- 1
- The Contracting Parties agree that the following Airline practices may be regarded as possible unfair competitive practices which may merit closer examination:
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- a)charging fares and rates on routes at levels which are, in the aggregate, insufficient to cover the costs of providing the services to which they relate;
- b)the addition of excessive Capacity or frequency of service;
- c)the practices in question are sustained rather than temporary;
- d)the practices in question have a serious economic effect on, or cause significant damage to, another Airline;
- e)the practices in question reflect an apparent intent or have the probable effect, of crippling, excluding or driving another Airline from the market;and
- f)behaviour indicating an abuse of dominant position on the route.
- 2
- If the Aeronautical Authorities of one Contracting Party consider that an operation or operations intended or conducted by the Designated Airline of the other Contracting Party may constitute unfair competitive behaviour in accordance with the indicators listed in paragraph 1 of this Article, they may request consultation in accordance with Article 23 (Consultations and Amendment) with a view to resolving the problem. Any such request shall be accompanied by notice of the reasons for the request, and the consultation shall begin within fifteen (15) days of the request.
- 3
- If the Contracting Parties fail to reach a resolution of the problem through consultations, either Contracting Party may invoke the dispute resolution mechanism under Article 24 (Settlement of Disputes) to resolve the dispute.
