TNAG-2880-FCO40-4152-Agreements-between-the-Hong-Kong-Special-Administrative-Regi-1993 — Page 33

ARTICLE 4

Designation of and Authorization of Airlines

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

(2) On receipt of such a designation the other Contracting Party shall, subject to the provisions of paragraphs (3) and (4) of this Article, without delay grant to the airline or airlines designated the appropriate operating authorizations.

[(3) Each Contracting Party shall have the right to refuse to grant the operating authorisations referred to in paragraph (2) of this Article, or may impose such conditions as it may deem necessary on the exercise by a designated airline of the rights specified in Article 3(2) of this Agreement, in any case where it is not satisfied that that airline is incorporated and has its principle place of business in the area of the other Contracting

Party.1

[(a) The Government of the United Kingdom may refuse to grant the operating authorisations referred to in paragraph (2) of this Article, or may impose such conditions as it may deem necessary on the exercise by a designated airline of the rights specified in Article 3(2) of this Agreement, in any case where it is not satisfied that the airline is incorporated and has its principal place of business in Hong Kong.]

[(b) The Government of Hong Kong may refuse to grant the operating authorisations referred to in sub-paragraph (2) of this Article, or may impose such conditions as it may deem necessary on the exercise by a designated airline of the rights specified in Article 3(2) of this Agreement, in any case where it is not satisfied that substantial ownership and effective control of that airline are vested in the Government of the United Kingdom or its nationals.]

(4) The aeronautical authorities of one side may require an airline designated by the other side to satisfy them that it is qualified to fulfil the conditions prescribed under the laws and