| AGREEMENT BETWEEN THE GOVERNMENT OF INDIA AND THE GOVERNMENT OF THE NETHERLANDS RELATING TO AIR SERVICES New Delhi, 31 May 1947 The Government of India and the Government of the Netherlands, hereinafter described as the Contracting Parties, being contracting
parties to the Convention on International Civil Aviation and the International Air Services Transit Agreement, both signed at Chicago
on the seventh day of December, 1944 the terms of which Convention and Agreement are binding on both parties. CONSIDERING That it is desirable to organize international air services in a safe and orderly manner and to further as much as possible the development
of international co-operation in this field, and That it is desirable to stimulate international air travel, at the lowest rates consistent with sound economic principles, as a means
of promoting friendly understanding and goodwill among peoples and securing the many indirect benefits of this new form of transportation
to the common welfare of both countries, and That it is desirable to re-establish commercial air transport services between the Netherlands territories and India, have accordingly
appointed plenipotentiaries who, being duly authorised to this effect, have agreed as follows: Article I (A) Each Contracting Party grants to the other Contracting Party the right to operate the air services specified in the Annex to this
Agreement (hereinafter referred to as the "specified air services") and to carry traffic to, from and in transit over the
territory of the other Party as provided in this Agreement. (B) The air line designated as provided in Article II hereof shall have the right to use (1) for traffic purposes, airports provided for public use at the points specified in the Annex to this Agreement and ancillary services
provided for public use on the air routes specified in the said Annex (hereinafter referred to as the "specified air routes")
and (2) for non-traffic purposes, all airports and ancillary services provided for public use on the specified air routes, subject in
either case to such conditions as may normally be applicable thereto. Article II (A) Each of the specified air services may be inaugurated immediately or at a later date at the option of the Contracting Party to
whom the rights are granted, on condition that: (1) The Contracting Party to whom the rights have been granted shall have designated an air line (hereinafter referred to as a "designated
air line") for the specified route. (2) The Contracting Party which grants the rights shall have given the appropriate operating permission to the air line pursuant to
paragraph (C) of this Article which it shall do with the least possible delay. (B) Substantial ownership and effective control of the designated air lines of each Contracting Party shall be vested in that Party
or its nationals. (C) The designated air line may be required to satisfy the aeronautical authorities of the Contracting Party granting the rights that
it is qualified to fulfil the conditions prescribed by or under the laws and regulations normally applied to those authorities to
the operation of commercial air carriers. (D) The operation of each of the specified air services shall be subject to the agreement of the Contracting Party concerned that
the route organisation available for civil aviation on the specified air route is adequate for the safe operation of air services.
Article III (A) The air lines designated by the Netherlands Government shall, subject to the provisions of Article IV, be entitled in Indian territory
to carry, set down or pick up traffic as detailed below: (1) Traffic embarked in or destined for the Netherlands or the Netherlands East Indies. (2) Traffic between any two countries other than the Netherlands, the Netherlands East Indies and India carried in transit across
Indian territory and not embarked or disembarked in India. (3) Traffic embarked in the territory of a third country and destined for India, and traffic embarked in India arid destined for a
third country. (B) The air lines designated by the Government of India shall, subject to the provisions of Article IV, be entitled in Netherlands
territory to carry, set down or pick up traffic as detailed below: (1) Traffic embarked in or destined for India. (2) Traffic between any two countries other than Inclia and the Netherlands or the Netherlands East Indies carried in transit across
Netherlands territory and not embarked or disembarked in that territory. (3) Traffic embarked in the territory of a third country and destined for the Netherlands or the Netherlands East Indies and traffic
embarked in the Netherlands or the Netherlands East Indies and destined for a third country. Article IV In order to achieve and maintain equilibrium between t]he capacity of the specified air services and the requirements of the public
for air transport on the specified air routes or sections thereof and in order to achieve and maintain proper relationship between
the specified air services inter se and between those air services and other air services operating on the specified air routes or
sections thereof, the Contracting Parties agree as follows: (A) The air lines of each Contracting Party shall enjoy eqqual rights in the operation of air services for the carriage of traflfic
between the territories of the two parties. (B) To the extent that the air lines of one of the Contractiing Parties are temporarily unable to make use of the rights ref'erred
to in paragraph (A), the situation will be mutually examined by the two Parties for the purpose of aiding as soon as possible the
air lines concerned increasingly to make their proper contribution to the services contemplated. (C) In the operation by the air lines of either Contracting Party of the specified air services the interests of the air lines of
the other Party shall be taken into consideration so as not to affect unduly the services which the latter provide on all or part
of the same route. (D) The air transport offered by the air lines of each Contracting Party on different sections of the specified air routes shall bear
a close relationship to the needs of the public for air transport and to the traffic interests of the air lines concerned as defined
in this Agreement. (E) The services provided by a designated air line under this Agreement shall retain as their primary objective the provision jointly
with the air lines of the other States concerned) of capacity adequate to the traffic demands between the country of which such air
line is a national and the country of ultimate destination of the traffic, and the right of the air lines of either Party to embark
and to disembark at points in the territory of the other Party international traffic destined for or coming from third countries
shall be applied in accordance with the general principles of orderly development to which both Parties subscribe and shall be subject
to the general principle that capacity shall be related: (1) to the requirements of traffic between the country of origin of the air service and destinations on the specified air routes,
(2) to the air transport needs of the area through which the air line passes, and (3) to the adequacy of other air transport services established by air lines of the States concerned between their respective territories.
Article V When, for the purpose of economy of onward carriage of through traffic, different aircraft are used on different sections of a specified
air route, with the point of change in the territory of one of the Contracting Parties, such change of aircraft shall not affect
the provisions of this Agreement relating to the capacity of the air service and the carriage of traffic. In such cases the second
aircraft shall be scheduled to provide a connecting service with the first aircraft, and shall normally await its arrival. Article
VI (A) Rates shall be fxed at reasonable levels, due regard being paid to all relevant factors, including costs of comparable economical
operators, reasonable profit, differences of characteristics of service and the rates charged by any other operators on the route.
(B) The rates to be charged by any of the air lines designated under this agreement in respect of traffic between the territories
of the two Parties shall be agreed in the first instance between the designated air lines in consultation with other air lines operating
on the route or any section thereof, and shall have regard to relevant rates adopted by the International Air Transport Association.
Any rates so agreed shall be subject to the approval of the aeronautical authorities of the Contracting Parties. In the event of
disagreement between the air lines, the Contracting Parties themselves shall endeavour to reach agreement and will take all necessary
steps to give effect to such agreement. Should the Contracting Parties fail to agree, the dispute shall be dealt with in accordance
with Article XI. Pending the settlement of any disagreement or until the International Civil Aviation Organization has rendered a
report in pursuance of Article XI the rates already established shall prevail. (C) Pending the acceptance by both Parties of any recommendations which the International Civil Aviation Organization may make with
regard to the regulation of rates for traffic other than that defined in paragraph (B) of this Article, the rates to be charged by
an air line of one Contracting Party in respect of traffic between the territory of the other Contracting Party and a third country
shall be fixed on the basis of the principles set out in paragraph (A) of this Article and after taking into consideration the interests
of the air lines of the other Party and shall not vary unduly in a discriminatory manner from the rates established by the air lines
of the other Party operating air services on that part of the specified air routes concerned. Provided, however, that a designated
air line under the Agreement shall not be required to charge rates higher than those established by any other air line operating
on the specified air routes. (D) If the International Civil Aviation Organization fails to establish a means of determining rates for traffic defined in paragraph
(C) of this Article in a manner acceptable to both Parties, within a reasonable time, consultation shall be inaugurated in accordance
with Article X of this Agreement with a view to such modification of paragraph (C) of this Article as appears desirable. Article VII (A) The aeronautical authorities of both Contracting Parties shall exchange information as promptly as possible concerning the authorizations
extended to their respective designated air lines to render service to, through and from the territory of the other Contracting Party.
This will include copies of current certificates and authorizations for service on the specified air routes, together with amendments,
exemption orders and authorised service patterns. (B) Each Contracting Party shall cause its designated air lines to provide to the aeronautical authorities of the other Contracting
Party, as long in advance as practicable, copies of time tables, tariff schedules and all other relevant information concerning the
operation of the specified air services and of all modifications thereof. (C) Each Contracting Party shall cause its designated air lines to provide to the aeronautical authorities of the other Contracting
Party statistics relating to the traffic carried on their air services to, from or over the territory of the other Contracting Party
showing the origin and destination of the traffic. Article VIII (A) Fuel, lubricating oils and spare parts introduced into or taken on board aircraft in the territory of one Contracting Party by,
or on behalf of, the other Contracting Party or its designated air lines and intended solely for use by the latter's aircraft shall
be accorded, with respect to customs duty. inspection fees or other charges imposed by the former Contracting Party, treatment not
less favourable than that granted to its national air lines engaged in international public transport or to the air lines of the
most favoured nation. (B) Supplies of fuel, lubricating oils, spare parts, regular equipment and aircraft stores retained on board aircraft of the designated
air lines of one Contracting Party shall be exempt in the territory of the other Contracting Party from customs duties, inspection
fees or similar duties or charges, even though such supplies be used by such aircraft on flights in that territory. Goods so exempted
may only be unloaded with the approval of the customs authorities of the other Contracting Party. These goods, which are to be re-exported, shall be kept until re-exportation under customs
supervision. Article IX Each Contracting Party reserves the right to itself to withhold or revoke, or impose such appropriate conditions as it may deem necessary
with respect to, an operating permission in case of failure by a designated air line of the other Party to comply with the laws and
regulations of the former Party, or in case, in the judgement of the former Party, there is a failure to fulfil the conditions under
which the rights are granted in accordance with this Agreement. Except in case of a failure to comply with laws and regulations,
such action shall be taken only after consultation between the Parties. In the event of action by one Party under this Article, the
rights of the other Party under Article XI shall not be prejudiced. Article X (A) In a spirit of close collaboration, the aeronautical authorities of the two Contracting Parties will consult regularly with a
view to assuring the observance of the principles and the implementation of the provisions outlined in this Agreement. (B) Either Contracting Party may at any time request consultation with the other with a view to initiating any amendments of this
Agreement which may be desirable in the light of experience. Such consultation shall begin within a period of sixty days from the
date of the request. Any modification of this Agreement agreed to as a result of such consultation shall come into effect when it
has been confirmed by an exchange of diplomatic notes. When the procedure for consultation provided for in paragraph (B) of this Article has been initiated, either Contracting Party may
at any time give notice to the other of its desire to terminate this Agreement as provided in paragraph (E) of this Article. Such
notice shall be simultaneously communicated to the International Civil Aviation Organization. (D) Changes made by either Contracting Party in the specified air routes, except those which change the points served by the designated
air lines in the territory of the other Contracting Party, shall not be considered as modifications of this Agreement. The aeronautical
authorities of either Contracting Party may, therefore, proceed unilaterally to make such changes, provided, however, that notice
of any change shall be given without delay to the aeronautical authorities of the other Contracting Party. If such latter aeronautical
authorities find that, having regard to the principles set forth in Article IV of this Agreement, the interests of any of their air
lines are prejudiced by the carriage by a designated air line of the first Contracting party of traffic between the territory of
the second Contracting Party and the new point in the territory of a third country, the latter Party may request consultation in
accordance with the provisions of paragraph (B) of this Article. (E) This Agreement shall terminate one year after the date of receipt by the other Contracting Party of the notice to terminate, unless
the notice is withdrawn by agreement before the expiration of this period. In the absence of acknowledgement of receipt by the other
Contracting Party, notice shall be deemed to have been received fourteen days after the receipt of the notice by the International
Civil Aviation Organization. Article XI Any dispute between the Contracting Parties relating to the interpretation or application of this Agreement, which cannot be settled
through consultation, shall be referred for decision to the Council of the International Civil Aviation Organization, in accordance
with the provisions of Chapter XVIII of the Convention on International Civil Aviation signed at Chicago on December 7, 1944, unless
the Contracting Parties agree to settle the dispute by reference to ar Arbitral Tribunal appointed by agreement between the Contracting
Parties, or to some other person or body. The Contracting Parties undertake to comply with the decision given. Article XII This Agreement shall come into force on the day it is signed. The Agreement and all relative contracts shall be registered with the
International Civil Aviation Organization set up by the Convention on International Civil Aviation signed at Chicago on December
7, 1944. Article XIII (A) In the event of the conclusion of a multilateral convention or agreement concerning air transport to which both contracting Parties
adhere, this Agreement shall be modified to conform with the provisions of such convention or agreement. (B) For the purpose of this Agreement the terms "territory", "air service", "international air service"
& "air line" shall have the meaning specified in the Convention on International Civil Aviation signed at Chicago on
December 7, 1944. (C) The term "aeronautical authorities" shall mean, in the case of India, the Director-General of Civil Aviation in India,
and in the case of the Netherlands, the Director-General of Civil Aviation in the Netherlands or the Director of Civil Aviation in
the Netherlands East Indies as may be appropriate, and in both cases any person or body authorised to perform the functions presently
exercised by the above-mentioned authorities. (D) The Annex to this Agreement shall be deemed to be part of the Agreement and all references to the "Agreement" shall
include references to the Annex, except where otherwise expressly provided. IN WITNESS WHEREOF the undersigned plenipotentiaries,
being duly authorised thereto by their respective Governments, have signed the present Agreement. DONE this thirty-first day of May 1947 in duplicate at New Delhi in the English language. For the Government of India: JAWAHARLAL NEHRU Member for External Affairs A.R. NISHTAR Member for Communications These signatures are appended in agreement with His Majesty's Representative for the exercise of the functions of the Crown in its
relations with the Indian States. For the Government of the Netherlands: A.M.N. Winkelman Charge d'Affairs ad interim of the Netherlands Embassy ANNEX An airline designated by the Netherlands Government shall b entitled to operate air services on each of the routes specified and to
make scheduled landings in India at the points specified in this paragraph. Route 1: The Netherlands through Europe, the Near East, and Iran to Karachi, Delhi and Calcutta, thence to a point in Burma, a point
in Siam, a point in Malaya to the Netherlands East Indies; via intermediate points and beyond in both directions. Route 2: The Netherlands East Indies through Malaya, Siam and Burma to Calcutta; via intermediate points in both directions. 2. An air line designated by the Government of India shall be entitled to operate air services on each of the routes specified in
this paragraph: Route 1: India through the Near East and Europe to Amsterdam or Rotterdam; via intermediate points and beyond in both directions.
Route 2 : Indict through Burma, Siam and Malaya to Batavia, Sourabaya, Koepang; via intermediate points and beyond in both directions.
3. (a) Points on any of the specified routes may, at the option of the designated air line, be omitted on any or all flights. (b) If, at any time, scheduled flights on any of the specified air services of one Contracting Party are operated so as to terminate
in the territory of the other Contracting Party and not as part of a through air service extending beyond such territory, the latter
party shall have the right to nominate the terminal point of such scheduled flights on the specified air route in its territory.
The latter Party shall give not less than six months notice to the other Party if it decides to nominate a new terminal point for
such scheduled flights. | 