- 1
- Either Contracting Party may, temporarily or permanently, withhold, revoke, suspend or limit the operating authorizations or technical permissions of an Airline designated by the other Contracting Party, when:
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- a)in the case an Airline in the European part of the Netherlands is designated by the Netherlands:
- (i)the Airline is not established in the Territory of the Netherlands under European Union Treaties or does not have a valid Operating License in accordance with European Union law; or
- (ii)effective regulatory control of the Airline is not exercised or not maintained by the European Union Member State responsible for issuing its Air Operator’s Certificate or the relevant Aeronautical Authority is not clearly identified in the designation; or
- (iii)the Airline is not owned and/or continues not to be owned, directly or through majority ownership, by European Union Member States and/or nationals of European Union Member States, or by other States listed in the í of this Agreement and/or nationals of such other states, and is not effectively controlled by such states and/or nationals of such states; or
- (iv) the Airline holds an Air Operator’s Certificate issued by another European Union Member State or a State listed in the i of this Agreement, and the Republic of Chile considers that, by exercising traffic rights under this Agreement the Airline would be circumventing restrictions on traffic rights imposed by a bilateral agreement between the Republic of Chile and that other State; or
- (v)the Airline holds an Air Operator’s Certificate issued by another European Union Member State or a State listed in the Annex of this Agreement, and there is no bilateral air services agreement between the Republic of Chile and that European Union Member State or other States listed in the Annex to this Agreement. In exercising its right under this paragraph, the Republic of Chile shall not discriminate between the Airlines designated by the Netherlands on the grounds of nationality.
- b)in the case an Airline in the Caribbean part of the Netherlands is designated by the Netherlands:
- (i)the Airline is not established in the Caribbean part of the Netherlands or does not have a valid Operating License in accordance with the appropriate legislation for the Caribbean part of the Netherlands; or
- (ii)effective regulatory control of the Airline is not exercised or not maintained by the Netherlands; or
- (iii)the Airline is not owned, directly or through majority ownership, or is not effectively controlled by residents of the Caribbean part of the Netherlands with Dutch nationality;
- c)in the case an Airline is designated by the Republic of Chile:
- (i)the Airline is not established in the Territory of the Republic of Chile or has no valid Operating License in accordance with applicable law of the Republic of Chile; or
- (ii)effective regulatory control of the Airline is not exercised or not maintained by the Republic of Chile; or
- (iii)the Airline is not incorporated and does not have its principal place of business in the Territory of the Republic of Chile.
- d)in case that Airline has failed to comply with the laws and regulations referred to in Article 12 (Application of Laws, Regulations and Procedures) of this Agreement;
- e)in case the other Contracting Party is not maintaining and administering the standards set forth in Article 8 (Fair Competition), Article 14 (Safety) and Article 15 (Aviation Security) of this Agreement; or
- f)in the event such Airline fails to qualify before the Aeronautical Authorities of the Contracting Party assessing the authorization, under the laws and regulations normally and reasonably applied to the operation of International Air Services by these Authorities in conformity with the Convention; or
- g)in case the Airline otherwise fails to operate in accordance with the conditions prescribed under this Agreement.
- 2
- Unless immediate action is essential to prevent further non-compliance with the conditions referred to in paragraph 1 of this Article, the rights established by this Article shall be exercised only after consultation with the other Contracting Party. Unless otherwise agreed by the Contracting Parties, such consultations shall begin within a period of sixty (60) days from the date of receipt of the request.
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- This Article does not limit the rights of either Contracting Party to withhold, revoke, suspend, limit or impose conditions on the operating authorization of an Airline or Airlines of the other Contracting Party in accordance with the provisions of Article 14 (Safety) and Article 15 (Aviation Security) of this Agreement.
