Article 1. Main principle.
In order to further strengthen the relationship between China A-
irlines (CI) and Martinair (MP) and to jointly develop the air
transportation of cargo from Taiwan to Europe, both parties have
agreed to enter into the following Joint Venture Agreement as c-
ontained hereunder :
1 On its cargo aircraft operating between Amsterdam and Taipei
MP agrees to provide CI with the foliowing weekly cargo capac-
ity from Taipei to Amsterdam :
a When MP so operates Boeing 747 or Boeing 747 and DC10,
maximum 45 metric tonnes or 19 described pallets ;
minimum 30 metric tonnes or 12 described pallets.
b When MP so operates only DC10 --30CF, maximum 30 metric ton-
nes or 18 108 " x88" pallets ; minmum 20 meteric tonnes or
12 108 " x88 " pallets.
2 MP undertakes to provide the capacity that CI requests within
the scope of art. 1. par. 1 at all times except in cases of f-
orce majeure. Should force majeure ever apply then CI and MP
will establish and agree ad hoc arrangements.
3 It is agreed that CI may divide its capacity equally or almost
equally over maximum two flights per week.
4 The capacity that CI intends to use shall be accomodated on t-
he number of ULD's (pallets) as agreed upon in article 1 of t-
he Annex to this Agreement.
It is agreed that each individual shipment shall not weigh le-
ss than 100 kilos.
5 CI-airwaybills will be used by CI for the transportation of i-
ts cargo in the above capacity. No-declared-value for carriage
will be accepted on CI-cargo shipped on MP-flights and all sh-
ipments will be treated as general cargo regardless of their
nature.
Article 2. Assessment of Chargtes and Account Settlement.
1 CI and MP agree that the weekly capacity selected by CI on or
before the deadline stipulated in art. 4. of the Annex to this
Agreement is the capacity for which CI will pay MP, regardless
whether CI acturally uses that capacity. The payment will be a
lumpsum based on the charges in Art. 3. of the Annex to this
Agreeinent.
2 MP shall procure and maintain height, mail and third party li-
ability insurance naming CI as additional assured to the exte-
nt prescribed.
3 Any liability insurance related to the operation under this A-
greement that MP shall carry and maintain, shall inculde CI,
its officers, employees and agents as named additional assured
with a suitable cross liability clause.
4 MP shall procure and maintain all risks Aircraft Hull Insuran-
ce including coverage against War and related risks for the a-
ircraft provided by MP causing its insurers waive their rights
of subrogation against CI.
5 The consignments - contents of which are libale to deteriorat-
ion or perishment due to changes in climate, temperature, alt-
itude or ordinary exposure or becauese of length of time in t-
ransit, intermediate landings, deviations etc., - Will only be
accepted without responsibility on the part of MP for loss or
damage due to such deterioration or perishability and CI shall
hold MP, its personnel and agents free and harmless with resp-
ect thereto.
Cargo must be packed in accordance with IATA/RAR regulations
for transportation on board cargo aircraft and must be accomp-
anied by a signed Shipper's Certificate.
Dangerous goods shall be delivered to MP warehouse module sep-
arately from other cargo and not later than 12 hours before d-
eparture and such cargo can only be accepted when in accordan-
ce with the relevant IATA-regulations.
Articles 5. Noteices
All notices and other communications hereunder shall be in writ-
ing and in English and shall be deemed to have been duly given
when delivered by hand or registered mail, telexed or telegraph-
ed to the party to which such notice or other communication is
required or permitted to be given at the following addresses :
If to CI :
Director, Cargo Division
China Airlines Limited
131, Nanking East Road, Section 3
Taipei, Taiwan
Repbulic of China
SITA: TPEFZCI TPEFYCI TPEFGCI
TELEX: 11346 Taipei Chinair
If to MP :
Vice President, Logistics
Martinair Holland
P.O. Box 7507
1118 ZG Schiphol Airport
The Netherlands
SITA:SPLLMMP HkGDDMP
TPETOMP
TELEX: 11678
Article 6. Validity
This agreement shall become effective on the date of signature,
and shall remain in force unless terminated by either partner g-
iving to the other a notice of termination 30 days prior to the
beginning of any LATA traffic period.
Subject notice shall be given in writing by registered mail tog-
ether with telex to the addresses stipulated in Article 5 of the
Annex to this Agreement and shall be deemed to be duly received
by addressee on the tenth day following the day on which said m-
ail and telex shall have been so dispatched.
Executed in two copies, both in English.
For China Airlines
[Signed]
Leo S.W. Fong
Director
Cargo Division
Dated : 15 August,1987
For Martinair Holland
[Signed]
Gerrit Draai
Vice President
Logistics
Dated : 15 August, 1987
ANNEX
To the Joint Venture Agreement between China Airlines Ltd., and
Martinair Holland N.V.
1 Space allocation for CI.
a When MP operates 747 or 747 and DC 10 :
Any combination of the following ULD's (pallets) :
96Nx125Nx118N applicable payload 2667kg \
g6Nx125Nx 96N applicable payload 2550kg > on 747
96Nxl2SNx 64N applicable payload 1600kg /
88Nx108Nx 83N applicable payload 1667ke on DC10,
>on 747
provided that whateveer toatl payload CI selects, CI can use
no more than :
3 pallets 118N high, or
l2 apallets 96N high,or
4 pallets 64N high,or
18 pallets 83N high, (DC10)
in the relevant combination with the separate pellet parylo-
ds to make up the total required.
If in accordance with Article 1. par.3. of the Agreement CI
wants to divide its weekly capacity over two flights one of
which is operated by DC10, then it is agreed that
-one 64N-height 747 pallets are equal to one 83N-hight DC10
pellet and - every two g6N-height 747 pallets are equal to
three 83N-height DC10 pallets.
b When only DC 10 is operated :
DC l0-operation (all pallets 88" x 108" floordims)
Weight or Number Nett.Price
of pallets
30,000 kg. 18 x 83 N high US$74,400
28,333 kg. 17 x 83 N high US$ 70,266
26,667 kg. 16 x 83 N high US$ 66,134
25,000 kg. 15 x 83 N high US$ 62.000
23,334 kg. 14 x 83 N high US$ 57,868
21,667 kg. 13 x 83 N high US$ 53,734
20,000 kg. 12 x 83 N high US$ 49,600
2 When MP operates its cargo flights from Taipei to Amsterdam a-
lso on Fridays and Staurdays, then CI is authorized to divide
its allocated weekly capacity over these flights.
3 Charge for the allocated Space The charge to be paid by CI to
MP for allocated capacity is based on current Taipei to Europe
Marketing Selling rate of US $ 3.10 per kilo minus 20 % and t-
he resultant lumpsum amounts to be paid are computed on the b-
asis of the foliowing pallet unit prices with due regard to a-
rt. 2. per. 1. of the Agreement :
Type of palled Unit price
118N high US$ 6614
96N high US$ 6324
64N high US$ 3968
83N high (DC10) US$ 4133
a When MP operates 747, or 747 and DC10, the weekly minimum l-
umpsum will thus be US$ 74,400 and the maximum US$ 111,600
b When MP operates only DC10, the weekly minimum lumpsum will
thus be US$ 49,600 and the maximum US$ 74,400
4 CI shall inform MP by SITA-telex, bearing QU-prefix, not later
than 96 hours (Saturdays, Sundays and public holidays therefr-
om excluded) before the ETD of the relevant flight, of the ac-
tual capacity that CI intends to use on that flight.
MP will be addressed as follows :
TPETOMP HKGTOMP SPLFMMP SPLFNP SPLLMMP.
MP shall inform CI by SITA-telex, bearing QU-prefix before each
Friday, of MP's flight operation planning of the week following
that Friday: aircraft type, flight number, date of departure fr-
om Taipei, routing.
In case of subsequent changes, prompt notice shall be given to :
TPEFYCI TPEFGCI TPEFCCI TPEFNCI TPEAECT TPEADCI.
5 All communications pertaining to the space control on MP-flig-
hts with CI capacity, other than agreed in Article 4., will be
coordinated between TPEFCCI and TPETOMP with copy to HKGTOMP
and SPLFMMP
6 Onforwarding
Pursuant to Article 3.1. of the Agreement MP shall arrange fr-
ee trucking from Amsterdam to the following destinations.
W. Germany : Dusseldorf, Cologne,
Bremen, Frankfurt,
Hamburg, Munich,
Nuremberg, Stuttgart,
Hannover.
: Brussels, Antwerp.
Belgium : London.
United Kingdom : Paris.
France : Copenhagen.
Denmark : Madrid.
Spain : Milan,Rome.
Italy
7 Validity
This Annex shall become effective on August 15, 1987 and will be
reviewed after 3 months.
For China Airlines
[Signed]
Leo S.W. Fong
Director
Cargo Division
Dated : 15 August, 1987
For Martinair Holland
[Signed]
Gerrit Draai
Vice President
Logistics
Dated : 15 August, 1987