Philippines

1. Date of Agreement

Legal Title:

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

May 15, 2008

(ad referendum) Applied administratively

2. Other Instruments

September 11, 1996

Agreed Minute (The delegations agreed on the text of a bilateral Air Transport Agreement),

January 14, 1997

Agreement signed

May 20 & 30, 1997

Diplomatic Notes (Entry into Force of 1997 Agreement)

March 7 and March 19, 2001

Diplomatic Notes (Republic of the Philippines requests access to the transit without visa program at Vancouver International Airport for Philippine Airlines. Request granted).

May 15, 2008

Record of discussion (new ad referendum Agreement to replace the 1997 Agreement)

3. Characterization of Bilateral Agreement

A. Grant of Rights:

As specified in the Annex.

B. Designation:

Multiple, Air Canada and Philippine Airlines.

C. Tariffs:

Single disapproval.

D. Capacity:

Pre-determination: own aircraft.
Free determination – code-share

4. Routes and Associated Rights

The following routes and associated rights reflect the previous Air Transport Agreement signed on January 14, 1997. Revised changes to the routes and associated rights were agreed ad referendum on May 15, 2008 and are confidential until definitively entered into force.

PHILIPPINES - ROUTE 1

Points in the Philippines	Intermediate Points	Points in Canada	Points Beyond
Any point or points	Any point or points	Three points	Any point or points

Notes:

1. Points in Canada may be served separately or as co-terminals without stopover privileges between points in Canada. Points in Canada may be changed each IATA season, unless a shorter period is agreed by the aeronautical authorities of Canada.

2. Transit and stopover rights shall be available at the Intermediate Points, and at the Points in Canada for traffic to and from the Beyond Points.

3. The Intermediate Points and/or the Beyond Points may at the option of the designated airline(s) of the Philippines be omitted or any or all flights provided that all services originate or terminate in the Philippines. The selection of the Intermediate Points and Beyond Points may be changed on not less than ten (10) days' notification to the aeronautical authorities of Canada where only transit rights are exercised and each IATA season where fifth freedom rights are exercised, unless a shorter period is agreed by the aeronautical authorities of Canada.

4. Fifth freedom traffic rights shall be available between intermediate points in the USA and the Points in Canada (except between points in California and Toronto) and between the Points in Canada and beyond points in the USA. Fifth freedom rights may only be exercised on up to two (2) route sectors at any one time. The frequency for the exercise of fifth freedom rights on each route sector shall be restricted to a maximum of four (4) flights per week in each direction. Fifth freedom traffic carried on each route sector shall be restricted to no more than fifty percent (50%) of the aircraft capacity used on that route sector, calculated on an annual basis.

5. Subject only to normal regulatory requirements, the designated airline(s) of the Philippines shall have the right, while operating the agreed services, to enter into cooperative arrangements for the purpose of code sharing (selling transportation under its own code) on flights of the designated airline(s) of Canada. Subject to the approval of the aeronautical authorities of Canada, the designated airline(s) of the Philippines may also operate code sharing services between the Points in Canada and Beyond Points on the flights of any third country airline licensed by Canada which is operating scheduled air services on the route sector. Each route sector used for code sharing on the flights of a third country airline shall reduce by one (1) the number of route sectors in Note 4 specified as available for the exercise of fifth freedom rights. No fifth freedom rights shall be exercised in conjunction with code sharing on the flights of a third country airline.

6. For the purposes of Article XI (Capacity), the Government of the Republic of the Philippines shall be entitled to allocate among its designated airlines up to a maximum of four (4) flights per week in each direction for own aircraft flights.

PHILIPPINES - ALL-CARGO - ROUTE

Points in the Philippines	Intermediate Points	Points in Canada	Points Beyond
Any point or points	To be agreed	Any point or points	To be agreed

Notes:

1. Points in Canada may be served separately or as co-terminals. Points in Canada may be changed each IATA season, unless a shorter period is agreed by the aeronautical authorities of Canada.

2. Transit rights shall be available at the Intermediate Points and at the Points in Canada.

3. The Intermediate Points and/or the Beyond Points may at the option of the designated airline of the Philippines be omitted on any or all flights provided that all services originate or terminate in the Philippines. The selection of the Intermediate Points and Beyond Points may be changed on not less than ten (10) days' notification to the aeronautical authorities of Canada where only transit rights are exercised.

4. Capacity shall be agreed between Contracting Parties.

CANADA - ROUTE 1

Points in Canada	Intermediate Points	Points in the Philippines	Points Beyond
Any point or points	Any point or points	Three points	Any point or points

Notes:

1. Points in the Philippines may be served separately or as co-terminals without stopover privileges between points in the Philippines. Points in the Philippines may be changed each IATA season, unless a shorter period is agreed by the aeronautical authorities of the Philippines.

2. Transit and stopover rights shall be available at the Intermediate Points, and at Points in the Philippines for traffic to and from the Beyond Points.

3. The Intermediate Points and/or the Beyond Points may at the option of the designated airline(s) of Canada be omitted on any or all flights provided that all services originate or terminate in Canada. The selection of the Intermediate Points and Beyond Points may be changed on not less than ten (10) days' notification to the aeronautical authorities of the Philippines where only transit rights are exercised and each IATA season where fifth freedom rights are exercised, unless a shorter period is agreed by the aeronautical authorities of the Philippines.

4. Fifth freedom traffic rights shall be available between intermediate points in Asia (east of India and north of Australia) and the Points in the Philippines (except between points in Korea and Manila) and between the Points in the Philippines and points beyond in Asia (east of India and north of Australia). Fifth freedom rights may only be exercised on up to two (2) route sectors at any one time. The frequency for the exercise of fifth freedom rights on each route sector shall be restricted to a maximum of four (4) flights per week in each direction. Fifth freedom traffic carried on each route sector shall be restricted to no more than fifty percent (50%) of the aircraft capacity used on that route sector, calculated on an annual basis.

5. Subject only to normal regulatory requirements, the designated airline(s) of Canada shall have the right, while operating the agreed services, to enter into co-operative arrangements for the purpose of code sharing (selling transportation under its own code) on the flights of the designated airline(s) of the Philippines. Subject to the approval of the aeronautical authorities of the Philippines, the designated airline(s) of Canada may also operate code sharing services between the Points in the Philippines and Beyond Points on the flights of any third country airline licensed by the Philippines which is operating scheduled air services on the route sector. Each route sector used for code sharing on the flights of a third country airline shall reduce by one (1) the number of route sectors in Note 4 specified as available for the exercise of fifth freedom rights. No fifth freedom rights shall be exercised in conjunction with code sharing on the flights of third country airline.

6. For the purposes of Article XI (Capacity), the Government of Canada shall be entitled to allocate amount its designated airlines up to maximum of four (4) flights per week in each direction for own aircraft flights.

CANADA - ALL-CARGO - ROUTE

Points in Canada	Intermediate Points	Points in the Philippines	Points Beyond
Any point or points	To be agreed	Any point or points	To be agreed

Notes:

1. Points in the Philippines may be served separately or as co-terminals. Points in the Philippines may be changed each IATA season, unless a shorter period is agreed by the aeronautical authorities of the Philippines.

2. Transit rights shall be available at the Intermediate Points and at the Points in the Philippines.

3. The Intermediate Points and/or the Beyond Points may at the option of the designated airline of Canada be omitted on any or all flights provided that all services originate or terminate in Canada. The selection of the Intermediate Points and Beyond Points may be changed on not less than ten (10) days' notification to the aeronautical authorities of the Philippines where only transit rights are exercised.

4. Capacity shall be agreed between the Contracting Parties.