AGREEMENT

with Respect to Time Limitations on Arrangements for the Provision of Aircraft with Crew

THE UNITED STATES OF AMERICA (hereinafter, ‘the United States’), THE EUROPEAN UNION, ICELAND, and THE KINGDOM OF NORWAY (hereinafter, ‘Norway’),

RECOGNIZING the benefit of promoting flexibility and fair and equal opportunities with respect to operating arrangements entered into by airlines pursuant to Article 10(9) of the Air Transport Agreement between the United States of America and the European Community and its Member States, signed on April 25 and 30, 2007, as amended by the Protocol to Amend the Air Transport Agreement between the United States of America and the European Community and its Member States, signed on June 24, 2010 (hereinafter, the ‘U.S.-EU ATA’) and applied pursuant to the Air Transport Agreement among the United States of America, the European Union and its Member States, Iceland, and the Kingdom of Norway, signed on June 16 and 21, 2011 (hereinafter, the ‘Four Part ATA’);

RECOGNIZING the comprehensive aviation relationship among the parties, established by the U.S.-EU ATA and the Four Part ATA and the close cooperation among the parties developed in the context of these Agreements;

REAFFIRMING the common objective of the Parties to ensure the highest degree of safety and security in international air transportation, as is reflected in their similar regulatory frameworks;

ACKNOWLEDGING the existence of comparable social and economic conditions among the Parties with respect to international air transportation; and

RESOLVING to promote flexibility in operating arrangements between airlines to lease aircraft with crew as provided for by the U.S.-EU ATA, including as applied by the Four Part ATA, by reciprocally removing time limits on such arrangements, without otherwise affecting the application of those Agreements;

HAVE AGREED AS FOLLOWS:

Article 1

Definitions

For purposes of this Agreement, the term:

‘European airlines’ means airlines of the European Union and its Member States, Iceland, and Norway that are authorized to provide international air transportation pursuant to Article 4 of the U.S.-EU ATA, including as applied by the Four Part ATA.

‘Party’ means the United States, the European Union, Iceland, or Norway.

‘U.S. airlines’ means airlines of the United States authorized to provide international air transportation pursuant to Article 4 of the U.S.-EU ATA, including as applied by the Four Part ATA.

‘Wet lease’ means any arrangement between two airlines for the provision of aircraft with crew for international air transportation.

Article 2

Time Limitations

1. No Party shall impose, including by statute or regulation, time limitations on the operation of any wet lease pursuant to Article 10(9) of the U.S.-EU ATA, including as applied by the Four Part ATA, provided that such wet lease complies with all terms and conditions of said Article 10(9).

2. Nothing in paragraph 1 shall be understood to limit the right of a Party to otherwise apply its statutes and regulations with respect to wet leasing arrangements involving its airlines and those of countries that are not party to this Agreement.