- 1
- Each Contracting Party shall allow Tariffs for Air Services to be established by each Designated Airline based on commercial considerations in the market place, including the cost of operation, the characteristics of the service, the interests of users, a reasonable profit and other market considerations. Neither Contracting Party shall require their Designated Airlines to consult other Airlines about the Tariffs they charge or propose to charge for services covered by these arrangements.
- 2
- Each Contracting Party may, in accordance with its national laws and regulations, require notification to or filing with its Aeronautical Authorities of Tariffs to be charged to or from its Territory by Airlines of the other Contracting Party. Notification or filing by the Airlines of both Contracting Parties may be required no more than thirty (30) days before the proposed date of implementation. In individual cases, notification or filing may be permitted on shorter notice than normally required. Neither Contracting Party shall require notification or filing by Airlines of the other Contracting Party of Tariffs charged by charterers to the public, except as may be required on a non-discriminatory basis for information purposes.
- 3
- Without prejudice to the applicable competition and consumer protection laws prevailing in the Territory of each Contracting Party, neither Contracting Party shall take unilateral action to prevent the commencement or continuation of a Tariff proposed to be charged or charged by a Designated Airline of the other Contracting Party in connection with the International Air Services provided for under this Agreement. Intervention, as described in paragraph 4 of this Article, by the Contracting Parties shall be limited to:
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- a)prevention of unreasonably discriminatory Tariffs or practices;
- b)protection of consumers from Tariffs that are unreasonably high or restrictive due to the abuse of dominant position;
- c)protection of Airlines from Tariffs that are artificially low due to direct or indirect subsidy or support;
- d)protection of Airlines from Tariffs that are artificially low, where evidence exists as to an intent to eliminate competition.
- 4
- Without prejudice to the provisions of paragraph 3 of this Article, the Aeronautical Authorities of either Contracting Party may express its dissatisfaction on a Tariff submitted by one of the Designated Airlines of the other Contracting Party, where such Aeronautical Authorities find that a Tariff proposed to be charged by such Airline(s) falls within the categories set forth in subparagraphs a), b), c) or d) of paragraph 3 of this Article. In such event, the concerned Aeronautical Authority (i) shall send notification of its dissatisfaction to the Aeronautical Authorities of the other Contracting Party, and to the Airline involved, as soon as possible, and in no event later than thirty (30) days after the date of notification or filing of the Tariff in question; and (ii) may request consultations. These consultations shall be held no later than thirty (30) days after receipt of the request. The Aeronautical Authorities of both Contracting Parties shall cooperate in securing the necessary information for a reasoned resolution of the issue. If an agreement is reached with respect to a Tariff for which a notice of dissatisfaction has been given, the Aeronautical Authorities of each Contracting Party shall use their best efforts to put that agreement into effect. If such mutual agreement is not reached, the Tariff shall go into effect or continue to be in effect.
- 5
- A Tariff established in accordance with the provisions of this Article shall remain in force until a new Tariff has been established. Any Tariff approved without an expiry date shall remain in force if no other Tariff has been filed or approved until its withdrawal by the Airline concerned, or until both Contracting Parties agree that such Tariff shall not longer be in effect.
