Airlines of each Implementing Entity designated under this Annex shall, in accordance with the terms of their designation, have the right to carry international charter traffic of passengers (and their accompanying baggage) and/or cargo (including, but not limited to, freight forwarder, split, and combination (passenger/cargo) charters):
Between any point or points in the territory of the Implementing Entity that has designated the airline and any point or points in the territory of the other Implementing Entity; and
Between any point or points in the territory of the other Implementing Entity and any point or points in a third country or countries, provided that, except with respect to cargo charters, such service constitutes part of a continuous operation, with or without a change of aircraft, that includes service to the homeland for the purpose of carrying local traffic between the homeland and the territory of the other Implementing Entity.
In the performance of services covered by this Annex, airlines of each Implementing Entity designated under this Annex shall also have the right: (1) to make stopovers at any points whether within or outside of the territory of either Implementing Entity; (2) to carry transit traffic through the other Implementing Entity's territory; (3) to combine on the same aircraft traffic originating in one Implementing Entity's territory, traffic originating in the other Implementing Entity's territory, and traffic originating in third countries; and (4) to perform international air transportation without any limitation as to change, at any point on the route, in type or number of aircraft operated; provided that, except with respect to cargo charters, in the outbound direction, the transportation beyond such point is a continuation of the transportation from the territory of the Implementing Entity that has designated the airline and in the inbound direction, the transportation to the territory of the Implementing Entity that has designated the airline is a continuation of the transportation from beyond such point.
Each Implementing Entity shall extend favorable consideration to applications by airlines of the other Implementing Entity to carry traffic not covered by this Annex on the basis of comity and reciprocity.
Any airline designated by either Implementing Entity performing international charter air transportation originating in the territory of either Implementing Entity, whether on a one-way or round-trip basis, shall have the option of complying with the charter laws, regulations, and rules either of its homeland or of the other Implementing Entity. If an Implementing Entity applies different rules, regulations, terms, conditions, or limitations to one or more of its airlines, or to airlines of different countries, each designated airline shall be subject to the least restrictive of such criteria.
However, nothing contained in the above paragraph shall limit the rights of either Implementing Entity to require airlines designated under this Annex by either Implementing Entity to adhere to requirements relating to the protection of passenger funds and passenger cancellation and refund rights.
Except with respect to the consumer protection rules referred to in the preceding paragraph above, neither Implementing Entity shall require an airline designated under this Annex by the other Implementing Entity, in respect of the carriage of traffic from the territory of that other Implementing Entity or of a third country on a one-way or round-trip basis, to submit more than a declaration of conformity with the applicable laws, regulations and rules referred to under section 2 of this Annex or of a waiver of these laws, regulations, or rules granted by the applicable aeronautical authorities.