MEMORANDUM OF UNDERSTANDING ON AIR SERVICESBETWEEN

THE GOVERNMENT OF THE REPUBLIC OF CYPRUSAND

THE GOVERNMENT OF THE UNITED ARAB EMIRATES

Delegations representing the Governments of the Republic of Cyprus and theUnited Arab Emirates (hereinafter referred to as the "Cyprus Delegation" andthe "DAE Delegation" respectively or "Contracting Party" and collectively as the"Delegations" or the "Contracting Parties") met in Nicosia on 15th of December2015 to discuss matters relating to air services between and beyond the twocountries.

The Delegations took note of the Horizontal Agreement between the EuropeanUnion and the United Arab Emirates signed on 30th November 2007.

The composition of the Delegations is attached as Attachment "A".

Discussions were held in a very friendly atmosphere. As a result of thesediscussions, the following understandings were reached between the twoDelegations:

1. Air Services Agreement

The Cyprus Delegation informed the UAE Delegation, that the Republic ofCyprus has completed the internal procedures necessary for the entry intoforce of the revised Air Services Agreement signed on 15th April 2014(herein after referred to as the "revised Air Services Agreement"). The UAEDelegation informed that it is about to complete its internal proceduresnecessary for the entry into force of this Agreement.

The Delegations agreed that when this revised Air Services Agreemententers into force, it shall supersede the Air Services Agreement between theGovernment of the United Arab Emirates and the Government of theRepublic of Cyprus, signed on 7th December 1999.

Pending the entry into force of the revised Air Services Agreement, theDelegations agreed to facilitate the operations of the Designated Airlines,directly or through commercial arrangements, and to act in conformity withthe principles of the revised Air Services Agreement within the scope of theirrespective competencies, with effect from the date hereof.

2. Designation

a) The UAE delegation re-confirmed the designation of Etihad Airways,Emirates Airline, Air Arabia and flydubai as Designated Airlines of the UnitedArab Emirates and informed that additional airline(s) may be designated in due

course by the Aeronautical Authority of the United Arab Emirates. The CyprusDelegation confirmed the acceptance of these designations.

b) The Cyprus Delegation confirmed the designation of Aegean Airlines andinformed that additional airline(s) may be designated in due course by theAeronautical Authorities of Cyprus. The UAE Delegation confirmed theacceptance of this designation.

3. Principles Governing Operations of Agreed Services

With regard to Article 5 (Principles Governing Operation of Agreed Services)of the revised Air Services Agreement, both Delegations agreed that thereshall be no restriction on capacity, routes, number of frequencies and typesof aircraft, whether owned or leased (dry or wet leased), to be operated bythe Designated Airline(s) of each Contracting Party in passenger and/orcargo services, separately or in combination.

4. Exercise of Fifth Freedom Traffic Rights

With regard to Paragraph 2 of the Annex 1 (Route Schedule) to the revisedAir Services Agreement, both Delegations confirmed that, in addition tounrestricted third and fourth freedom traffic rights, the Designated Airlines ofeach Contracting Party are entitled to exercise unrestricted fifth freedomtraffic rights to/from any intermediate and/or beyond points of their ownchoice while operating any type of services (passenger and/or cargo,separately or in combination).

5. Non-Scheduled/Charter Operations

Both Delegations agreed to allow unrestricted non-scheduled/charterpassenger and/or cargo services, separately or in combination, to the sameextent as set out in Paragraphs 3 and 4 above.

6. Other Matters

The two Delegations took note of the ongoing aviation Dialogue between theEuropean Union to which the Republic of Cyprus is a Member State and theGulf Cooperation Council to which the United Arab Emirates is a MemberState. The Cyprus Delegation informed the UAE Delegation about themandate asked by the Commission concerning the forthcoming negotiationson comprehensive air transport agreements between the European Unionand the number of key partners, including the United Arab Emirates.

Additionally, the Delegation of Cyprus informed the Delegation of the UnitedArab Emirates that as the Republic of Cyprus is a Member State of theEuropean Union, it has been advised by the European Commission, whennegotiating with third countries, to put forward the Template FairCompetition Clause developed by the European Commission and MemberStates. The UAE Delegation took note of this draft.

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This Memorandum of Understanding and the Annex 1 (Route Schedule) to therevised Air Services Agreement shall come into effect on the date of itssignature and shall supersede the Memorandum of Understanding signed inNicosia on 14 November 2012 between the two Contracting Parties.

Signed in Nicosia on 15 of December 2015.

FOR THE GOVERNMENT OFREPUBLIC OF CYPRUS

Mr. Alecos MichaelidesPermanent SecretaryMinistry of Transport,Communications and Works

FOR THE GOVERNMENT OFTHE UNITED ARAB EMIRATES

H.E. Saif/Mohamjried AI SuwaidiDirector Genepal,General Cryif Aviation Authority

ATTACHMENT"A"

CYPRUS DELEGATION

Mr. Alecos Michaelides

Mrs Eleni Gereoudakis

Mr. Antonis Lemesianos

Mrs Elisavet Antoniadou

Mrs Vaso Sdrali

Mrs Eva Nicolaou

Mr. Christos M. Moustras

Permanent SecretaryMinistry of Transport, Communications andWorksHead of Delegation

Chief Administrative OfficerMinistry of Transport, Communications andWorks

Ag. Chief Air Transport OfficerCivil Aviation Department

Senior Administrative OfficerMinistry of Transport, Communications andWorks

Air Transport and Airports Officer A'Civil Aviation Department

Air Transport SectionCivil Aviation Department

Marketing Officer A'Marketing & Communications DepartmentCyprus Tourism Organisation

Industry Observer

Mrs Maria Kouroupi

Mr. Panicos Tsolias

Senior Manager, Marketing & CommunicationsHermes Airports

Senior Business Development Officer,Marketing, Hermes Airports

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THE UNITED ARAB EMIRATES DELEGATION

FEDERAL GOVERNMENT

H.E. Saif Mohammed Al Suwaidi

Captain Khalid Humaid Al Ali

Mr. Juan Carlos Salazar

Director General, General Civil AviationAuthority

Director Air Transport Department,GCAA

Air Transport Advisor, GCAA

ABU DHABI SECTOR

Mr. Suhail Khalifa Al Mheiri

Mr. Ghaleb El Solh

Ms. Haleema Al Hosani

Mr. Ahmed Mahmoud Aljneibi

Director- International and GovernmentAffairs, Department of Transport

Head of International Affairs,Department of Transport

Specialist International Affairs,Department of Transport

Manager, Government and AeropoliticalAffairs, Etihad Airways.

DUBAI SECTOR

Mr. Saood Kankazar

Miss Reshma Munavver

Mr. Salem Obaidalla

Mr. Ahmad Al Khamis

Director, Air Transport & InternationalAffairs, DCAA

International Affairs Manager, DCAA

Senior Vice President Aeropolitical andIndustry Affairs, Emirates

Manager Aeropolitical Affairs, Emirates

SHARJAH SECTOR

Mr. Khalid AIMheiri Manager, Air Transport, Department ofCivil Aviation in Sharjah