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Agreement between the Government of Canada and the Government of Finland for Air Services between and beyond their Respective Territories [1992] CATSer 5 (21 February 1992)

E103128 - CTS 1992 No. 4

AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF FINLAND FOR AIR SERVICES BETWEEN AND BEYOND THEIR RESPECTIVE TERRITORIES

The Government of Canada and the Government of Finland, hereinafter referred to as the Contracting Parties,

Both being parties to the Convention on International Civil Aviation opened for signature at Chicago on the 7th day of December 1944,

Desiring to conclude an Agreement on air services between and beyond their respective territories,

Have agreed as follows:

ARTICLE I

(Definitions)

For the purpose of this agreement, unless otherwise stated:

(a) "Aeronautical Authorities" means, in the case of Canada, the Minister of Transport and the National Transportation Agency of Canada and, in the case of Finland, the National Board of Aviation, or in both cases, any other authority or person empowered to perform the functions now exercised by the said authorities;

(b) "Agreed services" means scheduled air services on the routes specified in the Annex to this Agreement for the transport of passengers, cargo and mail, seperately or in combination;

(c) "Agreement" means this Agreement, the Annex attached thereto, and any amendments thereto;

(d) "Convention" means the Convention on International Civil Aviation opened for signature at Chicago on the seventh day of December 1944 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 so far as those Annexes and amendments have been adopted by both Contracting Parties;

(e) "Designated airline" means an airline which has been designated and authorized in accordance with Articles IV and V of this Agreement;

(f) "Tariffs" shall be deemed to include all rates, tolls, fares, charges for transportation, conditions of carriage, classifications, rules, regulations, practices and services related thereto, but excluding remuneration and conditions for the carriage of mail;

(g) "Territory", "Air Service", "International Air Service", "Airline" and "Stop for non-traffic purposes" have the meaning respectively assigned to them in Articles 2 and 96 of the Convention.

ARTICLE II

(Grant of Rights)

1. Each Contracting Party grants to the other Contracting Party, except as otherwise specified in the Annex, the following rights for the conduct of international air services by the airline or airlines designated by that other Contracting Party:

(a) to fly without landing across its territory;

(b) to fly in its territory for non-traffic purposes; and

(c) to land in its territory for the purpose of taking up and discharging, while operating the routes specified in the Annex, international traffic in passengers and cargo, including mail, seperately or in combination.

2. The airlines of each Contracting Party, other than those designated under Article IV of this Agreement, shall also enjoy the rights specified in paragraph 1(a) and (b) of this Article.

3. Nothing in paragraph 1 of this Article shall be deemed to confer on a designated airline of one Contracting Party the privilege of taking up, in the territory of the other Contracting Party, passengers and cargo, including mail, carried for remuneration or hire and destined for another point in the territory of that other Contracting Party.

ARTICLE III

(Change of Aircraft)

A Designated airline of one Contracting Party may make a change of aircraft at any point on the specified route on the following conditions:

(i) that it is justified by reason of economy of operation;

(ii) that the capacity of the aircraft used on the section of the route more distant from the territory of the Contracting Party designating the airline is not larger than that used on the nearer section;

(iii) that the aircraft of smaller capacity shall operate only in connection with the aircraft of larger capacity and shall be scheduled to do so; the former shall arrive at the point of change for the purpose of carrying traffic transferred from, or to be transferred into, the aircraft of larger capacity; and their capacity shall be determined with primary reference to this purpose;

(iv) that there is an adequate volume of through traffic;

(v) that the airline shall not hold itself out to the public by advertisement or otherwise as providing a service which originates at the point where the change of aircraft is made, unless otherwise permitted by the Annex;

(vi) that in connection with any one aircraft flight into the territory of the other Contracting Party, only one flight may be made out of that territory unless the airline is authorized by the aeronautical authorities of the other Contracting Party to operate more than one flight; and

(vii) that the provisions of Article XI of the present Agreement shall govern all arrangements made with regard to change of aircraft.

ARTICLE IV

(Designation)

Each Contracting Party shall have the right to designate, by diplomatic note, an airline or airlines to operate the agreed services on any route specified in the Annex for such a Contracting Party and to substitute another airline for that previously designated.

ARTICLE V

(Authorization)

1. Following receipt of a notice of designation or of substitution pursuant to Article IV, the aeronautical authorities of the Contracting Party shall, consistent with its laws and regulations, grant with a minimum of delay to an airline so designated the appropriate authorizations to operate agreed services for which that airline has been designated.

2. Upon receipt of such authorizations the airline may begin at any time to operate the agreed services, in whole or in part, provided that the tarriffs established in accordance with the provisions of Article XIV of this Agreement are in force in respect of such services.

ARTICLE VI

(Revocation and Limitation of Authorization)

1. The aeronautical authorities of each Contracting Party shall have the right to withhold the authorizations referred to in Article V with respect to an airline designated by the other Contracting Party, to revoke such authorizations or impose on them conditions, temporarily or permanently:

(a) in the event of failure by such airline to qualify before the aeronautical authorities of that Contracting Party under the laws and regulations normally and reasonably applied by these authorities in conformity with the Convention;

(b) in the event of failure by such airline to comply with the laws and regulations of that Contracting Party;

(c) in the event that they are not satisfied that substantial ownership and effective control of the airline are vested in the Contracting Party designating the airline or its nationals; and

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

2. Unless immediate action is essential to prevent infringement of the laws and regulations referred to above, the rights enumerated in paragraph 1 of this Article shall be exercised only after consultations with the aeronautical authorities of the other Contracting Party. Unless otherwise agreed by the Contracting Parties, such consultations shall begin within a period of thirty (30) days from the date the other Contracting Party receives the request.

ARTICLE VII

(Application of Laws)

1. The laws, regulations and procedures of one Contracting Party relating to the admission to or departure from its territory of aircraft engaged in international air navigation or to the operation and navigation of such aircraft shall be complied with by the designated airline or airlines of the other Contracting Party upon entrance into, departure from and while within the said territory.

2. The laws and regulations of a Contracting Party respecting entry, clearance, transit, immigration, passports, customs and quarantine shall be complied with by the designated airline or airlines of the other Contracting Party and by or on behalf of its crews, passengers, cargo and mail upon transit of, admission to, departure from and while within the territory of such a Contracting Party.

ARTICLE VIII

(Recognition of Certificates and Licences)

1. Certificates of airworthiness, certificates competency and licences issued or rendered valid by one Contracting Party and still in force, shall be recognized as valid by the other Contracting Party for the purpose of operating the agreed services on the routes specified in the Annex to this Agreement provided that such certificates or licences were issued or rendered valid perusant to and in conformity with standards established under the Convention. Each Contracting Party reserves the right, however, to refuse to recognize, for the purpose of flights above its own territory, certificates of competency and licences granted to its own nationals by the other Contracting Party.

2. If the privileges or conditions of the licences or certificates referred to in paragraph 1 above, issued by the aeronautical authorities of one Contracting Party to any person or designated airline operating the agreed services on the routes specified in the Annex to this Agreement, should permit a difference from the standards established under the Convention, and which difference has been filed with the International Civil Aviation Organization, the aeronautical authorities of the Contracting Party may request consultations with the aeronautical authorities of that Contracting Party with a view to satisfying themselves that the practice in question is acceptable to them. Failure to reach a satisfactory agreement in matters regarding flight safety will constitute grounds for the application of Article VI; in other cases Article XXI applies.

ARTICLE IX

(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.

2. 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 September 14, 1963, the Convention for the Suppression of Unlawful Seizure of Aircraft, signed at The Hague on December 16, 1970, and the Convention for the Suppression of Unlawful Acts Against the Safety of Civil Aviation, signed at Montreal on September 23, 1971 and any other multilateral agreement governing aviation security binding upon both Contracting Parties.

3. 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.

4. The Contracting Parties shall, in their mutual relations, act in conformity with the aviation security provisions established by the International Civil Aviation Organization (ICAO) and designated as Annexes to the extent that such security provisions are applicable to the Contracting Parties; they shall require that operators of aircraft of their registry, 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. Each Contracting Party shall notify the other Contracting Party of its intention to file a difference from the ICAO aviation security standards.

5. Each Contracting Party agrees that its operators of aircraft may be required to observe the aviation security provisions referred to in paragraph 4 above required by the other Contracting Party for entry into, departure from, or while within the territory of that other Contracting Party. Each Contracting Party shall ensure that adequate measures are effectively applied within its territory to protect aircraft, to screen passengers and their carry-on items, and to carry out appropriate checks on crew, baggage, cargo and aircraft stores prior to and during boarding and loading.

6. Each Contracting Party shall give sympathetic consideration to any request from the other Contracting Party for reasonable special security measures to meet a particular threat.

7. Each Contracting Party shall also give sympathetic consideration to a request from the other Contracting Party to enter into reciprocal administrative arrangements whereby the aeronautical authorities of one Contracting Party could make, in the territory of the other Contracting Party, their own assessment of the security measures being carried out by aircraft operators in respect of flights destined to the territory of the first Contracting Party.

8. 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.

9. When a Contracting Party has reasonable grounds to believe that the other Contracting Party has departed from the provisions of this Article, the first Contracting Party may request immediate consultations with the other Contracting Party. Failure to reach a satisfactory agreement will constitute grounds for the application of Article VI of this Agreement.

ARTICLE X

(Airport and Facility Charges)

1. The charges imposed in the territory of either Contracting Party for the use of airports and other aviation facilities on the aircraft of the designated airline or airlines of the other Contracting Party shall not be higher than those imposed on aircraft of a national airline engaged in similar international air services.

2. Neither of the Contracting Parties shall give a preference to its own or any other airline over an airline of the other Contracting Party in the application of its customs, immigration, quarantine and similar regulations or in the use of airports, airways and air traffic services and associated facilities under its control.

ARTICLE XI

(Capacity)

1. There shall be fair and equal opportunity for the designated airline or airlines of each Contracting Party to operate the agreed services on the routes specified in the Annex.

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

3. The agreed services provided by the designated airlines of the Contracting Parties shall bear reasonable relationship to the requirements of the public for transportation on the specified routes and shall have as their primary objectives the provision, at a reasonable load factor, of capacity adequate to meet the current and reasonably anticipated requirements for the carriage of passengers, cargo and mail between the territory of the Party which has designated airline or airlines and the countries of ultimate destination of the traffic.

4. Provision for the carriage of passengers, cargo and mail both taken up and discharged at points on the specified routes in the territories of States other than that designating the airline or airlines 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 or airlines;

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

(c) the requirements of through airline operation.

5. The capacity to be provided on the specified routes, i.e. frequency of services and type of aircraft, shall be agreed between the designated airlines in accordance with the principles laid down in this Article and subject to the approval of the aeronautical authorities of the Contracting Parties. In the absence of an agreement between the designated airlines, the matter shall be referred to the aeronautical authorities of the Contracting Parties which will endevour to resolve the problem, if necessary, pursuant to Article XIX of this Agreement. Pending an arrangement either at the airline level or between the aeronautical authorities the status quo shall be maintained.

ARTICLE XII

(Statistics)

1. The aeronautical authorities of both Contracting Parties shall provide each other with monthly statements of statistics on a quarterly calendar basis, including all information required to determine the amount of traffic carried over the routes as specified in the Annex and the initial origins and final destinations of such traffic.

2. The details of the statistical data to be provided and the methods by which such data shall be provided by one Contracting Party to the other, shall be agreed upon between the aeronautical authorities and implemented not later than four (4) months after a designated airline of one or both of the Contracting Parties commence operations, in whole or in part, of agreed services accorded by the Annex of the Agreement.

3. Failure to reach a satisfactory agreement regarding the supply of statistics may, at the discretion of either Contracting Party, constitute grounds for the application at Article XIX of the Agreement.

ARTICLE XIII

(Customs Duties and Other Charges)

1. Each Contracting Party shall on a basis of reciprocity exempt the designated airline or airlines of the other Contracting Party to the fullest extent possible under its national law from import restrictions, customs duties, excise taxes, inspection fees and other national duties and charges on aircraft, fuel, lubricating oils, consumable technical supplies, spare parts including engines, regular aircraft equipment, aircraft stores (including liquor, tobacco and other products destined for sale to passengers in limited quantities during the flight) and other items intended for use or used solely in connection with the operation or servicing of aircraft of the designated airline or airlines of such other Contracting Party operating the agreed services, as well as usual publicity material distributed without charge by that designated airline.

2. The exemptions granted by this Article shall apply to the items referred to in paragraph 1 of this Article:

(a) introduced into the territory of one Contracting Party by or on behalf of the designated airline or airlines of the other Contracting Party;

(b) retained on board aircraft of the designated airline or airlines of one Contracting Party upon arriving in or leaving the territory of the other Contracting Party;

(c) taken on board aircraft of the designated airline or airlines of one Contracting Party in the territory of the other Contracting Party and intended for use in operating the agreed services;

whether or not such items are used or consumed wholly within the territory of the Contracting Party granting the exemption, provided such items are not alienated in the territory of the said Contracting Party.

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

ARTICLE XIV

(Tariffs)

1. The tariffs on any agreed service 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 upon between the designated airlines of the Contracting Parties; such agreement shall be reached, whenever possible, through an appropriate international tariff coordination mechanism. Unless otherwise determined in the application of paragraph 4 of this article, each designated airline shall be responsible only to its aeronautical authorities for the justification and reasonableness of the tariffs.

3. The tariffs referred to in paragraph 1 of this Article shall be submitted to the aeronautical authorities of the Contracting Parties at least forty-five (45) days before the proposed date of their introduction; in special cases, a shorter period may be accepted by the aeronautical authorities. If within thirty (30) days from the date of submission the aeronautical authorities of one Contracting Party have not notified the aeronautical authorities of the other Contracting Party that they are dissatisfied with the tariff submitted to them, such tariff shall be considered to be acceptable and shall come into effect on the expiration of the forty-five (45) day period mentioned above. In the event that a shorter period for the submission of a tariff is accepted by the aeronautical authorities, they may also agree that the period for giving notice of dissatisfaction be less than thirty (30) days.

4. If a tariff cannot be established in accordance with the provision of paragraph 2 above, or, if during the period applicable in accordance with paragraph 3 above a notice of dissatisfaction has been given, the aeronautical authorities of the Contracting Parties shall endevour to determine the tariff by agreement between themselves.

5. If the aeronautical authorities cannot agree on 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 provision of Article XXI of this 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 XXI of this Agreement.

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

7. If the aeronautical authorities of one of the Contracting Parties become dissatisfied with or wish to review an established tariff they shall notify the aeronautical authorities of the other Contracting Party and the designated airline shall attempt to reach an agreement. Should the designated airlines fail to agree, the procedures as set out in paragraphs 4 and 5 shall apply.

8. With respect to carriage between the territories of the Contracting Parties, the designated airline or airlines of each Contracting Party shall have the right to match on a basis which would not necessarily be identical but would be broadly equivalent to any publicly available lawful tariff on scheduled services as well as retail prices charged on transportation only charter services. For carriage between the territory of the other Contracting Party and points on the agreed services in third countries, the designated airline or airlines of one Contracting Party shall have the right to introduce matching tariffs at prices not lower or with conditions less restrictive than the tariffs applied by the third and fourth freedom airline or airlines on the same sectors. In all cases of matching, tariffs filings shall include satisfactory evidence of the availability of the tariffs which are being matched and of the consistency of matching with the requirement of this Article. Unless otherwise agreed between the aeronautical authorities of the two contracting Parties, tariffs which are introduced for matching purposes shall remain in effect only for the period of availability of the tariff or charter retail price being matched.

9. The aeronautical authorities of both Contracting Parties shall endevour to ensure that (1) the tariffs charged and collected conform to the tariffs approved by both aeronautical authorities and (2) no airline rebates any portion of such tariffs by any means, directly or indirectly, including the payment of excessive sales commissions to agents.

ARTICLE XV

(Sales and Transfer of Funds)

1. Each designated airline shall have the right to engage in the sale of air transportation in the territory of the other Contracting Party directly and, in its discretion, through its agents. Such airline shall have the right to sell such transportation, and any person shall be free to purchase such transportation in the currency of that territory or in freely convertible currencies of other countries.

2. Each Contracting Party grants to the airlines of the other Contracting Party the right of free transfer in conformity with the OECD's Code of Liberalization of Current Invisible Operations, signed by both Contracting Parties, of funds obtained by each in the normal course of its operations. Such transfers shall be effected on the basis of the foreign exchange market rates for current payments prevailing at the time of the transfer and shall not be subject to any charges except those normally collected by banks for such transactions.

ARTICLE XVI

(Taxation)

The Contracting Parties shall act in accordance with the relevant provisions of the Convention signed in Ottawa on March 28, 1959 between Canada and Finland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income or as amended or replaced with respect to the profits derived by any designated airline of a Contracting Party from the operation of aircraft in international traffic in accordance with the present Agreement.

ARTICLE XVII

(Airline Representatives)

The designated airline or airlines of one Contracting Party shall have the right to maintain in the territory of the other Contracting Party its representatives and commercial, operational and technical staff as required in connection with the operation of agreed services. These staff requirements may, at the option of the designated airline or airlines, be satisfied by its own personnel or by using the services of any other competent organization, company or airline operating in the territory of the other Contracting Party. Such representatives and staff shall be subject to the laws and regulations in force of the other Contracting Party.

ARTICLE XVIII

(Applicability to Charter Flights)

1. The provisions set out in Articles VII, VIII, IX, X, XIII, XV, XVI, XVII and XIX, of this Agreement shall be applicable also to charter flights operated by an air carrier of one Contracting Party into or from the territory of the other Contracting Party and to the air carrier operating such flights.

2. The provisions of paragraph 1 of this Article shall not affect the application of national laws and regulations governing the right of air carriers to operate charter flights or the conduct of air carriers or other parties involved in the organization of such operations.

ARTICLE XIX

(Consultations)

In a spirit of close cooperation, 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 its Annex.

ARTICLE XX

(Modification of Agreement)

If either of the Contracting Parties considers it desirable to modify any provision of this Agreement, it may request consultations with the other Contracting Party. Such consultations, which may be through discussion or by correspondence, shall begin within a period of sixty (60) days from the date of the request. If the amendment relates only to the Annex, the Contracting Parties may be represented in the consultations by their aeronautical authorities. Any modification agreed pursuant to such consultations shall come into force when it has been confirmed by an exchange of diplomatic notes.

ARTICLE XXI

(Settlement of Disputes)

1. If any dispute arises between the Contracting Parties relating to the interpretation or application of this Agreement, the Contracting Parties shall in the first place endevour to settle it by negotiations.

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 either Contracting Party may submit the dispute 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 arbitrators. 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 Council of the International Civil Aviation Organization may be requested by either Contracting Party to appoint an arbitrator or arbitrators as the case requires. In all cases, the third arbitrator shall be a national of a third State, shall act as President of the Tribunal and shall determine the place where arbitration will be held.

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

4. The expenses of the Tribunal will be shared equally between the Contracting Parties.

5. If and so long as either Contracting Party fails to comply with a decision under paragraph 2 of this Article, the other Contracting Party may limit, withhold or revoke any right or privileges which it has granted by virtue of this Agreement to the Contracting Party in default or to the designated airline in default.

ARTICLE XXII

(Termination)

Either Contracting Party may at any time from the entry into force of this Agreement give notice in writing through diplomatic channels to the other Contracting Party of its decision to terminate this Agreement; such notice shall be communicationed simultaneously to the International Civil Aviation Organization. The Agreement shall terminate one (1) year 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, 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 XXIII

(Registration with ICAO)

The present Agreement and any amendment thereto shall be registered with the International Civil Aviation Organization.

ARTICLE XXIV

(Multilateral Conventions)

If a general multilateral air convention comes into force in respect of both Contracting Parties, the provisions of such convention shall prevail. Consultations in accordance with Article XIX of this Agreement may be held with a view to determining the extent to which the present Agreement is affected by the provisions of the said multilateral convention.

ARTICLE XXV

(Entry into Force)

This Agreement shall be applied provisionally from the date of its signature, and shall enter into force thirty (30) days after the latter of the dates on which the Contracting Parties shall each have notified the other by diplomatic note that they have obtained whatever internal approval may be required to give effect to this Agreement.

ARTICLE XXVI

(Titles)

Titles used in this Agreement are for reference purposes only.

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

DONE in duplicate at Helsinki on this 28th day of May, 1990 in the English, French, Finnish and Swedish languages, each version being equally authentic.

John Crosbie

FOR THE GOVERNMENT OF CANADA

Pertti Salolainen

FOR THE GOVERNMENT OF FINLAND

ANNEX

SCHEDULE OF ROUTES

SECTION I

The following route may be operated in each direction by the airline or airlines designated by the Government of Finland:

NOTES:

1. No 5th Freedom rights shall be available to any intermediate or beyond point.

2. Any point or points may, at the option of the designated airline or airlines, be omitted on any or all flights provided that all services originate or terminate in Finland.

3. The intermediate and beyond points to be named by Finland may be changed upon sixty (60) days notice to the aeronautical authorities of Canada.

4. Intransit rights shall be available to the intermediate and beyond point for services to and from Montreal only.

5. Montreal and Toronto may be served on the same flight or seperately. Toronto may not be served on any flight serving the intermediate and/or beyond point.

6. The beyond point may be served as an intermediate point.

7. Service to Toronto shall be at times of the day and at a terminal building acceptable to the management of Lester B. Pearson International Airport.

ANNEX

SCHEDULE OF ROUTES

SECTION II

The following route may be operated in each direction by the airline or airlines designated by the Government of Canada:

NOTES:

1. Full traffic rights shall be available at any or all points along the route.

2. Any point or points may, at the option of the designated airline or airlines, be omitted on any or all flights provided that all services originate or terminate in Canada.

3. The intermediate and beyond points to be named by Canada may be changed upon sixty (60) days notice to the aeronautical authorities of Finland.

4. The beyond points to be named by Canada shall be chosen from points in Europe, the USSR and the Middle East.

5. The total number of intermediate and beyond points to be named by Canada shall not exceed four (4) at any one time. Not more than two (2) points shall be served as beyond points at any one time.

6. Service to Helsinki shall be at times of the day and at a terminal building acceptable to the management of Helslnki-Vantaa Airport.