Treaty (8 October 2003)

October 08, 2003

MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE REPUBLIC OF THE PHILIPPINES and THE KINGDOM OF BAHRAIN

Delegations representing the Governments of the Republic of the Philippines and the Kingdom of Bahrain met in Cebu, Philippines on 07-08 October 2003 for bilateral air services consultation in accordance with Articles 13 and 16 of the Air Services Agreement (ASA) dated 29 August 1992. The Philippine delegation was led by Atty. Edward Harun V. Pagunsan, Undersecretary for Air Sector, Department of Transportation and Communications and the Bahrain delegation was led by Capt. Abdulrahman M. Al Gaoud, Undersecretary for Civil Aviation, Ministry of Transportation. The list of the members of the two delegations is shown in Attachment A. The discussions were concluded in a cordial and friendly atmosphere. The two delegations reached the following agreements:

1. Capacity - Further to paragraphs 4(a) and 4(b) of the CMU signed on 11 September 2002 at Pasay City, Philippines, both delegations agreed to allow the designated carriers of the Kingdom of Bahrain to operate five (5) additional frequencies to the Philippines from Bahrain to the following points and v.v.: two (2) frequencies to Manila and one (1) frequency each to Cebu, Clark/Diosdado Macapagal International Airport (DMIA) and one roving point in the Philippines outside of Manila to be chosen by the designated carriers of Bahrain, using aircraft no bigger than Airbus A340.

2. Route Schedule - Both delegations have agreed to replace the route schedule annexed to the 11 September 2002 CMU pertaining to the Kingdom of Bahrain as per Attachment B to include one roving point in the Philippines outside of Manila among the destination points of the designated airlines of the Kingdom of Bahrain.

3. Entry into Force - This MOU is supplementary to the CMU signed on 11 September 2002 and shall provisionally enter into force upon signing and definitively upon the exchange of diplomatic notes confirming the completion of the Contracting Parties' internal requirements for such entry into force. Done at Cebu, Philippines this 8th day of October 2003.

FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES KINGDOM OF BAHRAIN

(Sgd.) CAPT. ABDULRAHMAN M. AL

(Sgd.) EDWARD HARUN V. PAGUNSAN GAOUD Undersecretary for Air Sector Undersecretary for Civil Aviation Department of Transportation and Ministry of Transportation CommunicationsRP-BAHRAIN AIR CONSULTATION TALKS 07-08 October 2003, Mactan Cebu PHILIPPINE DELEGATION Undersecretary Edward Harun V. Chairman Pagunsan Department of Transportation and Communications Members Undersecretary Evelyn B. Pantig Department of Tourism Ms. Ma. Julieta B. Olivares Department of Trade and Industry Mr. Francisco F. Del Rosario. Jr. Civil Aeronautics Board Mr. Tomas T. Mañalac Civil Aeronautics Board Atty. Carmelo L. Arcilla Civil Aeronautics Board Mr. Porvenir P. Porciuncula Civil Aeronautics Board Mr. Danilo R. Crisologo Department of Transportation & Communications Atty. Evelyn R. Cajigal Department of Tourism Mr. Lauro A. Ortile Clark Development Corporation Resource Persons/Advisers: Philippine Airlines: Ms. Ma. Socorro R. Gonzaga Senior Assistant Vice President-External Affairs Atty. Enrique Antonio Esquivel Consultant-Legal Affairs Ms. Dina Marie F. Pecana Senior External Affairs Specialist Cebu Pacific Ms. Ma.Della P.Vera Vice-President Corporate Planning and External Affairs Arty. Racquel T. Ruiz-Dimalanta DirectorLegal Affairs Pacific East Asia Cargo Airlines: Atty. Anna Rosario V. Paner Legal Counsel Air Philippines Corp Mr. Felicisimo Felix I. Guerrero Director-Commercial Pacific East Asia Cargo Airlines Asia Overnight Express: Mr. Jovino Lorenzo President Mr. Reynaldo Rodriguez Consultant Air Philippines: Atty. Anna Rosario V. Paner Legal Counsel Air Philippines Corp BAHRAIN DELEGATION Chairman Capt. Abdulrahman M. Al Gaoud Undersecretary For Civil Aviation Ministry of Transportation Members Mr. Ahmed Nemat Ali Director of Air Transport Mr. Abdulelah Al-Amer Senior Air Services Agreement Mr. Radhi Abdulla Yousif Head of Int'l Relations & Alliances (Asia, Pacific and CIS),Gulf Air Mr. Aref Ahmed Alshaikh Administrative Superintendent Mr. Roberto A. Hukom Acting Manager-Philippines Gulf Air Attachment (B) ROUTE SCHEDULE I. Routes to be operated by the designated airline(s) of the Kingdom of Bahrain: POINT OF INTERMEDIATE DESTINATION BEYOND ORIGIN POINTS POINTS POINTS Bahrain Singapore Manila Japan Thailand Cebu PROC Hongkong Clark (DMIA) Guam Vietnam One(1) S. Korearoving point outside Manila NOTES:

a. The designated airline(s) of Bahrain may, on any or all flights, omit calling at any of the points in its route schedule, provided that the agreed services on these routes begin in Bahrain.

b. The designated airline of Bahrain will be permitted to exercise fifth freedom traffic rights only on the route Bahrain/Singapore/Cebu/ Clark (DMIA) and v.v. route.

c. Cebu may be operated as a co-terminal point on the four (4) weekly frequencies operated into Manila. II Routes to be operated by the designated airline(s) of the Philippines: POINT OF INTERMEDIATE DESTINATION BEYOND ORIGIN POINTS POINTS POINTS Points in the Any point(s) Bahrain Any points Philippines Notes:

a. The designated airline(s) of the Philippines may, on any or all flights, omit calling at any of the points in its route schedule, provided that the agreed services on these routes begin in the Philippines. The designated airline(s) of Philippines will be permitted full traffic rights on the b. intermediate and beyond points.

MALACAÑAN PALACE MANILA INSTRUMENT OF RATIFICATION TO ALL TO WHOM THESE PRESENTS SHALL COME, GREETINGS:

KNOW YE, that whereas, the Memorandum of Understanding (MOU) Between the Republic of the Philippines and the Kingdom of Bahrain on Air Services, was signed in Cebu, Philippines on 8 October 2003;

WHEREAS, the MOU, consisting of three (3) articles, aims to enhance the Air Services Agreement between the Parties by allowing designated carriers of the Kingdom of Bahrain to operate five (5) additional frequencies to the Philippines from Bahrain and by replacing the route schedule annexed to the 11 September 2002 Confidential Memorandum of Understanding (CMU) to include one roving point in the Philippines outside of Manila for the designated airlines of the Kingdom of Bahrain;WHEREAS, the MOU is supplementary to the CMU signed on 11 September 2002 and shall provisionally enter into force upon signing and definitively upon the exchange of diplomatic notes confirming the completion of the Contracting Parties' internal requirements for such entry into force;

NOW, THEREFORE, be it known that I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, after having seen and considered the Memorandum of Understanding Between the Republic of the Philippines and the Kingdom of Bahrain on Air Services, do hereby ratify and confirm the same and each and every Article and Clause thereof. IN TESTIMONY WHEREOF, I have hereunto set my hand and caused the seal of the Republic of the Phiiippines to be affixed. GIVEN under my hand at the City of Manila, this 24th day of February in the year of Our Lord two thousand and four.

BY THE PRESIDENT:

(Sgd.) DELIA DOMINGO ALBERT Secretary of Foreign Affairs MALACAÑAN PALACE MANILA INSTRUMENT OF RATIFICATION TO ALL TO WHOM THESE PRESENTS SHALL COME: GREETINGS: KNOW YE, that whereas, the Protocol to Amend and Supplement the Air Services Agreement between the Government of the Republic of the Philippines and the Government of the Kingdom of Bahrain was signed in Manama on 15 December 2003;

WHEREAS, the Protocol, consisting of four (4) articles, amends and supplements the Agreement on Air Services between the Philippines and Bahrain by allowing the Parties to designate in writing to the other Contracting Party one or more airline(s) for the purpose of operating the agreed services on the specified routes;

WHEREAS, Article 4 provides that the Protocol shall be provisionally effective on the date of signature and shall enter into force definitively on the day of the exchange of Diplomatic Notes confirming that the constitutional requirements of each Contracting Party have been fulfilled;

NOW, THEREFORE, be it known that I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, after having seen and considered the Protocol to Amend and Supplement the Air Services Agreement between the Government of the Republic of the Philippines and the Government of the Kingdom of Bahrain, do hereby ratify and confirm the same and each and every Article and Clause thereof.IN TESTIMONY WHEREOF, I have hereunto set my hand and caused the seal of the Republic of the Philippines to be affixed. GIVEN under my hand at the City of Manila, this 9th day of March in the year of Our Lord two thousand and four.

BY THE PRESIDENT:

(Sgd.) RAFAEL E. SEGUIS Acting Secretary of Foreign Affairs