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Air Transport Agreement between the Government of Canada and the Government of the Republic of Cuba [2000] CATSer 21 (27 November 2000)

E100253 - CTS 2000 No. 31

AIR TRANSPORT AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE REPUBLIC OF CUBA

THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE REPUBLIC OF CUBA, hereinafter referred to as the Contracting Parties;

RECOGNIZING the importance of efficient and cost effective air services in promoting the development of trade and tourism;

DESIRING to promote fair and equal opportunities for airlines to operate in the marketplace;

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 on air transport, between their respective territories;

HAVE AGREED as follows:

ARTICLE I

Definitions

For the purpose of this Agreement, unless otherwise stated:

(a) "Aeronautical authorities" means, in the case of Canada, the Minister of Transport and the National Transportation Agency of Canada and, in the case of Cuba, the Institute of Civil Aviation of Cuba or, in both cases, any other authority or person empowered to perform the functions exercised by the said authorities;

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

(c) "Agreement" means this Agreement, any Annex attached thereto, and any amendments to the Agreement or to any Annex;

(d) "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 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 III and IV of this Agreement;

(f) "Ground handling" means:

(i) all technical and operational services generally provided on the ground at airports, such as the provision of the necessary flight documents and information to crews, apron services, including loading and unloading, safety, aircraft servicing and refuelling, and operations before take-off;

(ii) All services connected with the handling of passengers, cargo including mail, and mail in conjunction with the postal services;

(iii) All services for the provision of in-flight catering, including the preparation, storage and delivery of meals and supplies to aircraft and maintenance of catering equipment;

(g) "Tariffs" means the prices to be 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;

(h) "Territory", in relation to each Contracting Party, means the land areas and territorial waters adjacent thereto under the sovereignty of that Contracting Party, subject to international law;

(i) "Air services", "International air service", "Airline" and "Stop for non-traffic purposes" have the meaning respectively assigned to them in Article 96 of the Convention.

ARTICLE II

Grant of Rights

1. Each Contracting Party grants to the other Contracting Party the following rights for the conduct of international air services by each airline designated by that other Contracting Party:

(a) the right to fly without landing across its territory;

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

(c) to the extent permitted in this Agreement, the right to make stops in its territory on the routes specified in this Agreement for the purpose of taking up and discharging international traffic in passengers, mail and cargo separately or in combination.

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 right of taking up, in the territory of the other Contracting Party, passengers, mail and cargo 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 two airlines to operate the agreed services for such a Contracting Party and to withdraw the designation of either airline or to substitute another airline for one 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 the laws and regulations of that Contacting Party, grant without delay to an airline so designated the appropriate authorizations to operate the agreed services for which that airline has been designated.

2. Upon receipt of such authorizations each designated 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 tariffs, established in accordance with the provisions of Article XIV of this Agreement, are in force in respect of such services.

ARTICLE V

Withholding, 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, and to revoke or impose conditions, temporarily or permanently, on such authorizations:

(a) in the event of failure by such airline to comply with the laws and regulations normally applied by the aeronautical authorities of the Contracting Party granting the rights;

(b) in the event of failure by such airline to comply with the laws and regulations of the Contracting Party granting the rights;

(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 its nationals; and

(d) in the event that the other Contracting Party is not maintaining and administering the standards as set forth in Article VII and Article VIII of this Agreement.

2. Unless immediate action is essential to prevent infringement of the laws and regulations referred to above or unless safety or security requires immediate action under this Article, Article VII or Article VIII, 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 XX 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 each designated airline of the other Contracting Party upon entrance into, while within, and when departing from 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 each designated airline of the other Contracting Party and by, or on behalf of its crews, passengers, mail and cargo upon transit of, admission to, while within, and on departure from the territory of such a Contracting Party.

3. In the application of its customs, immigration, quarantine and similar regulations, neither Contracting Party shall give preference to its own or any other airline over an airline of the other Contracting Party engaged in similar international air services.

ARTICLE VII

Safety Standards, 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 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, 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 XX of this Agreement with the aeronautical authorities of that Contracting Party with a view to clarifying the practice in question.

3. Each Contracting Party may request consultations concerning the safety standards maintained by the other Contracting Party relating to aeronautical facilities, aircrew, aircraft, and operation of the designated airlines. If following such consultations, one Contracting Party finds that the other Contracting Party does not effectively maintain and administer safety standards and requirements in these areas that at least equal the minimum standards which may be established pursuant to the Convention, the other Contracting Party shall be notified of such findings and the steps considered necessary to conform with these minimum standards, and shall take appropriate corrective action. In the event the other Contracting Party does not take such appropriate action within a reasonable time, the provisions of Article V shall apply.

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 any multilateral agreement governing aviation security binding on 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 have the right, upon not less than sixty (60) days notice, to assess the security measures being carried out by aircraft operators in the territory of the other Contracting Party in respect of flights arriving from, or departing to its territory. The administrative arrangements for the conduct of such assessments shall be agreed between the aeronautical authorities and implemented without delay so as to ensure that assessments will be conducted on the dates requested.

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 shall constitute grounds for the application of Article V of this Agreement.

ARTICLE IX

Use of Airports and Aviation Facilities

1. Airports, airways, air traffic control and air navigation services, aviation security, and other related facilities and services that are available in the territory of one Contracting Party shall be provided without preference to any airline over an airline of the other Contracting Party engaged in similar international air services.

2. The setting and collection of fees and charges imposed in the territory of one Contracting Party on an airline of the other Contracting Party for the use of airports, airways, air traffic control and air navigation services, aviation security, and other related facilities and services shall be just, reasonable and not unjustly discriminatory. Any such fees and charges shall be assessed on an airline of the other Contracting Party on terms not less favourable than the most favourable terms available to any airline engaged in similar international air services at the time the fees or charges are imposed.

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

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 routes.

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 provision, at a reasonable load factor, of capacity adequate to meet the current and reasonably anticipated requirements for the carriage of passengers, mail and cargo 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, mail and cargo 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 to and from the territory of the Contracting Party which has designated the airline;

(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. A designated airline of a Contracting Party shall be free to use its commercial judgment with respect to the capacity to be provided in accordance with the principles set out in this Article, unless otherwise agreed between the aeronautical authorities of both Contracting Parties as follows. Should the aeronautical authorities of one Contracting Party object to the capacity operated by a designated airline they shall advise the aeronautical authorities of the other Contracting Party, and either may request consultations in accordance with Article XX of this Agreement in an effort to resolve the matter. If the aeronautical authorities of the Contracting Parties agree they shall immediately take appropriate steps to implement their agreement.

ARTICLE XI

Change of Aircraft

1. A designated airline of one Contracting Party may make a change of aircraft in the territory of the other Contracting Party or at an intermediate point in third countries on the routes specified in this Agreement under the following conditions:

(a) the change of aircraft is justified by reason of economy of operation;

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

(c) the aircraft used on the sector of the route more distant from the territory of the Contracting Party designating a airline shall operate in connection with the agreed service provided with the aircraft used on the nearer sector and shall be scheduled so to do;

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

(e) that designated airline shall not hold itself out, directly or indirectly and whether in timetables, computer reservation systems, fare quote systems or advertisements, or by other like means, as providing any service other than the agreed service on the relevant specified routes;

(f) where an agreed service includes a change of aircraft, this fact is shown in all timetables, computer reservation systems, fare quote systems, advertisements and other like means of holding out the service;

(g) where a change of aircraft is made in the territory of the other Contracting Party, the number of outgoing flights shall not exceed the number of incoming flights, unless otherwise authorized by the aeronautical authorities of that other Contracting Party or specifically provided for in this Agreement; and

(h) all operations involving change of aircraft shall be conducted in conformity with Article X of this Agreement.

2. The provisions of paragraph 1 of this Article shall not affect the ability of each designated airline to change aircraft in the territory of the Contracting Party designating that airline.

ARTICLE XII

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 statistics showing the initial origins and final destinations of the traffic.

2. The aeronautical authorities of both Contracting Parties shall maintain close contact with respect to the implementation of paragraph 1 of this Article including procedures for the provision of statistical information.

ARTICLE XIII

Customs Duties and Other Charges

1. Each Contracting Party shall, to the fullest extent possible under its national law and on a basis of reciprocity, exempt each designated airline of the other Contracting Party 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 that airline, as well as printed ticket stock, air waybills, any printed material which bears the insignia of the company printed thereon and usual publicity material distributed without charge by that 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 a designated airline of the other Contracting Party;

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

(c) taken on board aircraft of a designated airline of one Contracting Party in the territory of the other Contracting Party;

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 a designated airline 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.

4. Baggage and cargo in direct transit across the territory of either Contracting Party shall be exempt from customs duties and other similar charges.

ARTICLE XIV

Tariffs

1. The tariffs for carriage on agreed services to and from the territory of the other Contracting Party shall be established by the designated airlines on the basis of market forces, due regard being paid to all relevant factors including the interests of consumers, cost of operation, characteristics of service, reasonable profit, the tariffs of other airlines and other commercial considerations in the marketplace.

2. The tariffs referred to in paragraph 1 of this Article may be established individually or, at the option of the designated airline(s), through coordination with each other or with other airlines. Each designated airline shall be responsible only to its own aeronautical authorities for justification of its tariffs.

3. Tariffs referred to in paragraph 1 shall be filed, where required, with the aeronautical authorities of both Contracting Parties and received by those authorities at least thirty (30) days before the proposed effective date; a shorter period may be accepted by the aeronautical authorities. A designated airline which has established a tariff individually shall, at the time of filing, provide to the designated airline(s) of the other Contracting Party, a copy of the tariff filed.

4. When the aeronautical authorities of one Contracting Party are, or become dissatisfied with a tariff filed in accordance with paragraph 3:

(a) they shall notify in writing the aeronautical authorities of the other Contracting Party and the designated airline concerned within fifteen (15) days from the date of receipt of the proposed tariff. In the event that a shorter period for the filing of the tariff is accepted by the aeronautical authorities, they may also agree that the period for giving notice of dissatisfaction should also be reduced, or

(b) when the tariff is in effect they shall notify in writing the aeronautical authorities of the other Contracting Party and the designated airline concerned.

5. If a notice of dissatisfaction has been issued pursuant to paragraph 4 of this Article, the aeronautical authorities receiving the notice of dissatisfaction shall acknowledge the notice, including an indication of their agreement or disagreement with it, within fifteen (15) days of receipt of the notice. Communication pursuant to this Article may be done by means of a letter or any type of electronic communication which produces printed text.

6. (a) A tariff shall not come into effect, or remain in effect, if:

(i) it applies to agreed services between the territories of the Contracting Parties and the aeronautical authorities of both Contracting Parties are dissatisfied with it; or

(ii) it applies between the territory of one Contracting Party and a third State, and the aeronautical authorities of that Contracting Party are dissatisfied with the tariff.

7. Each designated airline of a Contracting Party shall have the right to match on a timely basis:

(a) (i) between the territories of both Contracting Parties, any lawful tariff on scheduled services, or retail charter price and its conditions of sale. For this purpose a matching tariff need not necessarily be identical to the tariff being matched, but would be broadly equivalent in terms of routing, applicable conditions and standard of service, and

(ii) between the territory of the other Contracting Party and any third country,

any lawful tariff on scheduled services provided that the matching tariff does not undercut the lawful tariffs of the third and fourth freedom airlines in that market.

(b) In all cases of matching, the tariff filing shall include satisfactory evidence of the availability of the scheduled tariff or retail charter price, including benefits, being matched and of the consistency of matching with the requirements of this Article.

(c) Tariffs which are introduced for matching purposes shall remain in effect only for the period of availability of the tariff or charter retail price being matched, unless otherwise agreed in advance by the aeronautical authorities of both Contracting Parties.

8. 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. 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.

9. The aeronautical authorities of either Contracting Party may request consultations regarding any tariff for carriage on agreed services. Such consultations, 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.

10. The aeronautical authorities of both Contracting Parties shall endeavour to ensure that the tariffs charged and collected conform to the tariffs accepted or approved by them and are not subject to rebates.

ARTICLE XV

Sales and Transfer of Funds

1. The designated airlines of each Contracting Party shall have the right to engage in the sale of air transportation in the territory of the other Contracting Party, either directly or through agents appointed by the designated airline. The designated airlines of each Contracting Party shall have the right to sell, and any person shall be free to purchase, such transportation in freely convertible currency, or where the relevant financial regulations in force permit airlines to do so, in local currency.

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 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 XVI

Taxation

1. Profits or income from the operation of aircraft in international traffic derived by an airline of one Contracting Party, including participation in inter-airline commercial agreements or joint business ventures, shall be exempt from any tax on profits or income imposed by the Government of the other Contracting Party.

2. Capital and assets of an airline of one Contracting Party relating to the operation of aircraft in international traffic shall be exempt from all taxes on capital and assets imposed by the Government of the other Contracting Party.

3. Gains from the alienation of aircraft operated in international traffic and movable property pertaining to the operation of such aircraft which are received by an airline of one Contracting Party shall be exempt from any tax on gains imposed by the Government of the other Contracting Party.

4. In this Article:

(a) the term "profits or income" includes gross receipts and revenues derived directly from the operation of aircraft in international traffic, including:

(i) the charter or rental of aircraft;

(ii) the sale of air transportation, either for the airline itself or for any other airline; and

(iii) interest from earnings, provided that such earnings are related to the operation of aircraft in international traffic;

(b) the term "international traffic" means the transportation of persons, mail and cargo except when such transportation is solely between places in the area of the other Contracting Party.

(c) the term "airline of one Contracting Party" means an airline incorporated in and having its principal place of business in the territory of that Contracting Party.

5. The above provisions shall not have effect as long as an agreement for the avoidance of double taxation with respect to taxes on income providing for similar exemptions shall be in force between the two Contracting Parties.

ARTICLE XVII

Airline Representatives

1. Each designated airline of one Contracting Party shall be allowed, on the basis of reciprocity, to bring into and 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. Subject to national law and regulations and on a non-discriminatory basis these staff requirements may, at the option of each designated airline 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:

(a) 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; and

(b) both Contracting Parties shall facilitate and expedite the requirement of employment authorizations for personnel performing certain temporary duties not exceeding ninety (90) days.

ARTICLE XVIII

Ground Handling

1. To the extent allowed by national law and on a non-discriminatory basis, each designated airline of one Contracting Party shall have the right to have ground handling services provided in whole or in part by any agent authorized by the competent authorities of the other Contracting Party to provide such services.

2. a) The ground handling services provided shall be available on an equal basis to all airlines, shall be comparable to the kind and quality of services as if self-handling were possible, and shall be provided on an economical and efficient basis; and

(b) charges shall be based on costs of services provided, including a reasonable rate of return/profit.

3. Charges imposed on the airlines of the other Contracting Party shall not be less favourable than the charges imposed on any airline engaged in similar international air services. Reasonable notice and the opportunity for interested parties to comment shall be given prior to changes in user charges.

ARTICLE XIX

Applicability to Non-scheduled Flights

1. The provisions set out in Articles VI (Application of Laws), VII (Safety Standards, Certificates and Licences), VIII (Aviation Security), IX (Use of Airports and Aviation Facilities), XII (Statistics), XIII (Customs Duties and Other Charges), XV (Sales and Transfer of Funds, XVI (Taxation), XVII (Airline Representatives), XVIII (Ground Handling), and XX (Consultations) of this Agreement shall be applicable also to non-scheduled 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.

ARTICLE XX

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 and of its Annex.

2. Such consultations, which may be through discussion or by correspondence, 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 XXI

Modification of Agreement

If either of the Contracting Parties considers it desirable to modify any provision of this Agreement, it may request consultations with the other Contracting Party. Such consultations, 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 XXII

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. If the President is of the same nationality as one of the Contracting Parties, the most senior Vice-President who is not disqualified on that ground, shall make the appointment. 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. Each Contracting Party shall bear the costs of the arbitrator appointed by it. The other costs of the tribunal shall be shared equally by the Contracting Parties including any expenses incurred by the President or Vice President of the Council of the International Civil Aviation Organisation in implementing the procedures in paragraph 2 of this Article.

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

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 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 mutual consent before the expiry of this period. In the absence of an 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

Registration with ICAO

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

ARTICLE XXV

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 XXVI

Entry into Force

1. Each Contracting Party shall notify the other in writing of the completion of the constitutional formalities required in its territory for the entry into force of this Agreement. This Agreement shall enter into force on the date of the latter of the two notifications.

2. The Agreement between the Contracting Parties for Air Transport between and beyond their respective territories of 26 September 1975 shall be terminated on the date of entry into force of this Agreement.

ARTICLE XXVII

Titles

Titles used in this Agreement are for reference purposes only.

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

DONE in duplicate at Ottawa, this 12^th day of February 1998, in the English, French and Spanish languages, each version being equally authentic.

Lloyd Axworthy

FOR THE GOVERNMENT OF CANADA

Carlos Lagé Davilla

FOR THE GOVERNMENT OF THE REPUBLIC OF CUBA

ANNEX

ROUTE SCHEDULES

SECTION I

For Canada

The following routes may be operated by the designated airline or airlines of Canada in either or both directions, at the discretion of each designated airline.

1. Points in Cuba may be served separately or in any combination. Any Intermediate and/or Beyond Points may be omitted.

2. All services shall originate or terminate in Canada.

3. Points in Cuba to be named may be changed on thirty days' notice, or such lesser notice as may be agreed by the aeronautical authorities of Cuba.

4. Intransit and own stop-over rights shall be available at Intermediate Points and at Points in Cuba en route to Points Beyond. Traffic between Canada and Cuba may be commingled with traffic between Canada and Intermediate Points and between Canada and Points Beyond.

5. No fifth freedom rights shall be available.

6. Subject to the regulatory requirements normally applied by the aeronautical authorities of Cuba, in operating or holding out the agreed services, any designated airline of Canada may enter into cooperative marketing or operational arrangements such as blocked-space or code-sharing with a designated airline of Cuba provided that all airlines in such arrangements hold the underlying route rights.

SECTION II

For Cuba

The following routes may be operated by the designated airline or airlines of Cuba in either or both directions, at the discretion of each designated airline.

Notes:

1. Points in Canada may be served separately or in any combination. Any Intermediate and/or Beyond Points may be omitted.

2. All services shall originate or terminate in Cuba.

3. Points in Canada to be named may be changed on thirty days' notice, or such lesser notice as may be agreed by the aeronautical authorities of Canada.

4. Intransit and own stop-over rights shall be available at Intermediate Points and at Points in Canada en route to Points Beyond. Traffic between Cuba and Canada may be commingled with traffic between Cuba and Intermediate Points and between Cuba and Points Beyond.

5. No fifth freedom rights shall be available.

6. Subject to the regulatory requirements normally applied by the aeronautical authorities of Canada, in operating or holding out the agreed services, any designated airline of Cuba may enter into cooperative marketing or operational arrangements such as blocked-space or code-sharing with a designated airline of Canada provided that all airlines in such arrangements hold the underlying route rights.