1.

The Schedule of procedures for the examination of applications for designation as an operator of air services between the Republic of Lithuania and countries that are not Member States of the European Community or the European Economic Area, for the granting, distribution and revocation of traffic rights and for consultations with interested third parties (hereinafter “Schedule”) establishes procedures for the granting, distribution, limitation and revocations of traffic rights among Community air carriers eligible to be designated to use traffic rights on routes to/from a third country or third countries (hereinafter “traffic rights”). The Schedule also establishes procedures for consultations with interested third parties and for the participation of Community air carriers established in the Republic of Lithuania (hereinafter “Community air carrier”) in negotiations with third parties.

2.

The purpose of the Schedule is to establish procedures for the distribution of traffic rights that ensure fair and efficient competition amongst Community air carriers and the development of civil aviation, with due regard to the interests of trade and tourism and the economic development of regions.

3.

Traffic rights shall be distributed amongst eligible Community air carriers in a non-discriminatory and transparent manner. Information on traffic rights under bilateral air service agreements concluded by the Republic of Lithuania and decisions on traffic rights adopted in accordance with this Schedule shall be published on the websites of the Ministry of Transport and Communications (www.transp.lt) and the Civil Aviation Administration (www.caa.lt).

4.

If, pursuant to Article 1 of Regulation (EC) No 847/2004 of the European Parliament and of the Council of 29 April 2004, air carriers and other interested parties must take part in negotiations with third parties regarding bilateral air service agreements, all Community air carriers established on the territory of the Republic of Lithuania shall be treated equally. Information on planned negotiations concerning air service agreements between the Republic of Lithuania and third parties shall be published on the websites of the Ministry of Transport and Communications and the Civil Aviation Administration.

5.

Community air carriers wishing to operate an air service on a route with limited traffic rights or a route between the Republic of Lithuania and a country which is not a member of the European Union (hereinafter “third country”) with which the Republic of Lithuania has not concluded an air service agreement, shall inform the Ministry of Transport and Communications of their intentions and requirements. Such information shall be taken into account during preparations for the Republic of Lithuania's negotiations concerning air service agreements.

6.

A Community air carrier wishing to obtain traffic rights on a route from/to the Republic of Lithuania to/from a third country or third countries must submit an application for traffic rights (hereinafter “application”) to the Ministry of Transport and Communications.

7.

The application must contain the following information and documents:

7.1.

details concerning the applicant: name of the undertaking and its legal form, registration number, registered office and telephone number;

7.2.

details concerning the operating licence: licensing authority and date of issue, number and type of licence (copy of licence), as well as information on the number of shares held, including shareholder nationality and type of shares held, and the undertaking's statutes (copy);

7.3.

a copy of the air operator's certificate;

7.4.

details of the aircraft which it is planned to use on the route: type and registration marks;

7.5.

description of the air services planned on the route in question (number of flights per week, aviation equipment, possible stopovers, regularity of services (annual or seasonal);

7.6.

accessibility of services and customer support (ticket sales network, online services, etc.);

7.7.

planned start date for the air service;

7.8.

tariffs applied on the route and the conditions to which their application is subject;

7.9.

the carrier's balance sheet, including a profit and loss account, and cash-flow data for the preceding and current financial years as well as forecasts for the next two years;

7.10.

the details and documents specified in paragraph 20 of this Schedule.

8.

Applications for traffic rights shall be made in Lithuanian.

9.

Applications by Community air carriers shall be examined by a panel set up pursuant to an order of the Minister for Transport and Communications and composed of five members, three of which shall be from the Ministry of Transport and Communications and two from the Civil Aviation Administration. A representative of the Ministry of Transport and Communications (Undersecretary) shall be appointed to chair the panel.

10.

In its work, the Panel shall be guided by international agreements concluded by the Republic of Lithuania, laws of the Republic of Lithuania, resolutions of the Government of the Republic of Lithuania, this Schedule and other legislation governing civil aviation.

11.

The Panel must examine an application and take a decision concerning the granting of traffic rights within 20 working days following its receipt. The Panel shall also take decisions on the revocation or limitation of traffic rights.

12.

The Panel shall be led by its chairman or, in his/her absence, another panel member appointed by the Minister for Transport and Communications.

13.

Meetings shall be the principal working format of the Panel. The Panel's meetings shall be convened on the initiative of its chairman. With the agreement of the chairman, meetings may be convened on the initiative of any member of the Panel.

14.

The members of the Panel shall be informed of a meeting at least three working days before it is due to take place and shall at the same time receive the documentation and agenda for the meeting.

15.

The Panel's meetings shall be considered quorate if at least three of its members are present. The Panel's decisions shall be adopted in an open vote by a majority of the votes of the members present at the meeting. In the event of a tie, the chairman shall have the casting vote.

16.

The Panel's decisions shall be recorded in the minutes of the meeting. The minutes shall be signed by the chairman of the Panel.

17.

Decisions taken by the Panel shall be of a recommendatory nature. The final decision to grant, revoke or limit traffic rights shall be taken by the Minister for Transport and Communications, by issuing, limiting or revoking an authorisation to operate an air service.

18.

If traffic rights are limited on a route from/to the Republic of Lithuania to/from a third country or third countries and applications have been submitted by more air carriers than are permitted on the route in question, an air carrier shall be selected taking into account passenger and/or freight transport requirements, the promotion of competition and the sustainable development of Community air transport in accordance with the criteria specified in paragraph 19. Traffic rights shall be granted to the applicants who are considered to be the best on the basis of a general assessment.

19.

In the selection process, preference shall be given to an applicant who:

19.1.

provides maximum consumer benefits;

19.2.

promotes the most effective possible competition between Community air carriers;

19.3.

provides services to satisfy all the usual transport requirements at the lowest reasonable price;

19.4.

promotes the sound development of the Community air transport industry, trade and tourism;

19.5.

meets public transport policy objectives, e.g. with regard to regional development.

20.

The following details shall be assessed as part of the selection process:

20.1.

financial capacity of the Community air carrier;

20.2.

technical capacity of the Community air carrier;

20.3.

organisational capacity of the Community air carrier, assessed on the basis of:

20.3.1.

the mission of the Community air carrier;

20.3.2.

the geography of the Community air carrier's flights, including membership of airline alliances;

20.3.3.

the Community air carrier's ticketing network;

20.3.4.

the Community air carrier's business plan for the route concerned;

20.4.

operation of direct flights;

20.5.

seasonal operation of flights (winter, summer or year-round);

20.6.

use of already distributed traffic rights (information on scheduled, charter, code-share or wet-lease flights on this or another route prior to submission of the application);

20.7.

planned flight frequency on the route;

20.8.

type of aircraft to be used on the route;

20.9.

services to be provided on the route;

20.10.

tariffs to be applied on the route;

20.11.

consumer accessibility of ticketing and reservation system;

20.12.

start date for flights on the route;

20.13.

socio-economic contribution.

21.

During the assessment of applications, the Panel may organise a public hearing in which all applicants may take part.

22.

The Panel shall monitor whether traffic rights granted are being used efficiently and may review decisions it has taken on the granting of traffic rights. Decisions on the granting of traffic rights must be reviewed at the request of a Community air carrier seeking to obtain traffic rights already in use which is of the opinion that the traffic rights are not being used efficiently and has furnished evidence that the services it offers would be far better than those provided under the traffic rights currently granted.

23.

Information on the review of a decision on the granting of traffic rights shall be communicated to the holder of the authorisation and published on the websites of the Ministry of Transport and Communications and the Civil Aviation Administration. The published notice shall specify the deadline for the submission of applications for the granting of traffic rights by European Community air carriers wishing to use the traffic rights specified in the decision.

24.

Traffic rights shall be granted for an indefinite period.

25.

A Community air carrier who has been granted traffic rights and has not commenced operating flights on the route concerned within 12 calendar months, or within three calendar months following the planned air service start date specified in the application, shall forfeit the right to operate flights on the route in question.

26.

Traffic rights granted to a Community air carrier may be limited for a certain period if the Community air carrier no longer meets the requirements of bilateral air transport agreements or has not complied with the provisions of such an agreement or other international obligations, or with the conditions for the provision of air services and legislation governing such activity, or if the details of the Community air carrier specified in paragraph 20 of this Schedule and supplied to the Ministry of Transport and Communications when the application was submitted do not correspond to the Community air carrier's current status. The Community air carrier shall be informed of the limitation imposed on its traffic rights no later than five working days following the adoption of such a decision and a deadline by which the Community air carrier must make the required adjustments or rectify the situation shall be specified. The limitation shall be lifted if, within the deadline specified, the Community air carrier makes the required adjustments or rectifies the situation. If the Community air carrier does not make the required adjustments or rectify the situation within the specified deadline, the traffic rights shall be revoked.

27.

Traffic rights shall also be revoked if a Community air carrier informs the Ministry of Transport and Communications in writing that it does not intend to continue to use the traffic rights it has been granted.

28.

Disputes concerning the granting, revocation or limitation of traffic rights shall be settled in accordance with the procedures laid down in legislation.’