AIR SERVICES AGREEMENT

BETWEEN

THE GOVEmMENT OF NEW ZEALAND AND

THE SWISS FEDERcBk COUNCIL

The Government of New Zealand and the Swiss Federal Council (hereinafter, "the Contracting Parties");

Desiring to promote an international aviation system based on competitioil anlong airlines in the marl<etplace with minimum government interference and regulation;

Desiring to facilitate the expansion of international air services opportunities;

Recognizing that efficient and competitive international air services enhance trade, the welfare of consumers, and economic growth;

Desiring to make it possible for airlines to offer the travelling and shipping public a variety of service options, and wishing to encourage iildividual airlines to develop and implement innovative and corhpetihve prices;

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 tlie operation of air services, and undermine public confidence in the safety of civil aviation; and

Being Parties to the Convention on International Civil Aviation, opened for signature at Chicago on December 7, 1944;

Have agreed as follows:

Article l

Definitions

For the purposes of this Agreement, unless otherwise stated, the term:

(a) "aeronautical authorities" means, in the case of New Zealand, the Minister responsible for Civil Aviation, and any person or agency autl~orized to perforin the functions exercised by the said Minister, and, in the case of Switzerland, the Federal Office for Civil Aviation, and any person or agency authorized to perform the functions exercised by the said Office;

(b) "Agreement" means this Agreement, its Aimexes. and any amendments thereto:

(C) "air services", "international air services", "airline" and "stop for non-traffic purposes" have the meanings respectively assigned to them in Article 96 of the Convention;

(d) "Convention" mea\,ls the Convention on International Civil Aviation, opened for signature at Chicago on December 7, 1944, and includes:

(i) any ainendment that has entered into force under Article 94(a) of the Convention and has been ratified by both Contracting Parties, and

(ii) any Annex or any amendment thereto adopted under Article 90 of the Convention, insofar as such Annex or anlendment is at any given time effective for both Contractiilg Parties;

(fi "price" means any fare, rate or charge for the carriage of passengers (and their baggage) and/or cargo (excluding mail) in air services charged by the designated airlines, including their agents, and the conditioils governiirg the availability of such fze, rate or charge;

(g) "tenitory" has the meaning assigned to it in Article 2 of the Convention, provided that. in the case of New Zealand, the tern1 "territory" shall exclude Tol~elau.

Article 2

Grant of Rights

s to the other Contracting Party the following rights services by the designated airlines of the other

Article 3

Designation and Autlzovization

e the riglit to designate as Inany airlines as it ces in accordaiice with this Agreement and to

ucli designations shall be tra~lsmittcd to the other matic channels.

, and of applications from the designated airline, d for operating authorizations and technical

cting Party shall grant appropriate authorizations and cedural delay, provided that:

a1 place of busiiless in the territory current Air Operator's Certificate

of that Contracting Party;

ine is vested in the Contractillg Party designating the

ditions prescribed under the laws, ation of internatioizal air services by

plications; and

is maintaiiliiig aiid administering le 7 (Aviation Security).

Article 4

Revocation of Autlzorization

volte. suspend or linlit the operatiilg airlinc designated by thc other Contracting

es not have its principal place of business Party designating it, and does not hold a current Air aeronautical authorities of that Contracting Party;

e is not vested in the Coi~tracting Party designating lilg Party, or both;

e laws, regulations and rules referred to and Rules) of this Agreement; or

is not maintainrng and adininistering thc standards

s essential to prevent further non-compliance with rights established by this Article shall be

other Contracting Party.

ts of either Contractillg Party to withhold, e operating a~~thorization or technical Contracting Party in accordailce with the

Article 5

.-lg~plicntion oflarus, Regulations and Rules

sr.iterir-rg. within, or leaving the territory of one Contracting Party, its laws, operation and navigation of aircraft sl~all be Party's designated airlines.

g the territory of one Contracting Party, its laws, drnissioil to or departure from its territory of

S,. crew trr cargo on aircraft (including regulatio~ls and rules relating to entry, aviation security, immigration, passports, customs and quarantine or, in the ail, posta! rcguiations) shall be complied with by, or on behalf of, such

rmd crctv and in relation to such cargo of the other Contracting Party's

ontracting Party shall give preference to its own or any other airline ntractiilg Party engaged in sitnilar interilational

ication of its customs, iininigratiou, quarantine and similar

n direct transit tluough the territory of either a of the airport reserved for such purpose shall

cept for reasons of aviation security, narcotics control or gage and cargo in direct transit shall be exempt from

Article 6

S~lfety

shall recognize as valid, for the purpose of operating the vided for in this Agreenlent, certificates of airworthiness,

es of cornpc1,:ncy, and licenses issued or validated by the other Contractilig ed that the requireine~ats for such certificates or licenses at

;LI the miiiimum standards that may be established pursuant to the Convention. owever, refuse to recognize as valid for the purpose of

, certificates of competency and licelises granted to or for its awn niitionals by the other Contracting Party.

Party Inay request coiisultatioiis concerning the safety e otlier Contracting Party relating to aeronautical facilities,

ailL; operation of the designated airlines. If', following such ns, one C:i.iiltructing Party finds that the other Contracting Party does not n~ain ta i ;~~ lid adininister safety standards and requirements in these areas that ~ral the initlirnurn standards that may be establislied pursuant to the

acting Party shall be notified of such findings and the steps neccssnqr to conform with these minimum standards, and the other Parly shall take appropriate corrective action. Eac l~ Contracting Party

d, revolte, or limit the operating authorization or technical f' an airlinc or airlines designated by the other Contracting Party in the

arty does not take sucl-1 appropriate corrective action within

Article 7

A1)intion Security

tlieir rights and obligations under international law, the that their obligation to each other to protect the security of

unlatvful interference forms an integral part of tliis the generality of their rights and obligations under g Parties shall ill particular act in conforniity with the

on Offences and Certain Other Acts Coininitted on Board tember 14, 1963, the Conventio~i for the Suppression of , done at The Hague on December 16, 1970, the

of Urilawful Acts against the Safety of Civil Aviation. er 23, 197 1, and any other multilateral agreement or

aviation security binding upon, the Contracting Parties.

de up011 request all necessary assistance to unlawlill seizure of civil aircraft and otlier ulllawful acts

assengers and crew, and of airports and air to address any other tlxeat to the security of civil air

their mutual relations, act in c,ollforlnity with ropriate recolnnlended practices established by

ion Organization and designated as Annexes to the that operators of aircraft of their registry, operators of a1 place of business or permalient residence in their airports in their territory act in coilforn~ity with such

contrnclit~g I'arty agrees that such operators of aircraft may be required to by the other Coi~tractiug Patty for entry into, territory of that other C,o~itracting Party. Each ate meas~lres are effectively applied within its t passengers, crew, carry-on items, baggage, ring boarding or loading. Each Contracting

live positikri: consideration to any request from the other Contracting res to meet a particular threat.

of an incident of unlawful seizure of civil aircraft or ty of passengers and crew, airports or air navigation

Parties shall assist each other by facilitating e measures intended to terininate rapidly and

sures as it may lind practicable to ty ~ v l ~ i c l ~ is sul?jected to an act of

ilce and wliicl~ lai~ds ill its territory is

Party has reasonable grounds to believe Illat the other

S involved witl~in 15 days from the date of such

tecliilical permissioi~s of a desigilated airline of that

Article 8

Conzmvrcink Opportuirzities

shall have the right to select anzong coinpeting ground-

of either Col~tracting Party Inay engage in the sale of air other Co~ltractiilg Party directly and, at the designated agents. Each designated airliile shall have the right to

son shall be free to purchase 9 1 ~ 1 1 transport, in the ely convert; ble currencies.

ithout restrictions or taxation in respect thereof

iiatio~lal air services pursua~lt to this Agreement, o cooperative arrailgements, iilcluding but not gements, wit11 any other airline illcludi~lg airlines appropriate operating authorizations for the

Article 9

Cuslor~zs Duties and Charges

territory of one Contracting Party, aircraft operated in the designated airlines of the otl-zer Contracting Party, their

equipment, fuel, lubricants, coi~sumable techllical supplies, es), aircraft stores (including but not linlited to such items of , tobacco and other products destined for sale to or use by

e basis of reciprocity, from all iinport restrictions, custoins duties, excise taxes, and similar fees and national authorities, and (2) not based on the cost of

at such equipment and supplies remain on board the

a Contracting Party

ernational air services, ley performed over the

taken on board, within reasonable limits, for use on ted airline of the other Coutracting Party engaged in

en when these stores are to be used on a part of the journey of the Contracting Pai-ty in which they are taken 011 board.

i quipment and supplies referred to in paragraphs l and 2 O S this Article Inay be luueii ro be kept under the supervision or control o l the appropriate authorities.

1 he exemptioils provided by this Article shall also be available where the igniitcd airlines of one Coiltractiiig Party have contracted with ailother designated

line, ~tllich similarly elljoys such exemptions from the othcr Coi~tracting Party, for loan 01 transfer in the territory of the other Contracting Party of the items spccified

p"r;igrL~:)hs 1 and 2 of this Article.

Article 10

Fair Competitiolz

tractkg Party shall allow a fair ancl equal opportunity for the of both Contracti~~g Parties to compete in providing the international

ned by this Agreement.

objective of the agreed services shall be to provide capacity

other Contracting Party and the territories of tl~ird countries, shall be with the general principles of normal development to

and to and from the territory of the Co~ltractiilg Party which has

and of the areas through which the service passes, local and g taken illto account;

rementi of an economical operation of the agreed services.

ractiiig Party shall require the filing of schedules or operational

ns on air services intermediaries and on designated airlines of the rty of filing requirements aild procedures.

Z

Article 4 1

Pricing

( 1 ) Prices for international air services operated pursuant to this Agreement shall not I cil~"red to be filed with the aeronautical authorities of e~ther Contracting Party.

Without liiniting the applicatioli of g~neral conlpetition and consuiner law in e c t c i ~ C ontracting Party, ii~terveiztion by the Contracting Party shall be liinited to.

preventing unreasonably discriininatory prices or practices; protecting consumers from prices that are unreasonably high or unreasonably restrictive due either to the abuse of a dominant position or to concerted practices among air carriers; and protecting airlines from prices that arc artificially low because of direct or indirect governmental subsidy or support.

(3) Neither Contracting Party shall take unilateral actioii to prevent the inaugitration or ~ol~tinuation of a price proposed to be charged or charged by a designated airline of

ntracting Party for international air services between the territories of acting Parties: If either Contracting Party believes that any such price is ent with the considerations set forth in this Article, it shall request

conc~~ltatioils and notify the other Contracting Part) of the reasons for its dissatisfaction w ~ t l ~ l n 14 days from receiving the filing. These coilsultatioils shall be held not later than 14 ciciys after receipt of the request. Without a mutual agreement, the price shall go into effect or continue in effect.

Article 12

47o~zsultntiotzs

Either Contracting Party may, at any time, request consultations relating to this hgl-c-tnent. Such consultatioiis shall begin at tlie earliest possible date, but not later tl-iaa~ 00 days from the date the other Contracting Party receives the request unless ot]~t.rwise agreed.

Article 13

Settlement ofDisyutes

( I ) Any dispute arising under this Agreement that is not resolved by a first rouiid of ii,rrnal consultalions niay be referred by agreement of the Contracting Parties to some p c ~ ~ o n or body for decision. If the Contracting Parties do not so agree, the dispute shall, 31 the request of either Contracting Party, be submitted to arbitration in accordance with tilt. procedures set forth below.

(7) Arbitration shall be by a tribunal of three arbitrators to be constituted as follows:

(.l) Witl~in 30 days after the receipt of a request for arbitration, each Coiitracting f",t~ty shall ilanle one arbitrator. Within 60 days after thesc two arbitrators have been naiired, they shall by agreement appoint a third arbitrator, who shall act as President of t l~c arbitral tribui~al;

( h , If either Contracting Party fails to name an arbitrator, or if the third arbitrator is ~iot appointed in accordance with subparagraph (a) of this paragrapl~. either Contracliizg 13,tity inay request tlie President of the Council of the lnternatioiial Civil Aviation OrgLlnization to appoint the necessary arbitrator or arbitrators within 30 days. If tlie I'rectdent of the Council is of the same nationality as one of the Contracting Parties, the Inoit senior Vice President who is not disqualified on that ground shall inake the al-tpi~intmcnt .

(3 ) Except as otherwise agreed, the arbitral tribunal shall determine the limits of its jul i\diction in accordance with this Agreement and shall establish its own procedural rulcs. Tlie tribunal, once forined, niay rccoinlnend interim relief measures peiidiiig its iinc~l determination. At tlie direction of the tribunal or at the request of either of the C'ontracting Parties, a conference to determine tlie precise issues to be arbitrated and the sylecrfic procedures to be followed shall be held not later than 15 days alter the tribunal is rtllly constituted.

(4) Except as otherwise agreed or as directed by t l ~ e tribunal, each Contracting Party ~ 1 l ~ ~ I I submit a memorandum within 45 days after the tribunal is fully constituted. i-k"hes shall be due 60 days later. ?'he tribunal shall hold a hearing at the request of cltha- Coiltractiilg Party or on its own initiative within 15 days after replies are due.

( 1 The tribunal shall attempt to render a written decision within 30 days after Q'n;pletion of the hearing or, if no hearing is held, after the date botli replies are silhlllitted. The decision of the majority of the tribunal shall prevail.

e Contracting Parties may subinit requests for clarificatioil of the decision days after it is rendered and aiiy clarification given shall be issued within 15

iiach Contracting Party shall, to the degree consistent with its nalioiial law, give 11 ~ i l i . c t to aiiy decision or award of the arbitral tribunal.

expenses of tlie arbitral tribunal, iiicludiiig the fees and expenses of the I1 be shared equally by the Contracting Parties. Ally expenses incurred

ent of tlie Council of the International Civil Aviation Organization in it11 the procedures of paragraph 2(b) of this Article shall be considered to

e expenses of tlie arbitral tribunal.

Article I 4

PI-ovision of Statistics

authorities of both Contractil-tg Parties odic statistics or other similar inforination

services, as inay be reasoilably required.

shall I relat

supply each other, iiig to the traffic car1

Article 15

Modificn tioils

itlier of the Contracting Parties coilsiders it desirable to modify any provisioli einent, such modification, if agreed between the Contracting Parties, shall be

ovisionally froin a date to be deterniiiied by the Contractilig Parties and enter hen the Contractiiig Parties will have notified to each other the fulfilinent of tional procedures.

ifications to the Annex of this Agreeinent inay be agreed directly between autical authorities of the Contracting Parties. They shall be applied

ally from a date to be deternlined by the aeronautical authorities of the g Parties and enter into force when coilfirmed by an exchange of diplomatic

In the event of the conclusion of any general multilateral convelltioil concerning ort by which both Contracting Parties become bound, this Agreement shall be so as to conform with the provisions of such coi~vention.

Article 16

Termination

ntracting Party may, at any time, give notice in writing to the other g Party of its decision to terminate this Agreeinent. Such notice shall be sent usly to the Interilatioilal Civil Aviation Organization. This Agreenlent sliall t inidnight (at the place of receipt of the notice to the other Coiltracting Party)

tely before the first anniversary of the date of receipt of such notice by the other g Party, unless the notice is witl~drawn before then by agreement of the

Agreeinei~t and all ai~~endi-nents tliereto shall be registered Aviation Organization.

with tlie Illternatio~lal

6

For ilic Go\ ernmciit 01' Ye \ \ /c,rla~iit

ANNEX I

ion 1

,tes

s of each Contracting Party designated pursuant to this Agreement to operate 11is Annex shall, in accordance with the terlils of their designation, be entitled to m il~ternational air services, as follows:

Routes fbr the airline or airlines designated by New Zealand

From points behind New Zealand via New Lealand and intermediate poi~lts '~ to a or points in Switzerland and beyond.

Routes for the airline or airlines designated by Switzerland

Froin points behind Switzerland via Switzerland and iiltermediate point^'^ to a nt or points in New Zealand and beyond.

xcluding 5th freedom traffic rights in Singapore, Bangltok, I-iong Kong

perational Flexibility

designated airlines of each Contracting Party. may, on ally or all flights and at the 011 of each designated airline:

1. Operate flights ill either or both directions;

2. Coinbiile different flight numbers witlziii one aircraft operatioi~;

3 . Serve behind, intermediate, and beyond points a id points in the territories of the Coiltracting Parties on the routes in ally co111binatiol.l and in any order;

4. Omit stops at any point or points;

5 l'rallsier traffic from any of its aircraft to 211v of its other aircraft at ally point on the routes: and

6. Serve points behind any point in its territory wit11 or witlio~~t cl~ailge of aircraft or flight nunlber and hold out and advertise such services to the public as tllrough services;

without directional or geographic limitatioil and w i t l ~ o ~ ~ t loss of any right to carry traffic otlierwise permissible under this Agreement, provided that the service serves a point in tlie territory of the Contracting Party designating the airline.

Section 3

Change of Gauge

On any segment or segments of the routes above, any designated airline may perform iilterilational air services witl~out ally limitation as to change in type or number of aircraft operated, at any goiiit on the route, provided that in the outbound direction, transport beyond such point is a contilluation of transport froin the territory of the Contracting Party that has designated the airline and, in the inbound direction, transport to tlze territory of the Contracting Party that has designated the airline is a continuation of transport from beyond such point.