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1. The aeronautical authorities of each Contracting Party shall have the right to withhold the authorizations referred to in paragraph 1 of Article 4 of this Agreement with respect to an airline designated by the other Contracting Party, and to revoke, suspend or impose conditions on such authorizations, temporarily or permanently, when:
a. the airline fails to maintain its principle place of business in the territory of the Contracting Party that designated the airline;
b. the Contracting Party fails to continue to maintain effective regulatory control of the airline or the airline fails to hold a valid AOC issued by the Contracting Party that designated the airline;
c. the Contracting Party designating the airline fails to comply with the provisions set forth in Article 15 and Article 16 of this Agreement; or
d. the designated airline fails to qualify to meet other conditions prescribed under the laws and regulations normally applied to the operation of international air services by the Contracting Party receiving the designation.
2. Unless immediate action is essential to prevent infringement of the laws and regulations referred to above or unless safety or security requires action in accordance with the provisions of Articles 15 or 16 of this Agreement, the rights enumerated in paragraph 1 of this Article shall be exercised only after consultations between the aeronautical authorities in conformity with Article 17 of this Agreement.