United States of America

Legal Title: Air Transport Agreement Between the Government of Canada and the Government of the United States of America March 12, 2007 Agreement signed and in force Legal Title: Preclearance Agreement January 18, 2001 Signed May 2, 2003 In force

2. Other Instruments

June 30, 1995 NAX0047- Canadian government confirmation of grandfathered cargo co-terminal right (UPS) May 25 & June 12, 2000 Exchange of notes on designation June 12, 2000 Exchange of notes amending Article 10 (Third country carrier code-sharing)

3. Characterization of Bilateral Agreement

The Canada - USA Agreement is an open skies type agreement. Any number of airlines may be designated for service pursuant to the Agreement.

4. Routes and Associated Rights

Scheduled Services

• With effect from March 12, 2007, United States and Canadian air carriers are permitted to operate transborder scheduled services between any point or points in Canada and any point or points in the United States.
• In addition to/ in conjunction with the exercise of traffic rights granted in the agreement, carriers may serve points in third countries with fifth freedom rights.
• All cargo services may be operated between any point in either territory and any point outside that territory (7th freedom).
• The carriage of own stopover traffic (passengers) between points in the territory of the other Party is permitted.
• Code sharing with carriers of either Party and carriers of third countries is permitted, subject to normal regulatory requirements.

Charter Services

• Charter services are included in the Air Transport Agreement. Pursuant to Annex III charters are subject to the charter rules/regulations of the country of origin of the charter flight. Charter flights may be one way, round trip or circle trip; may include stopovers at a point(s) within or outside the territories of either Party, and may include transportation beyond to third countries.
• Large aircraft All-cargo charters by carriers of one Party are permitted to serve any point in the territory of the other Party and any point(s) outside that territory (7th freedom).

Stopover Provisions

• Under the Agreement designated airlines of Canada and the United States may operate scheduled or charter flights between any point or points in the United States and any point or points in Canada and may provide stopovers at points in either territory.
• In the case of charters there is no requirement for the aircraft to remain with the charter group at the point of stopover or for the same aircraft to be used for the entire journey. There is no limitation on the number of points at which such stopovers may be made.
• For example: a United States airline may transport passengers from the United States to a first point of arrival in Canada, return to that Canadian point at a later date and transport the same group to another point in Canada for another stopover, provided that the entire transportation of the group is under a single contract with that airline for transportation which originates in, or is finally destined for a point in the United States.