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1. Either Party shall have the right to withhold the authorizations referred to in Article 3 (Designation and Authorization) of the Agreement with respect to an Airline designated by the other Party, and to revoke, suspend or impose conditions on such authorizations, temporarily or permanently, in the event that the Designated Airline fails to comply with the provisions of paragraph 2 of Article 3 (Designation and Authorization), and of Article 12 (Application of Laws) of this Agreement.
2. Unless immediate action is essential to prevent further non-compliance as referred to in paragraph 1 of this Article, the rights established by this Article shall be exercised only after consultations between the Aeronautical Authorities in conformity with Article 17 (Consultations) of this Agreement.