Common use of Commercial Activities Clause in Contracts

Commercial Activities. Without prejudice to the transitional arrangements set out in Annex I, the Contracting Parties shall ensure that their applicable laws, rules and procedures ensure, as a minimum, the implementation and application of the regulations and standards in the area of air transport set out in Annex II, Part A. Doing business 1. The Contracting Parties agree that any obstacles to doing business experienced by commercial operators would compromise the benefits to be obtained through this Agreement. The Contracting Parties shall therefore engage in an effective and reciprocal process to remove obstacles to doing business for commercial operators of both Contracting Parties where such obstacles may hamper commercial operations, create distortions to competition or hamper the creation of a level playing field. 2. The Joint Committee set up in accordance with Article 21 shall develop a process of cooperation in relation to doing business and commercial opportunities; it shall monitor progress in effectively addressing obstacles to doing business for commercial operators and shall regularly review developments, in particular those relating to legislative and regulatory changes. In accordance with Article 21 (Joint Committee), a Contracting Party may request a meeting of the Joint Committee to seek to resolve any question relating to the application of this Article. Air carrier representatives 3. The air carriers of each Contracting Party shall be entitled to establish the necessary offices and installations for the provision of services under this Agreement on the territory of the other Contracting Party. 4. The air carriers of each Party shall be entitled, in accordance with the laws and regulations of the other Contracting Party relating to entry, residence and employment, to bring in and maintain in the territory of the other Contracting Party any commercial, managerial, sales, technical, operational, and other specialist staff who are required to provide air services. Both Contracting Parties shall facilitate and expedite the granting of employment authorisations, where required, for personnel employed under this paragraph, in particular those performing certain temporary duties not exceeding ninety (90) days, subject to the relevant laws and regulations in force. Air carriers of the two Contracting Parties shall not be obliged to have local partners. Ground handling 5. Without prejudice to the second paragraph, each air carrier of a Contracting Party shall have the following rights in the territory of the other Contracting Party: (a) the right to perform its own ground handling ("self-handling"); or (b) the right to select among competing suppliers which provide ground-handling services in whole or in part where such suppliers are allowed market access on the basis of the laws and regulations of each Contracting Party, and where such suppliers are present on the market. The rights established in points (a) and (b) of the first subparagraph shall only be subject to specific constraints in terms of space or capacity resulting from the need to operate the airport safely and securely. Where such constraints hamper, prevent or restrict self-handling, and in the absence of effective competition between ground-handling service providers, the Contracting Party in question shall ensure that all these services are made available to all air carriers under appropriate and equitable conditions. The costs of such services shall be determined according to relevant, objective, transparent and non-discriminatory criteria. 6. Each provider of ground-handling services, whether an air carrier or not, shall be entitled, on the territory of the other Contracting Party, to provide ground-handling services to air carriers operating out of the same airport, with authorisation and in compliance with the laws and regulations in force. Allocation of time slots at airports 7. Each Contracting Party shall ensure that its procedures, guidelines and regulations to manage slots applicable at airports in its territory are applied in an independent, transparent, effective and non-discriminatory manner and do not constitute a barrier to market access. Operating plans, programmes and schedules 8. A Contacting Party may require, for information purposes only, that the operating plans, programmes and schedules of air services operated under this Agreement be communicated to it. If a Contracting Party requires such communication, it shall reduce to a minimum the administrative burden associated with such communication and the procedures for air transport intermediaries and for air carriers of the other Contracting Party. Sales, local expenses and transfer of funds 9. Any air carrier of each Contracting Party may engage in the sale of air services and associated services in the territory of the other Contracting Party, on its own behalf or on behalf of another air carrier, directly or through its sales agents, other intermediaries appointed by the air carrier or through the internet or any other available channel, at the air carrier's discretion. Each air carrier shall have the right to sell such services, and any person shall be free to purchase them, in the currency of that territory or in freely convertible currencies in accordance with local currency legislation. 10. The air carriers of each Contracting Party are authorised to pay for expenditure incurred on the territory of the other Contracting Party, in particular but not exclusively for the purchase of fuel, in local currency or in freely convertible currency, in accordance with the national rules on currency exchange and foreign trade. 11. Any air carrier shall be entitled, if it so requests, to convert all excess revenue from its local expenditure into a freely convertible currency and to transfer it to the country of its choice in the manner and at the time of its choosing, without restriction or charge, at the rate of exchange applicable at the moment of the transfer. The administrative procedures associated with the conversion and transfer of excess revenue shall apply in accordance with the rules on foreign exchange operated by each Contracting Party. The conversion and transfer shall not be subject to any fees apart from those normally charged by the banks for such services. Commercial cooperation agreements 12. In operating or providing air services under this Agreement, any air carrier of a Contracting Party may enter into commercial cooperation agreements such as blocked-space agreements or code-sharing arrangements, with: (a) one or more air carriers of the Contracting Parties; and (b) one or more air carriers of a third country; and (c) one or more land or sea transport operators from any country; provided that: (i) the operating carrier holds the appropriate traffic rights; (ii) the carriers selling the service hold the appropriate route authorisations; and (iii) the arrangements meet the requirements relating to safety and competition normally applied to such arrangements. 13. In respect of passenger transport on a flight sold involving commercial cooperation agreements, the purchaser shall be informed at the point of sale, at check-in, or in all events before boarding in the case of connecting flights without check-in, about which transportation providers will operate each sector of the service. Intermodal services 14. In relation to the transport of passengers, surface transport providers shall not be subject to laws and regulations governing air transport on the sole basis that such surface transport is provided by an air carrier under its own name. 15. Notwithstanding any other provision of this Agreement, air carriers and indirect providers of cargo transport of the Contracting Parties shall be permitted, without restriction, to employ in connection with international air transport any surface transport for cargo to or from any points in the territory of the Contracting Parties or in third countries, including transport to and from all internationally recognised airports with customs facilities, and including, where applicable, the right to transport cargo under customs seal under the applicable laws and regulations. Such cargo, whether moving by surface or by air, shall have access to airport customs processing and facilities. Air carriers may elect to perform their own surface transport or to provide it through arrangements with other surface carriers, including surface transport operated by other air carriers or indirect providers of air cargo transport. Such intermodal cargo services may be offered at a single, through price for the air and surface transport combined, provided that shippers are not misled as to the facts concerning such transport. Franchising and branding 16. The air carriers of each Contracting Party shall be entitled to enter into franchising or branding arrangements with companies, including air carriers, of either Contracting Party or third countries, provided that the air carriers hold the appropriate authority and meet the conditions prescribed under the laws and regulations applied by the Contracting Parties to such arrangements, particularly those requiring the disclosure of the identity of the air carrier operating the service.

Commercial Activities. Without prejudice to the transitional arrangements set out in Annex II to this Agreement, the Contracting Parties contracting parties shall ensure that their applicable laws, rules and procedures ensure, as a minimum, the implementation and application of the regulations and standards in the area of air transport set out in part A of Annex II, Part A. Doing business. 1. The Contracting Parties contracting parties agree that any obstacles to doing business experienced by commercial operators would compromise the benefits to be obtained through this Agreement. The Contracting Parties shall They therefore agree to engage in an effective and reciprocal process to remove of removing obstacles to doing business for commercial operators of both Contracting Parties contracting parties where such obstacles may hamper commercial operations, create distortions to competition or hamper the creation of a level playing field. 2. The Joint Committee set up in accordance with Article 21 of this Agreement shall develop a process of cooperation in relation to doing business and commercial opportunities; it shall monitor progress in effectively addressing obstacles to doing business for commercial operators and shall regularly review developments, in particular those relating to legislative and regulatory changes. In accordance with Article 21 (Joint Committee)) of this Agreement, a Contracting Party contracting party may request a meeting of the Joint Committee to seek to resolve any question relating to the application of this Article. Air carrier representatives. 3. The air carriers of each Contracting Party contracting party shall be entitled to establish the necessary offices and installations for the provision of services under this Agreement on the territory of the other Contracting Partycontracting party. 4. The air carriers of each Party party shall be entitled, in accordance with the laws and regulations of the other Contracting Party party relating to entry, residence residence, and employment, to bring in and maintain in the territory of the other Contracting Party party any commercial, managerial, sales, technical, operational, and other specialist staff who are required to provide air support the provision of aviation services. Both Contracting Parties parties shall facilitate and expedite the granting of employment authorisations, where required, for personnel employed under this paragraph, in particular those performing certain temporary duties not exceeding ninety (90) days, subject to the relevant laws and regulations in force. Air carriers of the two Contracting Parties contracting parties shall not be obliged to have local partners. Ground handling 5. Without prejudice to the second paragraph, each air carrier of a Contracting Party shall have the following rights in the territory of the other Contracting Party: (a) the right to perform its own ground handling ("self-handling"); or (b) the right to select among competing suppliers which provide ground-handling services in whole or in part where such suppliers are allowed market access on the basis of the laws and regulations of each Contracting Party, and where such suppliers are present on the market. The rights established in points (a) and (b) of the first subparagraph shall only be subject to specific constraints in terms of space or capacity resulting from the need to operate the airport safely and securely. Where such constraints hamper, prevent or restrict self-handling, and in the absence of effective competition between ground-handling service providers, the Contracting Party in question shall ensure that all these services are made available to all air carriers under appropriate and equitable conditions. The costs of such services shall be determined according to relevant, objective, transparent and non-discriminatory criteria. 6. Each provider of ground-handling services, whether an air carrier or not, shall be entitled, on the territory of the other Contracting Party, to provide ground-handling services to air carriers operating out of the same airport, with authorisation and in compliance with the laws and regulations in force. Allocation of time slots at airports 7. Each Contracting Party shall ensure that its procedures, guidelines and regulations to manage slots applicable at airports in its territory are applied in an independent, transparent, effective and non-discriminatory manner and do not constitute a barrier to market access. Operating plans, programmes and schedules 8. A Contacting Party may require, for information purposes only, that the operating plans, programmes and schedules of air services operated under this Agreement be communicated to it. If a Contracting Party requires such communication, it shall reduce to a minimum the administrative burden associated with such communication and the procedures for air transport intermediaries and for air carriers of the other Contracting Party. Sales, local expenses and transfer of funds 9. Any air carrier of each Contracting Party may engage in the sale of air services and associated services in the territory of the other Contracting Party, on its own behalf or on behalf of another air carrier, directly or through its sales agents, other intermediaries appointed by the air carrier or through the internet or any other available channel, at the air carrier's discretion. Each air carrier shall have the right to sell such services, and any person shall be free to purchase them, in the currency of that territory or in freely convertible currencies in accordance with local currency legislation. 10. The air carriers of each Contracting Party are authorised to pay for expenditure incurred on the territory of the other Contracting Party, in particular but not exclusively for the purchase of fuel, in local currency or in freely convertible currency, in accordance with the national rules on currency exchange and foreign trade. 11. Any air carrier shall be entitled, if it so requests, to convert all excess revenue from its local expenditure into a freely convertible currency and to transfer it to the country of its choice in the manner and at the time of its choosing, without restriction or charge, at the rate of exchange applicable at the moment of the transfer. The administrative procedures associated with the conversion and transfer of excess revenue shall apply in accordance with the rules on foreign exchange operated by each Contracting Party. The conversion and transfer shall not be subject to any fees apart from those normally charged by the banks for such services. Commercial cooperation agreements 12. In operating or providing air services under this Agreement, any air carrier of a Contracting Party may enter into commercial cooperation agreements such as blocked-space agreements or code-sharing arrangements, with: (a) one or more air carriers of the Contracting Parties; and (b) one or more air carriers of a third country; and (c) one or more land or sea transport operators from any country; provided that: (i) the operating carrier holds the appropriate traffic rights; (ii) the carriers selling the service hold the appropriate route authorisations; and (iii) the arrangements meet the requirements relating to safety and competition normally applied to such arrangements. 13. In respect of passenger transport on a flight sold involving commercial cooperation agreements, the purchaser shall be informed at the point of sale, at check-in, or in all events before boarding in the case of connecting flights without check-in, about which transportation providers will operate each sector of the service. Intermodal services 14. In relation to the transport of passengers, surface transport providers shall not be subject to laws and regulations governing air transport on the sole basis that such surface transport is provided by an air carrier under its own name. 15. Notwithstanding any other provision of this Agreement, air carriers and indirect providers of cargo transport of the Contracting Parties shall be permitted, without restriction, to employ in connection with international air transport any surface transport for cargo to or from any points in the territory of the Contracting Parties or in third countries, including transport to and from all internationally recognised airports with customs facilities, and including, where applicable, the right to transport cargo under customs seal under the applicable laws and regulations. Such cargo, whether moving by surface or by air, shall have access to airport customs processing and facilities. Air carriers may elect to perform their own surface transport or to provide it through arrangements with other surface carriers, including surface transport operated by other air carriers or indirect providers of air cargo transport. Such intermodal cargo services may be offered at a single, through price for the air and surface transport combined, provided that shippers are not misled as to the facts concerning such transport. Franchising and branding 16. The air carriers of each Contracting Party shall be entitled to enter into franchising or branding arrangements with companies, including air carriers, of either Contracting Party or third countries, provided that the air carriers hold the appropriate authority and meet the conditions prescribed under the laws and regulations applied by the Contracting Parties to such arrangements, particularly those requiring the disclosure of the identity of the air carrier operating the service.