Artikel IV

1. It is recognised that each Contracting Party shall have fair and equal rights to the carriage of 3rd and 4th freedom traffic on the routes specified in the Annex to this Agreement, 5th freedom traffic to have a supplementary character. Where traffic is of the nature of 5th freedom to one Contracting Party but 3rd or 4th freedom to the other Contracting Party, the primary right to the carriage of such traffic shall be that of the latter Contracting Party. The first Contracting Party shall have the right to uplift such 5th freedom traffic provided that it shall not be prejudicial to the primary interests of the other Contracting Party.
2. The capacity offered by the airlines of each Contracting Party on the specified air routes shall jointly bear a close relationship to the current and reasonable anticipated needs of the public for air transport at a reasonable load factor.
3. The right of the airlines of either Contracting Party to embark and to disembark at points in the territory of the other Contracting Party international traffic destined for or coming from third countries shall, subject to the principles in paragraph 1 of this Article, be related to:
(a) The air transport needs between the country of origin and the countries of destination and the air transport needs of the area through which the airline passes, after taking into account the services operated by airlines of the other Contracting Party over the whole or parts of the route specified, and
(b) the economics of through airline operation.
4. The capacity to be provided at the outset shall be agreed between both Contracting Parties before the agreed services are inaugurated. Thereafter, the capacity to be provided shall be discussed from time to time between the aeronautical authorities of the Contracting Parties and any changes in capacity agreed upon shall be confirmed by an Exchange of Notes. Changes thus agreed upon will become effective not later than six months from the date of the Exchange of Notes.