Agreement between the Government of the People's Republic of China and the Government of the Republic of Iceland relating to Civil Air Transport

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Agreement between the Government of the People's Republic of China and the Government of the Republic of Iceland relating to Civil Air Transport April 2, 2003
The Government of the People's Republic of China and the Government of the Republic of Iceland; Desiring to facilitate friendly contacts between their two peoples and to develop mutual relations in the field of civil aviation by concluding an agreement between their States (hereinafter referred to as the "Contracting Parties");
Being Parties to the Convention on International Civil Aviation opened for signature in Chicago on 7 December 1944;
Have agreed on the establishment and operation of air services between and beyond their respective territories as follows:
Article 1 Definitions
For the purpose of this Agreement, unless the context otherwise requires:
(1) the term "aeronautical authorities" means, in the case of the People's Republic of China, the General Administration of Civil Aviation of China, or any person or agency authorized to perform the functions presently exercised by the said authorities, and in the case of the Government of the Republic of Iceland, the Minister of Communications, or any person or agency authorized to perform the functions presently exercised by the said authority;
(2) the term "airline" means any air transport enterprise offering or operating international air services;
(3) the term "designated airline" means an airline which has been designated and authorized in accordance with Article 3 of this Agreement;
(4) the term "air service" means any scheduled air service performed by aircraft for the public transport of passengers, baggage, cargo or mail;
(5) the term "international air service" means an air service which passes through the air space over the territory of more than one State;
(6) the term "stop for non-traffic purposes" means a landing for any purpose other than taking on or discharging passengers, baggage, cargo or mail;
(7) the term "tariff" means any amount charged or to be charged by an airline, directly or through its agents, to any person or entity for the carriage of passengers (and their baggage) and cargo (excluding mail) in air transportation, including:
(a) the conditions governing the availability and applicability of a tariff, and
(b) the charges and conditions for any services ancillary to such carriage which are offered by airlines;
(8) the term "capacity" means:
(a) in relation to an aircraft, the payload of that aircraft available on a route or section of a route;
(b) in relation to an air service, the capacity of the aircraft used on such service multiplied by the frequency operated by such aircraft over a given period on a route or section of a route.
(9) the term "Route Schedule" means the Route Schedule annexed to this Agreement or as amended in accordance with the provisions of Article 18 of this Agreement. The Route Schedule forms an integral part of this Agreement.
Article 2 Grant of Rights
(1) Each Contracting Party grants to the other Contracting Party the rights specified in this Agreement for the purpose of establishing and operating international air services on the routes specified in the Route Schedule annexed to this Agreement. Such services and routes are hereinafter called the "agreed services" and "the specified routes" respectively.
(2) The airlines designated by each Contracting Party shall enjoy, whilst operating an agreed service on a specified route, the following rights:
(a) the right to fly without landing across the territory of the other Contracting Party along the air route(s) prescribed by the aeronautical authorities of the other Contracting Party；
(b) the right to make stops for non-traffic purposes in the said territory subject to the approval of the aeronautical authorities of the other Contracting Party;
(c) to make stops in the said territory at the points specified for that route in the Route Schedule annexed to this Agreement, for the purposes of putting down and taking on international traffic in passengers, cargo and mail, originating in or destined for the first Contracting Party.
(3) The right of the designated airline of one Contracting Party to take on board and discharge at point(s) in the territory of the other Contracting Party international traffic to or from a third country shall be agreed upon between the aeronautical authorities of the two Contracting Parties.
(4) Nothing in paragraphs (1), (2) and (3) of this Article shall be deemed to grant the right for the designated airlines of one Contracting Party to participate in air transportation between points in the territory of the other Contracting Party.
Article 3 Airline Designation and Authorization
(1) Each Contracting Party shall have the right to designate in writing to the other Contracting Party one or more airlines to operate the agreed services on the specified route, and to withdraw or alter such designations.
(2) The substantial ownership and effective control of the airline designated by each Contracting Party shall remain vested in such Contracting Party or its nationals.
(3) The aeronautical authorities of the other Contracting Party may require the airline or airlines designated by the first Contracting Party to satisfy them that it is qualified to fulfill the conditions and the obligations prescribed under the laws and regulations normally and reasonably applied by them to the operation of international air services by the said authorities.
(4) On receipt of such designation, the other Contracting Party shall, subject to the provisions of paragraphs (2) and (3) of this Article, grant to the airline or airlines so designated the appropriate operating authorization without unreasonable delay.
(5) Upon receipt of the operating authorization of paragraph (4) of this Article the designated airline may, at the agreed date, begin to operate the agreed services, in part or in whole, provided that it complies with the provisions of this Agreement and that tariffs for such services have been established in accordance with the provisions of Article 8 of this Agreement.
Article 4 Revocation, Suspension or Imposition of Conditions of Authorization
(1) Each Contracting Party shall have the right to refuse to grant to or to revoke or suspend an operating authorization granted to the designated airline of the other Contracting Party or to impose such conditions as it may deem necessary on the exercise by the said designated airline of the rights specified in Article 2 of this Agreement, in any of the following cases:
(a) where it is not satisfied that the substantial ownership and effective control of that airline are vested in the Contracting Party designated that airline or its nationals; or
(b) where that airline fails to comply with the laws and regulations of the first Contracting Party; or
(c) where that airline otherwise fails to operate in accordance with the conditions prescribed under this Agreement.
(2) Unless immediate revocation or suspension of the operating authorization, or immediate imposition of the conditions to the operating authorization as mentioned in paragraph (1) of this Article, is essential to prevent further infringements of laws and regulations, such right shall be exercised only after consultation with the other Contracting Party.
Article 5 Application of Laws, Regulations and Procedures
(1) The laws, regulations and procedures of one Contracting Party relating to the admission to, stay in and departure from or operation and navigation in its territory of aircraft engaged in the international operation shall be applicable to the aircraft of the designated airline of the other Contracting Party, while entering, within and departing from or operating and engaging in navigation in the territory of the first Contracting Party.
(2) The laws and regulations of one Contracting Party relating to admission to, stay in or departure from its territory of passengers, crew, cargo or mail, such as regulations relating to entry, clearance, immigration, passports, customs and quarantine, shall be applicable to the passengers, crew, cargo or mail carried by the aircraft of the designated airline of the other Contracting Party, while entering, within and departing from the territory of the first Contracting Party. Each Contracting Party shall promptly supply to the other Contracting Party at the latter's request, the texts of the abovementioned laws and regulations.
(3) Other relevant laws and regulations relating to aircraft and provisions in respect of civil aviation of one Contracting Party shall be applicable to the designated airline of the other Contracting Party while operating the agreed services in the territory of the first Contracting Party.
(4) Passengers, baggage, cargo and mail in direct transit and not leaving the area of the airport reserved for such purpose shall be subject to no more than a simplified control.
Article 6 Fair and Equal Opportunity
(1) There shall be a fair and equal opportunity for the designated airlines of both Contracting Parties to participate in the international air transportation covered by this Agreement.
(2) Each Contracting Party shall take appropriate action within its jurisdiction to eliminate all forms of discrimination or unfair practices adversely affecting the agreed services of the designated airline of the other Contracting Party.

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