[10th May, 2007]
Air Service Agreement between the Government of the Republic of India and the Government of UAE
Article 1 — Definitions
For the purposes of this Agreement, unless otherwise stated, the term:
1. “Aeronautical authorities” means for each Party the authority or authorities as notified in writing from time to time by one Party to the other Party;
2. “Agreement” means this Agreement, its Annexes, and any amendments thereto;
3. “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 the Convention and has been ratified by both Parties, and any Annex or any amendment thereto adopted under Article 90 of the Convention, insofar as such Annexes or amendments are at any given time effective for both Parties;
4. “Designated airline” means an airline designated and authorised in accordance with Article 3 (Designation and Authorisation) of this Agreement;
6. “Full cost” means the cost of providing service plus a reasonable charge for administrative overhead;
7. “International air service” means an air service that passes through the airspace over the territory of more than one State;
8. “Price” means any fare, rate or charge for the carnage of passengers (and their baggage) and/or cargo (excluding mail) in air service charged by airlines, including their agents, and the conditions governing the availability of such fare, rate or charge;
9. “Stop for non-traffic purposes”, “airline”, “air service” and “territory” have the meaning specified in Articles 2 and 96 of the Convention; and
10.”User charges” means a charge imposed on airlines for the provision of airport, air navigation or aviation security facilities or services including related services and facilities.
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 the Annex to this Agreement. Such services and routes are hereinafter 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 other Party for non-traffic purposes; and
c. while operating an agreed service on the specified route, the airline(s) designated by each Party shall also enjoy the right to embark and disembark, in the territory of the other Party at the point(s) specified for that route in the Schedule to this Agreement, 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 4 of this Agreement, shall also enjoy the rights specified in sub-paragraphs (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.
Article 3 — Designation and Authorisation
1. Each Party shall have the right to designate an airline or airlines for the purpose of operating the agreed services on each of the routes specified in the Annex 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 type of air services specified in the Annex.
2. Upon receipt of such a designation and of applications from the designated airline, in the form and manner prescribed for operating authorisations and technical permissions, the other Party shall grant the appropriate authorisations and permissions with minimum procedural delay, provided:
a. substantial ownership and effective control of that airline are vested in the Party designating the airline, nationals of that Party or both;
b. the designated airline is qualified to meet the conditions prescribed under the laws and regulations normally applied to the operation of international air services by the Party considering the application or applications; and
c. the Party designating the airline is maintaining and administering the standards set forth in Article 6 (Safety) and Article 7 (Aviation Security).
Article 4 — Revocation of Authorisation
1. Either Party may revoke, suspend or limit the operating authorisation or technical permissions of an airline designated by the other Party where:
a. substantial ownership and effective control of that airline are not vested in the other Party, the Party’s nationals, or both;
b. that airline has failed to comply with the laws and regulations referred to in Article 5 (Applications of Laws) of this Agreement; or
c. the other Party is not maintaining and administering the standards as set forth in Article 6 (Safety).
2. Unless immediate action is essential to prevent further non-compliance with subparagraphs 1b or 1c of this Article, the rights established by this Article shall be exercised only after consultation with the other Party.
3. This Article does not limit the rights of either Party to withhold, revoke, limit or impose conditions on the operating authorisation or technical permission of an airline or airlines of the other Party in accordance with the provisions of Article 7 (Aviation Security).
Article 5 — Application of Laws
1. While entering, within, or leaving the territory of one Party, its laws and regulations relating to the operation and navigation of aircraft shall be complied with by the other Party’s airlines.
2. While entering, within, or leaving the territory of one Party, its laws and regulations relating to the admission to or departure from its territory of passengers, crew or cargo on aircraft (including regulations relating to entry, clearance, aviation security, immigration, passports, customs and quarantine or, in the case of mail, postal regulations) shall be complied with by, or on behalf of, such passengers, crew or cargo of the other Party’s airlines.
Article 6 — 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 airlines.
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 airlines 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 or technical permission of an airline or airlines designated by the other party in the event the other Party does not take appropriate corrective action within a reasonable time.
4. Any action by one Party in accordance with paragraph 3 shall be discontinued once the basis for that action ceases to exist.
Article 7 — Aviation Security
1. In accordance with their rights and obligations under international law, the 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 Unlawful 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 the 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. The 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 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.
4. Each Party agrees to observe the security provisions required by the other Party for entry into the territory of that 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, the 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 15 days from the date of such request shall constitute grounds to withhold, revoke, limit, or impose conditions on the operating authorisation and technical permissions of an airline or airlines of that Party. When required by an emergency, a Party may take interim action prior to the expiry of 15 days.
Article 8 — Commercial Opportunities
1. The airlines of each Party shall have the right to establish offices in the territory of the other Party for the promotion and sale of air services.
2. The designated airlines of each Party shall be entitled, in accordance with the laws and regulations of the other Party relating to entry, residence and employment, to bring in and maintain in the territory of the other Party managerial, sales, technical, operational and other specialist staff required for the provision of air services.
3. Any airline of each Party may engage in the sale of air services in the territory of the other Party directly and, at the airline’s discretion, through its agents, except as may be specifically provided by the charter regulations of the country in which the charter originates that relate to the protection of passenger funds, passenger cancellation and refund rights. Each 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.
4. Each airline shall have the right to convert and remit to its country, on demand, local revenues in excess of sums locally disbursed. 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 carrier makes the initial application for remittance.
5. The airlines of each Party shall be permitted to pay for local expenses, including purchases of fuel, in the territory of the other Party in local currency. At their discretion, the airlines of each Party may pay for such expenses in the territory of the other Party in freely convertible currencies according to local currency regulation.
6. Notwithstanding anything contained in this Article, the exercise of rights under this Article shall be in accordance with the applicable domestic rules and regulations, and the Parties stipulate that the rules and regulations shall be administered in a nondiscriminatory fashion and consistent with the purposes of the Agreement.
Article 9 — Co-operative Marketing Arrangements
(i) When operating or holding out the agreed services on the specified route(s), the designated airline(s) of either Contracting Party may enter into cooperative marketing arrangements, whether as the operating or marketing airline, with:
(a) an airline or airlines of the same Party; or
(b) an airline or airlines of the other Party
(ii) When the designated airline of one Contracting Party performs air services under cooperative marketing arrangements, the total capacity operated by operating airline shall be counted against the capacity entitlements of the operating airline, and not that of the marketing airline.
(iii) All airlines operating or holding out the above services must hold the appropriate authority including route rights, traffic rights and capacity entitlement and meet the requirements normally applied to such arrangements.
(iv)The designated airlines of both Parties shall, when holding services out for sale, in terms of code-share, blocked-space or other joint venture arrangements, make it clear to the purchaser at the point of sale as to which airline shall be the operating airline on each sector of the service and with which airline(s), the purchaser is entering into a contractual relationship
Article 10 — Customs Duties and Charges
1. Each Party shall on the basis of reciprocity exempt a designated airline 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 items, such as printed ticket stock, air waybills, any printed material which bears the insignia of the company printed thereon and usual publicity material distributed free of charge by that designated airline intended for use or used solely in connection with the operation or servicing of aircraft of the designated airline of such other Party operating the agreed services.
2. The exemptions granted by this article shall apply to the items referred to in paragraph 1:
a. introduced into the territory of the Party by or on behalf of the designated airline of the other Party;
b. retained on board aircraft of the designated airline of one Party upon arrival in or leaving the territory of the other Party; or
c. taken on board aircraft of the designated airline of one Party in the territory of the other 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 Party granting the exemption, provided the ownership of such items is not transferred in the territory of the said Party.
3. The regular airborne equipment, as well as the materials and supplies normally retained on board the aircraft of the designated airline of either Party, may be unloaded in the territory of the other Party only with the approval of the customs authorities of that territory. In such case, they may be placed under supervision of the said authorities up to such time as they are re-exported or otherwise disposed of in accordance with customs regulations.
Article 11 — User Charges
1. User charges that may be imposed by the competent charging authorities or bodies of each Party on the airlines of the other Party shall be just, reasonable, not unjustly discriminatory, and equitably apportioned among categories of users. In any event, any such user charges shall be assessed on the airlines of the other Party on terms not less favourable than the most favourable terms available to any other airline at the time the charges are assessed.
2. User charges imposed on the airlines of the other Party may reflect, but shall not exceed, the full cost to the competent charging authorities or bodies of providing the appropriate airport, 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 or bodies in its territory and the airlines using the services and facilities, and shall encourage the competent charging authorities or bodies and the airlines to exchange such information as may be necessary to permit an accurate review of the reasonableness of the charges in accordance with the principles of paragraphs 1 and 2. Each Party shall encourage the competent charging authorities to provide users with reasonable notice of any proposal for changes in user charges to enable users to express their views before changes are made.
4. Neither party shall be held, in dispute resolution procedures pursuant to Article 16, to be in breach of a provision of this Article, unless (i) it fails to undertake a review of the charge or practice that is the subject of complaint by the other Party within a reasonable amount of time; or (ii) following such a review it fails to take all steps within its power to remedy any charge or practice that is inconsistent with this Article.
Article 12 — 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 for a period, not exceeding one IATA traffic season, as specified in the request.
Article 13 — Tariff
1. The tariffs in respect of the agreed services operated by the designated airlines of each Party shall be established at reasonable levels, due regard being paid to all relevant factors, including cost of operation, reasonable profit and the tariffs of other airlines.
2. The tariffs established under paragraph 1 shall not be required to be filed by the designated airlines of one Party with the aeronautical authorities of the other Party.
3. Notwithstanding the foregoing, each Party shall have the right to intervene so as to:
(a) prevent unreasonably discriminatory prices or practices;
(b) protect consumers from tariffs that are excessive or restrictive due to the abuse of a dominant position; and
(c) protect airlines from prices that are predatory or artificially low.
4. Notwithstanding the foregoing, the designated airlines of each Party shall provide, on request, to the aeronautical authorities of the other Part information relating to the establishment of the tariffs in a manner specified by such aeronautical authorities.
Article 14 — Consultations and Settlement of Disputes
1. Either Party may, at any time, request consultations relating to this Agreement. Such consultations shall begin at the earliest possible date, but not later than 60 days from the date the other Party receives the request unless otherwise agreed.
2. Any dispute arising under this Agreement that is not resolved by a first round of formal consultations may be referred by agreement of the Parties for decision to some person or body. 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.
3. 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 arbitrator, 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 subparagraph (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 most senior Vice President who is not disqualified on that ground shall make the appointment. In the event that either the President or the most senior, qualified Vice President appoints the third arbitrator under this Paragraph, that third arbitrator shall not be a national of either of the Parties.
4. Except as otherwise agreed, the arbitral tribunal shall determine the limits of its jurisdiction in accordance with this Agreement and shall establish its own procedural rules. 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.
5. 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.
6. The tribunal shall attempt to render a written decision within 30 days after completion of the hearing or, if no hearing is held, after the date both replies are submitted. The decision of the majority of the tribunal shall prevail.
7. The Parties may submit requests for clarification of the decision within 15 days after it is rendered and any clarification given shall be issued within 15 days of such request.
8. Each Party shall, to the degree consistent with its national law, give full effect to any decision or award of the arbitral tribunal.
9. 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 procedures of paragraph 2b of this Article shall be considered to be part of the expenses of the arbitral tribunal.
Article 15 — Amendment
1. This Agreement may be amended by written agreement of the Parties.
2. Any amendments so agreed shall enter into force when the Parties have notified each other in writing that their respective requirements for the entry into force of an amendment or revision have been met.
3. If, 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 16 — Termination
Either Party may, at any time, give notice in writing to the other Party of its decision to terminate this Agreement. Such notice shall be sent simultaneously to the International Civil Aviation Organization. This Agreement shall terminate at midnight at the place of receipt of the notice immediately before the first anniversary of the date of receipt of the notice by the other Party, unless the notice is withdrawn by agreement of the Parties before the end of this period.
Article 17 — Registration with ICAO
This Agreement and all amendments thereto shall be registered upon its signature with the International Civil Aviation Organization.
Article 18 — Entry into force
This Agreement and its Annex 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 this day of in duplicate, in the English language, which shall be the authentic text. Translation of the Agreement into Hindi an _______ languages will be prepared and shall be considered equally authentic when agreed upon by an exchange of diplomatic notes that confirm their conformity with the English language text.
| For the Government of the Republic of India | For the Government of ——– |
——— Annexure A ANNEXURE-A LIST OF INDIAN DELEGATION
| 1. | Mr. Kanu GohainDirector GeneralDirectorate General of Civil Aviation | Leader |
| 2. | Mr. R. K. SinghJoint SecretaryMinistry of Civil Aviation | Member |
| 3. | Mr. K.P. MaggonDirector (I&R)Directorate General of Civil Aviation | Member |
| 3. | Mr. M.S. ChopraDeputy SecretaryMinistry of Civil Aviation | Member |
| 4. | Mr. M. P. GavaiDirector (ITP)Ministry of External Affairs | Member |
| 5. | Mrs. S. Lalwani,Executive Director (P&IR)Air India Limited | Member |
| 6. | Mr. Prem SagarSr. Manager (P&IR)Air India Limited | Member |
| 7. | Mr. K. Shyam SundarDy. General ManagerMarketing & PlanningIndian Airlines Ltd. | Member |
| 8. | Mr. Rajan K. MalhotraManager (Marketing Planning)Indian Airlines Ltd. | Member |
LIST OF UAE DELEGATION
| 1. | Mr. Mohamed Abu Baker FareaDirector Aviation Safety & SecurityGeneral Civil Aviation Authority | Leader |
| 2. | Mr. Juan Carlos SalazarAir Transport AdvisorGeneral Civil Aviation Authority | Member |
| 3. | Mr. Mohammed AhliDirector GeneralDubai Civil Aviation Authority | Member |
| 4. | Mr. Tony M. TayehDivisional Senior Vice PresidentPlanning, International & Industry AffairsEmirates Airline | Member |
| 5. | Mr. Azhar KapadwanjwalaVice PresidentSchedule Planning & Network OptimizationEmirates Airline | Member |
| 6. | Mr. Salem ObaidallaVice President India & NepalEmirates Airline | Member |
| 7. | Mr. Shankar ChatterjeeManager International Affairs & Airline CooperationAfrica & South Asian SubcontinentEmirates Airline | Member |
——— Annexure B AIR SERVICE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF UAE
——— Annex ANNEX International Air Services Routes
The designated airlines of each Party shall be entitled to perform international air services between points on the following routes:
A. Routes for the airlines designated by the Government of the Republic of India:
| Points in India | Intermediate Points | Points in ——- | Beyond Points |
B. Routes for the airlines designated by the Government of the Republic of——–:
| Points in—– | Intermediate Points | Points in India | Beyond Points |
Notes:
1. The designated airlines of each Party may at their option omit points on any of the above routes provided that, with the exception of all-cargo services, the services commence or terminate in the territory in which the airline concerned has its principal place of business.
2. The intermediate points, beyond points and points of call in India and —— on the above routes, and the traffic rights which may be exercised at such points by the designated airlines, shall be jointly determined between the aeronautical authorities from time to time.
——— Memorandum of Understanding MEMORANDUM OF UNDERSTANDING
The delegations representing the Government of India and the Government of the United Arab Emirates (UAE) met in New Delhi on 10th May, 2007, to discuss matters relating to the air services between India and Dubai. The discussions were held in a friendly and cordial atmosphere. A list of the two delegations is given at Annexure “A”.
2. After discussions, the two delegations agreed as follows:
(i) In addition to the existing points of call in India, the designated airline of the UAE (Dubai) shall be entitled to operate scheduled air services to Ahmedabad.
(ii) The designated airlines of India combined and the designated airline of the UAE (Dubai) shall each be entitled to operate a total of 29,100 seats per week in each direction, as follows:
| Seats per week in each direction | |
| With immediate effect | 21,950 |
| With effect from Winter 2007/08 | 26,700 |
| With effect from Summer 2008 | 28,200 |
| With effect from July 2008 | 29,100 |
(iii) Within the above capacity entitlements, the designated airline of the UAE (Dubai) shall be entitled to operate to points in India as follows:
| Seats per week in each direction upto | ||||
| Points in India | With immediate effect | With effect from Winter 2007/08 | With effect from Summer 2008 | With effect from July 2008 |
| Mumbai | 5,499 | 7,299 | 7,299 | 7,299 |
| Delhi | 2,659 | 2,659 | 3,659 | 4,559 |
| Chennai | 2,907 | 3,607 | 3,607 | 3,607 |
| Kolkata | 2,000 | 2,000 | 2,000 | 2,000 |
| Kochi | 2,785 | 2,785 | 2,785 | 2,785 |
| Hyderabad | 2,000 | 2,750 | 2,750 | 2,750 |
| Thiruvananthapuram | 2,000 | 2,000 | 2,000 | 2,000 |
| Bangalore | 2,100 | 2,100 | 2,100 | 2,100 |
| Ahmedabad | – | 1,500 | 2,000 | 2,000 |
| Total | 21,950 | 26,700 | 28,200 | 29,100 |
(iv) The Indian side expressed the difficulty being experienced at Mumbai airport due to congestion resulting in non-availability of slots, etc. The UAE side assured that best efforts shall be made by their designated airline to utilize the enhanced capacity at Mumbai by upgrading the equipment on the existing frequencies, to the extent possible.
(v) In order to provide operational flexibility in the deployment of equipment, the designated airlines of India and the UAE (Dubai) shall be allowed an adjustment of upto 2% of their total capacity entitlement.
(vi) The designated airline(s) of India shall be entitled to operate their scheduled services to/through Dubai via any intermediate point(s) and beyond to any point(s) with full 5th freedom traffic rights.
(vii) The designated airline of the UAE (Dubai) shall be permitted to operate their scheduled services via any intermediate point(s) and/or to any beyond point(s), without exercising 5th freedom traffic rights, unless otherwise specifically agreed.
(viii) The contents of paragraphs 2 (viii), 2 (ix) and 2 (x) of the Memorandum of Understanding dated 7 December, 2005 with respect to the Air India/Emirates Airline Pool Agreement and Code Share Agreements shall remain valid.
3. Both sides agreed on the following Code Share provision:
(i) When operating or holding out the agreed services on the specified route(s), the designated airline(s) of either Contracting Party may enter into cooperative marketing arrangements, such as code sharing, blocked space, etc., whether as the operating or marketing airline, with:
(a) an airline or airlines of the same Contracting Party; or
(b) an airline or airlines of the other Contracting Party.
(ii) When the designated airline of one Contracting Party performs air services under cooperative marketing arrangements, the capacity operated on such services shall be counted only against the capacity entitlements of the Party designating the operating airline, and not against the capacity entitlements of the Party designating the marketing airline.
(iii) All airlines operating or holding out the above services must hold the appropriate authority including route rights, traffic rights and capacity entitlement and meet the requirements normally applied to such arrangements.
(iv) The designated airlines of both Contracting Parties shall, when holding out services for sale, in terms of code-share, blocked-space or any other joint venture arrangement, make it clear to the purchaser at the point of sale as to which airline shall be the operating airline on each sector of the service and with which airline(s), the purchaser is entering into a contractual relationship.
4. It was agreed that the designated airlines of India and the designated airline of the UAE (Dubai) shall be entitled to operate any number of all-cargo services between any points in India and Dubai, with any aircraft type, via any intermediate point(s) and/or to any beyond point(s), with full 3rd, 4th and 5th freedom traffic rights. Such all-cargo services may also be operated under cooperative marketing arrangements such as code sharing, blocked space, etc. with any other airline(s), including airlines of third countries.
5. During the last round of bilateral air services consultations held between India and the UAE (Abu Dhabi) on 15th March, 2007 in New Delhi, both sides agreed to update and revise the existing Air Services Agreement between India and the UAE, having regard to the developments in the aviation industry. Accordingly, the Indian side handed over to the UAE side its model draft Air Services Agreement for consideration. The UAE side agreed to examine the same and revert in due course. A copy of the Indian model draft Air Services Agreement is attached at Annexure – B.
6. Both delegations expressed the need to have more frequent bilateral meetings in the future to discuss air services’ matters and to reaffirm their commitment to the excellent aviation relationship between India and the UAE (Dubai).
7. This Memorandum of Understanding shall come into force with immediate effect and shall supercede all earlier arrangements, to the extent applicable.
Signed in New Delhi on 10th May, 2007.
| For the Government of India | For the Government of the UAE |
 |  |
| (Kanu Gohain) | (Mohamed Abu Baker Farea) |
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