A G R E E M E N T
ON SCHEDULED AIR SERVICES BETWEEN THE REPUBLIC OF SLOVENIA AND THE REPUBLIC OF CROATIA
The Government of the Republic of Slovenia and the Government of the Republic of Croatia, hereinafter referred to as 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 scheduled air services between their respective territories on the basis of reciprocity,
have appointed plenipotentiaries who have agreed as follows:
Definitions
Article 1.
1. For the purposes of this Agreement terms given below have the following meaning, unless the context otherwise requires:
Aeronautical authorities - in the case of the Republic of Slovenia, Ministry of Transport and Communication, Civil Aviation Authority, and in the case of the Republic of Croatia, Ministry of Maritime Affairs, Transport and Communications, or in both cases any person or body duly authorised by special power of attorney of the said authorities.
Agreed services - any scheduled air services operated on a specified route according to the annex to the agreement.
Air service - any scheduled air service performed by aircraft for the public transportation of passengers, cargo or mail.
Capacity -
a) in relation to an aircraft, the payload of that aircraft commercially available on the whole or a section of a specified route,
b) in relation to a specified route, the capacity of the aircraft used on such route, multiplied by the frequency operated by such aircraft during a given period on a whole or section of a specified route.
Convention - 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 to the Annexes or to the Convention under articles 90 or 94 thereof, insofar as those Annexes and amendments have been adopted by both Contracting Parties.
Designated airline - an airline designated by one Contracting Party to the other as authorised to operate the agreed services according to the Agreement.
International air service - an air service passing through the air space over the territory of more than one state.
Stop for non-traffic purposes - a landing for any purpose other than taking on or discharging passengers, cargo or mail.
Tariffs - the prices to be paid for the carriage of passengers, baggage and cargo and conditions under which those prices apply, including commission charges and other additional remuneration for agency or sale of transportation documents, but excluding remuneration and conditions for the carriage of mail.
Territory - the land areas and territorial waters adjacent thereto under the sovereignty of the Contracting Party.
2. The Annex to this Agreement forms an integral part of this Agreement, and all references to the Agreement shall include the Annex except where otherwise provided.
Grant of Rights
Article 2.
Each Contracting Party grants the other Party the rights specified in this Agreement to enable the designated airlines to establish and operate international air service on the routes specified in the Annex thereto.
Designations and Operating Authorisations
Article 3.
1. Each Contracting Party is entitled to designate to the other Party one or more airlines for the purpose of operating the agreed services. Such designation shall be effected by virtue of a written notification between the aeronautical authorities of the Contracting Parties.
2. On receipt of such designation, the other Contracting Party shall, without delay grant the designated airline the appropriate operating authorisation.
3. The aeronautical authorities of each Contracting Party may require from the designated airline of the other Party, an evidence that it is qualified to meet conditions for the operation of international air services, prescribed under its national laws and regulations in conformity with the provisions of the Convention.
Recognition of Certificates and Licenses
Article 4
Certificates of airworthiness, certificates of competency and licenses issued or rendered valid by one Contracting Party and still in force shall, during the period of their validity, be recognised as valid by the other Contracting Party.
Traffic Rights
Article 5.
1. The designated airline of each Contracting Party has the right:
a) to fly without landing across the territory of the other Contracting Party
b) to make stops in that territory for non - traffic purposes
c) to stop in that territory, while operating the agreed services on a specified route, at points specified for that route in the Annex, for the purpose of discharging and taking on passengers, baggage, cargo or mail on the international air service destined for or coming from the territory of the other Contracting Party.
2. The designated airline is not entitled to take on board in the territory of the other Party passengers, baggage, cargo or mail for remuneration or hire and destined for another point in the territory of that Party.
Exemption from Customs and Other Charges
Article 6.
1. Aircraft operated by the designated airline of each Contracting Party, as well as their regular equipment, spare parts, fuel, lubricants, aircraft stores including food, beverages and tobacco on board such aircraft shall be exempt, upon arrival in the territory of the other Party, or when taken on board such aircraft in that territory, from customs and other duties or charges imposed by other Contracting Party, provided such equipment and supplies are intended solely for the use on board such aircraft operating the agreed services.
2. Fuel, lubricants, spare parts, regular equipment and aircraft stores temporary imported in the territory of the other Contracting Party, which are to be loaded or installed in the aircraft of the designated airline, or reexported from that territory, shall be exempt from customs and other duties or charges. The same shall apply to the advertising prospects and transport documentation.
3. The normal board equipment as well as the materials and supplies retained on board the aircraft operated by the designated airline of one Contracting Party, may be unloaded in the territory of the other Contracting Party only with approval of the customs authorities of that territory. In such a case, they may be placed under supervision of the said authorities until they are reexported or otherwise disposed of in accordance with customs regulations.
4. The exemptions provided for by this Article, shall also be available in situation where the designated airline of either Contracting Party has entered into arrangements with another airline or airlines, for the loan or transfer in the territory of the other Contracting Party of the items specified in paragraph 1 and 2 of this Article, provided such other airline or airlines similarly enjoy such exemptions from such other Contracting Party.
Refusal, Suspension and Revocation
Article 7.
1. Each Contracting Party is entitled to refuse, suspend or revoke the exercise of rights according to Article 2, to the designated airline of the other Contracting Party, or condition the performance of those rights in any case when:
a) the designated airline cannot prove that substantial ownership and effective control of the designated airline are vested in the other Party or its nationals,
b) the designated airline fails to comply with the national laws and regulations of the Contracting Party granting the rights, or fails to operate the agreed services according to this Agreement.
2. The rights specified in paragraph 1 of this Article shall be exercised by a Contracting Party only after consultation with the other Party, unless the immediate suspension or conditioning is necessary to prevent further infringement of its national laws.
Capacity Regulations
Article 8.
1. The designated airlines are entitled to an equal and fair opportunity to operate the agreed service on the specified routes between the territories of the Contracting Parties. In order to achieve a fair and equal treatment, they shall agree in due time upon the frequencies of their scheduled services, types of aircraft to be used and the flight schedules.
2. The schedules so agreed upon shall be submitted for approval to both aeronautical authorities at least 30 days prior to the proposed date of application. In special cases, the time limit may be reduced subject to the consent of the said authorities.
3. If the designated airlines cannot agree in the reasonable time on the schedules mentioned above, both aeronautical authorities shall endeavour to settle the controversy. The schedules established for one season according to this article, will remain in force for the respective season, until new schedules have been established according to this Article.
4. The traffic originating in or destined for the territories of the third states, shall be linked to the agreed service according to:
a) the requirements of traffic originating in or destined for the territory of the Contracting party designating the airline,
b) the traffic requirements of the area through which the airline passes, taking into consideration the local and regional service,
c) the requirements of through airline operations.
Transport Tariffs
Article 9.
1. The tariffs on any agreed service shall be established at a reasonable level, due regard being paid to all relevant factors including cost of operation, reasonable profit, competitive market situation and the tariffs of other airlines for any part of the agreed service. If possible, the tariffs shall be agreed upon by the designated airlines of both Contracting Parties.
2. The agreement on the tariffs shall, whenever possible, be reached by the designated airlines through the rate-fixing machinery of the International Air Transport Association. When this is not possible, tariffs in respect of each specified route, shall be agreed upon between the designated airlines. In any case the tariffs shall be subject to the approval of the aeronautical authorities of both Contracting Parties, and the demand for it is to be submitted not less than 30 days prior to proposed application. The above time limit may be reduced subject to the consent of the said authorities. If within 30 days after the submission of the tariffs neither of the aeronautical authorities notifies to the other aeronautical authorities their disapproval, these tariffs shall be considered approved.
3. If the designated airlines cannot agree in the reasonable time on the tariffs, or if the aeronautical authorities of either Contracting Party do not approve the tariffs submitted to them according to the provisions of paragraph 2 of this Article, the aeronautical authorities of the Contracting Parties shall endeavour to agree on those tariffs. Such negotiations shall begin within 30 days from the date when it becomes obvious that the designated airlines cannot agree upon a tariff or the aeronautical authorities of one Contracting Party have notified to the aeronautical authorities of the other Contracting Party their disapproval on a tariff.
4. If the agreement under paragraph 3 of this Article cannot be reached, the controversy shall be settled according to the rules governing the disputes arising from this Agreement.
5. No new or amended tariffs shall be valid unless they are approved by the aeronautical authorities of both Parties or are awarded by the arbitration according to the rules governing the disputes. Until final award on the tariffs is issued, according to this Article, the tariffs already in force shall apply.
6. The aeronautical authorities of each Contracting Party shall exercise their best efforts to ensure that the designated airlines conform to the agreed tariffs filed with the aeronautical authorities of the Contracting Parties, and that no airline illegally rebates any portion of such tariffs by any means, directly or indirectly.
Transfer of Revenues and Taxation
Article 10.
1. Each designated airline shall have the right to remit to its country in accordance with the foreign exchange regulations in force, at the official rate of exchange, receipts in excess of sums locally disbursed in due proportion to the carriage of passengers, baggage, cargo and mail.
2. Where a special payment agreement exists between the Contracting Parties, it shall apply.
3. 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.
4. Where a special agreement exists for the avoidance of double taxation and the air service is included, the provisions of the latter shall apply.
Airline Representation, Ticketing and Sales Promotion
Article 11.
1. The designated airline of each Contracting Party shall have the same opportunity as that given to the airline of the other Contracting Party in the territory of the other Contracting Party to establish the office and to employ, subject to the laws, commercial and technical personnel for the performance of the agreed service on the specified routes. It shall have the right to sell air transportation, either directly or through appointed agents in local currency or in any other convertible currency and to advertise sales in the territory of the other Contracting Party.
2. However, the sale of air transportation for the points beyond the territories of the Contracting Parties can be effected in a convertible currency only.
Aviation Security
Article 12.
1. Consistently 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 the present 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 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 Hague on 16 December 1970, the Convention for the Suppression of Unlawful Acts Against the Safety of Civil Aviation, signed at Montreal on 23 September 1971 and its supplementary Protocol for the Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation, signed at Montreal on 24 February 1988.
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 Organisation and designated as Annexes to the Convention on International Civil Aviation 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 airport 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. 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 sympathetic consideration to any request from the other Contracting Party for reasonable special security measures to meet a particular threat.
5. 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.
6. Should a Contracting Party depart from the aviation security provisions of this Article, the aeronautical authorities of the other Contracting Party may request immediate consultation with the aeronautical authorities of that Party.
Statistics
Article 13.
The aeronautical authorities of both Contracting Parties, shall supply each other upon request, with such periodic or other statistics as may reasonably be required, for the purpose of reviewing the capacity provided for on the agreed services. Those statistics shall include data relating to the capacity of traffic carried by designated airlines on the agreed services, including the origin and destination of the traffic.
Consultations and Amendments
Article 14.
1. Either Contracting Party may at any time request consultations on the implementation, interpretation, application or amendment of the present agreement. Such consultations between the aeronautical authorities, shall begin within a period of 60 days from the date the other Contracting Party receives the written request, unless otherwise agreed by the Contracting Parties.
2. Any amendment so stipulated shall come into force according to the procedure set for this Agreement.
3. If a multilateral convention concerning air transport comes into force in respect of both Contracting Parties, this Agreement shall be amended so as to conform with the provisions of that convention.
4. The amendment to the Annex may be stipulated directly between the aeronautical authorities and shall come into force when it has been confirmed by exchange of diplomatic notes.
Settlement of Disputes
Article 15.
1. In case of a controversy or a dispute arising from the interpretation or application of the Agreement, the Contracting Parties shall in the first place endeavour to settle it by negotiation.
2. If the settlement cannot be reached by negotiation, either Party may submit the dispute for decision to a tribunal of three arbitrators.
3. The Contracting Party initiating the arbitral proceeding shall appoint its arbitrator and notify this through diplomatic channel to the other Party. The other Contracting Party shall appoint its arbitrator within 60 days and the two arbitrators so appointed shall choose the third arbitrator who will act as president of the tribunal, and who must not be a national of either Party.
4. If the other Contracting Party fails to appoint an arbitrator within time limit, or the third arbitrator is not appointed within specified time, the Party initiating the arbitration shall request the appointment of an arbitrator or arbitrators as the case may be, from the President of Council of the International Civil Aviation Organization. The rules of arbitral procedure shall be set by the tribunal.
5. Each Contracting Party shall pay the expenses of its arbitrator. The remaining expenses of the arbitral tribunal shall be shared equally by the Contracting Parties.
6. The Contracting Parties undertake to comply with the final decision awarded by the tribunal under paragraph 2 of this Article and waive any legal remedy against the aforesaid award.
Termination
Article 16
1. Either Contracting Party may at any time give to the other Contracting Party written notice through diplomatic channels of its decision to terminate the Agreement. Such notice shall be simultaneously communicated to the International Civil Aviation Organization. The Agreement shall terminate at the end of a flight schedules period during which one year after the date of receipt of the notice will have elapsed, unless the notice is withdrawn by mutual agreement before the expiry of this period.
2. If the other Contracting Party does not acknowledge receipt of the notice, it shall be deemed to have been received 14 days after the receipt of the notice by the International Civil Aviation Organization.
Registration
Article 17.
This Agreement and any amendments thereto shall be registered with the International Civil Aviation Organization.
Coming into Force
Article 18.
The present agreement shall be applied provisionally from the date of its signature; it shall enter into force on the first day of the next month, following the date on which the two Contracting Parties have notified each other in an exchange of diplomatic notes that the requirements for its entry into force under their respective constitutional procedures have been fulfilled.
In witness whereof the undersigned plenipotentiaries, being duly authorized thereto by their respective Governments, have sighed the present Agreement.
Done at Brdo pri Kranju on this 8th day of July 1994 in two originals in the Slovenian, Croatian and Enghsh languages.
In the case of any divergence of implementation, interpretation or application, the English text shall prevail.
For the Government
of the Republic of Slovenia:
Janez Drnovšek, (s)
For the Government
of the Republic of Croatia:
Nikica Valentić, (s)
Annex
A) The route to be operated in both directions by the designated airline of the Government of the Republic of Slovenia
Points of departure in Slovenia:
all terminal points
Points of arrival in Croatia:
all terminal points
B) The route to be operated in both directions by the designated airline of the Government of the Republic of Croatia
Points of departure in Croatia:
all terminal points
Points of arrival in Slovenia:
all terminal points
C) Any intermediate points and points beyond may be served by the designated airline of each Contracting Party without exercising Fifth Freedom traffic rights.
The eventual exercise of Fifth Freedom traffic rights may be agreed upon by the aeronautical authorities of the two Contracting Parties.