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(1). The aeronautical authorities of each Contracting Party shall have the right to revoke an operating authorisation or to suspend the exercise of the rights specified in Article 2 of the present Agreement by an airline designated by the other Contracting Party, or to impose such conditions as they may deem necessary on the exercise of these rights:
(a) in any case where they are not satisfied that substantial ownership and effective control of that airline are vested in the Contracting Party designating the airline and/or in nationals of such Contracting Party, or
(b) in the case of failure by that airline to comply with the laws or regulations of the Contracting Party granting these rights referred to in article 3.3 of this Agreement, or
(c) in case the airline otherwise fails to operate in accordance with the conditions prescribed under the present Agreement.
(2). Unless immediate revocation, suspension or imposition of the conditions mentioned in paragraph (1) of this Article is essential to prevent further infringements of laws or regulations, or the provisions of this Agreement, such right shall be exercised only after consultation with the other Contracting Party.