Common use of Designation of Airlines Clause in Contracts

Designation of Airlines. 1. Each Contracting Party shall have the right to designate in writing to the other Contracting Party one or more airlines for the purpose of operating the agreed services on the specified route. 2. The aeronautical authorities of one Contracting Party may require the airline designated by the other Contracting Party to satisfy them that it is qualified to fulfill the conditions prescribed under the laws and regulations normally and reasonably applied to the operation of international air services by the said authorities. 3. The substantial ownership and effective control of the airline designated by each Contracting Party shall remain vested in such Contracting Party or its nationals. Each Contracting Party shall have the right to refuse to grant the operating authorizations referred to in paragraph 4 of this Article, or to impose such conditions as it may deem necessary on the exercise by the designated airline of the rights specified in Article 2 of this Agreement, in any case where the said Contracting Party is not satisfied that substantial ownership and effective control of that airline are vested in the Contracting Party designating the airline or in its nationals. 4. On receipt of such designation, the other Contracting Party shall, subject to the provisions of paragraphs 2 and 3 of this Article, without delay, grant to the airline designated the appropriate operating authorization. 5. After an airline has been so designated and authorized, it may commence operation of the agreed service from a date to be agreed upon between the two aeronautical authorities of the Contracting Parties.

Appears in 2 contracts

Samples: Air Transport Agreement, Air Transport Agreement

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