relevant factors including the interests of users, cost of operation, characteristics of service, reasonable profit, prices of other airlines and other commercial considerations in the marketplace.

3. The prices referred to in paragraph 2 of this Article may be developed individually or, at the option of the designated airline or airlines and subject to any applicable competition laws, through coordination with each other or with other airlines. A designated airline shall be responsible only to its own aeronautical authorities for the justification of its prices.

4. Each Contracting Party may require the filing with its aeronautical authorities by the designated airline or airlines of their prices for carriage between the territories of the Contracting Parties. Such filing, if required, shall be received by the aeronautical authorities at least ten (10) days before the proposed effective date; in special cases, a shorter period may be accepted by the aeronautical authorities. Upon filing of the proposed prices, the designated airline shall be permitted to sell transportation on the agreed services at the filed price provided that all sales are for transportation commencing not earlier than the proposed effective date. A designated airline which has established a price individually shall, at the time of filing, ensure that the filed price is accessible to other designated airlines.

5. If the aeronautical authorities of one Contracting Party are dissatisfied with an existing or proposed price for carriage between the territories of the Contracting Parties, they shall so notify the aeronautical authorities of the other Contracting Party and the airline offering the price. Unless the aeronautical authorities of the other Contracting Party agree that an existing or proposed price is inconsistent with the principles of this article, the price shall come into effect or continue in effect.

6. With respect to carriage between the territories of the Contracting Parties, the airline or airlines of each Contracting Party shall have the right to match, on a basis which would not be necessarily identical but would be broadly equivalent, any publicly available lawful price on scheduled services as well as retail prices charged on charter services.

7. Each Contracting Party may require the filing of prices for carriage between its territory and third countries in accordance with the regulations of its aeronautical authorities. If filing is required, the designated airline or airlines of the other Contracting Party shall not be required to submit such prices on any greater period of notice prior to the proposed effective date than that normally applicable to the airline or airlines of the Contracting Party requiring the filing, subject to a minimum of ten (10) days’ notice.

8. The price to be applied by a designated airline of one Contracting Party for carriage between the territory of the other Contracting Party and a third country shall not come into effect or remain in effect if the aeronautical authorities of that other Contracting Party are dissatisfied with it. In this regard, the price to be applied by a designated airline of one Contracting Party shall not be lower than the lowest price charged for scheduled international air services by the airline(s) of the other Contracting Party in that market, unless otherwise authorized by the aeronautical authorities of the other Contracting Party.

9. Subject to paragraph 8 of this Article, any designated airline of each Contracting Party shall have the right to match any publicly available lawful price on scheduled services between the territory of the other Contracting Party and any third country. The aeronautical authorities of the other Contracting Party may require the designated airline proposing the price to provide satisfactory evidence of the availability of the price being matched and of the consistency of matching with the requirements of this Article.

10. The aeronautical authorities of either Contracting Party may request discussions on prices at any time. Such discussions, which may be conducted orally or in writing, shall be held within fifteen (15) days of receipt of the request, unless otherwise agreed between the aeronautical authorities.

11. When prices have been established in accordance with the provisions of this Article, those prices shall remain in force until new prices have been established in accordance with the provisions of this Article. Nevertheless, a price 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.

12. Each Contracting Party may require the filing with its aeronautical authorities by the designated airline or airlines of their general terms and conditions of carriage in accordance with its national laws and regulations. Acceptance or approval of such terms and conditions shall be subject to national laws and regulations. The aeronautical authorities of either Contracting Party may at any time withdraw such acceptance or approval upon not less than fifteen (15) days notice to the designated airlines concerned and the term or condition shall cease to have any force or effect thereafter.

Annex C

Add the following provisions to ARTICLE X (Airport and Facility Charges) of the Agreement:

3. The designated airline or airlines of each Contracting Party shall be permitted to perform its own ground handling in the territory of the other Contracting Party and, at its option, to have ground handling services provided in whole or in part by its code-share partner(s), that partner’s agent or any other agent authorized by the competent authorities of the other Contracting Party to provide such services.

4. The exercise of the rights set forth in paragraph 3 of this Article shall be subject only to physical or operational constraints resulting from considerations of airport safety or security. Any constraints shall be applied uniformly and on terms no less favourable than the most favourable terms available to any airline engaged in similar international air services at the time the constraints are imposed.

Annex D

Maintain paragraphs 1 - 4 and replace paragraph 5 of ARTICLE XI (Capacity) of the Agreement.

ARTICLE XI

(Capacity)

1. There shall be fair and equal opportunity for the designated airline or airlines of each Contracting Party to operate the agreed services on the routes specified in the Annex.

2. In operating the agreed services, the designated airline or 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 provides 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 the specified routes and shall have as their primary objectives the provision, 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 Party which has designated the airline or airlines 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 or airlines shall be made in accordance with the general principle that capacity shall be related to:

(a) traffic requirements to and from the territory of the Contracting Party which has designated the airline or airlines;

(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.

Replace paragraph 5 with the following:

5. The capacity to be provided on the specified routes, i.e. frequency of services and type of aircraft, shall be in accordance with the principles laid down in this Article and subject to the approval of the aeronautical authorities of the Contracting Parties. Pending approval of the aeronautical authorities of both Contracting Parties to increase capacity, the status quo shall be maintained.

II

The Minister for Foreign Affairs of Finland to the Minister of Foreign Affairs of Canada

HELD259-11

HELSINKI, September 1, 1999

His Excellency
Mr. Lloyd Axworthy
Minister of Foreign Affairs of Canada

Excellency,

I have the honour to acknowledge receipt of your Note no. 28 dated September 1, 1999, which reads as follows:

"Excellency:

I have the honour to refer to the Agreement between the Government of Canada and the Government of Finland for Air Services between and beyond their Respective Territories signed in Helsinki on May 28, 1990 and to negotiations between representatives of our two Governments held in Ottawa May 14, 1999.

I have the further honour to propose, on behalf of the Government of Canada, that the above-mentioned Agreement be amended as follows:

1. Amend the Annex to the Agreement by adding Sections III and Section IV as attached in Annex A;

2. Article XIV on tariffs is superseded in its entirety and replaced by Article XIV as attached in Annex B;

3. Article X is amended by the addition of a third and fourth paragraph as attached in Annex C;

4. Article XI is amended as attached in Annex D; and

5. The Confidential Memorandum of Understanding of May 28, 1990 is also amended as attached in Annex E, whereby paragraphs 1 to 3 are deleted and paragraphs 4, 5 and 6 are renumbered 1,2 and 3.

If the foregoing is acceptable to your Government, I have the honour to propose that this Note in English and French, Annexes A, B, C and D in English, French, Finnish and Swedish and Annexe E in English and French, the text of which are equally authentic and your affirmative reply thereto shall constitute an Agreement between our two Governments to amend the Agreement on Air Services between and beyond their Respective Territories which shall enter into force thirty days from the date of your reply.

Accept, Excellency, the renewed assurances of my highest consideration."

I have the honour to inform you that the Government of Finland accepts the proposals set forth in your Note and agrees that your Note and this reply shall constitute an Agreement to amend the Agreement between the Government of Finland and the Government of Canada on Air Services between and beyond their Respective Territories signed in Helsinki on May 28, 1990, which shall enter into force thirty days from this date.

Accept, Excellency, the renewed assurances of my highest consideration.

Tarja Halonen

Minister for Foreign Affairs