Treaty (5 August 2008)

August 05, 2008

IN THE NAME OF GOD MEMORANDUM OF UNDERSTANDING (MOD) BETWEEN THE AERONAUTICAL AUTHORITIES OF THE ISLAMIC REPUBLIC OF IRAN AND THE REPUBLIC OF THE PHILIPPINES

1. INTRODUCTION Delegations representing the Aeronautical Authorities of the Islamic Republic of Iran and the Republic of the Philippines met in Manila on 4-5 August 2008 (14- 15/5/1387) to finalize bilateral Air Transport Agreement (ATA) and discuss current issues pertaining to further development of air transport and international air sendees between their respective countries. The discussions were held in a friendly and constructive atmosphere. Lists of the two delegations are attached herewith as " Attachment 1". The two delegations reached the understandings set out below:

2. AIR TRANSPORT AGREEMENT Both sides reviewed the text of the Air Transport Agreement and signed it which is attached hereto as "Attachment 2 ." Each-side undertook to take the necessary steps under the laws and regulations of their respective countries to ratify the ATA, as soon as possible following their respective internal requirements.

3. DESIGNATION OF THE AIRLINES Pursuant to Article 3 of the ATA, a) The Government of the Islamic Republic of Iran designated "Iran Air" and "Mahan Air'1 to operate the agreed air. Services on the specified routes and the Government of the Republic of the Philippines accepted these designations. More designations of Iranian Airlines shall be duly accepted by the Philippines side. b.The Government of the Republic of the Philippines shall designate its airline(s) in due course to operate the agreed air services on the specified routes; and the Government of the I.R. of Iran shall duly to accept said designation(s) in the future without delay.

4. FREQUENCY & CAPACITY a) With immediate effect, the airlines designated by the aeronautical authorities of the I.R of Iran may operate up to 16 services per week in accordance with Route Schedule, using any type of aircraft as provided below: Passenger ServicesI. Points in Iran - Manila v.v. a maximum of four (4) frequencies per week II. Points in Iran - Clark v.v. a maximum of seven (7) frequencies per week III. Points in Iran - Points in the Philippines (except Manila and Clark) v.v. a maximum of five (5) frequencies per week All-cargo services I. Points in Iran - Clark v.v. a maximum of 700 tons per week b) With immediate effect, the airline(s) designated by the aeronautical authorities of the Republic of the Philippines may operate up to 16 services per week in each direction in accordance with Route Schedule, using any type of aircraft as provided below: Passenger Services I. Manila ~ Points in Iran v.v. a maximum of four (4) frequencies per week II. Clark - Points in Iran v.v. a maximum of seven (7) frequencies per week III. Points in the Philippines (except Manila and Clark) - Points in Iran a maximum of five (5) frequencies per week All-cargo services I. Clark - Points in Iran v.v. a maximum of 100 tons per week c) Further increase in the frequencies will be subject to the approval of the aeronautical authorities of both countries. , d) Both sides agreed that the airlines of the Islamic Republic of Iran and the airline(s) of the Republic of the Philippines will be permitted to operate passenger charter services based on the market demand.

5. FIFTH FREEDOM TRAFFIC RIGHTSFor further enhancement of the air transport relations of the two countries both sides agreed to consider the exercise of fifth freedom traffic rights during the next round of negotiations.

6. CODE - SHARING For better utilization of market access and response to the market demand both sides have agreed to encourage the designated airlines of each country to enter into marketing alliances arrangements such as code-sharing in both passenger and cargo fields with the designated airlines of the other country. Code-sharing operations by the designated airlines wall be conducted after the approval of the aeronautical authorities of both countries. 7- EFFECTIVE DATE This Memorandum of Understanding signed in Manila on 5 August 2008 (15/5/1387) and shall come into force upon notification through the exchange of Diplomatic Notes by the Contracting Parties with the fulfillment of their respective domestic procedures. Pending the entry into force of the Agreement, the two delegations came to the understanding that their respective aeronautical authorities will act in accordance with the Agreement from the date of signature of this MOD. For the Government of the For the Government of the Republic of Iran Islamic Republic of the Philippines (Sg.d) HOSSEN KHANLARI (Sgd.) DOROTEO A. REYES II Vice Minister of Road and Undersecretary of the Department of Transportation and President of Civil Transportation and Communication Aviation Organization Attachment "1" LIST OF IRANIAN DELEGATION I- Capt H. Khanlari Head Vice Minister of Road and Transportation And President of Civil Aviation Organization 2-Mv. Mohammad Reza Abdorrahimi Member Director General for Legal & International Affairs, Civil Aviation Organization 3-Mr.Ghasem Davudi Member Advisor to the President of Civil Aviation Organization4- Mr. Morad Esmaeili Member Deputy to Director General for Legal & International Affairs, Civil Aviation Organization 5 -Mr. Ham id Reza Salek Member Deputy to the Chief of Islamic Republic of Iran's Mission to Manila THE REPUBLIC OE THE PHILIPPINES DELEGATION Undersecretary Dorotea A. Reyes II Chairman Department of Transportation and Communication Atty. Giovanni E. Palec Vice Chairman Department of Foreign Affairs Executive Director Carmelo L. Arcilla Member Civil Aeronautics Board Asst Sec. Felicitas Agoncillo-Reyes Member Department of Trade and Industry Director Evelyn R. Cajigal Member Department of Tourism Mr. Victor Jose Luciano Member Clark International Airport Corporation Ms. Ma Socorro R. Gonzaga Member Philippine Airlines Inc.

Ms. Ma. Inez F. Jose Member Cebu Pacific Air Ms. Patria T. Chiong Member Air Philippines Corporation Mr. Marlon S. Tangco Member Pacific East Asia. Cargo Mr. Porvener P. Porciuncula Adviser Civil Aeronautics Board Mr. Alexander S. Cauguiran Adviser Clark International Airport CorporationAtty. Reynaldo L. Citing Adviser Department of Tourism Atty. Roberto CO. Lint Adviser Philippine Airlines Inc.

Mr. Jose Enrique L. Perez de Tagle Adviser Philippine Airlines Inc. Atty. Enrique J. Esquivel Adviser Philippine Airlines Inc. Atty. Pater no S. Mantaring Adviser Cebu Pacific Air Atty. Cecilio E. De La Cruz Adviser Air Philippines Corporation