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Agreement between the Government of Canada and the Kingdom of the Netherlands in respect of Aruba on Air Transport [2005] CATSer 23 (19 December 2005)

E105021

AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE KINGDOM OF THE NETHERLANDS IN RESPECT OF ARUBA ON AIR TRANSPORT

The Government of Canada and the Kingdom of the Netherlands in respect of Aruba, hereinafter referred to as the Contracting Parties,

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

Desiring to ensure the highest degree of safety and security in international air transportation,

Recognizing the importance of international air transportation in promoting trade, tourism and investment,

Desiring to promote their interests in respect of international air transportation,

Desiring to conclude an agreement on air transport, supplementary to the said Convention and replacing the Air Transport Agreement between the Government of the Kingdom of the Netherlands and the Government of Canada, done at Ottawa on the 17^th day of June, 1974, as regards air transport services between Canada and Aruba,

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 Canadian Transportation Agency and, in the case of the Kingdom of the Netherlands in respect of Aruba, the Minister of Tourism and Transport and the Department of Civil Aviation of Aruba 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 specified in this Agreement for the transport of passengers and cargo, including mail, 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 IV and V of this Agreement;

(f) "Change of Aircraft" refers to the operation of one of the agreed services in such a way that one section of the route is flown by a different aircraft from that used on another section; and

(g) "Territory" in the case of Canada has the meaning assigned to it in Article 2 of the Convention; and in the case the Kingdom of the Netherlands in respect of Aruba, the land area of Aruba and the territorial waters adjacent thereto; and

(h) "Air services", "International air service", "Airline" and "Stop for non-traffic purposes" have the meaning assigned to them in Articles 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 the airline or airlines 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 and cargo, including mail, separately or in combination.

2. The airlines of each Contracting Party, other than those designated under Article IV of this Agreement, shall also enjoy the rights specified in paragraphs 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 and cargo, including mail, carried for remuneration or hire and destined for another point in the territory of that other Contracting Party.

ARTICLE III

Change of Aircraft

1. A designated airline of one Contracting Party may make a change of aircraft at any point or points in the territory of the other Contracting Party or at any intermediate point or points in third countries on the routes specified in this Agreement provided that:

(a) a designated airline shall not provide, or represent itself by advertisement or otherwise as providing, any service other than an agreed service on the routes specified in this Agreement;

(b) where an agreed service involves a change of aircraft, the operator of the aircraft and the aircraft type shall be identified in all transportation documents, service schedules, timetables, computer reservation systems, electronic displays and any other public advertising of the air service;

(c) the aircraft operating on the sector more distant from the territory of the Contracting Party designating the airline shall operate in connection with the aircraft on the nearer sector for the purpose of providing continuous transportation through the point of change and, for own-aircraft operations, the capacity provided on the more distant sector shall be determined with primary reference to this purpose;

(d) where a designated airline of one Contracting Party makes a change of aircraft in the territory of the other Contracting Party with its own aircraft, and when more than one aircraft is operated beyond the point of change, the number of flights on the sector of the route more distant from the territory of the Contracting Party designating the airline shall not exceed the number of flights on the nearer sector, unless specifically provided for in this Agreement or otherwise authorized by the aeronautical authorities of that other Contracting Party; and

(e) all operations involving change of aircraft shall be conducted in conformity with the capacity provisions of this Agreement.

2. The provisions of paragraph 1 of this Article shall:

(a) not restrict the right of a designated airline to change aircraft in the territory of the Contracting Party designating that airline; and

(b) not allow a designated airline of one Contracting Party to station its own aircraft in the territory of the other Contracting Party for the purpose of change of aircraft.

ARTICLE IV

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 this Agreement for that Contracting Party and to withdraw a designation or to substitute another airline for one previously designated.

ARTICLE V

Authorization

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

2. Upon receipt of such authorizations, the designated airline may begin at any time to operate the agreed services, in whole or in part, provided that the airline complies with the provisions of this Agreement.

ARTICLE VI

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 V of this Agreement with respect to an airline designated by the other Contracting Party, and to revoke, suspend or impose conditions on such authorizations, temporarily or permanently:

(a) in the event of failure by such airline to qualify under 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 or both; and

(d) in the event 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 or unless safety or security requires action in accordance with the provisions of Articles VIII or IX, the rights enumerated in paragraph 1 of this Article shall be exercised only after consultations between the aeronautical authorities in conformity with Article XXI of this Agreement.

ARTICLE VII

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 relating to the admission to, remaining in, or departure from its territory of passengers, crew and cargo (such as regulations relating to entry, clearance, transit, aviation security, 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 such passengers, crew and cargo upon transit of, admission to, departure from and while within the said territory. In the application of such laws and regulations, a Contracting Party shall, under similar circumstances, accord to the designated airline or airlines of the other Contracting Party treatment no less favourable than that accorded to its own or any other airline engaged in similar international air services.

ARTICLE VIII

Safety Standards, Certificates and Licences

1. Certificates of airworthiness, certificates of competency and licences, issued or rendered valid by the aeronautical authorities of one Contracting Party and still in force, shall be recognized as valid by the aeronautical authorities of 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. The aeronautical authorities of each Contracting Party reserve 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 used in the operation of 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 other Contracting Party may request consultations between the aeronautical authorities in conformity with Article XXI of this Agreement with a view to clarifying the practice in question.

3. Consultations concerning the safety standards and requirements maintained and administered by the aeronautical authorities of the other Contracting Party relating to aeronautical facilities, aircrew, aircraft, and operation of the designated airlines shall be held within fifteen (15) days of receipt of a request from either Contracting Party. If, after fifteen (15) days from the date of the request for consultations, the aeronautical authorities of one Contracting Party find that the aeronautical authorities of the other Contracting Party do not effectively maintain and administer safety standards and requirements in these areas that are at least equal to the minimum standards which may be established pursuant to the Convention, the aeronautical authorities of the other Contracting Party shall be notified of such findings and the steps considered necessary to conform with these minimum standards. Failure to take appropriate corrective action within a reasonable time shall constitute grounds for withholding, revoking, suspending or imposing conditions on the authorizations of the airline or airlines designated by the other Contracting Party.

4. When immediate action is essential to the safety of airline operations, the aeronautical authorities of one Contracting Party may withhold, revoke, suspend or impose conditions on the authorizations of the airline or airlines designated by the other Contracting Party.

ARTICLE IX

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 Seizure of Aircraft, signed at The Hague on December 16, 1970, the Convention for the Suppression of Unlawful Acts Against the Safety of Civil Aviation, signed at Montreal on September 23, 1971, and the Protocol for the Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation, signed at Montreal on 24 February 1988 and any other multilateral agreement governing aviation security binding upon both Contracting Parties.

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

4. The Contracting Parties shall act in conformity with the aviation security provisions established by the International Civil Aviation Organization and designated as Annexes to the Convention on International Civil Aviation to the extent that such security provisions are applicable to the Contracting Parties; they shall require that operators of aircraft of their registry, operators of aircraft who have their principle 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. Accordingly, each Contracting Party shall advise the other Contracting Party of any difference between its national regulations and practices and the aviation security standards of the Annexes referred to in this paragraph. Either Contracting Party may request immediate consultations with the other Contracting Party at any time to discuss any such differences.

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, mail and aircraft stores prior to and during boarding and loading.

6. Each Contracting Party shall, as far as may be practicable, meet 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, within sixty (60) days following notice (or such shorter period as may be agreed between the aeronautical authorities), to conduct an assessment in the territory of the other Contracting Party of the security measures being carried out, or planned to be carried out, by aircraft operators in respect of flights arriving from, or departing to the territory of the first Contracting Party. 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 expeditiously.

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 taking 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 consultations. Such consultations shall start within fifteen (15) days of receipt of such a request from either Contracting Party. Failure to reach a satisfactory agreement within fifteen (15) days from the start of consultations shall constitute grounds for withholding, revoking, suspending or imposing conditions on the authorizations of the airline or airlines designated by the other Contracting Party. When justified by an emergency, or to prevent further non-compliance with the provisions of this Article, the first Contracting Party may take interim action at any time.

ARTICLE X

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 provided in the territory of one Contracting Party shall be available for use by the airlines of the other Contracting Party on terms no less favourable than the most favourable terms available to any airline engaged in similar international air services at the time arrangements for use are made.

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 and reasonable. Any such fees and charges shall be assessed on an airline of the other Contracting Party on terms no 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 discussions 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 XI

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 and cargo, including 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 and cargo, including 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 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. Each designated airline of a Contracting Party shall be free to use its commercial judgment with respect to the capacity to be provided consistent with the principles set out in this Article. Neither Contracting Party or its aeronautical authorities may unilaterally impose any restrictions on the designated airline or airlines of the other Contracting Party with respect to capacity, frequency or type of aircraft employed in connection with services over any of the routes specified in the Annex to the Agreement.

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 the designated airline or airlines 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; and

(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. 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, 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 one (1) day before the proposed effective date. 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. Prices which qualify as matching may be filed on not less than one day’s notice.

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 file 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, unless otherwise authorized by the aeronautical authorities.

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. Prices which qualify as matching may be filed on not less than one day’s notice. 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.

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.

ARTICLE XV

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 by that airline.

2. Each designated airline shall have the right to convert and remit abroad, 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 and/or cargo, including mail, except when such transportation is solely between points in the territory of one Contracting Party; and

(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.

ARTICLE XVII

Airline Representatives

1. The designated airline or airlines 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 the 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 for other airlines.

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. The designated airline or airlines of one Contracting Party shall be permitted, on the basis of reciprocity, 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 any agent authorized by the competent authorities of the other Contracting Party to provide such services.

2. The exercise of the rights set forth in paragraph 1 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.

ARTICLE XIX

Smoking Ban

1. Each Contracting Party shall prohibit or cause their airlines to prohibit smoking on all flights carrying passengers operated by its airlines between the territories of the Contracting Parties. This prohibition shall apply to all locations within the aircraft and shall be in effect from the time an aircraft commences enplanement of passengers to the time deplanement of passengers is completed.

2. Each Contracting Party shall take all measures that it considers reasonable to secure compliance by its airlines and by their passengers and crew with the provisions of this Article, including the imposition of appropriate penalties for non-compliance.

ARTICLE XX

Applicability to Non-scheduled Flights

1. The provisions set out in Articles VII (Application of Laws), VIII (Safety Standards, Certificates and Licences), IX (Aviation Security), X (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), XIX (Smoking Ban) and XXI (Consultations) of this Agreement shall be applicable 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.

2. The provisions of paragraph 1 of this Article shall not affect national laws and regulations governing the authorization of non-scheduled flights or the conduct of air carriers or other parties involved in the organization of such operations.

ARTICLE XXI

Consultations

1. Either Contracting Party may request consultations on the implementation, interpretation, application or amendment of this Agreement. 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 receipt of a written request, unless otherwise agreed by the Contracting Parties.

2. In a spirit of close co-operation, the aeronautical authorities of the Contracting Parties may hold discussions with each other from time to time with a view to ensuring the proper implementation of, and satisfactory compliance with, the provisions of this Agreement. Such discussions 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 XXII

Modification of Agreement

Any modification to this Agreement agreed pursuant to consultations held in conformity with Article XXI of this Agreement shall come into force definitively when it has been confirmed by an exchange of diplomatic notes, following the completion of the constitutional formalities required by each Contracting Party.

ARTICLE XXIII

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 consultations held in conformity with Article XXI of this Agreement.

2. If the dispute is not resolved by consultations, the Contracting Parties 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. 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 to the designated airline in default.

ARTICLE XXIV

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 XXV

Registration with ICAO

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

ARTICLE XXVI

Multilateral Conventions

If a general multilateral air convention comes into force, and to the extent that it is applicable to both Contracting Parties, the provisions of such convention shall prevail.

ARTICLE XXVII

Entry into Force

1. This Agreement shall enter into force on the date of completion of an exchange of diplomatic notes that shall state that the constitutional formalities required by each Contracting Party have been accomplished.

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

3. As regards the Kingdom of the Netherlands, this Agreement shall apply to Aruba only.

ARTICLE XXVIII

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 Oranjestad on this 16^th day of February 2005, in the English and French languages, each version being equally authentic.

Allan Culham

FOR THE GOVERNMENT OF CANADA

Nelson Oduber

FOR THE KINGDOM OF THE NETHERLANDS IN RESPECT OF ARUBA

ANNEX 1 - ROUTE SCHEDULES

ARUBA

The following route may be operated in both directions by the designated airline or airlines of Aruba.

Notes:

1. Any point or points specified above may be omitted on any or all services , but all services shall originate or terminate in Aruba..

2. The points in Canada to be named by Aruba may be changed once each IATA season on 10 days notice to the aeronautical authorities of Canada.

3. Intransit and own stopover rights shall be available at any Intermediate point or points and at the points in Canada to be named by Aruba, except that own stopover rights shall not be available between points in Canada.

4. No fifth freedom rights shall be available.

5. Subject to the regulatory requirements normally applied by the aeronautical authorities of Canada, the designated airline or airlines of Aruba may enter into co-operative arrangements for the purpose of code-sharing (i.e. selling transportation under its/their own code) on flights operated by an airline, or airlines of Canada and/or on flights operated by an airline, or airlines of third countries. All airlines in such arrangements shall hold the appropriate underlying authority. In addition the designated airline, or airlines of Aruba may operate code-sharing services to any point or points in Canada, but code-sharing by the designated airline or airlines of Aruba involving transportation between points in Canada shall be restricted to flights operated by an airline or airlines of Canada without stopover rights. All transportation between points in Canada shall only be available as part of an international journey. Notwithstanding Article III of the Agreement, and for the purpose of code-sharing, airlines shall be permitted to transfer traffic between aircraft without limitation. The aeronautical authorities of Canada shall not withhold permission for code-sharing services by the designated airline or airlines of Aruba on the basis that the airline operating the aircraft does not have the right from Canada to carry traffic under the code of the airline or airlines designated by Aruba.

CANADA

The following route may be operated in both directions by the designated airline or airlines of Canada.

Notes:

1. Any point or points specified above may be omitted on any or all services, but all services shall originate or terminate in Canada.

2. The points in Aruba to be named by Canada may be changed once each IATA season on 10 days notice to the aeronautical authorities of Aruba..

3. Intransit and own stopover rights shall be available at any Intermediate point or points and at the points in Aruba to be named by Canada, except that own stopover rights shall not be available between points in Aruba.

4. No fifth freedom rights shall be available.

5. Subject to the regulatory requirements normally applied by the aeronautical authorities of Aruba, the designated airline or airlines of Canada may enter into co-operative arrangements for the purpose of code-sharing (i.e. selling transportation under its/their own code) on flights operated by an airline, or airlines of Aruba and/or on flights operated by an airline, or airlines of third countries. All airlines in such arrangements shall hold the appropriate underlying authority. In addition the designated airline, or airlines of Canada may operate code-sharing services to any point or points in Aruba, but code-sharing by the designated airline or airlines of Canada involving transportation between points in Aruba shall be restricted to flights operated by an airline or airlines of Aruba without stopover rights. All transportation between points in Aruba shall only be available as part of an international journey. Notwithstanding Article III of the Agreement, and for the purpose of code-sharing, airlines shall be permitted to transfer traffic between aircraft without limitation. The aeronautical authorities of Aruba shall not withhold permission for code-sharing services by the designated airline or airlines of Canada on the basis that the airline operating the aircraft does not have the right from Aruba to carry traffic under the code of the airline or airlines designated by Canada.

ANNEX 2 - CHARTER FLIGHTS

1. In the performance of charter flights, air carriers of Canada and Aruba shall have the right, without a right of first refusal to designated air carriers, and on a nondiscriminatory basis, to:

a. carry traffic between any point or points in the territory of the Contracting Party of which the air carrier is a national and any point or points in the territory of the other Contracting Party, without local or stopover traffic rights between points in the territory of the other Contracting Party;

b. combine on the same aircraft international charter traffic destined to a point(s) in the territory of the other Contracting Party with traffic destined to a point(s) in a third country, without local or stopover traffic rights between the territory of the other Contracting Party and the third country and vice versa;

c. combine on the same aircraft international charter traffic originating at point(s) in the territory of the other Contracting Party with returning traffic destined to a point(s) in the territory of the Contracting Party of which the air carrier is a national and vice versa; and

d. charter the unused bellyhold space of aircraft chartered for the carriage of passengers, for the carriage of cargo.

2. Charter flights or series of charter flights shall be sold and operated in accordance with the charter regulations of the country of origin of the charter traffic. To the fullest extent possible the aeronautical authorities shall minimize the administrative burden imposed on air carriers and shall not require the filing or approval of charter prices.

3. Fees or charges for permits to operate charters applied by the aeronautical authorities of one Contracting Party to the airlines of the other Contracting Party shall be no higher than the lowest such fees or charges applied to any other air carrier operating international charters to or from that territory.