Air Service Agreement – India and Malaysia

[1st April, 2017]

Air Services Agreement between the Government of India and the Government of Malaysia

THE GOVERNMENT OF INDIA and THE GOVERNMENT OF MALAYSIA (hereinafter referred to as the “Parties”);

BEING parties to the Convention on International Civil Aviation opened for signature at Chicago on 7 December 1944;

DESIRING to promote international air services between their respective territories;

DESIRING to promote an international aviation system based on competition among airlines; and

DESIRING to ensure the highest degree of safety and security in international air services and reaffirming their grave concern about acts or threats against the security of aircraft which jeopardize the safety of persons or property, adversely affect the operation of air services and undermine public confidence in the safety of civil aviation;

HAVE AGREED as follows:

Article 1 — Definitions

For the purposes of this Agreement, unless the context otherwise requires, the term:

(1) “air transportation” means the public carriage by aircratt of passengers, baggage, cargo and mail, separately or in combination, for remuneration or hire;

(2) “aeronautical authorities” means in the case of India, the Director General of Civil Aviation and in the case of Malaysia, the Minister of Transport; or in both cases any other authority or person empowered to perform the functions now being exercised by the said authorities;

(3) “Agreement means this Agreement its Annex and any amendments thereto;

(4) “air service”, “international air service”, “airline” and “stop for non-traffic purposes” shall have the same meaning as assigned to them in Article 96 of the Convention;

(5) “capacity” means the amount of services provided under the Agreement, usually measured in the number of flights (frequencies) or seats or tons of cargo ottered in a market (city pair or country to country) or on route during specific period, such as daily, weekly, seasonally or annually;

(6) “Convention” means the Convention on International Civil Aviation, opened; for signature at Chicago on 7 December, 1944, and includes any amendment that has entered into force under Article 94(a) of that Convention and has been ratified by both Parties, and any Annex or any amendment thereto adopted under Articles 90 of the Convention, insofar as such Annexes or amendments are at any given time effective for both Parties;

(7) “designated airline” means an airline designated and authorised in accordance with Article 3 (Designation and Authorisation of Airlines) of this Agreement;

(8) “intermodal air transportation” means the public carriage by aircraft and by one or more surface modes of transport of passengers, baggage, cargo and mail, separately or in combination, for remuneration or hire;

(9) “tariff” means any fare, rate or charge for the carriage of passengers (and their baggage) and/ar cargo (excluding mail) in air service (including intermodal transportation) charged by airlines, including their agents, and the conditions governing the availability of such fare, rate or charge;

(10) “territory” shall have the same meaning as assigned to it in Article 2 of the Convention; and

(11) “user chargers” means a charge imposed on airlines by the competent authorities, or permitted by them to be imposed, for the provision of airport property, air navigation, or aviation security facilities or services, including related services and facilities, for aircraft, their crews, passengers, baggage and cargo,

Article 2 — Grant of Rights

1. Each Party grants to the other Party the rights specified in this Agreement for the purpose of establishing scheduled international air services on the routes specified in the appropriate section of part of the Annex to this Agreement. Such services and routes shall hereinafter be called “the agreed services” and ‘the specified routes’, respectively.

2. Subject to the provisions of this Agreement, the airline(s) designated by each Party shall enjoy the following rights:

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

(b) to make stops in the territory of the Party for non-traffic purposes;

(c) white operating the agreed services, at the points specified for that route in the Annex to this Agreement, the airline(s) designated by each Party shall also enjoy the right to embark and disembark, in the territory of the other Party, and if agreed between the Parties, to/from the intermediate and beyond point(s), international traffic in passengers and cargo including mail, separately or in combination.

3. The airline(s) of each Party, other than those designated under Article 3 of this Agreement, shall also enjoy the rights specified in clauses (a) and (b) of paragraph (2) of this Article.

4. Nothing in paragraph (2) of this Article shall be deemed to confer on the designated airline(s) of one Party the privilege of taking on board, in the territory of the other Party, passengers and cargo including mail destined for another point in the territory of that other Party.

5. If because of special and unusual circumstances, a designated airline of one Party is unable to operate a service on its normal routing, the other Party may use its best efforts to facilitate the continued operation of such service through appropriate temporary rearrangement of routes as is mutually agreed by the Parties.

6. The designated airlines of one Party shall have the right to use airways, airports and other facilities provided by the other Party on a non-discriminatory basis.

Article 3 — Designation and Authorisation of Airlines

1. Each Party shall have the right to designate an airline or airlines for the purpose of operating the agreed services on the specified routes and to withdraw or alter such designations. Such designations shall be made in writing and transmitted to the other Party through diplomatic channels and shall identify whether the airline is authorised to conduct the typo of air services specified in the Annex.

2. Upon receipt of such designation and application from the designated airline(s) of either Party in the form and manner prescribed for the purpose, the aeronautical authorities of the other Party shall grant the appropriate operating authorisation with minimum procedural delay, provided that:

(a) substantial ownership and effective control of that airline are vested in the Party designating the airline or its nationals;

(b) the designated airline’s qualified to meet the conditions prescribed under the laws and regulations normally applied to operation of International air sen/ices by the Party considering the application; and

(c) the Party designating the airline is maintaining and administering the Standards set forth in Article 9 (Safety) and Article 10 (Aviation Security).

Article 4 — Withholding, Revocation and Limitation of Authorisation

1. Either Party shall have the right to withhold the authorisation, revoke or suspend the operating authorisation granted to an airline designated by the other Party or impose such conditions as it may deem necessary in any case where:

(a) substantial ownership and effective control of that airline are not vested in the other Party or its nationals;

(b) that airline has failed to comply with the laws and regulations referred to in Article 6 (Applications of Laws) of this Agreement or other conditions prescribed under the laws and regulations normally applied to the operation of international air transport services by the Party issuing the operating authorisation; or

(c) the other Party is not maintaining and administering the standards set out in Article 9 (Safety).

2. Unless immediate action is essential to prevent further non-compliance with clauses (b) and (c) of paragraph 1 of this Article, the rights established by this Article shall be exercised only after consultation with the other Party in accordance with Article 21 (Consultation) of this Agreement.

3. This Article does not limit the rights of either Party to withhold, revoke, limit or impose conditions on the operating authorisation of an airline of the other Party in accordance with the provisions of Article 10 (Aviation Security).

Article 5 — Principles Governing Operation of Agreed Services

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

2. Neither Party shall impose on the other Party’s designated airlines any requirement which is inconsistent with the purposes of this Agreement.

3. The capacity to be provided and the frequency of services to be operated by the designated airline(s) of each Party shall be agreed between both Parties.

4. Any Increase in the capacity to be provided and the frequency of services to be operated by the designated airlines of each Party shall be subject to agreement between both Parties. Pending such an agreement or settlement, the capacity and frequency entitlements already in force shall prevail.

5. Notwithstanding the foregoing, the designated airlines of each Party shall be entitled to operate any number of all-cargo services between each other’s territory with any type of aircraft with full 3rd, 4th and 5th freedom traffic rights regardless of the points specified in the Route Schedule annexed to this Agreement Such all-cargo services may also be operated under co-operative marketing arrangements such as code sharing, blocked space, etc. with any other airline(s), including airlines of third countries.

Article 6 — Application of Laws

1. While entering, within, or leaving the territory of one Party, its laws, regulations and procedures relating to the operation and navigation of aircraft shall be complied with by the designated airlines of the other Party.

2. While entering, within, or leaving the territory of one Party, its laws: regulations and procedures relating to the admission into or departure from its territory of passengers, baggage, crew or cargo on aircraft (including regulations relating to entry, clearance, aviation security, immigration, passports, customs, currency, health, sanitary and quarantine or, in the case of mail, postal regulations) shall be complied with by, or on behalf of such passengers, crew or shippers of cargo of the designated airlines of the other Party.

3. Neither Party shall give preference to its own or to any other airline over a designated airline of the other Party engaged in similar international air services in the application of the laws and regulations and procedures provided for in this Article.

4. Passengers, baggage and cargo in direct transit across the territory of either Party and not leaving areas of the airport reserved for such purpose shall be subject to no more than a simplified control, except in respect of security measures against violence, air piracy, narcotics control etc.

Article 7 — User Charges

1. User charges that may be imposed by the competent charging authorities of each Party on the designated airline(s) of the other Party shall be just reasonable, non-discriminatory, and equitably apportioned among all categories of users such user charges shall be assessed on the designated airline(s) of the other Party on terms not less favourable than the terms available to any other airline at the time the charges are assessed.

2. User charges Imposed on the designated airline(s) of the other Party may reflect but shall not exceed, the full cost to the competent charging authorities of providing the appropriate airport environmental, air navigation and aviation security facilities and services at the airport or within the airport system. Such full cost may include a reasonable return on assets, after depreciation, Facilities and services for which charges are made shall be provided on an efficient and economic basis.

3. Each Party shall encourage consultations between the competent charging authorities in its territory and the designated airline(s) using the services and facilities. Each Party shall encourage the competent charging authorities and the airlines to exchange such information as may be necessary to permit an accurate and transparent review of the reasonableness of the charges in accordance with the principles stated in paragraph (1) and (2) of this Article Each Party shall encourage the competent charging authorities to provide users with reasonable notice of any proposal for changes in the user charges to enable the users to express their views before changes are implemented.

4. Neither party shall be held, in dispute resolution procedures pursuant to Article 23 (Settlement of Disputes), to be in breach of a provision of this Article, if:

(i) It has undertaken a review of the charge or practice that is the subject of complaint by the other Party within a reasonable time; and

(ii) Following such a review, it has taken all steps within its power to remedy any charge or practice that is inconsistent with this Article.

Article 8 — Customs Duties and Charges

1. Each Party shall, on the principle of reciprocity, exempt the designated airline(s) of the other Party to the fullest extent possible under its national law from 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 but not limited to such items of food, beverages and liquor, tobacco and other products destined for sale or to be used solely in connection with the operation or servicing of aircraft) and other insignia of the company printed thereon and usual publicity material distributed free of charge by the designated airline(s).

2. The exemptions under this Article shall be granted only if the items referred to in paragraph 1 are:

(a) Introduced into the territory of one Party by or on behalf of the designated airline(s) of the other Party;

(b) Retained on board aircraft of the designated airline(s) of one Party upon arrival in or leaving the territory of the other Party, or

(c) Taken on board aircraft of the designated airline(s) of one Party in the territory of the other Party for use in operating the agreed services.

3. The exemptions under this Article shall apply regardless of the fact whether or not such items are used or consumed wholly within the territory of the Party granting the exemption, provided the ownership of such items is not transferred in the territory of the said Party.

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

Article 9 — Safety

1. Either Party may request consultations concerning the safety standards maintained in respect of an airline designated by the other Party relating to aeronautical facilities, aircrews, aircraft and operation of the designated airline(s). Such consultations shall take place within 30 days of the request or any longer period as may be agreed between the Parties.

2. If, following such consultations, one Party finds that safety standards in the areas referred to in paragraph (1) that meet the standards established at that time in accordance with the Convention are not effectively maintained and administered in respect of airline(s) designated by the other Party, the other Party shall be notified of such findings and the steps considered necessary to conform with these minimum standards, and the other Party shall take appropriate corrective action.

3. Each party reserves the right to suspend or limit the operating authorisation of an airline(s) designated by the other Party in the event the other Party does not take appropriate corrective action within 30 days.

4. It is agreed that any aircraft operated by an airline of one Party on services to or from the territory of the other Party may, while within the territory of the other Party, be made the subject of an examination by the authorised representatives of the other Party, on board and around the aircraft to check both the validity of the aircraft documents and those of its crew and the apparent condition of the aircraft and its equipment (in this Article called “ramp inspection”), provided this does not lead to unreasonable delay.

5. If any such ramp inspection or series of ramp inspections gives rise to:

– Serious concerns that an aircraft or the operation of an aircraft does not comply with the minimum standards established at that time pursuant to the Convention; or.

– Serious concerns that there is a lack of effective maintenance and administration of safety standards established at that time pursuant to the Convention;

the Party carrying out the inspection shall, for the purposes of Article 33 of the Convention, be free to conclude that the requirements under which the certificate or licences in respect of that aircraft or in respect of the crew of that aircraft had been issued or rendered valid or that the requirements under which that aircraft is operated are not equal to or above the minimum standards established pursuant to the Convention.

6. In the event that access for the purpose of undertaking a ramp Inspection of an aircraft operated by an airline of one Party in accordance with paragraph (4) of this Article is denied by a representative of that airline, the other Party shall be free to infer that serious concerns of the type referred to in paragraph (5) of this Article arise and draw the conclusions referred to in that paragraph.

7. Each Party reserves the right to suspend or vary the operating authorisation of an airline or airlines of the other Party immediately in the event the first Party concludes, whether as a result of a ramp inspection, a series of ramp inspections, a denial of access for ramp inspection, consultation or otherwise, that immediate action is essential to the safety of an airline operation.

8. Any action by one Party in accordance with paragraphs (3) or (7) of this Article shall be discontinued once the basis for taking that action ceases to exist.

Article 10 — Aviation Security

1. In accordance with their rights and obligations under international law, both 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 Without limiting the generality of their rights and obligations under international law the Parties shall in particular act in conformity with the provisions of the Convention on Offences and Certain other Acts Committed on Board Aircraft, done at Tokyo on September 14, 1963, the Convention for the Suppression of Lawful Seizure of Aircraft, done at the Hague on December 16, 1970, the Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation, done at Montreal on September 23, 1971 and its Protocol done at Montreal on February 24, 1988 and any other Convention on aviation security to which both Parties become members.

2. Upon request both Parties shall provide each other with all necessary assistance to prevent acts of unlawful seizure of civil aircraft and other unlawful acts against the safety of such aircraft of their passengers and crew, of airports and air navigation facilities, and address any other threat to the security of civil air navigation.

3. Both Parties shall, in their mutual relations, act in conformity with all aviation security standards and appropriate recommended practices established by the International Civil Aviation Organization and designated as Annexes to the Convention they shall require that operators of aircraft of their registry, operators of aircraft who have there 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 Party shall advise the other party of any difference between its national regulations and practices and the aviation security standards of the Annexes. Either Party may request immediate consultation with other Party at any time to discuss any such differences.

4. Each Party agrees to observe the security provisions required by the other Party or entry into and departure from the territory of that the other Party and to take adequate measures to protect aircraft and to inspect passengers, crew, and their baggage and carry-on items, as well as cargo and aircraft stores, prior to and during boarding or loading Each Party shall also give positive consideration to any request from the other Party for special security measures to meet a particular threat.

5. When an incident or threat of an incident of unlawful seizure of aircraft or other unlawful acts against the safety of passengers, crew, aircraft airports or air navigation facilities occurs: both Parties shall assist each other by facilitating communications and other appropriate measures intended to terminate rapidly and safely such incident or threat.

6. When a Party has reasonable grounds to believe that the other Party has departed from the aviation security provisions of this Article, the aeronautical authorities of that Party may request immediate consultations with the aeronautical authorities of the other Party. Failure to reach a satisfactory agreement within 30 days from the date of such request shall constitute grounds to withhold, revoke, limit or impose conditions on the operating authorisation of the designated airline(s) of that Party. When required by an emergency, either Party may take interim action prior to expiry of 30 days.

7. Any action taken in accordance with paragraph (6) shall be discontinued upon compliance by the other Party with the provisions of this Article.

Article 11 — Non-National Personnel and Access to Local Services

Each Party shall permit designated airlines of the other Party to:

a) establish offices in the territory of the other Party for promotion and sale of air services and other ancillary products and facilities required for the provision of air services;

b) bring into its territory and maintain non-national employees who perform managerial, commercial, technical, operational and other specialist duties which are required for the provision of air transport services, consistent with the laws and regulations of the receiving Party concerning entry, residence and employment; and

c) use the services and personnel of any other organization, company or airline operating in its territory and authorized to provide such services.

Article 12 — Sale and Marketing of Air Service Products

1. Each Party shall accord airlines of the other Party the right to sell and market International air services and related products in its territory directly or through agents or other intermediaries of the airline’s choice.

2. Each airline shall have the right to sell transportation in the currency of that territory or at its discretion, in freely convertible currencies or other countries, and any person shall be free to purchase such transportation in currencies accepted by that airline.

Article 13 — Remittance of Earnings

1. The airline(s) of each Party shall have the right to convert and transfer freely in any convertible currency, on demand, local revenues in excess of sums locally disbursed earned by such airlines in connection with the sale of air transportation and other ancillary products, services and facilities as well as interest earned on such revenues (including interest earned on deposits awaiting transfer). Conversion and remittance shall be permitted promptly without restrictions or taxation in respect thereof at the rate of exchange applicable to current transactions and remittance on the date the airline makes the initial application for remittance.

2. The airline(s) of each Party shall be permitted to pay for local expenses, including purchase of fuel, in the territory of the other Party in local currency. At their discretion, the airline(s) of each Party may pay for such expenses in the territory of the other Party in freely convertible currencies in accordance with the national regulations of the other Party;

3. Notwithstanding anything contained in this Article, the exercise of rights under this article shall be in accordance with the applicable domestic laws, rules and regulations including the provisions of Agreement between the Government of Malaysia and the Government of the Republic of India for the Avoidance of Double Taxation and the prevention of Fiscal Evasion with respect to Taxes on Income. If one Party imposes restrictions on the transfer of local revenues in excess of sums locally disbursed by the designated airlines of the other Party, the latter shall have the right to impose reciprocal restrictions on the designated airlines of the first Party. Nothing in this Agreement shall affect the rights and obligations of either country under any tax convention in the event of any inconsistency between this Agreement and any such convention, that convention shall prevail to the extent of inconsistency.

Article 14 — Co-Operative Marketing Arrangements

1. In operating or holding out the agreed services on the specified routes, the designated airline(s) of each Party may enter into co-operative marketing arrangements, such as code-share, block space or any other joint venture arrangement, with:

(a) the designated airline (s) of the same Party; or

(b) the designated airline(s) of the other Party; or

(c) the designated airline(s) of a third country,

Provided that all airlines in such arrangements shall hold the appropriate authority and meet the requirements normally applied to such arrangements.

2. The operating airline(s) involved in the co-operative marketing arrangements shall hold the underlying traffic including the route rights and the capacity entitlements and meet the requirements normally applied to such arrangements.

3. All marketing airline(s) involved in the co-operating arrangements shall hold the underlying route rights and meet the requirements normally applied to such arrangements.

4. The designated airlines of either Party may also enter into cooperative marketing arrangements with the designated airlines of the other Party, between the points of call as well as between a point of call and any other point(s) additionally agreed for this purpose for the designated airlines of the first Party within the territory of the Other Party (domestic code share), for the carriage of through international traffic, without exercising cabotage rights.

5. The total capacity operated by the air services performed under such arrangements shall be counted only against the capacity entitlement of the Paly designating the operating airline(s). The capacity offered by the marketing airline(s) on such services shall not be counted against the capacity entitlement of the Paly designating that airline.

6. The designated airline(s) of either side shall be allowed to transfer traffic (i.e. starburst) between aircraft involved in the code-share operations without restriction as to number, size and type of aircraft.

7. In addition to the operating airline(s), the aeronautical authorities of each side may require the marketing airline(s) to file schedules for approval and also provide any other documents before commencement of air services under the co-operative marketing arrangements.

8. The Parties agree to take the necessary action to ensure that consumers are fully informed with respect to codeshared flights operating to or from their territory and that, as a minimum, passengers be provided with the necessary information in the following ways:

(a) orally and if possible, in writing at the time of booking;

(b) in written form, on the ticket itself and/or (if not possible), on the itinerary document accompanying the ticket or on any other document replacing the ticket, such as a written confirmation, including information on whom to contact in case of a problem and a dear indication of which airline is responsible case of damage or accident and

(c) orally again, by the airline’s ground staff at all stages of the journey.

9. Before providing code sharing services, the code sharing partners shall agree as to which party shall be responsible for security, safety, facilitation, liability and other consumer related matters. Such an agreement shall be filed with the aeronautical authorities of both Parties before implementation of the code-share arrangements.

Article 15 — Intermodal Services

The designated airline(s) of each Party shall be permitted to employ, in connection with air transport of passengers and cargo, any intermodal transport to or from any point in the territory of the other Party. Such airline(s) may elect to perform their own intermodal transport or to provide it through arrangements, including code share, with other carriers. The intermodal services may be offered as a through service and at a single price for the air and intermodal transport combined, provided that passengers and shippers are informed as to providers of such transportation.

Article 16 — Approval of Schedules

1. The aeronautical authorities of each Party may require the designated airline(s) of the other Contracting Party to file for their consideration and approval, at least 30 days prior to the inauguration of the agreed services, flight schedules containing the information pertaining to the type of service and its frequency, the type of aircraft to be used and the fight timings at each point Similar information shall also be provided at least 30 days in advance for each IATA traffic season and also as and when any changes are to be introduced regarding operation of the agreed services.

2. The designated airline(s) of each Part/shall also furnish any other information as may be required to satisfy the aeronautical authorities of the other Party that the requirements of this Agreement are being duly observed.

Article 17 — Provision of Statistics

1. The aeronautical authorities of each Party shall provide or cause its designated airline(s) to provide to the aeronautical authorities of the other Party statistics relating to the traffic carried during each month on the agreed services to and from the territory of that other Party, showing the points of embarkation and disembarkation of such traffic. Such statistics shall be furnished as soon as possible after the end of each month, but not later than 30 days following the month to which they relate.

2. The aeronautical authorities of each Party shall, on request, provide or cause its designated airline(s) to provide to the aeronautical authorities of the other Party statistics relating to true origin and destination of traffic carried to and from the territory of that other Party.

Article 18 — Tariff

1. The tariffs in respect of the agreed services operated by the designated airline(s) of each Party shall be established by each designated airline based upon its commercial considerations in the market place, due regard being paid to all factors, including, the cost of operation, type of service and reasonable profit.

2. The tariffs established under paragraph (1) shall not be required to be filed by the designated airline(s) of one Party with the aeronautical authorities of the other Party.

3. Notwithstanding the foregoing, each Party shall have the right to intervenes so as to:

(a) prevent tariffs whose application constitutes anti-competitive behaviour which has or is likely to or intended to have the effect of crippling a competitor or excluding a competitor from a route;

(b) protect consumers from tariffs that are excessive or restrictive due to the abuse of a dominant position: and

(c) protect airlines from tariffs that are predatory or artificially low.

4. For the purposes set out in paragraph (3) of this Article, the aeronautical authorities of one Party may require the designated airlines of the other Party to provide information relating to the establishment of the tariffs.

5. If one Party believes that the tariff charged by designated airline(s) of the other Party is inconsistent with the considerations set forth in paragraph (3) of this Article, it shall notify the other Party of the reasons for its dissatisfaction as soon as possible and request consultations which shall be held not later than 30 days after receipt of the request. If the Parties reach an agreement with respect to the tariff for which a notice of dissatisfaction has been given, each Party shall use its best efforts to put that agreement into effect. In the absence of such an agreement, the previously existing tariff shall continue to be in effect.

Article 19 — Recognition of Certificates

1. Certificates of airworthiness, certificates of competency and licenses issued or rendered valid by one Party shall be recognised as valid by the other Party provided the requirements under which such certificates or licences were issued or rendered valid are equal to or above the minimum standards which may be established pursuant to the Convention.

2. If the privileges or condition of the licenses or certificates referred to in paragraph 1 above, issued by the aeronautical authorities of one Party to any person or designated airline or in respect of an aircraft used in the operation of the agreed services, should permit a difference from the minimum standards established under the Convention, and which difference has been filed with International Civil Aviation Organization, the other Party may request consultations between the aeronautical authorities with a view to clarifying the practice in question.

3. Each Party reserves the right however, to refuse to recognize for the purpose of flights above or landing within its own territory, certificates of competency and licenses granted to its own nationals by the other Party.

Article 20 — Multilateral Agreements

1. In implementing this Agreement, the Parties shall act in conformity with the provisions of the Convention in-so-far as those provisions are applicable to international air services.

2. It after entry into force of this Agreement, both Parties become party to a multilateral agreement that addresses matters covered by this Agreement, either Party may request consultations to determine whether this Agreement should be revised to take into account the multilateral agreement.

Article 21 — Consultations

1. Either Party may at any time, make a request in writing for consultation on the interpretation, application implementation or amendment of this Agreement or compliance with this Agreement.

2. Unless otherwise agreed by the Parties, such consultations shall begin within a period of 60 days from the date on which the other Party receives the request.

Article 22 — Amendment

1. Either Party may request in writing a revision, modification or amendment of all or any part of this Agreement.

2. Any revision, modification or amendment agreed to by the Parties shall be reduced into writing and shall form part of Agreement.

3. Such revision, modification or amendment shall come into force in accordance with Article 26 (Entry into Force) and may be implemented on provisional basis with effect from such date as may be determined by the Parties.

4. Any revision modification or amendment shall not prejudice the rights and obligations arising from or based on this Agreement before or up to the date of such revision, modification or amendment.

Article 23 — Settlement of Disputes

1. Any dispute arising under this Agreement that is not resolved by formal consultations may be referred, by agreement of the Parties, to some person or body for decision. If the Parties do not so agree, the dispute shall at the request of either Party, be submitted to arbitration in accordance with the procedures set forth below.

2. Arbitration shall be by a tribunal of three arbitrators to be constituted as follows:—

(a) Within 30 days after the receipt of a request for arbitration, each Party shall name one arbitrator. Within 60 days after these two arbitrators have been named, they shall by agreement appoint a third arbitrators, who shall act as President of the arbitral tribunal;

(b) If either Party fails to name an arbitrator, or if the third arbitrator is not appointed in accordance with clause (a) of this paragraph, either Party may request the President of the Council of the International Civil Aviation Organization to appoint the necessary arbitrator or arbitrators within 30 days. If the President of the Council is of the same nationality as one of the Parties, the senior most Vice President who is not disqualified on that ground shall make the appointment. In the event that either the President or the senior most qualified Vice President appoints the third arbitrator under this Paragraph, that third arbitrator shall not be a national of either of the Parties.

3. Except as otherwise agreed, the arbitral tribunal shall determine the limits of this jurisdiction in accordance with this Agreement and shall establish its own rules of procedure. The tribunal, once formed, may recommend interim relief measures pending its final determination. At the direction of the tribunal or at the request of either of the Parties, a conference to determine the precise issues to be arbitrated and the specific procedures to be followed shall be held not later than 15 days after the tribunal is fully constituted.

4. Except as otherwise agreed or as directed by the tribunal each Party shall submit a memorandum within 45 days of the time the tribunal is fully constituted. Replies shall be due 60 days later. The tribunal shall hold a hearing at the request of either Party or on its own initiative within 15 days after replies are due.

5. The tribunal shall attempt to render a written decision within 30 days after completion of the hearing or of not hearing is held, after the date both replies are submitted. The decision of the majority of the tribunal shall prevail.

6. Either Party may make a request for clarification on the decision within 15 days after it has been rendered and the clarification shall be issued within 15 days of such request.

7. Each Party shall to the extent consistent with its national law give full effect to any decision or award of the arbitral tribunal.

8. The expenses of the arbitral tribunal including the fees and expenses of the arbitrators, shall be shared equally by the Parties. Any expenses incurred by the President of the Council of the International Civil Aviation Organization in connection with the procedure set out in clause (b) of paragraph (2) of this Article shall be considered to be part of the expenses of the arbitral tribunal.

Article 24 — Termination

Notwithstanding anything in this Agreement, either Party may terminate this Agreement by notifying the other Party of its intention to terminate this Agreement by a notice in writing through diplomatic channels, at least twelve (12) months prior to its intention to do so. Such termination notice shall be simultaneously communicated to the International Civil Aviation Organisation. Unless the notice is withdrawn by agreement of the Parties before the expiry of this period, the Agreement shall terminate on the expiry of twelve (12) months from the date of receipt of the notice by the other Party. In the absence of acknowledgement of receipt by the other Party the notice shall be deemed to have been received fourteen (14) days after the receipt of the notice by the International Civil Aviation Organisation.

Article 25 — Registration with International Civil Aviation Organisation

This Agreement and all amendments thereto shall, upon signature, be registered with International Civil Aviation Organisation.

Article 26 — Entry Into Force

This Agreement shall enter into force on the date of the later note in an exchange of diplomatic notes between the Parties confirming that each Party has completed the necessary internal procedures for entry into force of this Agreement and its Annex.

IN WITNESS WHEREOF the undersigned, being duly authorised by their respective Governments, have signed this Agreement.

DONE at Delhi, India this 1st day of April in the year 2017 in duplicate, in the English language, which shall be the authentic text Translation of the Agreement into Hindi language shall be prepared and considered equally authentic when agreed upon by an exchange of diplomatic notes that confirm its conformity with the English language text in the event of any divergence of interpretation, the English text shall prevail.

ANNEX

Route Schedule

Section I

Routes to be operated by the designated airlines of Malaysia:

Part A

Points of OriginIntermediate PointsPoints in IndiaBeyond Points
Points in MalaysiaNilDelhi, Kolkatta, Mumbai, Chennai, Bangalore, Hyderabad.Karachi, Bahrain or Tehran, Beirut, Cairo, Athens, Zurich, Rome, London

Part B

Points of OriginIntermediate PointsPoints in IndiaBeyond Points
Points in MalaysiaNilPatna, Lucknow, Guahati, Gaya, Varanasi, Bhubaneswar, Khajurahao, Aurangabad, Goa, Jaipur, Port, Blair, Kochi, Thiruvananthapuram, Kozhikode, Amritsar Visakhapatnam, Ahmedabad and TiruchirapalliNil

Section II

Routes to be operated by the designated airlines of India:

Part A

Points of OriginIntermediate PointsPoints in MalaysiaBeyond Points
Points in IndiaAny PointsKuala Lumpur, Penang, Langkawi, Johor Bharu (Senai), Kota Kinabalu, KuchingAny Points

Part B

Points of OriginIntermediate PointsPoints in MalaysiaBeyond Points
Patna, Lucknow, Guahati, Gaya, Varanasi, Bhubaneswar, Khajurahao, Aurangabad, Goa, Jaipur, Port Blair, Kochi, Thiruvananthapuram, Kozhikode, Amritsar, Visakhapatnam, Ahmedabad and Tiruchirapalli.NilAny PointsNil

Section III

1. Points mentioned in Section I and Section II need not necessarily be served in the order named.

2. Intermediate and beyond points on the specified routes may at the option of the designated airline(s), be omitted on any or all flights.

3. Intermediate or beyond points not specified in Section I and Section II may be served provided no. 5th freedom traffic rights are exercised between such points and any point in the territory of the other Party.

4. Two or more points in the territory of one Party shall not be served on the same flight by the designated airline(s) of the other Party.

5. All services of the designated airlines of Malaysia as in Section II of the Route Schedule shall be operated without 5th freedom traffic rights.

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