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AIR TRANSPORT AGREEMENT BE'IWEEN
'lHE GOVERNMENT OF 'lHE REPUBLIC OF INIXNESIA AND
'lHE GOVERNMENT OF NEW ZEALAND

RELATING 'ID SCHEDUIBD AIR TRANSPORI'

'Ihe Govenurent of the !€public of Indonesia and
the Govenurent of

New

Zealand

Hereinafter called in this Agreenent the Contracting Parties,

Being Parties to the Convention on International Civil Aviation, opened
for signature at Oricago on the seventh day of Decerrber, 1944,

Desiring to ccncluae an Agreenent, supplenentary to the said Convention,
for the pw:pose of establishing scheduled air services benveen and
beyond their respective territories,


Have agreed as follows :

Article

1

Definitions

For the purpose of this Agreement, unless the context
otherwise requires

(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 Annex or Convention
under Articles 90 and 94 thereof insofar as these have
become effective for both Contracting Parties;

(b)

the term "aeronautical authorities" means, in the case
of the Government of the Republic of Indonesia the
Minister of Communications and any person or body authorised to perform functions at present exercised by the
said Minister or similar functions, and in the case of
New Zealand, the Minister responsible for Civil Aviation or any person or body authorised to perform any
functions at present exercisable by the latter Minister;

(c)

the term "designated airline" means an airline or airlines designated and authorised in accordance with
Article 3 of this Agreement;

(d)


"'lerrito:ry" in relation to a State has the rreaning assigned to it
in Article 2 of the Convention except that in the case of New
Zealand the term "territo:ry" shall exclude the Cook Islands, Niue,
and 'Ibkelau.
For Indcnesia the term "territory" carprises the Iepublic of
Indonesia as defined in its laws and the adjacent areas over which
the Iepublic of InCbnesia has sovereign rights or jurisdiction in
accordance with the provisions of the United Nations Ccnvent.ion
on the law of the Sea, 1982;

(e)

the term "air service", "international air service", "airline" and
"stop for non-traffic purpose" have the rreaning respectively
assigned to them in Article 96 of the Convention;

(f)

the term "this Agreerrent" includes the Annex hereto and any

arrendrrents to it or to the Agreerrent.

Article

2

Traffic Rights

1.

Each Contracting Party grants to the other Contracting Party the

rights specified in the present Agreerrent for the purpose of
establishing air services on the routes specified in the appropriate
Section of the Annex thereto (hereinafter called "the agreed services
and "the specified routes").

2.

'Ille airline of each Ccntracting Party shall enjoy the following

privileges :
(a)

to fly without landing across the territory of the other
Contracting Party;

(b)

to make stops in the said territory for a non-traffic purpose,
and,

(c)

while operating an agreed service on a specified route, subject
to the provisions of the present Agreerrent, to make stops in
the territory of the other Contracting Party at the points
specified for that route in the Annex to the present Agreerrent
for the pw:pose of putting down and taking on international
traffic in passenger, cargo and nail.


3.

lt>thing in paragraph 2 of this Article shall be deemed to confer on
the airline of one Contracting Party the privilege of taking up, in
the territory of the other Contracting Party, passengers, cargo or
nail carried with or without remuneraticn or hire and destined for
another point in the territory of the other Contracting Party.

4.

Notwithstanding the provisions of paragraphs 1 and 2 of this Article,
the operation of agreed services in areas of hostilities or military
ocx:::upation, or in areas affected thereby, shall be subject to the
approval of the corrpetent military authorities in accordancy with
Article 9 of the Cbnvention.

Article

3


cperating Authorisaticns

1.

Each Contracting Party shall have the right
to

to

d=signate in writing

the other Contracting Party one or rrore airlines for the purpose

of operating the agree_d se!Vices on the specified routes.

2.

On

receipt of such resignaticn, the other Contracting Party shall,


subject to the provisions of paragraphs 4 and 5 of _1::his Article,
without relay grant

to

the d=signated airline the appropriate ope-

rating authorisaticns.

3.

Each Contracting Party shall have the right, by written notificaticn
to the other Contracting Party,
such airline and

4.

to


to

withdraw the d=signation of any

designate any other airline.

An airline designated by one Contracting Party nay be required
satisfy the other Contracting Party that it is qualified

to

to

fulfill

the conditions prescribed by the laws and regulations nornally and
reasonably applied by the first Contracting Party to the operation
of international air services in conformity with the provisions of
the Convention.


s.

Each Contracting Party shall have the right to refuse to grant the
operating authorisaticn referred
or

to

to

in paragraph 2 of this Article,

inpose such conditions as it nay deem necessary on the

e:xercise by a resignated airline of the rights specified in Article
2 of the present Agreerrent, 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.

6.


When an airline has been so designated and m.;rthorised, it rray at any

tirre begin to operate the agreed services, provided that a tariff

established in accordance with the provisions of Article 9 of the
present Agreerrent is in force and an agreerrent in accordance with
the provisions of Article 5 of the present Agreerrent has been reached
in respect of that service.

Article

4

Suspension and Ievocaticn

1.

Each Cbntracting Party shall have the right to revoke the operating
authorisaticn or to suspend the exercise of the rights specified in
Article 2 of the present Agreerrent by the airline designated by the
other Contracting Party, or to irrpose such oonditicns as it rna.y deem
necessary on the erercise of these rights :
(a)

in any case where it is not satisfied that substantial ownership
and effective ccntrol of that airline are vested in the Contracting Party designating the airline or in nationals of such
Contracting Party, or

(b)

in the case of failure by that airline to carply with the laws
or regulaticns of the Contracting Party granting these rights,
or

(c)

in case the airline othei:wise fails to operate in accordance
with the conditions prescribed tmder the present Agreerrent.

2.

Unless irmediate revocation, suspension or irrposition of the conditions rrentioned in paragraph 1 of this Article is essential to
prevent further infringerrents of laws or regulations, such right
shall be exercised cnly after oonsultations with the other Contracting Party. In such a case consultations shall begin within a period
of sixty (60) days fran the date of request made by either Contracting Party for consultations.

Article

5

Capacity Principles

1.

'Ihe designated airline of each Contracting Party shall, in all
respects, enjoy fair and equal opportunity for the carriage of
international traffic between the territories of the two Parties.

2.

In operating the agreed services, the designated airline of each
Contracting Party shall take into account the interests of the ai.:rline of the other Contracting Party so as not to affect unduly the
services which the latter provide on the whole or part of the sane
route.

3.

'Ihe capacity to be provided, the frequency of services to be operated and the nature of air service that is travelling beyond,
transiting through or terminating in the territory of the other
Contracting Party shall be agreed to between the aeronautical authcr
rities of the Contracting Parties in accordance with the provisions
of this Article and shall be specified in a M=rrorandum of Understanding.

4.

Increases in capacity to be provided or frequency of services to be
operated by the designated airline of either Contracting Party shall
be agreed between the aeronautical authorities

on the basis of the

estimated requirerrents of traffic originating in or destined for the
territories of the Contracting Party, which has designated the
airline, and also on the requirerrents of any other traffic uplifted
or discharged at points on the specif i ed route.

5.

Pending agreerrent on any increase, the capacity and frequency
enti tlerrents already in force shall prevail.

Article 6
!€cognition of Certificates and Licences

Certificates of airworthiness, certificates of conpetency and licences
issued or rendered valid by one Contracting Party, and still in force,
shall be recognized as valid by the other Contracting Party for the
pm:pose of operating the agreed services. Each Contracting Party reserves
the right, h.CMever, to refuse

to

recognize, for the pm:pose of flight

above its own territory, certificates of carpetency and licences granted
to 1ts own nationals or rendered valid by another State.

Article
Exerrption from

1.

CUstom.5

7
and Other Duties

Aircraft operated on international services by the airline designated by each Contracting Party, as well as their regular equiprrent,
supplies of flEl and lubricants, ronsurnable technical supplies
(including glycol, nitrogen, OXY-gen and hydraulic oil) and the aircraft stores (including food, beverages and tobacco) on board such
aircraft shall be exerrpt from all custoITE duties, inspection fees
and other duties or taxes on arriving in the territo:ry of the other
Contracting Party, provided such equipment and supplies shall remain
en board the aircraft up to such tirce as they are re-exported.

2.

'!here shall also be exerrpt fran the sarre duties and taxes with the
exceptien of charges corresponding to the service perfonred :
aircraft stores taken on board in the territo:ry of either

(a)

Contracting Party, within limits fixed by the authorities of
said Contracting Party, and for use on board the aircraft
engaged en a specified route of the other Contracting Party;
(b)

spare parts entered into the territo:ry of either Contracting
Party for the maintenance or repair of aircraft used on a
specified route by the resignated airline of the other Contracting Party;
f uel and lubricants destined to supply aircraf t operated on a

(c)

specified route by the designated airline of the other Contracting Party, even when these supplies are to be used on the part
o f the joumey per f onred over the territory of the Contracting
Party in which they are taken on board;
(d)

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and cargo in direct transit.

3.

'!he nonral an-board equiprrent, as well as the materials and supplies
retained on board the aircraft operated by the designated airline of
one Contracting Party may be unloaded in the territory of the other
Contracting Party only with the approval of the customs authorities
of that other Contracting Party.
In such a case, they may be placed under the supe:rvisian of the
said authorities until they are

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or otherwise disposed of

in accordance with customs regulations.

4.

Insofar as no duties or other charges are inposed on goods rrentioned
in paragraphs 1 to 3 of this Article, such goods shall not be subject
to any ecananic prohibitions or restrictions on inp:>rtation,

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tatian and transit that may otherwise be applicable unless such
prohibition or restriction applies to all airlines including the
national airline.

5.

'!he treatnent specified in this Article shall. be in addition to and
without prejudice to that which each Contracting Party is under
obligation to accord under Article 24 of the Convention.

Article

8

Direct Transit Traffic

Subject to the laws and regulations of each Contracting Party, passengers,
baggage and cargo in transit across the territory.. of either Contracting
Party shall, in principle, not be subject to control.

Article

9

Tariffs

1.

'Ihe tariffs for carriage on agreed services to and from the terri tory of the other Contracting Party shall be established at reasonable

levels, du: regard being paid to all relevant factors including cost
of operaticn, the interests of users, reasonable profit, characteristics of service (such as standards of speed and accormodation) and,
where it is deerred suitable, the tariffs of other airlines for any
part of the specified routes.

2.

'Ihe tariffs referred to in paragraph 1 of this Article shall be
agreed upon, if possible, between the designated airlines of the
Contracting Parties; such agreerrent shall be reached, whenever
possible, through the international tariff coordination rrechanism of
the International Air Transport Association. Ho.vever a designated
airline shall not be precluded fran filing any proposed tariff milaterally if circurrstances so warrant. lhless otherwise detennined in
the application of paragraph 5 of this Article, or where a proposed

tariff has been milaterally filed, each resignated airline shall be
responsible only to its aeronautical authorities for the justification and reasonableness of the tariffs so proposed.

3.

Pm.y tariffs for an agreed service shall be filed with the aeronautical authorities of both Contracting Parties at least sixty (60) days
prior to the proposed effective date mless the aeronautical authorities of both Contracting Parties permit the filing to be made on
shorter notice. Pm.y proposed tariff shall be filed by a designated
airline with the aeronautical authorities of

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Contracting Parties

in such fonn as the aeronautical authorities of each Contracting
Party may require.



4.

If the aeronautical authorities of cne Contracting Party, on receipt
of any filing referred to in paragraph 3 of this Article, are dissatisfied with the tariff proposed, they shall so notify the aeronauti-:
cal authorities of the other Contracting Party within thirty (30)
days from the date of receipt of such tariff, but in no event less
than fifteen (15) days prior to the proposed effective date of such
tariff. If notification of dissatisfaction is not given as provided
in this paragraph, the tariff shall be deemed to be approved by the
aeronautical authorities of the Contracting Party receiving the
filing and shall becare effective on the proposed date.

5.

If a tariff cannot be established in accordance with the provisions
of paragraph 2 of this Article or if during the period applicable in
accordance with paragraph 4 of this Article a notice of dissatisfacticn has been given, the aeronautical authorities of the Contracting
Parties shall endeavour to determine the tariff by agreerrent between
themselves. Consultations between the aeronautical authorities shall
be held in accordance with Article 12 of this Agreerrent.

6.

If the aeronautical authorities cannot agree on any tariff submitted

to them mder paragraph 3 of this Article or on the determination of
any tariff under paragraph 5 of this Article the dispute shall be
settled in accordance with the provisicns of Article 14 of this
Agreerren t.

7.

(a)

No tariff shall oorre

into force if the aeronautical authorities

of either Contrac:ting Party are dissatisfied with it except
under the provisions of paragraph 3 of Article 14 of this Agree-

rrent.
(b)

When tariffs have been established in accordance with the
provisicns of this Article, those tariffs shall rermin in force

until new tariffs have been established in accordanre with the
provisions of this Article or Article 14 of this Agreerrent.

8.

If the aeronautical authorities of one of the Contracting Parties
beoorre dissatisfied with an established tariff, they shall so notify
the aeronautical authorities of the other Contracting Party and the
designated airlines shall atterrpt, where required, to reach an
ag:reerrent.
If within the period of ninety (90) days from the day of rereipt of
such notification, a new tariff cannot be established in accordance
with the provisions of paragraphs 2 and 3 of this Article, the
procedures as set out in paragraphs 5 and 6 of this Article shall
apply.
In no circurrstances, ho.vever, shall a Contracting Party require a

different tariff from the tariff of its designated airline for
conparable services between the sane points.

9.

'Ihe tariffs charged by the designated airline of one Contracting
Party for carriage between the territocy of the other Contracting
Party and the territocy of a third State, involving also points
other than on agreed services, shall be subject to the approval of
the aeronautical authorities of the other Contracting Party and such
third State; provided, hNESIA
'IHE

Signed

FOR 'IHE GOVEmMENT OF
NEW ZEALAND
Signed

ANNEX

Section I

1.

Routes to be served by the designated airline of the Iepublic of Indonesia
in both directions :
Points of

D:parture
Points in
Indonesia

2.

Internediate
FOints

Points of
r::estination

Points Beyond

Che point in
Australia to
be nominated;
Port :r-bresby
or Nourrea

'IWo points in
New Zealand
to be nomina-

'lhree points
excluding the IBA,
canada; all points
to be nominated

ted

'Ihe resignated airline of the Iepublic of Indonesia rna.y, on any or all
flights, omit calling at any of the above points, provided that the agreed
services on this route start and te:rminate in the territory of that
Cmtracting Party.

3.

All points to be nominated may be changed at six rronths' notice by the
Iepublic of Indonesia.

Section I I

1.

Routes to be served by the resignated airline of New Zealand in both
directions :
Points of

D:parture
Points in
N:w Zealand

2.

Internediate
Points

Points of
r::estiriation

Points Beyond

'!WO points in

Che point in the
Middle East, one
point in UK/Europe,
two points in Asia;
all points to be
nominated

Indonesia
to be nominated

'Ihe resignated airline of New Zealand may, on any or all flights, omit
calling a t any of the above points, provided that the agreed s e rvices on
this route start and terminate in the territory of that Contracting Party .

3.

All points to be nominated may be changed at six nonths' notice by New
Zealand.