AIR SERVICES AGREEMENT

BETWEEN THE GOVERNMENT OF THE REPUBLIC OF ARMENIA AND THE GOVERNMENT OF THE REPUBLIC OF SERBIA

The Government of the Republic of Armenia and the Government of the Republic of Serbia (hereinafter referred to as "the Contracting Parties");

Being the parties to the Convention on International Civil Aviation opened for signature at Chicago on the seventh day of December 1944;

Acknowledging that on 29 June 2006 the Republic of Serbia signed the Multilateral Agreement on the Establishment of a European Common Aviation Area (hereinafter referred to as "the ECAA Agreement"¹  );

Desiring to contribute to the improvement of international civil aviation;

Desiring to conclude an Agreement for the purpose of establishing and operating air services between and beyond their respective territories;

Have agreed as follows:

SUBJECT

Article 1

The Contracting Parties agree to cooperate in the field of air services, in accordance with this Agreement, national legislation of their states, as well as the standards of international law.

DEFINITIONS

Article 2

1. For the purpose of this Agreement, unless otherwise agreed:

a) The term "the Convention" means the Convention on International Civil Aviation opened for signature at Chicago on the seventh day of December 1944, and includes any Annex adopted under Article 90 of that Convention and any amendment of the Annexes of the Convention under Articles 90 and 94, insofar as such Annexes have been adopted by both Contacting Parties;

b) The term "Aeronautical Authority" means in the case of the Republic of Armenia - the General Department of Civil Aviation at the Government of the Republic of Armenia, and in the case of the Republic of Serbia - the Civil Aviation Directorate of the Republic of Serbia; or in both cases, any other authority or person empowered to perform the functions now exercised by the said authorities;

c) The term "designated airline" means the airline designated and authorized in accordance with Article 4 of this Agreement;

d) The terms "territory", "air services", "international air services", and "stop for non-traffic purposes" shall have the meanings assigned to them in Articles 2 and 96 of the Convention;

e) The term "capacity", in relation to the agreed services, means the capacity of the aircraft used on such services, multiplied by the frequency operated by that aircraft over a given period, on a route or a section of a route;

f) The term "agreed services" means scheduled international air services on the routes specified in the Annex to this Agreement for the carriage of passengers, cargo and mail, separately or in combination;

g) The term "specified routes" means the routes specified in the Route Schedule in the Annex to this Agreement

h) The term "Annex" means the Annex to this Agreement or the Annex amended in accordance with Article 20 of this Agreement. Annex forms an integral part of this Agreement and all references to the Agreement shall include the Annex, except where explicitly agreed otherwise;

i) The term "tariff" means the prices to be paid for the carriage of passengers, baggage and cargo and the conditions under which these prices apply, including charges and conditions for other services performed by the carrier in connection with the air transportation, including remuneration and conditions offered to agencies, but excluding remuneration and condition for the carriage of mail;

j) The term "user charges" means the charges levied on the airlines by the competent authorities, or permitted by them to be levied for the use of airport, its facilities, technical and other installations and services as well as for the use of air navigation facilities, communication facilities and services.

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Multilateral Agreement between the European Community and its Member States, the Republic of Albania, Bosnia and Herzegovina, the Republic of Bulgaria, the Republic of Croatia, the Former Yugoslav Republic of Macedonia, Republic of Iceland, the Republic of Montenegro, the Kingdom of Norway, Romania, the Republic of Serbia and United Nations Interim Administration in Kosovo on the Establishment of a European Common Aviation Area

GRANT OF RIGHTS

Article 3

1. Each Contracting Party grants to the other Contracting Party the rights specified in this Agreement for the purpose of operating international scheduled air services by the designated airlines;

2. Subject to the provisions of this Agreement, the designated airlines of each Contracting Party shall enjoy the following rights:

a) the right to fly across the territory of the other Contracting Party without landing,

b) the right to make stops in the territory of the other Contracting Party for non-commercial purposes,

c) the right to make stops in the territory of the other Contracting Party at points specified in the Annex to this Agreement for the purpose of taking on board and/or discharging international traffic in passengers, cargo and mail separately or in combination, while operating the agreed services.

 3. The provisions of paragraph 1 of this Article shall not confer on the designated airline of either Contracting Party the right to embark passengers, cargo and mail carried for remuneration between the points in the territory of the other Contracting Party (cabotage).

4. The airlines of each Contracting Party, other than those designated under Article 4 of this Agreement, shall also enjoy the rights specified in paragraph 2(a) and 2(b) of this Article.

DESIGNATION OF AIRLINES AND OPERATING AUTHORISATION

Article 4

1. Each Contracting Party shall have the right to designate one or more airlines for the purpose of operating the agreed services on the specified routes and to withdraw or alter the designations.

2. On receipt of such a designation and the application from the designated airline in the form and manner prescribed, the Aeronautical Authority of the other Contracting Party shall grant the appropriate authorizations and permissions with minimum procedural delay, provided:

a) in the case of an airline designated by the Republic of Armenia:

(i) the airline is established in the territory of the Republic of Armenia, and has its permanent residence in the Republic of Armenia; and

(ii) the airline is under effective regulatory control according to laws and regulations applicable in the Republic of Armenia; and

(iii) the airline is, directly or through majority ownership, owned and controlled by the Republic of Armenia and/or its nationals.

b) in the case of an airline designated by the Republic of Serbia:

(i) the airline is established in the territory of the Republic of Serbia, and has its permanent residence in the Republic of Serbia; and

(ii) the airline is under effective regulatory control according to laws and regulations applicable in the Republic of Serbia; and

(iii) the airline is, directly or through majority ownership, owned and controlled by the Republic of Serbia and/or its nationals or the Contracting Parties to the ECAA Agreement or their nationals;

c) the designated airline acts in compliance with the provisions specified in Article 9 (Aviation Safety and Ramp Inspection) and Article 10 (Aviation Security); and

d) the designated airline is qualified to meet other conditions prescribed under the laws and regulations normally applied to international air services, according to the Convention, by the Contracting Party receiving the designation.

3. The airline designated and authorized in accordance with the provisions of this Article, can start the operation of the agreed services at any time, if it fulfills all the conditions prescribed by the provisions of this Agreement.

REVOCATION OR SUSPENSION OF OPERATING AUTHORISATION

Article 5

1. The Aeronautical Authority of each Contracting Party shall have the right to revoke, suspend and/or limit an operating authorization of an airline designated by the other party, when:

a) in the case of an airline designated by the Republic of Armenia:

(i) the airline is not established in the territory of the Republic of Armenia, and does not have its permanent residence in the Republic of Armenia; and

(ii) the airline is not under effective regulatory control according to laws and regulations applicable in the Republic of Armenia; and

(iii) the airline is not, directly or through majority ownership, owned and controlled by the Republic of Armenia, and/or its nationals

b) in the case of an airline designated by the Republic of Serbia:

(i) the airline is not established and does not have its permanent residence in the territory of The Republic of Serbia; and

(ii) the airline is not under effective regulatory control according to laws and regulations applicable in the Republic of Serbia; and

(iii) the airline is not, directly or through majority ownership, owned and controlled by the Republic of Serbia, and/or its nationals or the Contracting Parties to the ECAA Agreement or their nationals;

c) the designated airline has failed to comply with the provisions set forth in Articles 9 and 10; or

d) the designated airline is not qualified to meet other conditions prescribed under the laws and regulations normally applied to the operation of international air services, according to the Convention, by the Contracting Party receiving the designation.

2. Unless immediate revocation of the operating authorization, suspension of rights or imposition of the conditions mentioned in paragraph 1 of this Article is essential to prevent further infringements of laws and regulations, such measures shall be exercised only after consultations with the other Contracting Party in accordance with the Article 19 of this Agreement.

APPLICATION OF LAWS AND REGULATIONS

Article 6

1. The laws and regulations of one Contracting Party governing the admission to, remaining in or departure from its territory of aircraft engaged in international air services, or the operation and navigation of such aircraft while within the said territory, shall apply to the aircraft of the designated airlines of the other Contracting Party.

2. The laws and regulations of one Contracting Party governing the admission to, remaining in, transit and departure from its territory of passengers, crew, baggage, cargo and mail on aircraft, including regulations regarding the entry, clearance, immigration, passports, customs currency and sanitary measures, shall be complied with by the airline of the other Contracting Party upon entrance into, or departure from and while within the territory of the first Contracting Party.

3. Neither Contracting Party shall, in the application of the laws and regulations provided for in this Article, give any preference to its own airline nor any other airline over the designated airline of the other Contracting Party engaged in similar international air transportation.

DIRECT TRANSIT

Article 7

Passengers, baggage, cargo and mail in direct transit across the territory of one Contracting Party, and not leaving the area of the airport reserved for such purposes, shall be subject to a simplified customs and immigration control, except with respect to security measures, measures against violence, aviation piracy and the transportation of monitored drugs. Baggage and cargo in direct transit shall be exempt from customs duties and other similar taxes and fees.

RECOGNITION OF CERTIFICATES AND LICENCES

Article 8

1. The certificates of airworthiness, the certificates of operator's competency and licenses issued, or rendered valid by the Aeronautical Authority of one Contracting Party and still in force, shall be recognized as valid by the Aeronautical Authority of the other Contracting Party for the purpose of operating the agreed services under this Agreement provided that such certificates or licenses were issued, or rendered valid, pursuant to and in conformity with the minimum standards established under the Convention.

2. The Aeronautical Authority of one Contracting Party reserves however the right to refuse to recognize as valid, for flights above or landing within its own territory, the certificates of operator's competency and licenses granted to its own nationals by the Aeronautical Authority of the other Contracting Party or any other State.

AVIATION SAFETY AND RAMP INSPECTION

Article 9

1. Both Contracting Parties may, at any time, request consultations concerning safety standards in any area relating to aircrew, aircraft or their operation, adopted by the other Contracting Party. Such consultations shall take place within thirty (30) days of that request.

2. If, following such consultations, one Contracting Party concludes that the other Contracting Party does not effectively maintain and administer safety standards in any of these areas that are at least equal to the minimum standards established at that time pursuant to the Convention, the first Contracting Party shall notify the other Contracting Party of those findings and the steps considered necessary to conform with those minimum standards, and that other Contracting Party shall take appropriate corrective actions. The failure of the other Contracting Party to take appropriate action within fifteen (15) days or such longer period as may be agreed shall constitute grounds for the application of Article 5 (Revocation or Suspension of Operating Authorization) of this Agreement.

3. Notwithstanding the obligations mentioned in Article 33 of the Convention, any aircraft operated by the designated airline of one Contracting Party on services to or from the territory of another Contracting Party may, while within the territory of the other Contracting Party, be made the subject of an examination by the authorized representatives of the other Contracting Party, on board and around the aircraft to check both the validity of the aircraft documents and those of its crew and the apparent condition of the aircraft and its equipment (in this Article called "ramp inspection"), provided this does not lead to unreasonable delay.

4. If any ramp inspection or series of ramp inspections gives rise to:

a) serious concerns that an aircraft or the operation of an aircraft does not comply with the minimum standards established at that time pursuant to the Convention; or

b) serious concerns that there is a lack of effective maintenance and administration of safety standards established at that time pursuant to the Convention,

the Aeronautical Authority of the Contracting Party whose authorized representatives carry out the ramp inspection shall, for the purposes of Article 33 of the Convention, be free to conclude that the requirements under which the certificates or licenses in respect of that aircraft or in respect of the crew of that aircraft had been issued or rendered valid, or that the requirements under which that aircraft is operated, are not equal to or above the minimum standards established pursuant to the Convention.

5. In the event that access for the purpose of undertaking a ramp inspection of an aircraft operated by the designated airline of either Contracting Party in accordance of paragraph 3 of this Article, is denied by the representative of that airline, the Aeronautical Authority of the other Contracting Party shall be free to infer that serious concerns of the type referred to in paragraph 4 of this Article, arise and draw the conclusions referred to therein.

6. The Aeronautical Authority of one Contracting Party reserves the right to suspend or vary the operating authorization of an designated airline of the other Contracting Party immediately in the event it concludes, whether as a result of a ramp inspection, a series of ramp inspections, a denial of access for ramp inspection, consultations or otherwise, that immediate action is essential to the safety of an airline operation.

7. Any action by any Contracting Party taken in accordance with paragraphs 2 and 6 of this Article shall be discontinued once the basis for the taking of that action ceases to exist.

AVIATION SECURITY

Article 10

1. Consistent with their rights and obligations under international law, the Contracting 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.

2. Without limiting the generality of their rights and obligations under international law, the Contracting Parties shall in particular act in conformity with the provisions of the Convention on Offences and Certain Other Acts Committed on Board Aircraft signed at Tokyo on 14 September 1963, the Convention for the Suppression of Unlawful Seizure of Aircraft, signed at The Hague on 16 December 1970, the Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation, signed at Montreal on 23 September 1971, the Protocol for Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation, signed at Montreal on 24 February 1988, the Convention on the Marking of Plastic Explosives for Purpose of Detection, signed at Montreal on 1^st  of March 1991 and any other international agreements governing aviation security binding upon both Contracting Parties.

3. The Contracting Parties shall provide, when needed, all necessary assistance to each other to prevent acts of unlawful seizure of civil aircraft and other unlawful acts against the safety of such aircraft, its passengers and crew, airports and air navigation facilities, and any other threat to the security of civil aviation.

4. The Contracting Parties shall, in their mutual relations, act in conformity with the aviation security provisions established by the International Civil Aviation Organization and designated as Annexes to the Convention to the extent that such security provisions are applicable to the Contracting Parties, and they shall require that operators of aircraft of their registry or 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.

5. Each Contracting Party agrees that the operator of aircraft may be required to observe the aviation security provisions referred to in this Article required by the other Contracting Party for entry into, sojourn in or departure from the territory of that other Contracting Party. Each Contracting Party shall ensure that, within its territory, the measures for the protection of the aircraft and security screening of passengers, and carry-on items as well as appropriate security checks of crew, baggage, cargo and aircraft stores prior to boarding or loading are effectively applied. Each Contracting Party also agrees to give positive consideration to any request from the other Contracting Party for reasonable special security measures to meet a particular threat.

6. When an incident or threat of an incident of unlawful seizure of civil aircraft or other unlawful acts against the security of such aircraft, its passengers and crew, airports or air navigation facilities occurs, the Contracting Parties shall assist each other by facilitating communications and other appropriate measures intended to terminate rapidly and safely such incident or threat thereof.

USER CHARGES

Article 11

1. The charges for the use of airports and other aviation facilities by the aircraft of each of the Contracting Parties, levied in the territory of either Contracting Party, shall not be higher than those levied on aircraft of its own airlines engaged in similar international air services.

2. Each Contracting Party shall encourage consultations between the competent charging authorities or bodies in its territory and the designated airlines using the services and facilities, and shall encourage the competent charging authorities or bodies and the designated 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 paragraph 1 of this Article. Whenever possible, the users will be given reasonable notice of any proposal for changes in user charges together with relevant supporting information and data, to enable them to express their views before the charges are revised.

EXEMPTION FROM CUSTOMS DUTIES, TAXES AND OTHER CHARGES

Article 12

1. Each Contracting Party shall, on the basis of reciprocity, to the fullest extent possible, in accordance with the national regulations effective on the territory of that Contracting Party, exempt the designated airline of the other Contracting Party, from import and customs restrictions, excise taxes, inspection fees, and other national compulsory charges and other duties and charges on aircraft, fuel, lubricant, consumable technical supplies, spare parts including engines, regular aircraft equipment, aircraft stores (including food, beverages, tobacco and other products destined for sale or use by passengers during the flight) and other items such as printed ticket stock, air way bill and any printed material that bears the insignia of the company intended for use without charges, to be used solely for operating flights or maintenance of the aircraft of the designated airline.

2. The exemptions granted by this Article shall apply to the items referred to in paragraph 1 of this Article:

a) introduced into the territory of one Contracting Party by or on behalf of a designated airline of the other Contracting Party;

b) retained on board the aircraft of a designated airline of one Contracting Party upon arriving to or leaving the territory of the other Contracting Party; or

c) taken on board the aircraft of a designated airline of one Contracting Party in the territory of the other Contracting Party, with intention to use them in agreed services;

whether or not such items are used or consumed wholly or partially within the territory of the Contracting Party granting the exemption, provided such items are not alienated in the territory of said Contracting Party.

3. The regular airborne equipment, as well as materials and supplies, normally retained on board the aircraft operated by the designated airline of either Contracting Party, may be unloaded in the territory of the other Contracting Party only with the approval of the national Customs authorities of that territory. In such case, such equipment and items may be placed under the supervision of the said authorities up to such time as they are re-exported or otherwise disposed of in accordance with customs regulations.

TRANSFER OF FUNDS

Article 13

1. Each Contracting Party shall grant to the designated airlines of the other Contracting Party, upon request, the right to freely transfer the excess of revenues over expenditure earned by that airline in the territory of the first Contracting Party in connection with the sale of air transportation, sale of other ancillary products and services as well as commercial interest earned on such revenues (including interest earned on deposits awaiting transfer), in accordance with the foreign exchange regulations of the Contracting Party in the territory of which the revenue was accrued.

2. Such transfers shall be effected in any convertible currency, in accordance with the foreign exchange regulations of the Contracting Party in the territory of which the revenue was accrued. Such transfers shall be effected on the basis of official exchange rates or, where there is no official exchange rate, on the basis of the prevailing foreign exchange market rates for current payments.

3. If one Contracting Party introduces any restrictions on the transfer of excess of revenues over expenditure by the designated airline of the other Contracting Party, the other Contracting Party shall have the right to introduce the same restrictions on the designated airline of the first Contracting Party.

4. Where a special double taxation avoidance agreement exists between the Contracting Parties, or a special agreement ruling the transfer of funds, the provisions of that agreement shall prevail.

CAPACITY

Article 14

1. The capacity to be provided on the agreed services by the designated airlines shall be approved by the Aeronautical Authorities of both Contracting Parties on the basis of the principle of fair and equal opportunity for the designated airlines of both Contracting Parties.

2. In operating the agreed services, the designated airlines of each Contracting Party shall take into account the interests of the designated airlines of the other Contracting Party, so as not to unduly affect the services which latter provide on the whole or part of the same routes.

3. The agreed services provided by the designated airlines of the Contracting Parties shall bear a close relationship to the requirements of the public for transportation on the specified routes and shall have as their primary objective the provision, at a reasonable load factor, of capacity adequate to carry the current and reasonably anticipated requirements for the carriage of passengers and/or cargo, including mail to or from the territory of the Contracting Party which has designated the airline.

TARIFFS

Article 15

1. Aeronautical Authority of either Contracting Party may in regard to this Agreement, request to file for information tariffs for operating the international air traffic.

2. Without limiting the application of general competition and consumer protection law in the territory of each Contracting Party, intervention by the Contracting Party shall be limited to:

a) prevention of unreasonably discriminatory tariffs or practices;

b) protection of consumers against tariffs that are unreasonably high or unreasonably restrictive, due to the abuse of a dominant position or to the concerned practices among air carriers; and

c) protection of designated airlines against tariffs which are artificially low because of direct or indirect governmental subsidy or support.

3. Neither Contracting Party shall take unilateral action to prevent the inauguration or continuation of a tariff proposed to be charged, or charged by the designated airlines of either Contracting Party for international air services covered under this Agreement. If either Contracting Party considers that any such tariff is inconsistent with the considerations set forth in this Article, it shall request consultations and notify the other Contracting Party of the reasons for its dissatisfaction within fourteen (14) days from receiving the tariff for consideration. These consultations shall be held not later than thirty (30) days after receiving the request. If the Contracting Parties reach an agreement with respect to a price for which a notice of dissatisfaction has been given, each Contracting Party shall use its best efforts to put that agreement into effect. Without such a mutual agreement to the contrary, the tariff shall go into effect or continue in effect.

APPROVAL OF FLIGHT SCHEDULES

Article 16

1. The designated airline of each Contracting Party shall submit to the Aeronautical Authorities of the other Contracting Party the envisaged flight timetable for approval, not later than thirty (30) days prior to the commencement of the agreed services on the specified routes. Such timetable shall specify the type of services and aircraft, frequency, period of validity and other relevant data. This requirement shall likewise apply to any subsequent modification of timetables.

2. Any additional alteration in an approved flight timetable shall also be submitted for approval to the Aeronautical Authorities of the other Contracting Party.

COMMERCIAL ACTIVITIES

Article 17

1. The designated airline of one Contracting Party shall have the right to establish in the territory of the other Contracting Party offices for the purpose of promoting air transportation and sale of transport documents as well as of other ancillary products and facilities required for the provision of air transportation, in accordance with the laws and regulations of that Contracting Party.

2. The designated airline of each Contracting Party shall be entitled to bring into and maintain in the territory of the other Contracting Party those of their own managerial, commercial, operational, sales, technical and other personnel and representatives as it may require in connection with the provision of air transportation, in accordance with the laws and regulations of the other Contracting Party governing entry, residence and employment.

3. Each Contracting Party grants to any airline designated by the other Contracting Party the right to sell its transport services on its own transport documents directly in its own sales offices and through its agents in the territory of the other Contracting Party to customers in a currency allowed by the law of this Contracting Party.

4. Each designated airline shall, on a reciprocal basis, have the right to perform its own ground handling in the territory of the other Contracting Party, and by its own choice, the right to select among competing authorized providers of ground handling services in whole or in part.

5. The designated airline of either Contracting Party will have the right to perform ground handling services to other airlines operating on the same airport on the territory of the other Contracting Party.

6. The utilization of rights mentioned in paragraphs 4 and 5 of this Article, subjects only to physical or operational restrictions that are a result of respecting the security and safety aspects of the airports. All the restrictions will be consistently exercised, under the conditions that are no less favorable than the most satisfactory terms available to other airlines operating comparable international air traffic, at the time of the introduction of restrictions.

PROVISION OF STATISTICS

Article 18

The Aeronautical Authorities of either Contracting Party shall provide to the Aeronautical Authorities of the other Contracting Party, at their request, such periodic or statistical data of each designated airline as may be reasonably required for the purpose of reviewing the capacity provided by any designated airline of the first Contracting Party on the specific routes. Such data shall include all the information required for determining the amount of traffic carried and the origins and destinations of such traffic.

CONSULTATIONS

Article 19

1. In the spirit of close cooperation, the Aeronautical Authorities of both Contracting Parties shall have occasional communication, which may be through discussion or by correspondence, in order to ensure close collaboration in all matters affecting the fulfillment of this Agreement and its Annexes.

2. Either Contracting Party may, at any time, request consultations on the interpretation, application or amendments of this Agreement, or compliance with this Agreement. Such consultations shall begin within a period of sixty (60) days, from the date the other Contracting Party receives a written request, unless otherwise agreed by the Contracting Parties.

AMENDMENTS

Article 20

1. Any amendment to this Agreement agreed by the Contracting Parties shall come into force when approved in accordance with the laws and regulations of both Contracting Parties and confirmed by an exchange of diplomatic notes.

2. Amendments to the Annex of this Agreement may be directly agreed between the Aeronautical Authorities of the Contracting Parties and confirmed by exchange of diplomatic notes.

SETTLEMENT OF DISPUTES

Article 21

1. Any dispute relating the interpretation or application of this Agreement shall be settled by direct negotiations between the Aeronautical Authorities of both Contracting Parties. If Aeronautical Authorities fail to reach an agreement, the dispute shall be settled through diplomatic channels.

2. If the dispute cannot be settled in accordance with paragraph 1 of this Article, at the request of one or both Contracting Parties, it shall be submitted for decision to an Arbitral Tribunal, comprising of three arbitrators.

3. The Arbitral Tribune shall be constituted ad-hoc as follows:

a) each Contracting Party shall appoint one member;

b) the third arbitrator shall be a national of a third country and preside the Tribunal as a chairman, and he shall be appointed by agreement of both Contracting Parties;

c) such members shall be appointed within two (2) months, a chairman within three (3) months, from the date on which either Contracting Party informs the other Contracting Party by a diplomatic note of its intention to submit the dispute to the Arbitral Tribunal.

4. If the periods specified in paragraph 3 above have not been observed, either Contracting Party may, in the absence of any other relevant arrangement, invite the President of the Council of the International Civil Aviation Organisation (ICAO) to name and appoint the members of the Tribunal. If the President is a national of either Contracting Party, or if he is otherwise prevented from discharging this function, the Vice-president of the Council may be asked to the necessary appointments.

5. The Arbitral Tribunal shall reach its decisions by majority of votes. Such decision shall be binding on the Contracting Parties.

6. Each Contracting Party shall bear the cost of its own member as well as of its representation in the arbitral proceedings. The cost of the Chairman and any other costs shall be born in equal parts by the Contracting Parties. In all other respects, the Arbitral Tribunal shall determine its own procedure.

REGISTRATION WITH ICAO

Article 22

This Agreement and any modification to it shall be registered by either Contracting Party with the International Civil Aviation Organisation (ICAO).

COMPLIANCE WITH THE MULTILATERAL AGREEMENTS

Article 23

In case a Multilateral Agreement concerning any matter included in this Agreement, and accepted by both Contracting Parties comes into force, the provisions of this Agreement and its Annexes shall change in order to be coordinated with the provisions of that Multilateral Agreement.

TERMINATION

Article 24

Either Contracting Party may, at any time, give to the other Contracting Party a written notification, through diplomatic channels, of its intention to terminate this Agreement. If such a notification is given, this Agreement shall terminate twelve (12) months after the date of receipt of the written notification by the other Contracting Party, unless the notification of termination is withdrawn by agreement between the Contracting Parties before the expiry of this period.

ENTRY INTO FORCE

Article 25

This Agreement shall enter into force on the date of the receipt of the last note by which Contracting Parties will have notified each other, through diplomatic channels, that they have fulfilled their internal procedure for entering into force of this Agreement.

In witness thereof, the undersigned being duly authorized thereto by their respective Governments, have signed thisAgreement.

Done in duplicate at Belgrade on this 4 day of April, 2011, in two original copies, in Armenian, Serbian and English languages, all texts being equally authentic. In case of any divergence of interpretation, the English text shall prevail.

A N N E X 

to the Air Service Agreement between the Government of the Republic of Armenia and the Government of the Republic of Serbia

Route Schedule

1. The airlines designated by the Republic of Armenia shall be entitled to operate international air services on the routes specified hereafter:

2. The airlines designated by the Republic of Serbia shall be entitled to operate international air services on the routes specified hereafter:

Notes:

1. Points beyond and intermediate points shall be specified later by agreement between the Aeronautical Authorities of both Contracting Parties.

2. The designated airlines of each Contracting Party may operate all intermediate and points beyond, without exercising fifth freedom traffic rights.

3. The fifth freedom traffic right is subject to a prior consent between the Aeronautical Authorities of the two Contracting Parties.

4. In operating or holding out the authorized services on the routes specified above, any designated airline of one Contracting Party may enter into marketing co-operative arrangements, such as code share arrangements with:

a)  an airline or airlines of either Contracting Party, and

b)  an airline or airlines of any third country, provided that each country authorizes or allows comparable arrangements between the airlines of the other Contracting Party and other airlines on services to, from and via that country,

on condition that all airlines concerned:

a)  hold the appropriate authorizations and traffic rights,

b)  meet the requirements normally applied to such arrangements, and

c)  in respect of every ticket sold, make it clear to the purchaser at the point of sale, as to which airline will actually operate each sector of the service or route and with which airline is the purchaser entering into a contractual relationship.

5. Taking part in the code share arrangement, does not count as a frequency for airline not operating services.

6. All code share arrangements will be subject of prior approval of both Aeronautical Authorities of each the Contracting Parties.

The Agreement has entered into force on 05.03.2012.