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- Each Contacting Party shall have the right to refuse to grant or to revoke an operating authorization, suspend the exercise of the rights granted in this Agreement to an Airline designated by the other Contacting Party, or impose such conditions on the exercise of these rights as it may deem necessary, where:
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- a)in the case of an Airline designated by the Government of the Kingdom of the Netherlands:
- (i)the Airline is not established in the Territory of the Kingdom of the Netherlands under the Treaty on European Union 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 Member State of the European Union 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, directly or through majority ownership, and the Airline is not effectively controlled by Member States of the European Union or the European Free Trade Association and/or by Nationals of such states; or
- (iv)the Airline is already authorized to operate under a bilateral agreement between the State of Kuwait and another Member State of the European Union and the State of Kuwait can demonstrate that, by exercising traffic rights under this Agreement on a route that includes a point in another Member State of the European Union, the Airline would be circumventing restrictions on traffic rights imposed by a bilateral agreement between the State of Kuwait and that other Member State of the European Union; or
- (v)the Airline holds an Air Operator’s Certificate issued by a Member State of the European Union and there is no bilateral Air Services agreement between the State of Kuwait and that Member State of the European Union, and that Member State of the European Union has denied traffic rights to the Airlines designated by the State of Kuwait.
- b)in the case of an Airline designated by the Government of the State of Kuwait:
- (i)the Airline is not established in the Territory of the State of Kuwait or is not licensed in accordance with the applicable laws of the State of Kuwait; or
- (ii)the State of Kuwait is not exercising or not maintaining effective regulatory control of the Airline; or
- (iii)the Airline is not owned, directly or through majority ownership, and the Airline is not effectively controlled by the State of Kuwait and/or by its nationals.
- c)in any case where the Airline fails to comply with the laws and regulations of the Contracting Party granting those privileges or otherwise fails to operate in accordance with the conditions prescribed in this Agreement, especially with Articles on Aviation Safety and Security, provided that, unless immediate suspension or imposition of conditions is considered necessary to prevent further infringement of laws and regulations or is in the interest of aviation safety, this right shall be exercised only after consultation with the other Contracting Party.
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- In the event of action by one Contracting Party under this Article, the other rights of both Contracting Parties shall not be prejudiced.
