MEMORANDUM OF UNDERSTANDING

(Suva, 20 May 1991)

1. Delegations representing the governments of the Cook Islands and Niue met at Suva, Fiji on 20th May 1991 to negotiate an Air Services Agreement and to discuss arrangements for the future provision of air services between the two countries. The delegation lists are appended as Attachment 1. The meeting was held in a friendly atmosphere.

Air Services Agreement

2. The negotiations resulted in the initialling of the text of a draft Air Services Agreement and an annexed draft Route Schedule, appended as Attachment 11, which are to be submitted to the respective Governments for approval and signature.

3. Further, the two delegations reached the following understandings:

Capacity and Frequency

(a) The designated airlines of each Contracting Party may operate the equivalent of up to one Boeing 737 return service per week on the specified route.
Substantial Ownership & Effective Control

(b) The substantial ownership and effective control issue would be the subject of an Exchange- of Letters between the respective Ministers of Civil Aviation prior to the commencement of the agreed services.

Leasing

(c) Where one Contracting Party believes that the intended lease, charter, etc., for which notice in writing has been given in accordance with Article 5 of the Agreement would have the effect of substantially altering the fundamental principles and understandings upon which the Agreement was conclude, that Party may in the first instance request negotiations in an effort to settle the matter. If settlement cannot be reached by negotiation, the matter would be referred to arbitration in accordance with Article 18 of the Agreement. The aircraft to be leased, chartered or hired would not operate the agreed services until settlement is reached pursuant to negotiation or a final decision is given as a consequence of arbitration proceedings.

(d) Notwithstanding sub-paragraph (c) above, the designated airline of either Contracting Party may lease or charter aircraft with or without crew for emergency technical reasons provided the period of the lease agreement does not exceed 30 days, and on the basis of prior notification to the aeronautical authorities of the other Contracting Party.

SIGNED at Suva, Fiji, 20th May 1991.

[Signed]:

Tuingariki A Short
COOK ISLANDS DELEGATION	[Signed]:

John McFadzien 
NIUE DELEGATION
	
ATTACHMENT I

NIUE DELEGATION

Mr John McFadzien – Government Solicitor

COOK ISLANDS DELEGATION

Tuingariki A Short – Deputy Director of Civil Aviation

ATTACHMENT II

ROUTE SCHEDULE

Section I

Route to be served by the designated airline of Niue in both directions:

Points of Destination

Raratonga
	Points of Origin

Niue	Anterior Points

Auckland	

Section II

Route to be served by the designated airline of the Cook Islands in both directions:

Points of Origin

Raratonga
	Points of Destination

Niue	Beyond Points

Auckland