ARTICLE 7

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Tariffs

(1) The term "tariff" means one or more of the following:

(i)

the fare charged by an airline for the carriage of passengers and their baggage on scheduled air services and the charges and conditions for services ancillary to such carriage;

(ii) the rate charged by an airline for the carriage of cargo (excluding mail) on scheduled air

services;

(iii) the conditions governing the availability or

applicability of any such fare or rate

including any benefits attaching to it; and

(iv) the rate of commission paid by an airline to an

agent in respect of tickets sold or air

waybills completed by that agent for carriage

on scheduled air services.

(2)

The tariffs to be charged by the designated airlines of the Contracting Parties for carriage between Hong Kong and Australia shall be those approved by the aeronautical authorities of both Contracting Parties and shall be established at reasonable levels, due regard being had to all relevant factors, including the cost of operating the agreed services, the interests of users, reasonable

profit and the tariffs of other airlines operating over the whole or part of the same route.

D.B.

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