Air Services Agreement Between The Government Of The Republic Of Latvia And The Government Of The Republic Of Croatia

 

The Government of the Republic of Latvia and the Government of the Republic of Croatia, hereinafter referred to as the Contracting Parties,

Being Parties to the Convention on International Civil Aviation opened for signature at Chicago on the seventh day of December, 1944,

Desiring to conclude an Agreement for the purpose of establishing air services between and beyond their respective territories,

have agreed as follows:

Article 1

DEFINITIONS

1. For the purpose of this Agreement, unless the context otherwise requires:

a) the term "Convention" means the Convention on International Civil Aviation opened for signature at Chicago on the seventh day of December, 1944 and includes any Annexes adopted under Article 90 of that Convention and any amendment of the Annexes or Convention under Articles 90 and 94 thereof, which have been adopted by both Contracting Parties;

b) the term "aeronautical authorities" means, in the case of the Republic of Latvia, the Ministry of Transport or any person or body authorized to perform any functions exercised by the said Ministry and in the case of the Republic of Croatia, the Ministry of Maritime Affairs, Transport and Communications or any person or body authorized to perform any functions exercised by the said Ministry;

c) the term "designated airline(s)" means airlines which have been designated and authorized in accordance with Article 3 of this Agreement;

d) the term "territory" has the meaning specified in Article 2 of the Convention;

e) the terms "air services" , "international air service" , "airline" and "stop for non-traffic purposes" have the meanings specified in Article 96 of the Convention;

f) the term "capacity" means;

• in relation to an aircraft, the payload of that aircraft available on the route or section of a route,

• in relation to a specified air service, the capacity of the aircraft used on such service multiplied by the frequency operated by such aircraft over a given period and route or section of a route;

g) the term "tariff" means the price to be charged for the carriage of passengers, baggage or cargo (excluding mail), including any significant additional benefits to be furnished or made available in conjunction with such carriage, and the commission to be paid on the sales of tickets for the carriage of persons, or on corresponding transaction for the carriage of cargo. It includes also the conditions that govern the applicability of the price for carriage or the payment of commission.

2. The Annex to this Agreement forms an integral part of the Agreement and any reference to this Agreement shall include reference to the Annex unless otherwise provided.

3. Titles given to the Articles of this Agreement are for reference purposes only.

Article 2

RAFFIC RIGHTS

1. Each Contracting Party grants to the other Contracting Party the rights specified in this Agreement, for the purpose of establishing scheduled international air services on the routes specified in Annex to this Agreement. The airlines designated by each Contracting Party shall enjoy, while operating an agreed service on a specified route, the following rights:

a) to fly without landing across the territory of the other Contracting Party,

b) to make stops in the said territory for non-traffic purposes; and

c) to make stops in the territory at the points specified for that route in Annex to this Agreement for the purpose of putting down and taking up international traffic.

2. Nothing in paragraph (1) of this Article shall be deemed to confer on the designated airline(s) of one Contracting Party the privilege of taking up, in the territory of the other Contracting Party, traffic carried for remuneration or hire and destined for another point in the territory of that other Contracting Party.

Article 3

OPERATING AUTHORIZATIONS

1. Each Contracting Party shall have the right to designate in writing to the other Contracting Party an airline or airlines for the purpose of operating air services on the specified routes.

2. On receipt of such designation, the other Contracting Party shall, subject to the provisions of paragraphs (3) and (4) of this Article, without delay grant to the designated airline the appropriate operating authorizations.

3. The aeronautical authorities of one Contracting Party may require an airline designated by the other Contracting Party to satisfy them that it is qualified to fulfil the conditions prescribed under the laws and regulations normally and reasonably applied to the operation of international air services by such authorities.

4. Each Contracting Party shall have the right to refuse to grant the operating authorizations referred to in paragraph (2) of this Article or to impose such conditions as it may deem necessary, in any case where the said Contracting Party is not satisfied that substantial ownership and effective control of that airline are vested in the Contracting Party designating the airline or in its nationals.

5. When an airline has been so designated and authorized it may begin at any time to operate air services, provided that tariffs and flight schedules are established in accordance with the provisions of Article 13 and Article 14 of this Agreement.

Article 4

REVOCATION AND SUSPENSION

OF OPERATING AUTHORIZATIONS

1. Each Contracting Party shall have the right to revoke an operating authorization or to suspend the exercise of the rights specified in Article 2 of this Agreement by an airline designated by the other Contracting Party or to impose such conditions as it may deem necessary on the exercise of these rights:

a) in any case where it is not satisfied that substantial ownership and effective control of that airline are vested in the Contracting Party designating the airline or in its nationals, or

b) in case of failure by that airline to comply with the laws or regulations of the Contracting Party granting these rights, or

c) in case the airline otherwise fails to operate in accordance with the conditions prescribed under this Agreement.

2. Unless immediate revocation, suspension or imposition of the conditions mentioned in paragraph (1) of this Article is essential to prevent further infringements of laws or regulations, such right shall be exercised only after consultation between the aeronautical authorities of the Contracting Parties.

Such consultations shall take place within thirty (30) days of the receipt of notice.

Article 5

APPLICATION OF LAWS AND REGULATIONS

1. The laws and regulations of a Contracting Party relating to the admission to, stay in, or departure from its territory of aircraft engaged in international air navigation, or to the operation and navigation of such aircraft while within its territory, shall be applied to the aircraft of both Contracting Parties without distinction as to nationality, and shall be complied with by such aircraft upon entering or departing from or while within the territory of that Contracting Party.

2. The laws and regulations of a Contracting Party relating to the admission to, stay in, or departure from its territory of passengers, crew, cargo and mail transported on board the aircraft, such as regulations relating to entry, clearance, immigration, passports, customs and sanitary control shall be complied with by or on behalf of such passengers, crew, cargo and mail upon entrance into or departure from or while within the territory of that Contracting Party.

Article 6

RECOGNITION OF CERTIFICATES AND LICENCES

1. Certificate of airworthiness, certificate of competency and licences issued or rendered valid by one Contracting Party shall, during the period of their validity, be recognized as valid by other Contracting Party, provided that the requirements under which such certificates or licences were issued or rendered valid are equal to or above the minimum standards which may be established pursuant to the Convention.

2. Each Contracting Party reserves the right, however, to refuse to recognize as valid, for the purpose of flights over its own territory, certificate of competency and licences granted to or rendered valid for its own nationals by the other Contracting Party or by any other State.

Article 7

EXEMPTION FROM CUSTOMS

AND OTHER DUTIES AND TAXES

1. Aircraft operated on international air services by the designated airline of either Contracting Party, as well as their regular equipment, supplies of fuels and lubricants, and aircraft stores (including food, beverages and tobacco) on board, such aircraft shall be exempt from all customs duties, inspection fees and other duties or taxes on arriving in the territory of the other Contracting Party, provided such equipment and supplies remain on board the aircraft up to such time as they are re-exported or they are used on board of the aircraft on the part of the journey to be performed over that territory.

2. There shall also be exempt from the same duties and taxes, with the exception of charges corresponding to the service performed:

a) aircraft stores taken on board in the territory of either Contracting Party, within limits fixed by the authorities of said Contracting Party, and for use on board of the aircraft of the designated airline engaged in an international service of the other Contracting Party,

b) spare parts and regular equipment entered into the territory of either Contracting Party for the maintenance or repair of aircraft used on international services by the designated airline of the other Contracting Party,

c) fuel and lubricants destined to supply aircraft operated on international services by designated airline of the other Contracting Party, even when these supplies are to be used on the part of the journey to be performed over the territory of the Contracting Party in which they are taken on board.

3. Materials and equipment referred to in paragraph 2 above may be required to be under Customs supervision or control.

4. The regular airborne equipment, as well as the materials and supplies retained on board the aircraft of the designated airline(s) of either Contracting Party may be unloaded in the territory of the other Contracting Party only with the approval of the Customs authorities of such territory. In such case, they may be placed under the supervision of said authorities up to such time as they are re-exported or otherwise disposed of in accordance with customs regulations.

Article 8

USER CHARGES

1. Each Contracting Party may impose or permit to be imposed just and reasonable fees and charges for the use of airports and other facilities under its control.

2. Fees and charges for the use of airports and other aviation facilities imposed by the competent authorities in the territory of either Contracting Party on the aircraft of any airline of the other Contracting Party shall not be higher than those imposed on aircraft of a national airline engaged in similar international air services.

Article 9

DIRECT TRANSIT TRAFFIC

Passengers, baggage and cargo in direct transit across the territory of one Contracting Party and not leaving the area of the airport reserved for such purpose shall be subject to no more than a simplified control except in respect of security measures against violence, air piracy and smuggling of controlled drugs. Baggage and cargo in direct transit shall be exempt from customs duties and other charges.

Article 10

FINANCIAL PROVISIONS

1. Each designated airline shall have the right to sell and issue its own transportation documents in the territory of the other Contracting Party directly and, at its discretion, through its agents. Such airlines shall have the right to sell such transportation, and any person shall be free to purchase such transportation in local and/or convertible currency.

2. Each designated airline shall have the right to convert and remit to its country on demand, at the official rate of exchange, the excess of receipts over expenditures achieved in connection with the carriage of passengers, cargo and mail. In the absence of the appropriate provisions of a payments agreement between the Contracting Parties, the above mentioned transfer shall be made in convertible currencies and in accordance with the national laws and foreign exchange regulations applicable.

3. Income and profits from the operation of the agreed services shall be taxable only in the territory of the Contracting Party where the principal place of business of the concerned designated airline is. Where a special agreement for the avoidance of double taxation with respect to taxes on income and on capital exists between the Contracting Parties, the provisions of the latter shall prevail.

Article 11

REPRESENTATION

1. Each Contracting Party shall grant the designated airline(s) of the other Contracting Party the right to bring and maintain on its territory, without work permits, for the performance of the agreed services, the technical and commercial personnel as may be required by the extent of such services. The personnel above shall be subject to the regulations of that Contracting Party for admission to and stay in the territory of that Contracting Party.

2. Each Contracting Party shall, on a reciprocal basis and in accordance with the applicable laws and regulations, allow each designated airline of the other Contracting Party to perform its own handling of passengers, baggage and cargo (self-handling) in the territory of the first Contracting Party. This right is subject to capacity limitations at the airport concerned and does not include air-side ground handling services (aircraft ground handling).

Article 12

CAPACITY PROVISIONS

1. There shall be fair and equal opportunity for the designated airline(s) of each Contracting Party to operate air services on any route specified in the Annex to this Agreement.

2. In the operation of air services on the routes specified in the Annex to this Agreement the designated airline(s) of each Contracting Party shall take into account the interests of the designated airline(s) of the other Contracting Party so as not to affect unduly the air services which the latter airlines operate.

3. The air services provided by a designated airline(s) shall retain as their primary objective the provision of capacity adequate to current and reasonably anticipated requirements for the carriage of passengers, mail and freight, coming from or destined for the territory of the Contracting Party designating the airline.

4. This right to take up or discharge on the agreed services international traffic destined for and coming from third countries at a point or points on the routes specified in the Annex to this Agreement shall be exercised in accordance with the general principles of orderly development of international air transport and shall be subject to the general principle that capacity should be related to:

a) the traffic requirements between the country of origin and the countries of ultimate destination of the traffic;

b) the requirements of through airline operations; and

c) the traffic requirements of the area through which the airlines passes after taking account of local and regional services.

Article 13

ESTABLISHMENT OF TARIFFS

1. The tariffs to be charged by the airlines of one Contracting Party for carriage to or from the territory of the other Contracting Party shall be established at reasonable levels, due regard being paid to all relevant factors including cost of operation, reasonable profit and the tariffs of other airlines.

2. The tariffs referred to in Article 1 of this Agreement and in paragraph (1) of this Article shall, be agreed by the designated airline(s) of both Contracting Parties after consultation with the other airlines operating over the whole or part of the route, and such agreement shall, wherever possible, be reached by the use of the procedures of the International Air Transport Association for the working out of tariffs.

3. The tariffs so agreed shall be submitted for the approval of the aeronautical authorities of both Contracting Parties at least thirty (30) days before the proposed date of their introduction.

In special cases, this period may be reduced, subject to the agreement of the said authorities.

4. This approval may be given expressly. If neither of the aeronautical authorities has expressed disapproval within twenty (20) days from the date of submission, in accordance with paragraph (3) of this Article, these tariffs shall be considered as approved. In the event of the period for submission being reduced, as provided for in paragraph (3), the aeronautical authorities may agree that the period within which any disapproval must be notified shall be less than thirty (30) days.

5. If a tariff cannot be agreed in accordance with paragraph (2) of this Article, or one aeronautical authority gives the other aeronautical authority notice of its disapproval of any tariff agreed in accordance with the provisions of paragraph (2), the aeronautical authorities of the Contracting Parties shall endeavour to determine the tariff by mutual agreement.

6. If the aeronautical authorities can not agree on any tariff submitted to them under paragraph (3) of this Article, or on the determination of any tariff under paragraph (5) of this Article, the dispute shall be settled in accordance with the provisions of Article 22 of this Agreement.

7. A tariff established in accordance with the provisions of this Article shall remain in force until a new tariff has been established. Nevertheless, a tariff shall not be prolonged by virtue of this paragraph for more than twelve (12) months after the date on which it otherwise would have expired.

Article 14

SUBMISSION OF THE TRAFFIC PROGRAMMES

1. Airlines designated by a Contracting Party shall notify the aeronautical authorities of the other Contracting Party their traffic programmes at least thirty (30) days prior to the beginning of the operation. The programme shall include in particular the timetables, the frequency of the services and the types of aircraft to be used.

2. Any alternation made in an air traffic programme at a later date shall also be notified.

Article 15

AVIATION SECURITY

1. Consistent with their rights and obligations under international law, the Contracting Parties reaffirm that their obligation to each other to protect the security of civil aviation against acts of unlawful interference forms an integral part of this Agreement. Without limiting the generality of their rights and obligations under international law, the Contracting Parties shall in particular act in conformity with the provisions of the Convention on Offences and Certain Other Acts Committed on Board Aircraft, signed at Tokyo on 14 September 1963, the Convention for the Suppression of Unlawful Seizure of Aircraft, signed at the Hague on 16 December 1970 and the Convention for the Suppression of Unlawful Acts Against the Safety of Civil Aviation, signed at Montreal on 23 September 1971 and its amendment in the Protocol for the Suppression of Unlawful Acts of Violence at Airports, signed in Montreal on 24 February 1988 and all other international instruments in the same field which may be ratified in the future by the Contracting States.

2. The Contracting Parties shall provide upon request, all necessary assistance to each other to prevent acts of unlawful seizure of civil aircraft and other unlawful acts against the safety of such aircraft, their passengers and crew, airports and air navigation facilities, and any other threat to the security of civil aviation.

3. The Contracting Parties shall, in their mutual relations, act in conformity with the aviation security provisions established by the International Civil Aviation Organization and designated as Annexes to the Convention, to the extent that such security provisions are applicable to the Contracting Parties; they shall require that operators of aircraft of their registry or operators of aircraft who have their principal place of business or permanent residence in their territory and the operators of airports in their territory act in conformity with such aviation security provisions.

4. Each Contracting Party agrees that such operators of aircraft may be required to observe the aviation security provisions referred to in paragraph 3 above, required by the other Contracting Party for entry into, departure from, or while within, the territory of that other Contracting Party.

5. Each Contracting Party shall ensure that adequate measures are effectively applied within its territory to protect the aircraft and to inspect passengers, crew, carry-on items, baggage, cargo and aircraft stores prior to and during boarding or loading. Each Contracting Party shall also give positive consideration to any request from the other Contracting Party for reasonable special security measures to meet a particular threat.

6. When an incident or threat of an incident of unlawful seizure of civil aircraft or other unlawful acts against the safety of such aircraft, their passengers and crew, airports or air navigation facilities occurs, the Contracting Parties shall assist each other by facilitating communications and other appropriate measures intended to terminate rapidly and safely such incident or threat thereof.

7. Should one Contracting Party have problems with regard to the aviation security provisions of this Article, the aeronautical authorities of either Contracting Party may request immediate consultations with the aeronautical authorities of the other Contracting Party.

Article 16

AVIATION SAFETY

1. Each Contracting Party may request consultations at any time concerning safety standards in any area relating to aircrew, aircraft or their operation adopted by the other Contracting Party. Such consultations shall take place within thirty (30) days of that request.

2. If, following such consultations, one Contracting Party finds that the other Contracting Party does not effectively maintain and administer safety standards in any such area that are at least equal to the minimum standards established at that time pursuant to the Convention, the first Contracting Party shall notify the other Contracting Party of those findings and the steps considered necessary to conform with those minimum standards, and that other Contracting Party shall take appropriate corrective action. Failure by the other Contracting Party to take appropriate action within fifteen (15) days or such longer period as may be agreed, shall be cause for the application of Article 4 of this Agreement.

3. Notwithstanding the obligations mentioned in Article 33 of the Convention it is agreed that any aircraft operated by the designated airline(s) on services to or from the territory of the other Contracting Party may, while within the territory of the other Contracting Party, be made the subject of an examination by the authorized representatives of the other Contracting Party, on board and around the aircraft to check both the validity of the aircraft documents and those of its crew and the apparent condition of the aircraft and its equipment (ramp inspection), provided this does not lead to unreasonable delay.

4. If any such ramp inspection or series of ramp inspections gives rise to:

a) serious concerns that an aircraft or the operation of an aircraft does not comply with the minimum standards established at that time pursuant to the Convention, or

b) serious concerns that there is a lack of effective maintenance and administration of safety standards established at that time pursuant to the Convention,

the Contracting Party carrying out the inspection shall, for the purposes of Article 33 of the Convention, be free to conclude that the requirements under which the certificate or licences in respect of that aircraft or in respect of the crew of that aircraft had been issued or rendered valid, or that the requirements under which that aircraft is operated, are not equal to or above the minimum standards established pursuant to the Convention.

5. In the event that access for the purpose of undertaking a ramp inspection of an aircraft operated by the designated airline(s) in accordance with paragraph 3 above is denied by the representative of the airline concerned, the other Contracting Party shall be free to infer that serious concerns of the type referred to in paragraph 4 above arise and draw the conclusions referred in that paragraph.

6. Each Contracting Party reserves the right to suspend or vary the operating authorization of an airline or airlines of the other Contracting Party immediately in the event the first Contracting Party concludes, whether as a result of a ramp inspection, a series of ramp inspections, a denial of access for ramp inspection, consultation or otherwise, that immediate action is essential to the safety of an airline operation.

7. Any action by one Contracting Party in accordance with paragraph 2 or 6 above shall be discontinued once the basis for the taking of that action ceases to exist.

Article 17

INFORMATION AND STATISTICS

The aeronautical authorities of either Contracting Party shall supply to the aeronautical authorities of the other Contracting Party, at their request, such periodic or other statements of statistics as may be reasonably required for the purpose of reviewing the capacity provided on air services by the designated airline(s) of the first Contracting Party. Such statements shall include all information required to determine the amount of traffic carried by those airlines on air services and the origins and destinations of such traffic.

Article 18

CONSULTATIONS

In a spirit of close co-operation, the aeronautical authorities of the Contracting Parties shall consult each other from time to time with a view to ensuring the implementation of, and satisfactory compliance with, the provisions of this Agreement and the Annex thereto.

Article 19

MODIFICATIONS

1. If either of the Contracting Parties considers it desirable to modify any provision of this Agreement, it may request consultation with the other Contracting Party; such consultation, which may be between the aeronautical authorities and which may be through discussion or by correspondence, shall begin within a period of sixty (60) days of the date of the request. Any modifications so agreed shall come into force in accordance with provision of the Article 24 of this Agreement.

2. Modifications to the Annex may be made by direct agreement between the aeronautical authorities of the Contracting Parties.

Article 20

CONFORMITY WITH

MULTILATERAL CONVENTIONS

This Agreement and its Annex will be amended so as to conform with any multilateral convention which may become binding on both Contracting Parties.

Article 21

DENUNCIATION

This Agreement shall be concluded for an unlimited period. Each Contracting Party may at any time give notice in writing through diplomatic channels to the other Contracting Party of its decision to denounce this Agreement. In such case the Agreement shall terminate twelve (12) months after the date of receipt of the notice by other Contracting Party, unless the notice to denounce is withdrawn by agreement before the expiry of this period. Notice about termination shall be simultaneously communicated to the International Civil Aviation Organization. In the absence of acknowledgement of receipt by the other Contracting Party, the notice shall be deemed to have been received fourteen (14) days after the receipt of the notice by the International Civil Aviation Organization.

Article 22

SETTLEMENT OF DISPUTES

1. If any dispute arises between the Contracting Parties relating to the interpretation or application of this Agreement and the Annex thereto, the Contracting Parties shall, in the first place, endeavour to settle it by negotiation.

2. If the Contracting Parties fail to reach a settlement by negotiation, they may agree to refer the dispute for decision to some person or body or the dispute may, at the request of either Contracting Party, be submitted for decision to a tribunal of three arbitrators, one to be nominated by each Contracting Party and the third to be appointed by the two so nominated. Each of the Contracting Parties shall nominate an arbitrator within a period of sixty (60) days from the date of receipt by either Contracting Party from the other of a notice through diplomatic channels requesting arbitration of the dispute and the third arbitrator shall be appointed within a further period of sixty (60) days. If either of the Contracting Parties fails to nominate an arbitrator within the period specified, or if the third arbitrator is not appointed within the period specified, the President of the International Civil Aviation Organization may be requested by either Contracting Party to appoint an arbitrator or arbitrators as the case requires. In such case, the third arbitrator shall be a national of a third State and shall act as president of the arbitral tribunal.

3. The Contracting Parties undertake to comply with any decision given under paragraph (2) of this Article.

4. If and so long as either Contracting Party or the designated airline(s) of either Contracting Party fails to comply with the decision given under paragraph (2) of this Article, the other Contracting Party may limit, suspend or revoke any rights or privileges which it has granted by virtue of this Agreement to the Contracting Party in default.

5. Each Contracting Party shall pay the expenses of the arbitrator it has nominated. The remaining expenses of the arbitral tribunal shall be shared equally by the Contracting Parties.

Article 23

REGISTRATION

This Agreement shall be registered with the International Civil Aviation Organization.

Article 24

ENTRY INTO FORCE

This Agreement shall enter into force on the date of the last written notification through diplomatic channels in which either Contracting Party has informed the other Contracting Party that the internal legal procedure necessary for its entry into force have been completed.

IN WITNESS WHEREOF, the undersigned, being duly authorised by their respective Governments, have signed this Agreement.

DONE at Riga on this "18" day of October, 1999, in two originals, in the English language, both copies being equally authentic.

 

For the Government For the Government

of the Republic of Latvia: of the Republic of Croatia:

 

Annex

I. Routes on which scheduled international air services will be operated in both directions by the designated airline(s) of the Republic of Latvia:

Points in Latvia: Any Point

Points between: (to be agreed later on)

Points in Croatia: Zagreb

Points beyond: (to be agreed later on)

II. Routes on which scheduled international air services will be operated in both directions by the designated airline(s) of the Republic of Croatia:

Points in Croatia: Any point

Points between: (to be agreed later on)

Points in Latvia: Riga

Points beyond: (to be agreed later on)

III. 1. Any point or several points on the specified routes may not be served - either on all flights, or some of them - subject to the interest of the designated airline of the Contracting Parties.

2. No fifth freedom traffic right shall be exercised between intermediate points or points beyond and the territory of the other Contracting Party unless an agreement to that effect is made between the two aeronautical authorities of the Contracting Parties.

3. Additional flights shall be operated on the basis of a preliminary application made by each designated airline.