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Agreement between Canada and Italy for Air Services [1962] CATSer 5 (13 April 1962)

E103174 - CTS 1962 No. 4

AGREEMENT BETWEEN CANADA AND ITALY FOR AIR SERVICES

The Government of Canada and the Government of Italy (hereinafter referred to as the “Contracting Parties”) having ratified the Convention on International Civil Aviation opened for signature at Chicago on the Seventh day of December l944, and desiring to conclude an Agreement for the purpose of establishing air services between and beyond their respective territories, have agreed as follows:

ARTICLE I

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

(a) the term “the Convention” means the Convention on International Civil Aviation opened for Signature at Chicago on 7th December 1944⁽¹⁾, and includes any Annex adopted under Article 90 of that Convention and any amendment of the Annexes or Convention under Articles 90 and 94 thereof;

(b) the term “aeronautical authorities” means, in the case of Italy the “Ministero della Difesa-Aeronautica, Direzione Generale dell’Aviazione Civile e del Traffico Aereo” and in the case of Canada the “Minister of Transport the Air Transport Board”, and in both cases any person or body authorized to perform the functions at present exercised by the above mentioned authorities;

(c) the term “designated airline” means an airline which one Contracting Party shall have designated, by written notification to the other Contracting Party, in accordance with Article III of the present Agreement, for the operation of air services on the routes specified in such notification;

(d) the terms “territory”, “air service”, “international air service” and “stop for non-traffic purposes” have the meanings respectively assigned to them in Articles 2 and 96 of the Convention.

ARTICLE II

1. Each Contracting Party grants to the other Contracting Party the rights specified in the present Agreement for the purpose of establishing and operating air services on the routes specified in the appropriate Section of the Schedule thereto (hereinafter called “the agreed services” and the “specified routes”).

2. Subject to the provisions of the present Agreement, the airlines designated by each Contracting Party shall enjoy, while operating an agreed service on a specified route, the following privileges:

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

(b) to land in the territory of the other Contracting Party for non-traffic purposes;

(c) to make stops in the territory of the other Contracting Party at the points specified for those routes in the schedule for purposes of putting down and taking on international traffic in passengers, cargo and mail coming from or destined for other points so specified;

(d) to omit on any or all flights any one or more of the intermediate and beyond points.

3. Nothing in paragraph 2 of this Article shall be deemed to confer on the airline or airlines of one Contracting Party the privileges of taking up, in the territory of the other Contracting Party, passengers, cargo and/or mail carried for remuneration or hire and destined for another point in the territory of that other Contracting Party.

ARTICLE III

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

2. On receipt of notification of the designation and subject to the provisions of paragraphs 4 and 5 of this Article, the other Contracting Party shall grant without delay to the airline or airlines designated the appropriate operating authorization.

3. Each Contracting Party shall have the right, by written notification to the other Contracting Party, to withdraw the designation of an airline and to designate another airline.

4. 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 by them in conformity with the provisions of the Convention to the operation of international commercial air services.

5. Each Contracting Party shall have the right to refuse to accept the designation of an airline and to withhold or revoke the grant to an airline of the privileges specified in paragraph 2 of Article II of the present Agreement or to impose such conditions as it may deem necessary on the exercise by an airline of those privileges 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 nationals or the Contracting Party designating the airline.

6. At any time after the provisions of paragraph 1 and 2 of this Article have been complied with, an airline so designated and authorized may begin to operate the agreed services provided that a service shall not be operated unless a tariff established in accordance with the provisions of Article VI of the present Agreement is in force in respect of that service.

7. Each Contracting Party shall have the right to suspend the exercise by an airline of the privileges specified in paragraph 2 of Article II of the present Agreement or to impose such conditions as it may deem necessary on the exercise by an airline of those privileges in any case where the airline fails to comply with the laws or regulations of the Contracting Party granting those privileges or otherwise fails to operate in accordance with the conditions prescribed in the present Agreement; provided that, unless immediate suspension or imposition of conditions is essential to prevent further infringements of laws or regulations, this right shall be exercised only after consultation with the other Contracting Party.

ARTICLE IV

1. Fuels, lubricating oils, spare parts and normal aircraft equipment introduced into the territory of a Contracting Party or taken on board aircraft of the airlines designated by the other Contracting Party which are in the said territory, for the exclusive use of aircraft of the same airlines operating the agreed air-services, are exempt from Customs duties and other fiscal charges, subject to the Customs regulations of the second Contracting Party.

2. The aircraft of the designated airline engaged in the agreed services in flights from, to or across the territory of a Contracting Party, are admitted into the territory of the other Contracting Party temporarily free from customs duties, inspection fees and other similar charges.

3. Fuel, lubricating oils, aircraft stores, spare parts and normal equipment retained on board aircraft of the designated airlines of a Contracting Party, authorized to operate the agreed services, are on the territory of the other Contracting Party exempt from Customs duties and other similar charges, even when they are used or consumed during flights over the said territory.

4. Fuel, lubricating oils, spare parts, aircraft stores and normal equipment which are exempt from any duties and charges under the provisions of the above paragraphs cannot be unloaded without the permission of the Customs authorities of the other Contracting Party.

When they cannot be employed they shall be re-exported. Waiting for their use or re-exportation, they shall be kept under the supervision of the Customs authorities.

ARTICLE V

1. There shall be fair and equal opportunity for the airlines of both Contracting Parties to operate the agreed services on the specified routes between and beyond their respective territories.

2. In operating the agreed services, the airlines of each Contracting Party shall take into account the interests of the airlines of the other Contracting Party so as not to affect unduly the services which the latter provide on the whole or part of the same route.

3. The agreed services provided by the designated airlines of the Contracting Party shall bear reasonable relationship to the requirements of the public for transportation on the specified routes and shall have as their primary objectives the provisions, at a reasonable load factor, of capacity adequate to carry the current and reasonably anticipated requirements for the carriage of passengers, cargo and mail between the territories of the Contracting Parties.

4. Provision for the carriage of passengers, cargo and mail both taken up and put down at points on the specified routes in the territories of the Contracting Parties other than that designating the airline shall be made in accordance with the general principle that capacity shall be related to:

(a) traffic requirements to and from the territory of the Contracting Party which has designated the airline;

(b) traffic requirements of the area through which the airline passes, after taking account of other transport services established by airlines of the Contracting Parties comprising the area; and

(c) the requirements of through airline operation.

5. Before inauguration of the agreed services and for the subsequent changes of capacity, the aeronautical authorities of the Contracting Parties shall agree to the practical application of the principles contained in the previous paragraphs of this Article regarding the operation of the agreed services by the designated airlines.

ARTICLE VI

1. The tariffs on any agreed services shall be established at reasonable levels, due regard being paid to all relevant factors including cost of operation, reasonable profit, characteristics of service (such as standards of speed and accommodation) and, where it is deemed suitable, the tariffs of other airlines for any part of the specified route. These tariffs shall be fixed in accordance with the following provisions of this Article.

2. The tariffs referred to in paragraph 1 of this Article, shall, if possible, be agreed in respect of each of the specified routes between the designated airlines (where it is deemed suitable, in consultation with other airlines operating over the whole or part of that route) and such agreement shall be reached through the rate-fixing procedure of the International Air Transport Association (IATA).

3. Any tariffs so agreed shall be submitted for approval to the aeronautical authorities of both Contracting Parties at least thirty days prior to the proposed date of their introduction. This period may be reduced in special cases if the aeronautical authorities so agree.

4. In the event of disagreement between the designated airlines concerning the tariffs, the aeronautical authorities of the Contracting Parties shall endeavour to determine them by agreement between themselves.

5. If the aeronautical authorities cannot agree on the approval of any tariff submitted to them under paragraph 3 of this Article or on the determination of any tariff under paragraph 4, the dispute shall be settled in accordance with the provisions of Article VIII of the present Agreement.

6. (a) No tariff shall come into force if the aeronautical authorities of either Contracting Party are dissatisfied with it except under the provisions of paragraph 3 of Article VIII of the present Agreement.

(b) When tariffs have been established in accordance with the provisions of this Article, these tariffs shall remain in force until new tariffs have been established in accordance with the provisions of this Article.

ARTICLE VII

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 the agreed services by the designated airlines of the first Contracting Party. Such statements shall include all information required to determine the amount of traffic carried by those airlines on the agreed services and the origins and destinations of such traffic.

ARTICLE VIII

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

2. If the Contracting Parties fail to reach a settlement by negotiation,

(a) they may agree to refer the dispute for decision to an arbitral tribunal appointed by agreement between them or to some other person or body; or

(b) if they do not so agree or if, having agreed to refer the dispute to an arbitral tribunal, they cannot reach agreement as to its composition, either Contracting Party may submit the dispute for decision to any tribunal competent to decide it which may hereafter be established within the International Civil Aviation Organization (ICAO) or, if there is no such tribunal, to the Council of the said Organization.

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 a designated airline of either Contracting Party fails to comply with a decision given under paragraph 2 of this Article, the other Contracting Party may limit, withhold or revoke any rights or privileges which it has granted by virtue of the present Agreement to the Contracting Party in default or to the designated airline or airlines of that Contracting Party or to the designated airline in default.

ARTICLE IX

1. If either of the Contracting Parties considers it desirable to modify any provision of the present Agreement, such modification, if agreed between the Contracting Parties, shall come into effect when confirmed by an Exchange of Notes.

2. If either Contracting Party considers it desirable to make any modification to the Schedule of the present Agreement, such modification may be made by direct agreement between the aeronautical authorities of the Contracting Parties and shall come into effect when confirmed by an Exchange of Letters by the above said authorities.

3. In the event of the conclusion of any general multilateral convention concerning air transport by which both Contracting Parties become bound, the present Agreement shall be amended so as to conform with the provisions of such convention.

ARTICLE X

Either Contracting Party may at any time give notice to the other if it desires to terminate the present Agreement. Such notice shall be simultaneously communicated to the International Civil Aviation Organization (ICAO). If such notice is given, the present Agreement shall terminate twelve months after the date of receipt of the notice by the other Contracting Party, unless the notice to terminate is withdrawn by agreement before the expiry of this period. In the absence of acknowledgement of receipt by the other Contracting Party, notice shall be deemed to have been received fifteen days after the receipt of the notice by the International Civil Aviation Organization (ICAO).

ARTICLE XI

The present Agreement shall be registered with the International Civil Aviation Organization (ICAO).

ARTICLE XII

1. The Schedule and the Appendix attached to the present Agreement shall be deemed to be part of the Agreement and all references to the “Agreement” shall include references to the Schedule and the Appendix, except where otherwise expressly provided.

2. The present Agreement shall be subject to ratification and Instruments of Ratification shall be exchanged in Ottawa as soon as possible.

3. The present Agreement shall enter into force on the date of the exchange of Instruments of Ratification.

IN WITNESS WHEREOF the undersigned plenipotentiaries, being duly authorized thereto by their respective Governments, have signed the present Agreement.

DONE at Rome this 2nd day of February 1960, in duplicate in the English and Italian languages, both texts being equally authentic.

Léon Mayrand

FOR THE GOVERNMENT OF CANADA

Giuseppe Pella

FOR THE ITALIAN GOVERNMENT

ROUTE SCHEDULE

SECTION I

Routes to be operated in both directions by the designated airline or airlines of CANADA:

Canada to Rome direct or via Paris and/or Lisbon, and beyond Rome to Bangkok and beyond Bangkok to a point to be agreed upon.

SECTION II

Routes to be operated in both directions by the designated airline or airlines of ITALY:

Italy to Montreal direct and beyond Montreal to Chicago, Los Angeles, Mexico and a point beyond Los Angeles to be agreed upon.

It is understood that the airline or airlines designated by both Contracting Parties, shall be entitled to extend stopover privileges in the Canadian and Italian territories for traffic originating in or destined for third countries.

It is also understood that the airline or airlines designated by each Contracting Party shall enjoy the privileges of carrying into and out of the territory of the other Contracting Party intransit traffic originating in or destined for points in third countries.

APPENDIX

In the application of Article III it is understood that neither Contracting Party shall designate more than one carrier to operate the agreed services on any of the specified routes, until such time as the designation of not more than one additional carrier has been negotiated between the aeronautical authorities of both Contracting Parties.

Léon Mayrand

Giuseppe Pella