Chile

1. Date of Agreement

Legal Title:

Agreement between the Government of the Republic of Chile and the Government of Canada on Air Transport

December 4, 2003

Provisionally in force

September 27, 2005

Entry into force

2. Other Instruments

February 21, 1986

Agreed Minute (relating to entry into force, detention charges, and avoidance of double taxation)

March 13, 1992

Canadian Note (Entry into force of the 1990 draft Agreement)

February 17, 1998, March 4, 1998

Diplomatic Note (designation of LanChile Linea Aérea Nacional Chile, S.A.)

February 27, 2001

Diplomatic Note (designation of Air Canada in lieu of Canadian)

August 16, 2001

Agreed Minute (route rights, codesharing, tariffs, capacity and several technical articles)

3. Characterization of Bilateral Agreement

A. Grant of Rights:

As specified in the Annex.

B. Designation:

Multiple, Air Canada and Lan Airlines.

C. Tariffs:

Double disapproval.

D. Capacity:

Open capacity.

4. Routes and Associated Rights

CANADA

The following route may be operated in either or both directions by an airline(s) designated by the Government of Canada:

Points in Canada	Intermediate points	Points in Chile	Points beyond
Any point or points	Any point or points	Any point or points	Any point or points

Notes:

1. Any Intermediate Points and/or Points Beyond may be omitted on any or all services, provided that all services originate or terminate in Canada. Points in Chile may be served separately or in combination.

2. Transit and own stopover rights shall be available at Intermediate Points and at Points in Chile except that stopover rights shall not be available at Points in Chile en route to/from other Points in Chile. At the option of each designated airline, intra-airline connections may be made at any of the points on the route.

3. Intermediate and beyond fifth freedom rights shall only be available between Points in Chile and Buenos Aires and between Points in Chile and one other point in South America to be selected by Canada and which may be changed. The Government of Canada shall be entitled to allocate among its designated airlines up to a total of seven own-aircraft flights per week in each direction for fifth freedom services at each of Buenos Aires and the one other point in South America to be selected by Canada. The Government of Canada shall also be entitled to allocate among its designated airlines up to a total of seven flights per week in each direction for code-sharing, as described in Note 4. (a), for fifth freedom services at each of Buenos Aires and the one other point in South America to be selected by Canada. For any two consecutive calendar months, fifth freedom traffic carried by each designated airline to and from each of Buenos Aires and the one other point in South America to be selected by Canada shall not exceed 50 % of the aircraft capacity made available by that designated airline to and from Chile at each of Buenos Aires and the one other point in South America to be selected by Canada.

4. Subject to the regulatory requirements normally applied to such operations by the aeronautical authorities of Chile, each designated airline of Canada may enter into co-operative arrangements for the purpose of

   1. operating the agreed services on the specified routes by code-sharing (i.e., selling transportation under its own code) on flights operated by the airline(s) of Canada, of Chile, and/or of any third country; and/or

   2. carrying traffic under the code of any other airline(s) where such other airline(s) has been authorised by the aeronautical authorities of Chile to sell transportation under its own code on flights operated by the designated airline(s) of Canada.

Code sharing services involving transportation between the Points in Chile shall be restricted to flights operated by an airline(s) authorised by the aeronautical authorities of Chile to provide services between the Points in Chile and all transportation between the Points in Chile under the code of the designated airline(s) of Canada shall only be available as part of an international journey. All airlines involved in code sharing arrangements shall hold the appropriate underlying route authority. For the purpose of code-sharing and notwithstanding the provisions of Article III (Change of Aircraft), airlines shall be permitted to transfer traffic between aircraft without limitation. The aeronautical authorities of Chile shall not withhold permission for code sharing services identified in Note 4 (a) by the designated airline(s) of Canada on the basis that the airline(s) operating the aircraft does not have the right from Chile to carry traffic under the code of the airline(s) designated by Canada.

CHILE

The following route may be operated in either or both directions by an airline(s) designated by the Government of the Republic of Chile:

Points in Chile	Intermediate points	Points in Canada	Points beyond
Any point or points	Any point or points	Any point or points	Any point or points

Notes:

1. Any Intermediate Points and/or Points Beyond may be omitted on any or all services, provided that all services originate or terminate in Chile. Points in Canada may be served separately or in combination.

2. Transit and own stopover rights shall be available at Intermediate Points and at Points in Canada except that stopover rights shall not be available at Points in Canada en route to/from other Points in Canada. At the option of each designated airline, intra-airline connections may be made at any of the points on the route.

3. Intermediate and beyond fifth freedom rights shall only be available between Points in Canada and Miami and between Points in Canada and New York. The Government of the Republic of Chile shall be entitled to allocate among its designated airlines up to a total of seven own-aircraft flights per week in each direction for fifth freedom services at each of Miami and New York. The Government of the Republic of Chile shall also be entitled to allocate among its designated airlines up to a total of seven flights per week in each direction for code-sharing, as described in Note 4. (a), for fifth freedom services at each of Miami and New York. For any two consecutive calendar months, fifth freedom traffic carried by each designated airline to and from each of Miami and New York shall not exceed 50 % of the aircraft capacity made available by that designated airline to and from Canada at each of Miami and New York.

4. Subject to the regulatory requirements normally applied to such operations by the aeronautical authorities of Canada, each designated airline of Chile may enter into co-operative arrangements for the purpose of

   1. operating the agreed services on the specified routes by code-sharing (i.e., selling transportation under its own code) on flights operated by the airline(s) of Canada, of Chile, and/or of any third country; and/or

   2. carrying traffic under the code of any other airline(s) where such other airline(s) has been authorised by the aeronautical authorities of Canada to sell transportation under its own code on flights operated by the designated airline(s) of Chile.

Code sharing services involving transportation between the Points in Canada shall be restricted to flights operated by an airline(s) authorised by the aeronautical authorities of Canada to provide services between the Points in Canada and all transportation between the Points in Canada under the code of the designated airline(s) of Chile shall only be available as part of an international journey. All airlines involved in code sharing arrangements shall hold the appropriate underlying route authority. For the purpose of code-sharing and notwithstanding the provisions of Article III (Change of Aircraft), airlines shall be permitted to transfer traffic between aircraft without limitation. The aeronautical authorities of Canada shall not withhold permission for code sharing services identified in Note 4 (a) by the designated airline(s) of Chile on the basis that the airline(s) operating the aircraft does not have the right from Canada to carry traffic under the code of the airline(s) designated by Chile.