- 1
- For the purposes of these arrangements the term “Prices” means the prices to be paid for the carriage of passengers, baggage and freight and the conditions under which those prices apply, including prices and conditions for agency and other auxiliary services, but excluding remuneration or conditions for the carriage of mail.
- 2
- Each Contracting Party shall allow Prices for Air Services to be established by each Designated Airline individually based upon commercial considerations in the market place. Neither Contracting Party shall require their Airline to consult other Airlines about the Prices they charge or propose to charge for services covered by these arrangements.
- 3
- Neither Contracting Party shall require notification of any Prices to be charged by the Designated Airline of the other Contracting Party. For the avoidance of doubt, this includes Prices to be charged by the Designated Airline of the other Contracting Party for carriage between the first Contracting Party and a third State. Prices may remain in effect unless subsequently disapproved under paragraph 5 or 6 below.
- 4
- Intervention by the Contracting Parties shall be limited to:
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- a)the protection of consumers from Prices that are excessive due to the misuse of a dominant position;
- b)the prevention of Prices whose application constitutes anti-competitive behaviour which has or is likely to have or is explicitly intended to have the effect of preventing, restricting or distorting competition or excluding a competitor from the route.
- c)the protection of Airlines from prices that are artificially low due to direct or indirect subsidy or support; and
- d)the protection of Airline from prices that are artificially low, where evidence exists as to an intent to eliminate competition.
- 5
- Each Contracting party may unilaterally disallow any Price filed or charged by its own Designated Airline. However, such intervention shall be made only if it appears to the Aeronautical Authority of that Contracting party that a Price charged or proposed to be charged meets any of the criteria set out in paragraph 4 above.
- 6
- Neither Contracting Party shall take unilateral action to prevent the coming into effect or the continuation of a Price charged or proposed to be charged by an Airline of the other Contracting Party. If one Contracting Party believes that any such Price is inconsistent with the considerations set out in paragraph 4 above, it may request consultations to notify the other Contracting Party of the reasons for its dissatisfaction. These consultations shall be held not later than 14 days after receipt of the request. Without a mutual agreement the current Price shall continue to be in effect and the new Price shall not take effect or shall cease to be in effect.
- 7
- Notwithstanding the provisions of this Article, the Prices to be charged by the Designated Airline of either Contracting Party for carriage wholly within the European Union shall be subject to European Union law.
