New Delhi, 23 February 1966The Government of India and the Government of the Hungarian People’s Republic;
CONSIDERING that the possibilities of commercial aviation as a means of transport and of promoting friendly understanding and goodwill
among peoples are increasing from day to day;
CONSIDERING that it is desirable to organize on the basis of equality and reciprocity air services between and beyond the two countries
and to strengthen thus their relations in the field of civil aviation;
DESIRING to conclude an Agreement for the above purposes;
HAVE agreed as follows :
Article I
(1) For the purpose of the present Agreement, unless the context otherwise requires :
(a) the term “aeronautical authorities” shall mean, in the case of India, the Director General of Civil Aviation and in the case of
the Hungarian People’s Republic, the Minister of Posts and Communications, or any person or body authorised to perform the functions
presently exercised by the said Director General or by the said Minister;
(b) The word “territory” in relation to a State shall mean the land areas and territorial waters adjacent thereto including the air
space above them under the sovereignty of a State;
(c) the term “air service” shall mean any scheduled air service performed by aircraft for the transport of passengers, mail or cargo;
(d) the term “landing for non traffic purposes” shall mean a stop for any purpose other than taking on or discharging passengers,
cargo or mail;
(e) the term “agreed services” shall mean the air services which may be operated by virtue of this Agreement;
(f) the term “specified routes” shall mean the routes as set forth in the Annex hereto on which the agreed services may be operated;
(g) the term “designated airline” shall mean an airline which the aeronautical authorities of one Contracting Party have designated
in writing to the aeronautical authorities of the other Contracting Party, in accordance with Article III of the present Agreement.
(2) The Annex to the present Agreement shall be deemed to be part of the Agreement and all references to the Agreement shall include
reference to the Annex, except where otherwise expressly provided.
Article II
(1) Each Contracting Party grants to the other Party the rights specified in the present Agreement for the purpose of establishing
air services on the route specified in the Annex thereto.
(2) Subject to the provisions of the present Agreement, the airline designated by each Contracting Party shall in respect of scheduled
air services enjoy the following rights :
(a) to fly without landing across the territory of the other Contracting Party,
(b) to make stops in the territory of the other Contracting Party for non-traffic purposes, and
(c) while operating an agreed service on a specified route, to make stops in the territory of the other Contracting Party at the point
specified for that route in the Annex to the present Agreement, for the purpose of putting down or taking on international traffic
in passengers, cargo and mail originating in or destined for the territory of the first Contracting Party or of a third country.
(3) Nothing in paragraph 2 of this Article shall be deemed to confer on the airline of one Contracting Party the privilege of taking
on, in the territory of the other Contracting Party, passengers, cargo or mail 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 airline for the purpose
of operating the agreed services.
(2)On receipt of such designation, the other Contracting Party shall, subject to the provisions of paragraphs (3) and (4) hereunder,
without undue delay grant to the designated airline the appropriate operating authorisation.
(3) The aeronautical authorities of one Contracting Party, before granting operating authorisation to the airline designated by the
other Contracting Party, may require the airline to satisfy them that
(a) it fulfils the conditions prescribed under the laws and regulations normally applied to the operation of air services by such
authorities;
(b) its substantial ownership and effective control are vested in the other Contracting Party or its nationals.
(4) Each Contracting Party shall have the right to withhold an operating authorisation when it is not satisfied that the airline designated
by the other Contracting Party will qualify according to paragraph (3) hereabove.
(5) The agreed services may be inaugurated immediately or at a later date at the option of the airline so designated and authorised,
provided that the provisions of this Agreement have been complied with.
Article IV
(1) Each Contracting Party reserves the right to revoke an operating authorisation or to suspend the exercise of the rights specified
in Article II of this Agreement by the 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 the 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 of such Contracting Party; or
(b)in the 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) The rights as set forth in paragraph (1) hereabove shall not be exercised before the intention to do so is notified to the other
Contracting Party and consultation between the aeronautical authorities of both Contracting Parties has not led to agreement within
a period of forty five (45) days from the date of the said notification, provided that this rights set forth in paragraph (1) hereabove
may be exercised prior to such consultation if an immediate suspension of operations or imposition of conditions is necessary to
avoid further infringements of laws, regulations or provisions of the present Agreement.
Article V
(1) The laws regulations and instructions 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 while within its territory,
shall be applied to the aircraft of the airline designated by the other Contracting Party and shall be complied with by such aircraft
upon entering or departing from and while within the territory of the first Contracting Party.
(2) The laws, regulations and instructions of one Contracting Party relating to the admission to or departure from its territory of
passengers, crew, mail or cargo aircraft, such as regulations relating to entry, clearance, immigration, passports, customs and quarantine,
shall be complied with by or on behalf of such passengers, crew, mail or cargo of the aircraft of the airline designated by the other
Contracting Party upon entrance into or departure from, and while within the territory of the first Contracting Party.
Article VI
(1) The fares and rates to be charged by the designated airline of one Contracting Party for carriage on scheduled services 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, the characteristics of each service (such as speed and accommodation).
(2) The fares and rates referred to in paragraph (1) hereabove shall be agreed by the designated airlines of both Contracting Parties.
(3) If the designated airlines cannot agree on any of these fares or rates, the aeronautical authorities of both Contracting Parties
shall try to settle the dispute according to the provisions of Article XVII of this Agreement.
(4) When fares and rates have been established in accordance with the provisions hereof, these tariffs shall remain in force until
new fares and rates will have been established according to this Article.
Article VII
(1) The capacity to be provided, the frequency of services to be operated and the nature of air service, that is transiting through
or terminating in the territory or other Contracting Party shall be agreed between designated airlines in the accordance with the
principles laid down in the Article XV and the provisions of this Article. Such Agreement shall be subject to the approval of the
aeronautical authorities of the two Contracting Parties.
(2) Any increase in the capacity to be provided or frequency of services to be operated by the designated airlines of either Contracting
Party shall be agreed; in the first instance, between the designated airlines and shall be subject to the approval of the aeronautical
authorities on the basis of the estimated requirements of traffic between the territories of the two Parties and any other traffic
to be jointly agreed and determined. Pending such agreement or settlement, the capacity and frequency entitlements already in force
shall prevail.
(3) The commencement and operation of the specified air services by the designated airlines of the Contracting Parties shall be in
accordance with the commercial agreement between the designated airlines which shall be subject to the approval of the respective
aeronautical authorities.
(4) If the designated airlines of the Contracting Parties fail to agree on any matter on which their agreement is required under the
provisions of this Article, the aeronautical authorities of the Contracting Parties shall endeavour to reach agreement thereon.
(5) The capacity to be provided, the frequency of services to be operated and the nature of air service, that is, transiting through
or terminating in the territory of the other Contracting Party as agreed to in accordance with the provisions of this Article shall
be specified in an exchange of letters between the aeronautical authorities of the Contracting Parties.
(6) Each Contracting Party shall cause its designated airlines to communicate to the aeronautical authorities of the other Contracting
Party, as long in advance as practicable, prior to the inauguration of the agreed services, the type of service, the type of aircraft
to be used, the flight schedules, tariff schedules, and all other relevant information concerning the operation of the agreed services
including such information as may be required to satisfy the aeronautical authorities that the requirements of the present Agreement
are being duly observed. The requirements of. this paragraph. shall likewise apply to any changes concerning the agreed services.
Article VIII
(1) Every aircraft used by the designated airline and engaged on the agreed services shall bear its appropriate nationality and registration
marks, and shall carry the following documents :
(a) its certificate of registration;
(b) its certificate of airworthiness;
(c) the appropriate licenses or certificates for each member of the crew;
(d) its journey log book or any other document which replaces it; (e) the aircraft radio station license; .
(f) the passenger list if required by national regulations;
(g) if it carries cargo, a manifest and detailed declaration of the cargo;
(h) if it carries special categories of cargo, the necessary permits for this purpose.
(2) Certificates of airworthiness, certificates of competency and licenses issued or rendered valid by one Contracting Party shall
be recognised as valid by the other Contracting Party but each Contracting Party reserves the right to refuse to recognise, for the
purpose of flights above its own territory, licenses granted by the other Contacting Party to any persons regarded as its nationals
under its own national legislation.
Article IX
(1) Each Contracting Party shall provide to the designated airline of the other Contracting Party the use of all installations available
for the safety and regularity of the agreed services. In the operation of the agreed services, the standards, recommended practices,
procedures and codes internationally adopted for aircraft and for international air navigation shall be applied or followed as far
as may be practicable.
(2) Fees and charges levied by the authorities or other organisations of one Contacting Party from the designated airline of the other
Contracting Party for the use of airports, as well as air navigation aids and facilities shall be assessed according to tariffs established
and published by the competent authorities of the first Contracting Party.
Article X
The designated airline of one Contracting Party shall have the right to establish and maintain representations in the territory of
the other Contracting Party. Such representations may be manned by appropriate managerial and technical staff; however, the members
of this staff shall be nationals of one or the other Contracting Party.
Article XI
(1) Each Contracting Party grants to the designated airline of the other Contracting Party the right to remit to its head office the
excess over expenditure of receipts earned in the territory of the first Contacting Party. Such remittances, however, shall be made
in accordance with the foreign exchange regulations of the Contracting Party in the territory of which the revenue accrued.
(2) In case special arrangements ruling the settlement of payments are in force between the two Contracting Parties, the provisions
of such arrangements shall be applied to the transfer of funds under paragraph (1) hereabove.
Article XII
(1) Aircraft operated in international traffic by the designated airline of either Contracting Party shall be exempt from all customs
duties, inspection fees and other similar duties or taxes on arrival to, while within, and on departure from, the territory of the
other Contracting Party.
(2) Fuels, lubricants, spare parts, airborne equipment and aircraft stores (including foods, beverages, tobacco and small supplies
of fancy goods for sale to passengers on board the aircraft) shall be exempt from the duties, fees and taxes referred to in paragraph
(1) hereabove on arriving in while within, and when re-exported from, the territory of one Contracting Party, provided such equipment,
supplies and goods are to be used by or on board the aircraft of the airline designated by the other Contracting Party.
(3) Equipment, goods and materials granted exemption under this Article may be required to be kept under customs supervision or control
while within the territory of the Contracting Party granting the exemption.
Article XIII
To the extent to which they are applicable to the air services established under the present Agreement and in so far as they are not
inconsistent with the laws and regulations of either Contracting Party, the provisions of the Convention on International Civil Aviation
opened for signature at Chicago on the seventh day of December 1944 and any Annex thereto shall be observed in their present from
by the Contracting Parties.
Article XIV
(1) In the event of a forced landing or other accident affecting an aircraft of the airline designated by one Contracting Party on
the territory of the other Contracting Party, the aeronautical authorities of the Contracting Party on whose territory the event
has occurred shall without delay inform the aeronautical authorities of the other Contracting Party of the particulars and circumstances
of the occurrence and give any assistance that may be necessary to the crew and passengers.
(2) If a forced landing or other accident results in the death of, or serious injury to, any person, or substantial damage to an aircraft,
the aeronautical authorities of the Contracting Party on whose territory the event has occurred shall in addition :
(a) ensure the protection of evidence and the safe custody of the aircraft and its contents, including mail, luggage and cargo;
(b) grant immediate access to the aircraft to accredited representatives of the aeronautical authorities of the other Contracting
Party and to the accredited representatives of the airline whose aircraft is involved;
(c) conduct an inquiry into the circumstances of the occurrence;
(d) grant the aeronautical authorities and airline of the other Contracting Party full facilities to be represented at the inquiry;
(e) if so requested by the aeronautical authorities of the other Contracting Party, leave the aircraft and its contents undisturbed
(so far as is reasonably practicable) pending their inspection by a representative of those authorities;
(f) release the aircraft and its contents as soon as these are no longer necessary for the inquiry;
(g) send to the aeronautical authorities of the other Contracting Party the report of the inquiry as soon as it is available.
Article XV
(1) The designated airline of each Contracting Party shall, in all respects, enjoy fair and equal opportunity for the carriage of
international traffic between and beyond the territories of the two Parties.
(2) In the operation by the designated airline of either Contracting Party of the agreed air services, the interests of the designated
airline of the other Party shall be taken into consideration so as not to effect unduly the services which the latter provides on
all or part of the same route.
Article XVI
The aeronautical authorities of either Contracting Party shall furnish to the aeronautical authorities of the other Contracting Party
statistics relating to the traffic carried during each month on their air services to or form or through the territory of the other
Contracting Party showing the countries of origin and destination and the points of embarkation and disembarkation of such traffic.
Such statistics shall, on request, be furnished as early as possible.
Article XVII
(1) 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; the mentioned
authorities will exchange such information as is necessary for that purpose.
(2) Consultation between the aeronautical authorities of the Contracting Parties may be requested at any time for the purpose of discussing
the interpretation, application for modification of, or any dispute relative to this Agreement. Such consultation shall begin within
a period of sixty (60) days from the date of receipt through diplomatic channels of the request by the Contracting Party invited
to negotiate, except that the above time Limit shall be twenty (20) days, when the request is made upon receipt of a notification
under Article IV, paragraph (2) of this Agreement.
(3) If a dispute cannot be settled by and between the aeronautical authorities of the Contracting Parties by negotiations according
to paragraph (2) hereabove, it shall be settled by Contracting Parties.
Article XVIII
(1) Except as provided in paragraph (2) hereunder, amendments to, and modifications of, this Agreement shall come into effect when
confirmed by both Contracting Parties in an exchange of diplomatic notes.
(2) Amendments to, and modifications of the Annex to this Agreement may be effected by an exchange of letters between the aeronautical
authorities of the Contracting Parties.
(3) In the event that both Contracting Parties will have accepted a general multilateral air transport convention, the provisions
of this Agreement shall be amended so as to conform therewith.
Article XIX
This Agreement shall continue in force unless one Contracting Party notifies the other Contracting Party through diplomatic channels
of its intention to terminate the Agreement. In this case the Agreement shall terminate twelve (12) months after the date of receipt
of the notice by the other Contracting Party, unless the notice to terminate is withdrawn by mutual agreement before the expiry of
this period.
Article XX
This Agreement is subject to ratification according to the respective constitutional rules of the Contracting Parties and shall come
into force on the date of exchange of the instruments of ratification.
DONE at New Delhi this 23rd day of February, 1966 in six originals, two each in Hindi, Hungarian and English languages, all the three
texts being equally authentic. In case of any divergence of interpretation, the English text shall prevail.
Sd /-
V. SHANKAR
For the Government of
India.
Sd /-
RUDOLF RONAI
For the Government of the
Hungarian People’s Republic.
ANNEX
SECTION I
The airline designated by the Government of India shall be entitled to operate air services in both directions on the route specified
in the Section and to land for traffic purposes in the territory of Hungarian People’s Republic at the point therein specified.
