4. Any air carrier of a Contracting Party may distribute services related to air transport in the territory of the other Contracting Party directly and at the choice of the air carrier through its agents. Any airline may sell such carriage, and any person is free to purchase such carriage in the currency of that territory or in freely convertible currencies. 5. The services provided by each air carrier designated under this Agreement and its Annex shall retain as its main objective the provision of capacity adapted to transport needs between the country designated by that air carrier and the transport countryofultimat_e_de. The right to embark or disembark such services in international traffic destined for and from third countries at one or more points on the route listed in the Annex to this Agreement shall be applied in accordance with the general arrangements for orderly development to which both Governments are subject and shall be subject to the general principle that capacity :(a) shall be linked to transport needs between the country of origin and the countries. That is why we have tabled a number of amendments. the place of destination; (b) the requirements of continuous air transport; and (c) the transport requirements of the territory through which the airline passes, taking into account local and regional transport. One. “Territory” means land areas under the sovereignty, jurisdiction, protection or guardianship of a Party and adjacent territorial waters.

b. “Designated air carrier” means the air carrier(s) that the aeronautical authorities of one contracting Party have notified in writing to the aeronautical authorities of the other Party as the aeronautical air carrier designated by Part One in accordance with Article III of this Agreement for the route specified in this notification. (c) The term “aviation authorities” shall apply to each Party notified by that Party. d. The terms “airline” and “itinerary” include “airlines” and “routes” respectively. e. The terms `air service`, `international air service`, `air carrier` and `stopover for non-carriage purposes` have the meanings ascribed to them in Article 96 of the Convention. f. The term “Convention” refers to the Convention on International Civil Aviation, which was adopted on 7 December 1944 and 2 December 1944. (i) any amendment which has entered into force in accordance with Article 94 (a) of the Convention and ratified by both Contracting Parties; and (ii) any annex or amendment to that annex or amendment adopted in accordance with article 90 of the Convention, provided that such annex or amendment is in force for both Parties at any given time. 9 The term `right of use` means a charge imposed on air carriers for the provision of airport, air navigation, quarantine or aviation security facilities, goods and services.

The term “economic costs” means the direct costs associated with the supply of facilities, real estate and services, plus a reasonable fee for the administrative burden. I. The term “Price” means any fare, fare or charge for the carriage of Passengers (and their Baggage) and/or cargo (other than mail) on air services charged by airlines, including their agents, as well as the conditions of availability of such fares, fares or charges. (D 7. Each Party shall have the right to designate an additional airline on Route 1 for three years from the date of entry into force of this Memorandum. This airline has the right to operate at least four round-trip flights per week between the United States and Australia, with no restrictions on aircraft type. 8. If, after the application of paragraph 5 of this memorandum, it is found that proposals by all air carriers of a Party to increase capacity within the limits of the claims referred to in paragraph 4 (a) cannot be fully approved, the available capacity shall be distributed equally among that Party among the air carriers proposing the increases; provided that the Party making such an allocation retains the right to make an apportionment other than equal in each individual case and provided that the other Party is informed of any allocation. 9. (a) Subject to subparagraph (b) of this paragraph and to the extent that the Agreement remains in force, this Memorandum shall enter into force on 20 October. August 1988 and shall remain in force for three years and shall remain in force thereafter, unless a Party notifies the other Party in writing of its intention to denounce this Agreement on a date to be fixed by the Other Party. (b) Any Party may, at any time after the expiry of a period of three years from the date of entry into force of this Agreement, request an amendment to the Agreement on the basis of its consultations within 60 days of the date of the request.

Unless otherwise mutually agreed, this memorandum shall terminate one month after the conclusion of the consultations if no agreement can be reached on the amendments proposed by a Party as a result of those consultations. (c) The arrangements referred to in point (b) of this paragraph shall not prevent any Party from requesting amendments to this memorandum within three years of its entry into force. Truss said. 3. The performance of the long distance services described in this Annex by the designated air carrier of one Party shall take into account the interests of an air carrier of the other Party so as not to unduly affect the services it provides on the same route or on part thereof. 7. During the consultations referred to in paragraph 6, both Parties shall determine whether the services which have been the subject of the consultations comply with the provisions of Section III of the Annex to the Agreement. Unless the Parties determine that the level of capacity is compatible with the provisions of Section III of the Annex to the Agreement, they shall endeavour to agree on a level of capacity I to be operated by the participating air carriers and the period during which that level should be maintained.

However, if, as a result of those consultations, the two Parties are unable to reach an agreement, the Government shall refrain from transmitting to the airline concerned flight plans which reflect further increases for that airline between the points referred to in paragraph 2 or a period of six months from the date of entry into force of the timetable in question. unless others agree by mutual agreement. 1 X-8. In the context of the consultations referred to in paragraph 6, both Governments shall provide relevant information on the transport situation and capacities to be examined during the consultations. 9. The provisions of the Agreement may be terminated by either Member State. The Government has informed the other Gove_ six months in advance – TL-*,%t, except that such notification may not be made before at least 30 months from the date of signature of this Agreement. Richard W. Bog s.an K. H. Toakley President Leader t;n. ted States Delegation A.

stralian Delegation `aas.h-ingtcn, D.C. 23 May 1980MEMORANDUMOFUNDERSTA ! During the negotiations held in Washington from 12 to 23 May 1980, the United States delegation proposed that Australia accept an article on the Charter of the country of origin. The Delegation of the United States stated that the agreement of a charter item was considered necessary by the United States to support the marketing of charter transactions from the United States to Australia. 4. When performing or operating the services authorised on the agreed routes, a designated air carrier of a Party which has the necessary authority to provide those services may conclude joint marketing agreements with an air carrier of the other Party, provided that such agreement does not include cabotage or revenue pooling. Each Party shall approve such agreements on a reciprocal basis to the extent that it would allow such agreements if the carrier of the other Party were a carrier of its own nationality and requires compliance with the consumer information rules set out in national law. Neither Party may refuse to authorize such an agreement exclusively to carriers of the Parties. .