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1. Each Contracting Party shall have the right to revoke or suspend the operating authorization granted to a designated airline of the other Contracting Party or to impose such conditions as it may deem necessary on the exercise by the said designated airline of the rights specified in Article 2 of this Agreement, in any of the following cases:
a) where it is not satisfied that the substantial ownership and effective control of that airline are vested in the Contracting Party designating that airline or its nationals; or
2. Unless immediate revocation or suspension of the operating authorization, or immediate imposition of the conditions to the operating authorization as mentioned in paragraph (1) of this Article, is essential to prevent further infringements of laws and regulations, such right shall be exercised only after consultation with the other Contracting Party.