North Macedonia
LAW ON CONTRACTUAL AND REAL RIGHT RELATIONS IN RESPECT OF AVIATION TRANSPORT
Official Gazette of the Republic of Macedonia, No. 85 from 11.07.2008
FIRST PART
GENERAL PROVISIONS
SCOPE OF APPLICATION
Article 1
(1) This Law shall regulate the obligations in the air traffic, the grounds for ownership and property rights in regard to the aircraft, the procedure for execution and security over the aircraft and load in the aircraft as well as the conflict of Laws in relation to the air traffic.
(2) The obligations in the air traffic beside the provisions of this Law shall be shall regulated according to issues for:
(3) To the obligations in air traffic that are not regulated by the provisions of this Law or by the regulations stipulated in paragraph (2) of this Article, the provisions from the Law on Obligations shall apply.
Dispositive Application of the Legal Norms
Article 2
The relations regulated by the provisions of this Law concerning the contracts can be otherwise regulated by an agreement, i.e. by the general terms for transport, if that is not prohibited by Law or by the regulations stipulated in Article 1 paragraph (2) of this Law.
Compulsorily Application of the Legal Provisions
Article 3
(1) Unless otherwise stipulated by this Law or the regulations stipulated in Article 1 paragraph (2) of this Law, i.e. by the general terms for transport, there could be no provisions by which:
- the aircraft air carrier (hereinafter: air carrier) shall be totally or partially exempt from the liability stipulated by this Law or by the regulations stipulated in Article 1 paragraph (2) of this Law,
- the rights that according to this Law or the regulations stipulated in Article 1 paragraph (2) of this Law belong to the passenger and the transport orderer shall be excluded or restricted and
- the burden of proof of the air carrier shall be transferred, or by which liability restrictions favourable for the air carrier shall be provided from the restrictions prescribed by this Law or by the regulations stipulated in Article 1 paragraph (2) of this Law.
(2) The air carrier shall be obliged to publish the general terms of transport in a usual manner, and upon a request of the interested party, to make the general terms of transport available for inspection to him/her.
Definitions
Article 4
Certain terms used in this Law shall have the following meaning:
1. Air carrier shall be a person, who based on a contract, shall transport passengers and goods by aircraft;
2. Contractual air carrier shall be person that has concluded the transport contract with the passenger, transport orderer or sender;
3. Actual air carrier shall be a person that is not a contractual air carrier, but carries out the entire transport or a part of that transport, and that is not a successive air carrier;
4. Successive (sequential) air carrier shall be a person that based on a contract for transport, concluded by the first air carrier, carries out a part of that transport by accepting the passenger, i.e. the transport orderer;
5. Transport orderer shall be a person concluding a transport contract with the contractual air carrier;
6. Sender shall be the person in whose behalf the goods are handed over for transport on the basis of a contract;
7. Receiver shall be a person authorized in the place of destination to receive the goods handed over for transport;
8. Passenger shall be a natural person entitled to transport by an aircraft, on the basis of a contract;
9. Right-holder shall be a person having claims towards the air carrier on the basis of a contract;10. Transport assistant shall be person having worked on carrying out the transport upon order of the air carrier or for the account of the air carrier;
11. International transport shall be transport by an aircraft, whereby, according to the transport contract, the place of departure and the place of destination are located on the territories of two countries, or on the territory of only one country if transit-landing in a another country is envisaged;
12. Special Drawing Right shall be an accounting unit defined by the International Monetary Fund;
13. General terms for transport shall be internal rules stipulated by the air carrier, in general, they are binding if the transport user accepts them;
14. Goods, in the context of this Law, shall be the goods subject to transport, which are not covered by the provisions of this Law concerning the contract for transport of passengers and State aircrafts, in the context of this Law, shall be military, police and customs aircrafts.
SECOND PART
OBLIGATIONS
CHAPTER I
CONTRACT FOR TRANSPORT OF PASSENGERS, LUGGAGE AND GOODS
Section I
Transport of Passengers and Luggage
1. Contract for Transport of Passengers
Concluding of the Contract for Transport of Passengers and Obligations Thereof
Article 5
(1) The contract for transport of passengers shall be concluded between the air carrier and passenger or between the air carrier and the transport orderer.
(2) With the contract for transport of passengers the air carrier shall be obliged to transport the passenger from the place of departure to the place of destination in time stipulated by the flight schedule, i.e. the definite period of time, and the passenger shall be obliged to pay the adequate transportation fee.
(3) With the contract concluded between the air carrier and the transport orderer, the air carrier shall be obliged to transport the passenger determined by the transport orderer, under the terms stipulated by the contract.
(4) The contract for transport of passengers concluded between the air carrier and the transport orderer can be concluded for one or several trips or for a definite period of time with the entire aircraft or with part of the aircraft capacity.
(5) The contract concluded between the air carrier and the transport orderer may refer to one or more passengers.
(6) The contract for transport of passengers concluded with the transport orderer must be in writing. The electronic form shall also be considered as written form of the contract for transport of passengers.
Travel Ticket
Article 6
1. The air carrier is obliged to issue a travel ticket, individual or group.
2. The travel ticket shall be a proof that the contract for transport of passengers is concluded, but the existence of the transport contract may be proven otherwise as well.
3. The travel ticket, in general, shall be made out on behalf of.
4. If the travel ticket is made out on behalf of, it cannot be transferred without the consent of the air carrier. The air carrier shall be entitled to give consent only for justified reasons.
5. The travel ticket must designate the transport price, the places of departure and destination, as well as the departure time of the aircraft stipulated in the flight schedule, i.e. by the contract.
6. In regard to the travel ticket the provisions from Article 3 of the Montreal Convention shall be used.
7. The issuance of travel ticket by use of computerized reservation systems shall be carried out pursuant to the Regulation (EC) 2299/89 on computerized reservation systems from 24 July 1989, amended by the Regulation (EC) 3089/93 and Regulation (EC) 323/99, which is undertaken pursuant to ANNEX I from the Multilateral Agreement on Establishment of a European Common Aviation Area from 9 June 2006.
Cancelation of the Transport Contract and Refund of the Transportation fee
Article 7
(1) The passenger shall be entitled to cancel the transport contract prior to the commencement of its execution.
(2) The air carrier shall be obliged to refund the transportation fee to the passenger should the passenger cancel the domestic transport not later than 24 hours, and in the international transport at the latest 48 hours prior to the commencement of the trip.
(3) Should the passenger cancel the trip under the terms from paragraph (2) of this Article, the air carrier shall be entitled to retain 10% of the transportation fee.
Cancelation of the Trip due to Force Majeure
Article 8
(1) If the passenger or a member of his/her family or his/her friend without whom the passenger cannot travel, dies prior to the commencement of the trip or falls ill so that it is impossible for him/her to travel, or if the trip could jeopardize the health of the patient, the transportation fee that has been paid shall be refunded provided that the air carrier is notified for the inability to travel prior to the departure of the aircraft.
(2) In the event from paragraph (1) of this Article the air carrier shall be entitled to retain 5% of the transportation fee.
(3) Should the impediment to travel from paragraph (1) of this Article occur during the transport, the transportation fee shall be refunded proportionally to the part of the trip that has not been used.
Flight Cancelation
Article 9
The compensation of damages and assistance to passengers in the event of flight cancelation shall be regulated pursuant to Regulation (EC) 261/2004.
Denial of Boarding on the Aircraft to Passengers and Long Delay of Flights
Article 10
The compensation of damages and assistance to passengers in the event of denied boarding on the aircraft, and in the event of a long delay of the flight shall be regulated pursuant to the Regulation (EC) 261/2004.
Notification of the Passengers
Article 11
The notification of passengers for compensation of damages and providing assistance in the event of flight cancelation denied boarding on the aircraft to the passenger for transport and in the event of a larger flight delay shall be regulated pursuant to the Regulation (EC) 261/2004.
Liability of the Transport Orderer
Article 12
(1) Unless otherwise stipulated by the contract between the transport orderer and air carrier, the transport orderer shall be liable before the air carrier for the obligations deriving from the transport contract.
(2) Should the transport orderer, pursuant to paragraph (1) of this Article, be liable to the air carrier for the obligations deriving from the transport contract, the passenger shall be entitled to realize his/her claims occurred in the event of cancelation, interruption, postponement, i.e. delay in the transport only towards the transport orderer.
(3) Unless otherwise stipulated by the contract between the transport orderer and passenger, the transport orderer shall be obliged to provide the passenger with all the services from the air carrier.
Entrusting the Transport of Passengers to the Actual
Article 13
(1) Unless otherwise stipulated by the contract for transport of passengers, the contractual air carrier shall be entitled to entrust the transport of passengers to the actual air carrier if he/she provides the same or similar terms of transport.
(2) Concerning the contract for transport of passengers for a definite period of time with an entire aircraft, the contractual air carrier can entrust the transport to the actual air carrier, only if that is stipulated by the contract or if the transport orderer has additionally explicitly agreed to that.
(3) The relations between the contractual and actual air carrier shall be regulated with their mutual agreement.
(4) Unless otherwise stipulated by the contract between the contractual and actual air carrier, the provisions of this Law referring to the transport and the provisions from the Regulation (EC) 261/2004 shall be applied for their mutual relations.
Contract for Transport of Passengers for a Definite Period of Time
Article 14
(1) If transport of passengers for a definite period of time has been agreed upon with the entire aircraft, the air carrier can be replaced by the stipulated type of aircraft only by a written consent by the transport orderer.
(2) Should the air carrier replace the stipulated type of aircraft without a written consent by the transport orderer, he/she shall be liable for compensation of the damage caused to the transport orderer due to the said.
Execution of the Orders by the Transport Orderer
Article 15
(1) In the contract for transport of passengers for a definite period of time with the entire aircraft, the air carrier shall be obliged to execute the orders by the transport orderer within the frames of the contract.
(2) The transport orderer from paragraph (1) of this Article shall not be entitled to determine a trip that could expose the aircrafts, crew or passengers to danger, or a trip for which it could be expected to end with a significant exceeding of the time for which the contract has been concluded.
Contract for Transport of Passengers with an Entire Aircraft
Article 16
(1) If transport of passengers with the entire aircraft has been stipulated, the air carrier shall be entitled to dispose of the unused aircraft capacity only by a written consent from the transport orderer.
(2) If transport of passengers with the entire aircraft has been stipulated, and the air carrier disposed of unused capacity, the agreed transportation fee will be proportionally reduced.
(3) If the air carrier has disposed of the unused aircraft capacity without a written consent by the transport orderer, he/she shall be liable for compensation of the damage that the transport orderer has suffered due to that.
Transport of Passengers by an Aircraft carrying out a Transport of Postal Parcels as well
Article 17
In the transport of passengers by an aircraft carrying out a transport of postal parcels as well, the terms for application of the provisions of this Law for flight cancelation, denial of boarding on the aircraft to passengers for transport for a larger delay of the flight in relation to the postal parcels shall be regulated by a contract, i.e. by the general terms of transport.
2. Liability of the Air Carrier
Liability for Death or Bodily Injury of the Passenger
Article 18
The liability of the air carrier for the damaged occurred due to death or bodily injury of the passenger during the air transport, including the volume of the damage compensation and the restriction of liability, shall be regulated by the provisions from the Montreal Convention and by the Regulation (EC) 2027/97 from 9 October 1997 on air carrier liability in the event of accidents amended by Regulation (EC) 889/2002.
Compulsory Insurance against Accidents
Article 19
The air carrier shall be obliged to conclude a contract for insurance against accidents, pursuant to theprovisions from Regulation (EC) 2027/97 amended by Regulation (EC) 889/2002.
Advance Payment for Compensation of Damages
Article 20
The advance payment for compensation of damages shall be regulated by the provisions from Regulation (EC) 2027/97 amended by Regulation (EC) 889/2002 and the Montreal Convention.
Compulsory Contents of the General Terms for Transport
Article 21
The provisions from the Montreal Convention and from the Regulation (EC) 2027/97 from 9 October 1997 on air carrier liability in the event of accidents, amended by Regulation (EC) 889/2002 to which it refers to Articles 18, 19 and 20 of this Law shall be an integral part of the general terms for transport and the air carrier must make them available for inspection in his/her agencies, the other travel agencies and points of sale, as well an at the desks for registration of passengers.
3. Luggage Transport
Hand-Luggage
Article 22
(1) On the basis of the contract for transport in the aircraft, the passenger shall be entitled to take hand-luggage for which he/she shall be responsible, and the air carrier shall be obliged to transport the hand-luggage free-of-charge.
(2) Goods, which, according to their dimensions and nature could represent a danger or impediment for the aircraft, the passengers or the other goods, or goods which do not belong in the space for accommodation of passengers, cannot be boarded on the aircraft as hand-luggage.
(3) The air carrier shall specify the weight, dimensions and number of items of the hand-luggage that the passenger could take into the aircraft.
(4) Hand-luggage in the context of paragraph (1) from this Article refers to the goods that the passenger takes with or on himself/herself.
(5) The general terms of transport must be without prejudice to the provisions of this Law and the provisions of the European Union that are applied pursuant to this Law.
Transport of Registered Luggage
Article 23
(1) The air carrier shall be obliged to receive the luggage that does not have a capacity of hand- luggage for transport (hereinafter: registered luggage) and to issue a written certificate for that.
(2) Goods for which a specialized permit is required or goods that must be transported under special conditions, or goods that according to their nature could represent a danger to the aircraft or to the people in the aircraft, or that could cause, i.e. inflict damage to the other luggage, or goods that according to their nature, dimensions or weight do not belong in the premises designated for luggage accommodation shall not be allowed to be hand over as registered luggage.
(3) The air carrier shall determine the limit of the weight and dimensions up to which the registered luggage handed over by the passenger could be transported free-of-charge as well as the mass limit of that luggage.(4) The general terms of transport must be without prejudice to the provisions of this Law and the provisions of the European Union that are applied pursuant to this Law.
Right of the Air carrier to Retention
Article 24
For the purpose of providing his/her claims in relation to the transport, the air carrier shall be entitled to retain the registered luggage and other goods of great value to the passenger, for which the provisions for higher degree of liability from the Regulation (EC)2027/97 and the Montreal Convention shall apply.
Transportation fee
Article 25
The criteria and procedures that should be applied to the determining of prices and fees in the air transport, shall be regulated by the Regulation (EC) 2409/92, which is undertaken pursuant to ANNEX I from the Multilateral Agreement on Establishment of a European Common Aviation Area from 9 June 2006.
Section II
Transport of Goods
1. Contract for Transport of Goods
Article 26
The contract for transport of goods shall be concluded between the air carrier and transport orderer.
With the contract for transport of goods by an aircraft, the contractual air carrier shall be obliged towards the transport orderer to transport the goods by an aircraft, and the transport orderer shall be obliged to pay the transportation fee.
Types of Contract for Transport of Goods
Article 27
The contract for transport of goods can refer to one or more transports or to a transport for a definite period of time, the entire capacity or to a part of the aircraft capacity, to a definite quantity of goods or to definite goods.
Form of the Contract for Transport of Goods
Article 28
(1) The contract for transport of goods with use of the entire aircraft for a definite period of time or for several transports must be concluded in writing.
(2) The contract from paragraph (1) of this Article not concluded in writing shall be legally non-valid.
Determining the Quantity of Goods
Article 29
The quantity of goods hand over to be transported can be determined according to their number, weight, dimensions or by a combination of the aforementioned.
In case of suspicions, the quantity of goods shall be determined by a measure that is usual in the place where the goods are handed over to the air carrier.
Handing Over for Transport of Goods other than Those Specified
Article 30
In the contract for transport of goods by use of the entire aircraft, the sender shall be entitled to transport other goods instead of those specified, if that does not change the terms of transport to the detriment of the air carrier, if that does not lead to delay of the aircraft or unless that could jeopardize its safety and if the sender upon request of the air carrier provides a collateral for the claims that could occur due to the goods replacement.
Third Party as Sender
Article 31
The transport orderer shall be entitled to authorize a third party on his/her own behalf to hand over for transport the entire quantity of goods that has been agreed upon or a part of them, only if he/she is authorized for that by the contract for transport.
Responsibility of the Transport Orderer towards the Sender
Article 32
Unless otherwise agreed between the transport orderer and the air carrier, the transport orderer who has authorised a third person as a sender to deliver the transport goods to the air carrier shall be liable to the air carrier in respect of the obligations which shall emerge from the contract on transport of goods.
Obligations of the Transport Orderer towards the Sender
Article 33
Unless otherwise agreed in the contract between the transport orderer and the sender, the transport orderer shall be obliged only to deliver the transport services to the sender.
Liability of the Sender towards the Air carrier
Article 34
Unless otherwise agreed, the sender shall also be liable to the air carrier in respect of the obligations emerging from the contract on transport of goods, provided that these obligations refer to the goods that he has delivered to the air carrier for transport.
Appropriate Application of the Other Provisions of this Law
Article 35
In respect of the transport of goods, the provisions on transport of passengers referred to in Article 13, 14, 15 and 16 of this Law shall be appropriately applied.
2. Air Freight Bill
Compilation and Handing Over of the Air Freight Bill
Air Freight Bill and Other Documents
Article 36
(1) The air carrier shall have the right to require the sender to compile and hand him/her over an air freight bill, and the sender shall have the right to require the air carrier to receive this air freight bill.
(2) The air freight bill, in consent with the sender, can be replaced by another document in which the data in respect of the transport that should be conducted shall be given. In case such document is used, the air carrier shall be obliged upon request of the sender to issue him/her acknowledgement of receipt of the transport goods. In the acknowledgement of receipt of the transport goods, the data which the freight bill should contain shall be given.
Air freight bill in case of several parcels
Article 37
(1) The freight bill can contain several parcels.
(2) If several parcels are being transported, the air carrier shall have the right to require the sender to compile an air freight bill for each parcel individually.
(3) If several parcels are being transported, and the air freight bill is being replaced by another document in accordance with Article 36, paragraph (2) of this Law, the sender shall have the right to require the air carrier to issue him/her an acknowledgement of receipt of the goods separately for each parcel individually.
Three Original Samples of the Air Freight Bill
Article 38
(1) The sender shall compile the air freight bill in three original samples and shall submit them along with the goods to the air carrier. The first original sample which bears the mark "for the air carrier" shall be signed by the sender. The second original sample bearing the mark “for the receiver” shall be signed by the sender and the air carrier and it shall be handed over to the receiver at delivery of the goods. The third original sample bearing the mark "for the sender" shall be signed by the air carrier and it shall be handed over to the sender after receiving the goods of transport. The air carrier must sign before the goods are being loaded in the aircraft.
(2) The signature of the air carrier can be replaced with a stamp, and the signature of the sender can be typed in advance or be replaced with a stamp.
Contents of the Air Freight Bill
Article 39
(1) The air freight bill must include the following:
1) place and date of issue of the freight bill;
2) place of departure and place of establishment;
3) name and address of the sender;
4) name and address of the receiver;
5) type and quantity of the goods;
6) list of the documents attached to the freight bill; and
7) the potential places of arrival in other states if the place of departure and the place of establishment is in the Republic of Macedonia.
(2) The air freight bill can include delivery date, parcel value, as well as other data.
Effect of the Air Freight Bill on the Transport Contract
Article 40
The non-existence or incorrectness of the air freight bill shall not influence the existence or the validity of the contract on transport of goods with an aircraft.
Liability for Correctness of Data Contained in the Air Freight Bill
Article 41
(1) The sender shall be responsible for the correctness of data and the statements which he/she shall enter in the freight bill or the data and statements which on his/her behalf have been entered by a third person. The sender shall also be responsible for the correctness of data provided to the air carrier by himself/herself or data provided to the air carrier by another person on behalf of the sender, in order for these data to be entered in the acknowledgement of receipt of load, while they have been entered in another way in accordance with Article 36, paragraph (2) of this Law.
(2) The sender shall be held liable for any damage suffered by the air carrier or for any damage for which the air carrier is held liable towards third persons, provided that the damage occurs as a result of incorrect, imprecise and incomplete data or statements by the sender, or towards another person, for the data provided on behalf of the sender.
(3) The air carrier shall be held liable towards the sender for any damage which shall suffered by him or a third person for which he/she is responsible, provided that the damage occurred as a result of incorrect, imprecise and incomplete entry of data or statements in the acknowledgement of receipt of goods by the air carrier or other person which has done this on his/her behalf, as well as in the course of entering data in another manner referred to in Article 36, paragraph (2) of this Law.
Handover of the Transport Goods
Article 42
(1) By handing over the third original sample of the air freight bill to the sender, it shall be assumed that the transport contract is concluded and that the goods are handed over for transport under the conditions given in the freight bill.
(2) It shall be assumed that the data given in the freight bill or in the acknowledgement of receipt of goods specifying the weight, dimensions and packaging, as well as the number of parcels, are correct.
(3) If in the presence of the sender the air carrier has checked the data given in the air freight bill in respect of the dimensions, weight and condition of the goods and enters these information in the air freight bill, or if the external condition of the goods and the packaging is concerned, it shall be assumed that those data and that condition is correct.
Right of the Air carrier to Enter Notes on the Condition of Goods in the Air Freight Bill
Article 43
(1) The air carrier shall have the right to enter notes on the external condition of goods and the packaging in the air freight bill.
(2) If the air freight bill contains no notes as referred to in paragraph 1 of this Article, it shall be assumed that the goods and packaging had no external defects.
Necessary Data and Documents
Article 44
(1) The sender shall be obliged to provide the air carrier with all the data and to attach them to the freight bill and to make all the documents which are necessary for performing customs and other activities to be available to the air carrier.
(2) The sender shall be held liable for any damage which can occur at the expense of the air carrier, including the damage for which the air carrier is held liable to third persons, provided that the damages occurs as a result of incorrectness, impreciseness and incompleteness of the data and documents referred to in paragraph (1) of this Article.
Liability of the Sender
Article 45
The sender shall be held liable for the damage caused to persons, the aircraft and other goods because of the features of the goods being handed over for transport, provided that the air carrier was not informed of the features, nor he/she was obliged to be informed of them.
3. Transport Execution
Transport Route
Article 46
(1) The air carrier shall be obliged to transport the goods by air as agreed (transport route). If the transport route has not been agreed upon, the air carrier shall be obliged to execute the transport by the air route which is usual.
(2) As an exception, the air carrier shall have the right to do the transport by another air route, if necessitated by air traffic safety reasons or other justified reasons.
Transport Deadline
Article 47
(1) The air carrier shall be obliged to transport the goods within the agreed deadline (transport deadline).
(2) If the transport term is not agreed, the air carrier shall be obliged to do the transport within a time period which is usual, having in regard the distance, the type of the aircraft and other conditions which influence the time of duration of the transport.
(3) Unless otherwise agreed, the transport term begins as of midnight after the reception of the goods for transport.
(4) The period of the transportation term for which withholding of the goods has occurred due to reasons hindering the start or continuation of the transport, provided that the air carrier is guilty of it, shall not be calculated.
(5) The transport shall be deemed as done at the moment of sending the notification by the air carrier by which the air carrier informs the receiver that the goods have been delivered to the place of establishment and that it is ready for handing over, or at the moment when the air carrier tried to hand over the goods to the receiver.
Obligation for Requiring Directions from the Holder of the Right to Disposition
Article 48
(1) If the air carrier, due to any reasons, shall not able to fulfil the transport contract in accordance with the agreed terms, and if the barrier shall last for a longer period or its duration shall be uncertain, than the air carrier shall be obliged to ask for directions from the person authorised for disposing of the goods.
(2) If the air carrier is not able to act in accordance with paragraph (1) of this Article, or is not able to act in accordance with the given directions, or no directions have been given to him/her, he/she shall be obliged in accordance with the circumstances of the case, to reload the goods, to return them to the place of departure or to act in another way and at the same time to take into consideration the interests of the holder of the right to disposition.
4. Right to Disposition of Goods during the Transportation
Right to Disposition of the goods by the Sender
Article 49
(1) The sender who has all his/her obligations from the transport contract fulfilled shall have the right to have to dispose of the goods in the following manners:
1) To withdraw the goods from the airport of departure or establishment;
2) To withhold the goods in the course of transportation at any place of landing;
3) In the course of transport to require the goods to be delivered to the place of establishment to a person which is not designated as a receiver in the air freight bill or in the other document referred to in Article 36 of this Law; and
4) To require the goods to be returned to the place of departure.
(2) The request for disposition referred to in paragraph (1) of this Article shall be submitted by the sender to the contracting air carrier, while it shall be submitted to its proxy only if agreed so.
(3) The sender shall not be allowed by using the right to disposition to inflict damage upon the air carrier or to other senders and shall be obliged to compensate to the air carrier for the damages caused by executing the request referred to in paragraph 1 of this Article.
(4) The sender who has at its disposition the load, in accordance with paragraph (1) of this Article shall be obliged to submit the third original sample of the air freight bill or the acknowledgement of receipt of the goods to the contracting air carrier or to its proxy.
(5) The air carrier or its proxy shall have the right to demand that the request for disposition of the goods be entered in the first sample of the air freight bill and this request to be issued in writing.
Elimination or Restriction of the Right to Disposition of Goods
Article 50
(1) In the contract, the parties can restrict or eliminate the disposition of goods provided for in Article 49 of this Law.
(2) The contract referred to in paragraph (1) of this Article which is not entered in the air freight bill or in the acknowledgement of receipt of goods, shall have no legal action.
Liability of the Air carrier in Respect of the Request for Disposition of the Goods
Article 51
(1) If the air carrier executes the request of the sender for disposition of the goods and the third original sample of the air freight bill or a sample of the acknowledgement of receipt of goods has not been submitted to him/her in accordance with Article 49 paragraph (4) of this Law, than he/she is obliged to compensate for the damage caused by executing that request to the person who is authorised holder of the third original sample of the air freight bill or holder of the acknowledgement of receipt of goods.
(2) The provision referred to in paragraph (1) of this Article shall not interfere with the right to recourse of the air carrier towards the sender.
(3)
Inability to Execute the Request for Disposition
Article 52
If the execution of the request for disposition of goods is not possible or if its execution would cause damage to the air carrier or to the holders of the right to disposition of goods, the air carrier is obliged to inform the sender thereof.
Right of the Air carrier to Reject the Request for Disposition of Goods
Article 53
(1) The air carrier shall have the right to reject the request for disposition of goods, provided that:
1) The execution of the request is no longer possible;
2) A damage could occur affecting the holder of the request for disposition of the goods;
3) A damage could occur affecting the air carrier, or if the costs for execution of the request would be higher than the value of the goods;
4) The execution of the request would be in contrast with the customs and other regulations; and
5) the sender has not submitted the third original sample of the air freight bill to the air carrier in the sense of Article 49 paragraph (4) of this Law.
(2) In the cases referred to in paragraph (1) item 3 of this Article, the air carrier shall not be allowed to reject the execution of the request if suitable provision is offered to him/her.
(3) The air carrier is obliged in any case of rejection of the execution of the right to disposition, without any delay, to inform the submitter of the request and to act in accordance with the provisions referred to in Article 48 of this Law.
Liability of the Air carrier for Compensation of Damage in Case of Failure to Execute the Request
Article 54
(1) If the air carrier fails to execute the request referred to in Article 49 paragraph (1) of this Law, or fails to execute in accordance with Article 53 paragraph (3) of this Law, he/she shall be held liable for the damage emerging thereof.
(2) The amount of the compensation of damage referred to in paragraph (1) of this Article and in Article 51 of this Law cannot be larger than the amount that the air carrier would be obliged to compensate, provided that the goods submitted for transport are lost.
Termination of the Right to Disposition of the Goods of the Sender
Article 55
(1) The right of the sender to disposition of the goods ceases when the goods will reach the place of arrival and the receiver shall submit request for delivering the goods or the air freight bill.
(2) The receiver is entitled to request from the air carrier to deliver the goods or the air freight bill if the order of the sender does not state something else and under condition to fulfil its obligations given in the provisions from Article 72 paragraph (2) and Article 73 of this Law.
(3) If the receiver, upon submitting the request from paragraph (1) of this Article rejects the undertaking of the goods or the air freight bill, the sender may take disposition of the goods again.
(4) If the receiver rejects the undertaking of the goods or the freight bill, the sender may take disposition of the goods without submitting the third original sample of the air freight bill.
5. Delivering the Goods
Place and Manner of Delivering Goods
Article 56
(1) The air carrier is obliged to deliver the goods at the place of arrival given in the contract or the air freight bill or at the place that shall be determined by the person authorized for having at its disposition the goods.
(2) If the contract does not state otherwise, the air carrier shall deliver the goods to the receiver at the airport at the place of arrival.
(3) The air carrier is obliged to deliver the goods to the receiver that is stated in the air freight bill.
(4) If no air freight bill was issued, the air carrier must deliver the goods to the person for accepting the goods, determined with the contract for transportation or similar.
(5) If the sender, according to Article 49 of this Law determines as receiver some other person, and not the one given in the air freight bill or in the acknowledgement of receipt of goods, the air carrier is obliged to deliver the goods to that person.
Unless otherwise agreed, the air carrier is obliged without delay to inform the receiver of the arrival of the goods at the place of arrival.
Objections of the Receiver
Article 57
(1) If the receiver of the goods does not give written objection for the damage of the goods immediately during the undertaking, it is assumed that the goods were delivered in a condition as accepted for transportation, or in condition as stated in the air freight bill or in the acknowledgement receipt of the goods.
(2) If the damage cannot be noticed at the moment of undertaking, the receiver must give objection to the air carrier immediately after noticing the damage and within 14 days from the day of undertaking the goods.
(3) If the damage was caused by delay of delivering the goods, the receiver must give written objection within 21 day from the day of receiving the goods.
(4) If the written objection of the goods receiver is not made within the deadline determined with the provisions of this Article, the air carrier is not responsible for the damage, except if the damage was caused by action or neglect of the air carrier or the person that worked on performing the transport by his order or on his account, and the actions or the neglects are done intentionally or withnegligence.
Inability for Delivering to the Receiver
Article 58
(1) If the receiver cannot be found or if he rejects to undertake the goods, the air carrier is obliged without delay to requests for instructions from the sender.
(2) If within the deadline, the air carrier does not receive instructions from the sender or if the received instruction cannot be executed, he is entitled, on cost and on risk of the person authorized for disposing the goods, to deliver the goods for keeping to a public warehouse or to other adequate person, or to keep it by himself.
(3) Regarding the undertaken action from paragraph (2) of this Article, the air carrier is obliged without delay to inform the sender or the person that is authorized to dispose with the goods.
(4) If the goods are given for keeping by other person, the air carrier is responsible for its choice.
(5) In case when the air carrier acts in accordance with the provision from paragraph (2) of this Article, it is assumed that the transportation is done.
The Sale of Goods
Article 59
(1) If the sender, or the person authorized to dispose the goods, does not undertake the goods within 30 days from the day of placing the goods in storage, the air carrier is entitled to sell the goods.
(2) The air carrier is entitled to sell the goods also before the expiring of the deadline from paragraph (1) of this Article, if:
1) the goods is perishable and is threaten with direct danger of waste or its wasting has already started;
2) the costs for keeping have not be in proportion with the value of the goods and,
3) because of delaying the sale, the amount sufficient for covering the claims of the air carrier and the costs for keeping the goods could not be reached.
(3) The sale of the goods is done in public, except in case of perishable goods or goods whose price is determined or formed on stock exchange.
(4) The amount that the air carrier shall made by selling the goods, upon rejecting its claim in relation to the transportation of that goods and upon rejecting the costs for storage and sale, the air carrier is obliged to submit to the court competent according to the place of sale, in favour of the person authorized to dispose the goods and to inform that person for that circumstances.
6. Responsibility of the Air Carrier
Responsibility of the Air Carrier
Article 60
(1) The air carrier shall be responsible for the damage occurred due to loss and damage of the goods he/she accepted for transportation and for the damage occurred due to delay of the transport and the handover of the goods to the receiver.
(2) The air carrier shall be liable for the damages under paragraph (1) of this Article, which will be caused by the person who, on his/her order or on his account acted on carrying out the transportation.
(3) As time for transport of goods with an aircrafts shall be considered the time from taking over the goods from the airport at departure due to its equipment, until the handover of the goods to the person authorized to dispose of it at the airport on determining or on any other place where the aircraft shall land.(4) If the contract for performing transport in the air traffic shall include transport before the beginning or after the termination of the transport with an aircraft, one shall assume that the damage occurred during the transport with an aircraft.
Exemption of Responsibility of the Air Carrier
Article 61
(1) The air carrier shall not be responsible for the damage under Article 60, paragraph (1) of this Law, provided he/she shall prove that the damage occurred due to one or several of the following reasons:
1) irregularities, shortage or characteristics of the goods;
2) irregular packaging of the goods, which was not performed by the air carrier or the person which under his/her order or on his/her account had worked on performing the transportation;
3) war or armed conflicts and
4) acts or actions of a state authority relating to import, export or transit of goods.
Also, the air carrier shall not be liable for the damage occurred due to the delay in the transport of the goods, if it is proved that he/she or the person acting upon his/her order or on his account had acted on performing the transport had undertaken all necessary measures in order to avoid the damage or if it is proved that it was impossible to undertake these measures.
(2) Should the air carrier prove that the damage from Article 60, paragraph (1) under this Law occurred from reasons of the part of the person who had the right to a compensation of damages, the responsibility of the air carrier for compensation of damages shall be decreased proportionally with the contribution of the person who would have the right co compensation of damages.
Assumption that the Goods are Lost
Article 62
(1) It is assumed that the goods is lost in the transportation provided the air carrier has not handed over the goods to the receiver in a deadline of seven days from the day when, pursuant to the contract, he/she shall be obliged to hand it over, or if the air carrier, before the expiry of the said deadline shall state that the goods is lost.
(2) Provided the contract shall not envisage a deadline for handing over the goods, the deadline under paragraph (1) of this Contract shall be calculated from the day when the handover should have been done according to the provision under Article 47, paragraph (2) of this Law.
Range of the Responsibility of the Air Carrier
Article 63
(1) The air carrier shall be liable for the value of the lost goods or part of it or for the decrease of the value of the damaged goods.
(2) Provided the goods under paragraph (1) under this Article have been handed over to the receiver with delay, the air carrier shall also be responsible for the damage caused by the delay.
(3) Towards the amount of paragraphs (1) and (2) under this Article, the air carrier shall be obliged to fully compensate the paid transportation fee to the receiver and other expenses occurred during the transportation of the goods provided the goods are lost, or in proportional amount if the goods are damaged, and mostly to the amount under Article 64, paragraph (1) of this Law.
(4) In case of loss or damaging of the goods, the value of the goods shall be determined according to the determined, i.e. market value of the goods of same kind, quantity and characteristics in the place and time of handover of the goods to the receiver.
Amount of the Compensation of Damages
Article 64
(1) The amount of the compensation of damages for which the air carrier shall be held responsible can not be bigger than 17 special rights for withdrawing funds in denars counter—value per kilogram weight of the goods.
(2) The compensation of damages for which the air carrier shall be held responsible can be higher than the amount under paragraph (1) of this Article, provided the sender in the contract on transportation marked a value that is bigger than the amount under paragraph (1) of this Article. In such cases, the air carrier shall be responsible to the determined amount for each damage occurred due to the loss, damaging or delay in the handover of the goods.
(3) If the value of the goods is determined on the manner under paragraph (2) of this Article, the air carrier shall have the right to increase the transportation fee.
(4) One shall assume that the value of the goods shall be in compliance with the amount determined pursuant to paragraph (2) of this Article, except when the air carrier proves otherwise.
Responsibility of the air carrier in Case of Postal Parcels
Article 65
With the transportation of postal parcels via aircraft, the responsibility of the air carrier for the loss or damaging of the parcel, as well as for the delay with the handover of the parcel shall be determined on the basis of the special regulations for transportation of postal parcels in the domestic and international transport.
Unlimited Responsibility of the Air Carrier
Article 66
(1) The air carrier shall have no right to call upon limiting the responsibility envisaged under Article 64, paragraph (1) of this Law, provided it is proved that the damage occurred due to actions or faults of the air carrier or the person who on his/her order or on his/her account acted on carrying out the transport and that that action of fault was committed purposefully or with extreme negligence.
(2) The air carrier shall have no right to call upon limiting the responsibility under Article 64, paragraph (1) of this Law, provided the damage occurred due to actions or faults of the air carrier or the person who on his/her order or on his/her account acted on carrying out the transport, provided it is proven that the person acted out of the frames of his/her responsibilities.
(3) The air carrier without right to call upon limiting the responsibility under Article 64, paragraph (1) of this Law, shall be responsible, except for the damage under Article 63 of this Law, also for any damage occurred due to loss, damaging or delay with the handover of the goods.
Full or Partial Exemption of the air carrier from Responsibility in Certain Cases
Article 67
By exception of the provision from Article 3 of this Law, the contract for transportation of goods with aircraft may envisage provisions with which the air carrier fully or partially shall be exempted from responsibility or which envisage limitation of the responsibility that is favourable for the air carrier from the limitation envisaged with this Law, only in case of loss or damage that will result due to the nature or the lack of the goods that are transported, or as result of the irregular packaging of the goods that are transported.
Application of Other Provisions from this Law
Article 68
The provisions for transportation of passengers shall be applied to the transportation of goods appropriately.
7. Transportation Fee
Amount of Transportation Fee
Article 69
(1) The amount of the transportation fee shall be determined with a contract.
(2) The transportation fee determined in a contract for one or more transportation shall remain unchanged regardless of the duration of the contracted transportation.
(3) Provided on request of the sender or in the interest of the bearer of the right to transportation one shall continue further from the contracted place of determination, the transportation fee shall be increased proportionally.
Payment of the Transportation Fee
Article 70
(1) The transportation fee shall be paid only for the goods that are transported and in the place of determining it shall be put at disposal to the receiver.
(2) The transportation fee should also be paid for the goods that are not transported and put at disposal to the receiver, only if it is caused by the orderer of the transportation, the sender, the person authorized to dispose of the goods or the person for which they shall be held responsible, or provided the reason for which the goods did not arrive at the determined place, and the air carrier shall not be responsible for that reason.
(3) Provided the goods shall be transported only for one part of the transportation, the air carrier shall have the right to pay the transportation fee proportionally with the usefully performed transportation, except in cases under paragraph (2) of this Article.
Paying the Transportation Fee in Special Cases
Article 71
(1) If instead of the contracted goods one shall add other goods whose transportation fee is bigger than the contracted one, the transportation fee shall be paid for the factually loaded goods.
(2) If one shall handover less goods for transportation than the contracted quantity, or one does not load any goods, the transportation fee shall be paid for the complete contracted quantity of goods.
(3) If one shall load less goods than contracted, and the transportation fee for the other goods that are loaded is bigger than the contracted fee, one will pay the complete contracted transportation fee and the difference between the contracted fee and the bigger transportation fee for the loaded goods.
Responsibilities of the Receiver
Article 72
(1) The receiver authorized to request handover of the air freight bill and of the goods shall be obliged to settle the claim and to meet all other terms stated in the air freight bill or in the other documents under Article 36, paragraph (2) of this Law, and for which it is not explicitly stated that he/she should pay them, i.e. to meet all requirements by the sender or the orderer of the transportation.
(2) If the transport shall be performed without air freight bill, the receiver who demands handover of the goods shall be obliged to pay the transportation fee and other claims of the air carrier in relation to the transportation of the goods.
Paying the Transportation Fee of the Contract for Transport at Determined Time
Article 73
(1) With the contract for transportation of certain time, the orderer of the transport shall pay the transportation fee in advance in equal monthly instalments, but the air carrier shall pay the transportation fee only for the duration of the performing of the contract.
(2) If during the contract for transportation on certain time obstacles occur during the usage of the aircraft, the orderer of the transportation shall pay the transportation fee and in the duration of those obstacles if the obstacle was caused by him/her or if the obstacle occurred during the carrying out of his/her order.
(3) The air carrier shall have the right to cancel the contract for transportation on certain time if the transportation fee shall not be paid upon the maturity.
Failure to meet the Responsibilities of the Receiver
Article 74
(1) If the receiver shall not meet his/her responsibilities, the air carrier shall have the right to keep the goods and to hand it over for keeping or to keep it by himself/herself, for which he/she shall be obliged to forthwith inform the receiver and the sender.
(2) If the claims shall not be paid to the air carrier under the contract for transport in a deadline of 15 days from the day of handover of the notice under paragraph (1) of this Article, he/she shall be obliged to sell the goods.
(3) In relation to the keeping and selling of the goods, one shall apply the provisions under Articles 58 and 59 of this Law.
Right of the air carrier to realize the claims
Article 75
(1) The air carrier, who, without using the right under Article 74 of this Law shall handover the goods of the receiver beside the fact that the receiver did not meet his/her responsibilities under the contract for transportation, shall not have the right to demand from the sender, i.e. from the orderer of the transportation payment of the claims under the contract for transportation, which the receiver was obliged to pay, except if due to these reasons, the sender and the orderer have become rich on unfounded basis.
(2) If the air carrier who used the right under Article 74 of this Law collects his/her claim only partially, he/she can demand payment of the unsettled debt of the claim from the person stated in paragraph 1 of this Article.
(3) For the purposes of securing all the claims under the contract for transportation of goods, the air carrier shall have the right to retain the goods undertaken for transportation.
Section III
Transportation in which Several Air Carriers are Participating
1. Successive Transportation
Contract Content
Article 76
The contract on successive transportation with aircraft shall be contract for transportation ofpassengers, luggage or goods with which the air carrier (first air carrier) shall be obliged to perform the transport with the participation of several air carriers (successive air carriers) and the passenger, i.e. the orderer of the transport shall be in compliance with this.
Relations between Successive air carriers
Article 77
(1) The relations between the successive air carriers shall be regulated with an agreement.
(2) Unless otherwise determined with an agreement, the provisions under this Law shall be applied to the relations between the successive air carriers.
Responsibility of the Successive air carriers for the Damage Occurred due to Death, Worsening of the Health Condition and Injuries of the Passengers and Delay in the Transport of Passengers
Article 78
(1) For the damages that are to occur due to death, worsening of the health condition or injury of the passenger, as well as for the damages caused by the delay, the first air carrier and the particular successive air carrier on those part of the transportation the damages occurred shall be held responsible on solidarity manner.
(2) The first air carrier shall have the right to exclude his/her responsibility for the damage under paragraph (1) of this Article with a contract, which will occur due to delay in the part of the transportation where the transport is performed by successive air carriers.
(3) If the first air carrier compensated the damage of the victim, i.e. of his/her successors, and the damage occurred by death, worsening of the health or injury of the passenger, he/she shall have the right to a regress from the successive air carrier on whose part of the transportation the damage occurred.
Responsibility of the Air Carrier for the Loss or Damaging of the Luggage and the Goods and for the Delay in the Transport and in the Handover to the Sender
Article 79
(1) For the loss or caused damage of the luggage and the goods, as well as for the damage caused due to the delay in the transportation and the handover to the sender, along with the air carrier on whose part of the transportation the damage occurred, on a solidarity basis the first air carrier shall be held responsible to the sender, and the last air carrier to the receiver.
(2) If one can not determine whose part of the transportation resulted with a loss, i.e. damaging the goods, all the air carriers shall be responsible for the occurred damage on the basis of solidarity.
2. Combined (integral) Transportation
Article 80
(1) It is also agreed, in the air traffic, the air carrier shall have the right to carry out the contracted transportation with the participation of other air carriers from other branches of the transportation (combined transportation).
(2) The air carrier who had signed a contract for combined transportation shall be responsible only for the damage pursuant to the regulations for compensation of damages that apply for the air carrier on whose part of the transportation the damage occurred.
(3) In relation to limiting the responsibility of the air carrier from the combined transportation, the provisions under Article 64 of this Law shall apply.
Section IV
Accepting and Shipping of Passengers, Luggage and Goods
Works on Accepting and Shipping of Passengers, Luggage and Goods
Article 81
1) The contract for transportation shall include the works of accepting and shipping passengers, luggage and goods that are performed during the transport in the air traffic.
As works under paragraph (1) of this Article one shall include:
2) shipping passengers from the airport building and monitoring and transport to the aircraft and vice versa, as well as transport or monitoring the passengers from one aircraft to another;
3) transport of the registered luggage and goods from the premises predetermined for accepting luggage, i.e. of goods from storage houses or from other means of transport at the airport to the aircraft and their loading into the aircraft.
4) unloading the registered luggage and the goods from the aircraft and their transport to the premises predetermined for issuing luggage to the passengers, i.e. of the goods to the storage house or to other means of transport at the airport;
5) reloading the registered luggage and the goods from one aircraft into another on a platform at the airport and
6) taking care that the registered luggage and the goods are loaded in the aircraft, i.e. to be unloaded from the aircraft according to the adequate documents.
Contract for the Works of Accepting and Shipping
Article 82
(1) If the works of accepting or shipping shall not be performed by the air carrier, but some other person, the relation between the air carrier and the said person shall be regulated with mutual contract.
(2) According to the contract from paragraph (1) of this Article, the person regulating the works of accepting or shipping shall be obliged to, for the purposes of executing the contract for transport in the air traffic, neatly and timely perform all works of accepting and shipping passengers, luggage and goods, and the passenger shall be obliged to pay certain contribution to that person.
(3) By signing the contract under paragraph (1) of this Article, the person carrying out the works of accepting or shipping shall be obliged that he/she shall undertake actions necessary for keeping the rights of the air carrier towards the bearers of the claims for right to disposition of the luggage or the goods entrusted to manage.
Responsibility of the Air Carrier towards the Person Performing the Works of Acceptance or Shipping
Article 83
The air carrier shall be responsible to the person performing the works of acceptance or shipping for the damages occurred due to managing dangerous materials or with materials transported under special terms, if about the nature of those goods he/she did not inform the legal entity performing the works of accepting and shipping or if he/she did not provide the necessary instructions, except if the person performing the works of accepting and shipping knew or had to know about the nature of the goods.
Responsibility of the Person Performing the Works of Accepting or Shipping
Article 84
(1) Concerning the damages caused during the performing of the works of accepting or shipping, the person performing the works of accepting or shipping shall be responsible to the air carrier in the same manner as the air carrier was responsible during the execution of the contract for transportation.
(2) By exception, the person performing the works of accepting or shipping shall be responsible to the passenger, i.e. the holder of the right for disposing of the luggage or the goods, if the damage was caused intentionally or with extreme negligence or if he/she worked outside the frames of his/her responsibilities.
Contract for Decreasing the Responsibility of the Person Performing the Works of Accepting or
Shipping
Article 85
The provisions from the contract for performing the works of accepting or shipping, decreasing the responsibility of the person performing the works of accepting or shipping envisaged by this Law, or decreasing the responsibility of the air carrier under Article 83 of this Law, or on damages to third persons the provisions for their responsibility envisaged by this Law shall be amended.
SECTION V
Complaints
Submitting Written Form of Complaints
Article 86
(1) The right holder shall realize the claim of the contract for transportation via submitting a written complaint to the air carrier in the envisaged deadline, according to the provisions under this Law, the Montreal convention and the regulations of the European Union referenced for application by this Law.
(2) Provided the air carrier, in a deadline of 30 days from the day of submitting the complaint shall not meet the requirement from the complaint, the right holder can realize his/her claim by submitting Lawsuit to competent court.
(3) Default interest rate shall apply to the claims of the right holder from the day of submitting the complaint.
(4) The default interest rate of the air carrier shall begin to apply from the day of submitting the claim to the passenger, i.e. the orderer of the transport.
CHAPTER II
CONTRACT FOR SPECIALIZED SERVICE WITH AIRCRAFT
Subject of the Contract for Specialized Service with Aircraft
Article 87
(1) Under the contract for specialized service with aircraft, the provider of that service shall be obliged to perform the service with aircraft that is not transportation of passengers, luggage or goods, and the orderer of the said service shall be obliged to pay certain compensation.
(2) As specialized services with aircraft under paragraph (1) of this Article shall be the aircraft activities where the aircraft is used for giving specialized services such as, in the field of agriculture, forestry, health, construction, for the purpose of photography, recording, monitoring and patrolling, observatory flying, commercial panels, giving leaflets, putting commercial boards, i.e. services not included in the field of transport of persons, subjects and mail.
(3) The contract for specialized services with aircraft shall be valid if signed in written form.
Adequate Usage of Other Provisions from this Law
Article 88
Concerning the contract for specialized service with aircraft, one adequately applies the provisions for the contract for transport of passengers on certain time period and for the contract for transport of passengers with aircraft under this Law.
Filling the Orders of the Orderer of Service
Article 89
(1) Concerning the contract for specialized service with aircraft, the service provider shall be obliged to fill the orders of the orderer of the specialized service in the limits of the contract and according to the purpose of the aircraft.
(2) The performer of the specialized service with aircraft shall not be obliged to fill the order of the orderer of the service which the aircraft or the persons in the aircraft would expose them to danger, and neither the order for which one can assume on solid grounds that, provided it is fill, it will cause damage to third persons.
Liability for damages
Article 90
(1) The performer of the specialized service with aircraft shall be liable for the damages which his assistants in the process of performing the service shall inflict on the orderer of the specialized service.
(2) Under the contract for specialized service with aircraft, one may not exclude the responsibility for the damage which purposefully or with extreme negligence will be inflicted by the assistants of the performer of the specialised service.
Adequate Application of the Provisions for the Liability under the Contract for Transport of Passengers and Goods
Article 91
Concerning the damage that occurred due to death, worsening the health or inflicted injury of the orderer of the service or of the persons for which the orderer of the service shall be liable, and which are located in the aircraft, as well as the damage due to loss or damaging the goods of the orderer located in the aircraft for the purposes of executing the service, one adequately shall apply the provisions for liability under the contract for transport of passengers and goods under this Law, the regulations of the European Union on whose application shall refer this Law and the Montreal convention.
Application of the Provisions that Apply for the Work Contract
Article 92
If not otherwise determined by this Law, the provisions of the obligation right shall apply, which also apply to the work contract, as well as the regulations of the European Union on whose application refers this Law and the Montreal convention.
Application of the provisions of this Law on extra-Contractual Liability for Damages
Article 93
On the damages caused by the aircraft during flight in filling the contract for specialized service with aircraft to the ground, one shall apply the provisions under this Law for extra-contractual liability for damages.
Chapter III
AIRCRAFT LEASE CONTRACT
Subject of the contract
Article 94
1) With the aircraft lease contract, the leaser shall be obliged to the lessee to give certain aircraft for using, and the lease shall be obliged to pay the lease for the said.
The aircraft lease contract shall be valid if signed in written form and if approved by the authority of the state management competent for performing the works in the field of aviation, the Civil Aviation Agency.
Responsibilities of the leaser
Article 95
(1) The leaser shall be obliged to handover to the lessee the aircraft in such condition that it can be used again according to the contractual or usual purpose.
(2) If under the aircraft lease contract one envisaged that the leaser shall put at disposal the crew for the aircraft. The crew shall be obliged to carry out the orders from the leaser.
Submitting the Expenses for Using the Aircraft
Article 96
(1) The expenses for using the aircraft shall be submitted by the leaser.
The lessee shall not submit the expenses for repairs of the aircraft, needed for removing hidden default of the aircraft that existed in the time when the aircraft was handed over, neither he/she shall submit the expenses for damages due to loss of the aircraft for the purposes of actions of Force Majeure.
Maintenance of the Aircraft in the Duration of the Contract
Article 97
(1) The lessee shall be obliged to maintain the aircraft in the duration of the contract.
Upon the expiry of the contract, the lessee shall be obliged to return the aircraft in condition in which he/she received it and in the place where the aircraft had been handed over.
(2) Lessee shall not be liable for the regular wear and tear of the aircraft.
Responsibility for Damages due to Aircraft Default
Article 98
The leaser shall be responsible for the damages occurred due to a default that renders the aircraft useless or decreases its usage for the contracted or usual using purposes, if the default existed during the handover of the aircraft to the lessee.
Aircraft Lease and Contract for Aircraft Transport
Article 99
In case of having doubts whether aircraft lease contract has been signed or a contract for transport on definite time period, one shall consider that a contract for transport on definite period of time has been signed.
Payment of Lease
Article 100
(1) If not otherwise determined, the lease shall be paid in advance in monthly instalments, calculated from the day of handing over or the aircraft under lease.
The leaser shall not have the right to a lease during the time in which the lessee had been prevented to use the aircraft due to fault of the leaser or due to hidden default of the aircraft, if that said default existed during the handing over of the aircraft.
(2) The leaser shall have the right with a personal statement to terminate the contract provided the lease is not paid in a deadline of 15 days upon the arrival, hence, not interfering with his/her right to realize damage compensation.
(3) In case of paragraph (3) of this Article, the contract shall remain into force if the lessee shall pay the remaining lease payments before receiving the statement for termination.
Duration and Termination of the Aircraft Lease Contract
Article 101
(1) The aircraft lease contract can be concluded on definite or indefinite period of time.
(2) The aircraft lease contract signed on definite period of time can be extended or terminated only in written form.
(3) The aircraft lease contract signed on indefinite period of time can be cancelled up front only in written form and in a deadline that may not be shorter than 3 months.
Contract Termination
Article 102
The aircraft lease contract shall cease to be valid in case the aircraft is destroyed or becomes permanently unusable, as well as in cases that may not be envisaged, prevented not removed, and that disables the usage of the aircraft during the lease period.
Cancellation of the Lessee
Article 103
If the repairing of the aircraft submitted by the leaser shall be pending, or it is envisaged that they shall last longer in relation to the time and duration of the contract or the purpose of signing the contract, the lessee may waive the lease contract by written form.
Delay of the Lessee in Returning the Aircraft
Article 104
(1) If the lessee shall not return the aircraft to the leaser upon the expiry of the time for returning determined by the lease contract, he/she shall be obliged to pay proportional compensation in the amount that is double the amount of the contracted lease for extended time.
(2) If the lessee shall be deemed responsible for the delay by returning the aircraft, along with the amount stated in paragraph (1) of this Article, he/she shall be responsible for each damage caused by the leaser with this action.
Reward for Search and Rescue of the Leased Aircraft
Article 105
The reward for search and rescue of the leased aircraft during the duration of the lease contract shall be paid by the lessee.
Sublease
Article 106
The lessee can give the aircraft under lease to another person (sublease) only on the basis of the accordance of the leaser given in written form.
CHAPTER IV
RESPONSIBILITY OF THE DAMAGES CAUSED BY THE AIRCRAFT ON THE GROUND
Responsibility of the Owner of the Aircraft
Article 107
(1) The owner of the aircraft shall be responsible for the damage occurred on the ground due to death, worsening of the health condition or caused injuries to third persons, as well as for damages inflicted on goods that will be directly caused by aircraft in flight, or persons or goods that fell out or have been jettisoned from the aircraft during flight.
(2) The owner of the aircraft shall be responsible only for the damages under paragraph (1) of this Article, caused by the person who on his/her order, i.e. on his/her account worked on carrying out the transportation.
(3) The provision under paragraph (1) of this Article shall refer to the damages caused by the sole passing of the aircraft through the airspace if the damage occurred due to the fact of not following the adequate regulations for the safety of the air traffic (for example, damage caused by sound or etc.).
(4) It shall be considered that the aircraft is driven by engines during flight, according to the paragraph (1) of this Article, from the moment of initiating the motors with purpose to takeoff, until the moment of stopping the aircraft and the termination of the work of the engines due to landing.
Responsibility for Damages of the Lessee Caused to the Aircraft, by the Contracting and the Real air carrier
Article 108
(1) The lessee of the aircraft shall be responsible for the damages under Article 107 of this Law, caused by the aircraft subject to the aircraft lease contract.
(2) For the damages under paragraph (1) of this Article, the contracting and the real air carrier shall be held responsible in manner of solidarity.
Responsibility of the Orderer of the Transport with Entire Aircraft on Definite Period of Time and of the Orderer of the Specialized Service with Aircraft
Article 109
In relation to the damage from Article 107 of this Law, besides the owner of the aircraft, the orderer of the transportation for aircraft at define period is responsible in a manner of solidarity, as well as the orderer of the specialized service with aircraft.
Insurance From Responsibility
Article 110
The person responsible for damage according to the provisions from the Articles 107, 108 and 109 of this Law (responsible person) shall not be responsible is the following is proved:
1) the damage occurred by action of the damaged person or the person that work by order and on the account of the damaged person, and
2) the aircraft that caused the damage was illegally used by other person, and the responsible person undertook the needed measures in order to prevent the illegal usage of the aircraft.
Divided Responsibility
Article 111
In case the responsible person proves that the damaged person or the person that worked by order or on the account of the damaged person partially contributed for occurrence of the damage, the responsibility of the responsible person for compensation of damage is decreased in proportion with the involvement of the given persons in the occurrence of the damage.
Illegal Usage of Aircraft
Article 112
If the responsible person does not prove that has undertaken the needed measures for preventing the illegal usage of the aircraft that caused the damage, the same is responsible in a manner of solidarity for the damage with the person that illegally used the aircraft.
Causing Damage by Person who works by Order or on the Account of the Damaged Person
Article 113
The responsible person cannot be released of responsibility according to the provisions from the Article 110 paragraph (1) indent 1 and the Article 120 of this Law, if the damage was caused by persons that worked by order or on the account of the damaged person, and the damaged person proves that those persons worked out of the domain of their duties.
Responsibility in a Manner of Solidarity for Damage as a Result of Impact or Mutual Interference of Aircrafts
Article 114
For the damage given in Article 107 of this Law, that shall occur as a result of an impact or mutual interference of two or more aircrafts, as well as for the damage that mutually shall be caused by two or more aircrafts, all responsible persons shall be responsible in a manner of solidarity.
Limitation of Responsibility
Article 115
For the damage given in Article 107 of this Law, the responsible person is responsible for the amounts given in Article 7 of the Regulation (EC) 785/2004.
Unlimited Responsibility
Article 116
(1) The responsible person is not entitled to refer to the limitations of the responsibility in Article115 of this Law, if it is proved that the damage was caused intentionally or with neglect.
(2) The responsible person is entitled to refer to the limitations of responsibility from Article 115 of this Law, if it is proven that the person that worked upon his order or on his account for performing the transportation has caused the damage intentionally or with neglect, working out of the domain of his duties.
(3) The person that illegally used the aircraft, which caused the damage, is not entitled to refer to the limitations of responsibility from Article 115 of this Law.
Limitation of Responsibility Upon an Event
Article 117
The total amount of the compensation that can be requested from several responsible persons for damage that shall be caused by aircraft from one event, cannot surpass the amount determined in Article 115 of this Law, except if the damage was caused intentionally or with neglect.
Allocation of the Compensation
Article 118
(1) If the damage caused by third parties and items on the ground surpasses the amounts foreseen in Article 115 of this Law, half of the amount firstly shall be used for compensation of the damage caused by death, health damage or injury of persons, and the second half for compensation of other damages, in proportion with their level.
(2) If the amount from paragraph (1) of this Article determined for compensation of damage caused by death, health damage or injury of persons is not sufficient for that, the unsettled part shall be settled with the second half of the amount in proportion with the remaining damages.
Mandatory Insurance from Responsibility for Damage Caused to third Persons
Article 119
Mandatory insurance from responsibility for damage caused to third persons, is determined by Law that regulates the mandatory insurance in the traffic and by the Regulation (EC) 785/2004.
Application of the Provisions for Limited Responsibility and for Foreign Aircrafts
Article 120
The provisions for limitation of responsibility of this part of the Law shall be applied for foreign aircrafts, under the condition of mutuality.
Aircrafts in Ownership of the Republic of Macedonia and Aircrafts in Ownership of Foreign State
Article 121
(1) The provisions in this Chapter of the Law refer also to the aircrafts that are in ownership of the Republic of Macedonia.
(2) For aircraft in ownership of foreign state, the provisions of this Law shall be applied under the condition of mutuality.
CHAPTER V
CONTRACT FOR INSURANCE IN THE AIR TRAFFIC
Subject of Insurance
Article 122
(1) The contract of insurance in the air traffic, according to this Law, may insure the following:
1) Aircraft and its equipment, as well as items transported with the aircraft or located in the aircraft;
2) transportation fee, costs for insurance, expected premium, lease and other rights and material benefits that exist or can be expected in relation to the air traffic, and which can be valuated with money and
3) the responsibility for damage caused to third parties in relation to the usage of the aircraft and other items given in point 1 of this paragraph.
(2) The term “third parties” according to this Article, shall mean persons that are not subject to the contract of insurance.
(3) If otherwise not agreed, the insurance of the aircraft shall include its equipment.
Insured Person
Article 123
(1) Insured person, according to this Law, shall be the person that at the moment of damage had material interest not to have the insured case.
(2) The provision from paragraph (1) of this Article shall not be withdrawn with sentenced provision from the contract of insurance.
Application of the Provisions from this Law for Reinsurance
Article 124
The provisions from this Law referring to the insurance shall apply to reinsurance of the items of insurance from Article 122 of this Law, if the reinsurance is done according to the policies or terms, usual for insurance in the air traffic.
Marking the Subject of Insurance
Article 125
(1) The subject of insurance must be marked in the contract of insurance or in the policy for insurance in such manner so its validity can be determined.
(2) If the insured subject was marked incompletely or wrongly, so it cannot determine directly whether it was exposed to the insured risk and damaged, the insured person is not obliged to pay compensation for the caused damage.
Contracted Value
Article 126
(1) The value of the insured subject, which was contractually determined in the contract for insurance or in the policy for insurance (contracted value), is mandatory for the insurer and the insured person.
(2) The insurer may oppose the contracted value, and if the same is in obvious lack of proportion with the market value of the insured subject at the beginning of the insurance or is determined with fraud.
Real value
Article 127
(1) If otherwise not agreed, value of the insured subject is its value at the beginning of the insurance (real value).
(2) Real value of the insured subject shall be its market value at the beginning of the insurance.
Indulgence of the Insured Subject to the Damaged Party
Article 128
The insured person is not entitled to request for indulgence of the damaged insured subject of the insurer, and from the insurer to receive the compensation of damage which would belong to the insurer in case of total loss of that damaged insured subject.
When the Insurance of the Aircraft Begins for Certain Trip
Article 129
The insurance of the aircraft for certain trip begins from the moment when the aircraft is in movement in order to perform the insured trip at the place of departure given in the contract of insurance and is with duration until the aircraft does not end the movement after the landing at the place of arrival given in the contact of insurance.
Excluding Certain Damages from the Insurance of the Aircraft
Article 130
(1) The insurance of the aircraft excludes the damages that appeared directly or indirectly as a result of defaults or incompetence of the aircraft for safe air navigation, if the insured person knew or must knew about them.
(2) The provision from paragraph (1) of this Article does not refer to the damages caused by defaults or incompetence of the aircraft for safe air navigation for which the insurer was informed or for which the insurer found out in another way during the signing of the contract for insurance.
(3) Incompetence of the aircraft for safe air navigation, in relation to this Article, is the incompetence because of technical defaults or insufficient equipping of the aircraft, therefore the incompetence of inadequate crew or irregular burden of the aircraft.
Surpassing the Borders of the air Navigation
Article 131
During the insurance of aircraft at certain period, besides the damages from Article 130 of this Law, the insurance excludes the damages causes directly or indirectly because of the risks out of the area of air navigation foreseen in the contract of insurance, except if the surpassing of the borders of air navigation was done because of force majeure, error in handling the aircraft or saving the property and lives or giving medical aid, as well as in case when there are smaller surpassing, which did not influence of the cause or size of the damage.
Continuing the Insurance of the Aircraft at Define Period because of Urgent Repairs
Article 132
(1) During the insurance of aircraft at define period, the insurance is continued for the period of duration of urgent repairs of damages covered with the insurance, which started during the insurance period or after the insurance period and are done with justified delay, if during that period the aircraft cannot be used for safe air navigation.
(2) The insured person is obliged to inform the insurer on time for the case in paragraph 1 of this Article.
(3) If the insurance is continued for the reasons from paragraph (1) of this Article, the insurer is entitled to additional payment of the premium, proportionally with the period for which the insurance was continued.
Compensation of Damage in Amount of Real Expenditures
Article 133
(1) When the damaged aircraft is repaired or the lost or destroyed parts of the equipment of the aircraft are replaced, the insurance compensates only the damage in amount of the real expenditures which are necessary for repairing the aircraft and for replacing the parts, however not the damage caused by losing the value of the aircraft, which was caused besides the done repair and the part replacement.
(2) The damage from paragraph (1) of this Article shall be compensated, without taking into consideration whether the repairing of the aircraft and the replacement of the parts caused increasing of the value of the aircraft.
Disappearing of the Aircraft
Article 134
With the contract of insurance, the aircraft disappeared on the day when every connection between the aircraft and the competent flight control was terminated, or the day when the last safe news for the aircraft refer to.
Insurance from Responsibility
Article 135
(1) The insurance from responsibility of the insured party regarding the damage caused to third persons, covers only the amounts which the insured person is obliged to compensate to those persons because of personal responsibility, if those are covered with the insurance, as well as the expenses needed for determining this obligation of the insured person.
(2) In case of mandatory insurance from responsibility, the damaged person may request directly from the insurer a compensation for the damage, for which the insured person is responsible, however up to the amount for which the insurer is obliged to.
(3) The insurance shall compensate the costs for measures, undertaken on request of the insurer or its representatives or in agreement with them, in order to defend the groundless or unreasonable requests from the third parties, as well as costs for the reasonable measures done by the insurer or it representatives, if the consent was not obtained on time.
The insurer shall compensate the damage because of responsibility of the insured person and the costs for determining his obligation, up to the amount of the insured value determined in the contract of insurance.
CHAPTER VI
OBSOLESCENCE OF CLAIMS
Obsolescence and Start of Obsolescence
Article 136
(1) The claim from the contract for transportation, as well as the regress claims in relation to that contract, obsoletes in two years.
(2) Claims from the contract for specialized service with aircraft, claims from the lease contract for aircraft and claims for compensation of damage with the responsibility from Article 107 of this Law, as well as the regress claims in relation to the given claims obsolete in one year.
(3) Claims from the contract of insurance obsolete in five years.
(4) The deadline for obsolescence begins as follows:
1) Contract for transportation of passengers:
2) Transportation of hand luggage – from the day when the aircraft arrived or should arrive at the place of arrival;
3) transportation of registered baggage and items:
4) contract for accepting and equipping the passengers, baggage and items – from the day determined in points 1, 2 and 3 of this paragraph;
5) Contract for specialized service with aircraft and contract for lease of aircraft – from the day or receiving the claim;
6) the responsibility from Article 107 of this Law – from the day when the damaged person found out about the damage and for the person that caused the damage, within three years from the day when the damage occurred;
7) Regressive claims – from the day when the obligation for reimbursement of the claim occur based on court decision or based on any other act, referring to the right to regress and
8) Contract for insurance for:
SECTION THREE
REAL RIGHTS OF THE AIRCRAFT
CHAPTER I
GENERAL PROVISIONS
Capacity of the Aircraft
Article 137
An aircraft and an aircraft under construction are movable goods.
Real Rights
Article 138
(1) An aircraft may be subject to ownership rights and other real rights.
(2) The general real rights regulations shall apply in an appropriate manner all real rights relations related to the aircraft not regulated in this Law.
Obtaining State Proprietary to the Republic of Macedonia
Article 139
The aircraft obtains state proprietary to the Republic of Macedonia by its entry in the Aircraft Register of the Republic of Macedonia (hereinafter referred to as the Aircraft Register).
Rule Writing Rules
Article 140
The entry of the rights on the aircraft in the Aircraft Register, the content and the manner of maintaining the Register and the registration procedure shall be implemented on the basis of the provisions of the Law regulating aviation matters.
Order of Priority of Entry
Article 141
(1) The legal act of entering the aircraft in the Aircraft Register depends on the order of priority for entry.
(2) The important moment for the order of priority of entry is the moment when the request for entry arrived to the state administration authority responsible for maintaining the Aircraft Register.
Manner of Obtaining Real Rights by the Aircraft
Article 142
(1) A person may obtain the ownership rights and all other real rights of the aircraft gained on the basis of a legal act by entering such right in the Aircraft Register.
(2) The rights referred to in paragraph (1) of this Article apply to third parties from the moment of entry in the Aircraft Register.
(3) The legal act referred to in paragraph (1) may be executed in writing, otherwise it shall not have any legal effect.(4) For the occurrence of a statutory right of pledge and the action arising for third parties, there is no need of entry in the Aircraft Register.
(5) The provisions of paragraphs (1), (2), (3) and (4) and (5) of this Article shall also apply to aircraft under construction.
When a Legal act in Writing is not Required
Article 143
The provisions of Article 142 paragraph (3) of this Law do not apply to:
1) aircraft rights gained by inheritance or by public auction or
2) transfer of the aircraft ownership rights to the insurer on the basis of the aviation insurance provisions.
CHAPTER II
AIRCRAFT OWNERSHIP RIGHTS
Scope of Ownership Rights of an Aircraft Under Construction
Article 144
(1) The ownership rights of an aircraft under construction also cover the goods incorporated in the aircraft under construction.
(2) If nothing else has been entered in the Aircraft Register, the ownership rights of the aircraft under construction also cover the goods found in the factories and the workshops, but not incorporated in the aircraft, if by their production they are intended exclusively for integration in a certain aircraft or to its belongings, or if it has been marked and separated in a visible manner for integration in the aircraft.
Belongings of the Aircraft
Article 145
(1) The belongings of the aircraft are all of the goods which are permanently intended for the aircraft, regardless of whether they are incorporated in the aircraft or a temporarily separated from it.
(2) The transfer of aircraft ownership rights also covers its belongings.
(3) The aircraft ownership rights do not cover such belonging which in accordance with the aircraft owner has been entered in the Aircraft Register that it belongs to another person.
Entry of Aircraft Lease Contract in the Aircraft Register
Article 146
(1) The right for temporary use right shall be entered in the Aircraft Register on the basis of a lease contract.
(2) By way of derogation of paragraph (1), the right for temporary use right shall be entered in the Aircraft Register on the basis of a lease contract.
(3) If the owner transfers the ownership rights to another person by way of a legal act, the right to lease of the aircraft shall not cease if the lease period has not expired and if the renal right has been entered in the Aircraft Register.
Right of Priority of the Lessee
Article 147
The lessee whose lease right has been entered in the Aircraft Register has the priority rights for purchase during the lease period.
Co-ownership
Article 148
(1) An aircraft and an aircraft under construction may be co-owned, wherefore the co-ownership is divided into parts.
(2) Provided that the co-owners have not agreed otherwise, the co-ownership shall be divided into equal ideal parts.
(3) The co-owner may, pursuant to the provisions of this Law, renounce or burden his/her part of the aircraft.
(4) Should one of the co-owners renounce his/her part of the aircraft, the remaining co- owners shall have priority rights, if such rights are entered in the Aircraft Register.
CHAPTER III
CONTRACTUAL RIGHT OF PLEDGE (MORTGAGE) OF AIRCRAFT
Definition of Contractual Right of Pledge (mortgage) of Aircraft
Article 149
(1) A contractual right of pledge (mortgage) on an aircraft is the right upon which the mortgage creditor is authorised to settle by the sales prices of the aircraft realised by the sale by an authorised authority, if the claim secured by a mortgage is not settled upon arrival.
(2) The mortgage contract may also contain the right to the mortgage creditor in case of a debt to be paid, to settle his/her arrived unsettled claim by using the aircraft and the authorisation of the mortgage creditor to enter such a right in the Aircraft Register as a burden of the aircraft to the debtor, if such is stipulated in the contract.
(3) The mortgage contract must be concluded in writing, otherwise it shall not be legally binding.
(4) The legal right to pledge on the aircraft has priority of settlement before the mortgage of the aircraft.
(5) The mortgage on the aircraft shall not extinguish in case of change of ownership of the aircraft, unless otherwise determined in this Law.
(6) The mortgage on the aircraft is obtained on the basis of a contract or a court ruling adopted in a procedure for forced collateralisation of claims. The provisions of the specific Law regulating the court procedure for collateralisation of financial claims shall determine the assumptions under which the court may adopt a ruling for establishing a mortgage on the aircraft.
Effect of the Mortgage on the Aircraft
Article 150
(1) Aircraft mortgage also applies to the belongings of the aircraft, except in the cases when ownership rights of the belongings have been entered in the Aircraft Register to another person who is not the owner of the aircraft.
(2) Mortgage of the aircraft to the benefit of the principal of the debt also exists for three year contractual or legal interest received by the date of initiation of the procedure for forced repossession, the interest received during such a procedure, as well as the costs for entry of the mortgage, court case and the forced repossession procedure.
(3) The mortgage of the aircraft does not apply to the transportation fee, the fee for special services withthe aircraft and the lease fee, as well as the reward for the performed tracing of the aircraft or its recovery, except if not stipulated otherwise by a mortgage contract .
Mortgage for Compensation from the Insurance of the Aircraft
Article 151
(1) If not stipulated otherwise, the mortgage of the aircraft also applies to the compensation from the insurance of the aircraft which belongs to the aircraft owner.
(2) The mortgage of the insurance compensation shall cease if the insurer pays the compensation to the insured party before being notified by the mortgage creditor for the establishment of the mortgage.
(3) If the insurance company is notified about the mortgage contract on the aircraft, it may not pay the insurance compensation to the insured party without approval of the mortgage creditor.
Settlement of the Mortgage Creditor’s Claim Before Arrival of the Claim
Article 152
By way of derogation of Article 149 paragraph (1) of this Law, when the aircraft incurs such damages or its state is such that the mortgage does not provide sufficient guarantee for settlement of the claim, each mortgage creditor may request settlement of their claim even before it is due, if the debtor does not offer collateral in any other form for the incurred difference.
Permission for Withdrawal of the Aircraft from air Traffic
Article 153
(1) An aircraft burdened by a mortgage, cannot be permanently withdrawn from air traffic without prior express written consent by all the mortgage creditors whose rights are entered in the Aircraft Register.
(2) If all mortgage creditors have not provided the consent referred to paragraph (1) of this Article, the mortgage debtor shall have the right to request from the court that the aircraft be sold at a public auction.
Super Mortgage
Article 154
(1) A super mortgage may be established with an agreement upon a mortgage on an aircraft in favour of a third party.
(2) In the case referred to in paragraph (1) of this Article the mortgage debtor may pay his/her debt to the mortgage creditor, only if the super mortgage creditor provides written consent and if the amount that the mortgage debtor owes is deposited to the court.
(3) If the mortgage debtor does not proceed in the manner stipulated in paragraph (2) of this Article, the mortgage shall remain in force to the favour of the super mortgage creditor's claim.
Mortgage on the Ideal Part of the Co-Owner of the Aircraft
Article 155
With a view to establish a mortgage on the ideal part of the aircraft co-owner, the co-owners who possess the majority of the parts shall need to provide their consent.
Right of the Creditor on the Part of the Co-Owner
Article 156
(1) If more than half of the co-owned parts of the aircraft are burdened by the mortgage, themortgage creditor may request the entire aircraft to be sold, but the settlement of his/her claim may be performed in respect to the part of the sales price that belongs to the parts burdened by the mortgage.
(2) The provision referred to in paragraph (1) of this Article shall also apply to maintenance costs.
Mortgage of an aircraft under construction
Article 157
The provisions of this Law shall also appropriately apply on an aircraft under construction.
Termination of Mortgage
Article 158
The mortgage of the aircraft shall be terminated by:
1) deletion of the mortgage from the Aircraft Register and
2) sale of the aircraft under a bankruptcy procedure or a procedure for forced repossession.
When a Mortgage does not Terminate
Article 159
The mortgage on the aircraft and its order of priority acquired by the entry into the Aircraft Register shall not terminate with the deletion of the aircraft from the Register, if the deletion is performed because the aircraft has become permanently unusable, has disappeared or pulled out of service in air traffic for any other reasons.
Joint Mortgage
Article 160
(1) A mortgage may be registered inseparably for the same claim on two or more aircraft or aircraft under construction, or two or more mortgages (joint mortgage).
(2) In the case referred to in paragraph (1) of this Article, the mortgage creditor shall be authorised to request settlement of the entire claim from each aircraft covered by the mortgage.
Prenote of the Mortgage of the Aircraft
Article 161
(1) The mortgage entered in a foreign Aircraft Register on an aircraft which shall gain state proprietary of the Republic of Macedonia and which is indicated for deletion from the foreign register, shall be entered in the Macedonian Aircraft Register as a prenote of the mortgage, and the order of priority shall be recognised according to the time which was decisive for establishing its order of priority in the foreign register.
(2) The mortgage creditor referred to in paragraph (1) of this Article is obliged to justify its prenote within 60 days of the receipt of the notification for the entry of the prenote in the Aircraft Register.
CHAPTER IV
STATUTORY RIGHT OF PLEDGE OF THE AIRCRAFT
Claims for Which there is a Statutory Right of Pledge on an Aircraft
Article 162
Statutory right of pledge of the aircraft exists for:
(1) court expenses and expenses for the repossession officers incurred in common interest for all creditors during the repossession or collateralisation procedure with a view to keeping the aircraft or due to implementation of a forced sale;
(2) the claims concerning the payment of expenses due for the tracing of the aircraft or its recovery;
(3) the claims concerning extraordinary costs that are necessary for the preservation of the aircraft and
(4) the expenses that need to be paid to the airport authorities in relation to performed airport services, pursuant to the provisions of the Aviation Act.
Effect of the Statutory Right of Pledge
Article 163
(1) The statutory right of pledge of the aircraft also applies to the belongings of the aircraft, the transportation fees and the fees for specialised services that are owed by the passenger, the orderer of the transport or the orderer of the specialised service.
(2) The mortgage of the aircraft also applies to the compensation from the insurance of the aircraft which belongs to the aircraft owner.
(3) The statutory right of pledge of the aircraft in favour of the principal amount of the debt, also applies for three year contractual interest received before the beginning of the forced repossession procedure and the interests received during such a procedure.
Right of Priority
Article 164
(1) The claims secure by a statutory right of lien shall have the priority rights for the settlement in comparison to all other rights.
The priority of claim settlement secured by statutory right of lien
Article 165
(1) The claims secured by statutory right of lien shall be settled according to the order specified in Article 192 paragraph (1) of this Law.
(2) In regards to the claims which are referred in the same item of Article 162 paragraph (1) of this Law, the claim incurred later shall have priority over the earlier incurred claims, and in case of doubt it shall be considered that the claims had incurred at the same time, if the contrary is not proven.
(3) If the claims referred to in Article 162 paragraph (1) of this Law, which are specified in the same item, were incurred at the same time, and cannot completely be settled, they shall be settled in proportion.
The claims secured by statutory right of pledge from the last journey have priority over such claims from an earlier journey.
Order of Settlement of Claims for Compensation of Damages
Article 166
(1) In case of a force sale of the aircraft, the damages claims due to death, damage, damage to health or injury of persons on the ground shall be settled, as a rule, pursuant to the claims referred to in Article 162 paragraph (1) of this Law.
(2) If in the case referred to in paragraph (1) of this Law, the aircraft is burdened by a mortgage for securing a clam, the claim for compensation of damages shall be settled before the claims of the mortgage creditors, but 20% of the sale price at the most.The provisions of paragraphs (1) and (2) of this Article shall apply if the liability for such damages is insured to an amount which is lower than the value of such a new aircraft.
Termination of the Legal Right of Pledge
Article 167
(1) The statutory right of pledge of the aircraft shall cease by:
1) termination of the claims secured by the statutory right of pledge;
2) expiration of the three month period from the date when the claim was incurred;
3) forced sale of the aircraft in an executive or bankruptcy procedure and
4) voluntary sale, provided that:
5) the transfer of the aircraft ownership rights to has been entered in the Aircraft Register and such entry has been published in the “Official Gazette of the Republic of Macedonia” in a manner announcing the entry into the Trade Register, and to also have been published on the notice board in the court of first instance under whose jurisdiction the Aircraft Register of the Republic of Macedonia is maintained and in which the aircraft is registered, and the creditor having statutory right of pledge to not initiate court proceedings for settling his/her claims within 60 days from the publication of the transfer entry announcement but before the expiration of three months from the date when the claims were incurred.
(2) The period referred to in paragraph (2) item 2 of this Article related to the statutory right of pledge for securing claims concerning payment of costs that are due for tracing for the aircraft or its recovery and the claims concerning extraordinary costs that are necessary for preservation of the aircraft shall be calculated from the date when such act were performed.
When the Legal Right of Pledge does not Terminate
Article 168
1) The statutory right of pledge for the claims referred to in Article 167 paragraph (1) items 2 and 3 do not cease after the expiration of three month, provided that prior to the expiration of such period:
2) the claims are noted in the Aircraft Register in which the aircraft is entered;
3) the parties reach an agreement on the amount of the claims and
4) court proceedings are initiated on such claims, in which case the court shall determine whether justified reasons exist for the termination or postponement of the deadline.
Termination of the three month period
Article 169
(1) The three month period referred to in Article 167 paragraph (1) item 2 of this Law shall be terminated by filing a Lawsuit for the realisation of the claims, provided that the aircraft to be ground, pursuant with the provisions in this Chapter of this Law, or a note to be made in the Aircraft Register of the filed Lawsuit.
(2) When the ruling based on the filed Lawsuit which was subject the note referred to in paragraph 1 of this Article shall become enforceable, the statutory right of pledge shall cease within 60 days of the enforceability of the ruling if the creditor does not demand forced sale or cessation of the aircraft, i.e. to not have the statutory right of pledge to be entered in the Aircraft Register.
(3) The creditor has the right within the period referred in paragraph (2) of this Article to request from the court to have the claims from this statutory right of pledge entered as a mortgage with a right of priority according to the time when the note of the Lawsuit for realisation of the statutory right of pledge had been entered in the Aircraft Register.
Claims Transfer
Article 170
(1) The termination of the statutory right of pledge shall not imply termination of the claim with which such claims was secured.
(2) The abandonment of the claim secured by the statutory right of pledge shall also transfer the statutory right of pledge.
Unlawful Seizure of an Aircraft
Article 171
The provisions of this Law related to the statutory right of pledge of the aircraft shall apply even when the aircraft shall be used by a person who is not the aircraft owner, except if the aircraft had been seized from the owner by unlawful action, while the pledge creditor had known or should have known that the aircraft had been used by a person who had seized the aircraft by way of an unlawful action.
SECTION FOUR
PROCEDURE FOR REPOSSESSION AND SECURITY OVER THE AIRCRAFT
When may Forced Repossession and Security over the Aircraft be Permissible
Article 172
(1) Forced enforcement of a court ruling or any other decision equivalent to a court ruling which is attributed to the realisation of the obligation and securing the claim on the aircraft may be executed only if the aircraft is located in the territory of the Republic of Macedonia.
(2) Forced repossession and security may also allow on an aircraft which is not located in the territory of the Republic of Macedonia provided that it has been entered in the Aircraft Register of the Republic of Macedonia.
Exemption from Forced Repossession and Security
Article 173
(1)The following cannot be subject to forced repossession and security:
1) military, customs and police aircraft, as well as the aircraft for health purposes and fire fighting aircraft and
2) a foreign aircraft which pursuant to the regulations in force flies over the territory of the Republic of Macedonia or lands on an airport in the territory of the Republic of Macedonia due to force majeure or due to air traffic security reasons (aircraft in emergency procedure) during the span of the force majeure or the reasons for air traffic security, as well as when it lands at the order of a competent authority.
(2) The aircraft referred to in paragraph (1) item 2 of this Article may be subject to forced repossession or security if the procedure is being conducted due to repossession of security of a claim that had incurred during the fly over or the time spent by the aircraft in the territory of the Republic of Macedonia.
An Aircraft Necessary for the Performance of Trade Activity
Article 174
(1) An aircraft under the ownership of a debtor performing trade activities cannot be subject to forced repossession, if it is necessary for the performance of the aviation activity of the debtor.
(2) The aircraft referred to in paragraph (1) of this Article is not exempt from forcerepossession, if the debtor owning the aircraft had acquired the aircraft form a creditor or the legal predecessor thereof, who by filing for forced repossession demands settlement of his/her claim in relation to such acquisition.
(3) The aircraft referred to in paragraph (1) of this Article shall not be exempt from forced repossession, when such forced repossession is executed due to the realisation of a claim secured by a mortgage or statutory right of pledge of the aircraft.
(4) The aircraft referred to in paragraph (1) of this Article shall not be exempt from forced repossession even when the forced repossession due to settlement of one of the following claims:
1) due to damages caused on land due to death, damage to health or injury to people, which the aircraft had caused in flight for which forced repossession is implemented or which the persons in the aircraft had suffered during of use of such aircraft;
2) due to tracing and recovery, providing assistance or keeping of the aircraft;
3) due to a transport contract or any other contract for the use of the aircraft subject to forced repossession and
4) due to the supply, repair and equipping the aircraft subject to repossession
Interim Measure for Halting and Storage of an Aircraft
Article 175
(1) Temporary measure for haling and storage of an aircraft cannot be allowed during performance of regular line air traffic, nor during performance of temporary air traffic transport, if the aircraft is in a state immediately before take-off or is continuing an already started transport.
(2) By way of derogation of paragraph (1) of this Article, the haling and storage of an aircraft may be allowed if the procedure is conducted for realisation of a claim incurred in relation with the aircraft.
(3) The provisions of this Article shall also apply to foreign aircraft under the condition of mutuality.
Exemption from Halting and Storage of an Aircraft
Article 176
(1) If the interim measure is determined to secure a financial claim, the aircraft shall be exempt from halting and storage if collateral is provided to the amount of the claim for which halting is demanded, provided that such collateral can be disposable and transferable.
(2) In the case of claims for which the opposing party to the collateral may limit his/her liability, the amount of the collateral referred to in paragraph (1) of this Article does not have to be higher than the amount of the limited liability.
(3) When one of the courts in the Republic of Macedonia shall exempt an aircraft from halting on the basis of the provision of paragraph (1) of this Article, no other domestic court may allow halting of the given aircraft or any other aircraft for the same claim and for the same proposing party of the collateral, under the condition that the provided collateral may be at disposal and to be transferable to the benefit of the proposing party of the collateral.
Competence for the Repossession of an Aircraft and the Goods of an Aircraft
Article 177
(1) The forced repossession of the aircraft shall be carried out by a person who performs public authorisation stipulated by a special Law determining the rules according to which the forced enforcement of the court rulings (repossessor), on whose territory the aircraft subject to repossession is located.
(2) The forced repossession of goods which are on the aircraft due to transport shall be carried out by a person who performs public authorisation stipulated by a special Lawdetermining the rules according to which the forced enforcement of the court rulings (repossessor), on whose territory the aircraft subject to repossession is located during the time of submitting the request for forced repossession.
(3) The forced repossession of a foreign aircraft not entered in the Aircraft Register be carried out by a person who performs public authorisation stipulated by a special Law determining the rules according to which the forced enforcement of the court rulings (repossessor), on whose territory the aircraft subject to repossession is located during the time of submitting the request for forced repossession.
(4) If this Law contains no special provisions, the provisions of the special Law determining the rules according to the which the forced enforcement of the court rulings attributed to fulfilment of the obligation shall apply on the forced repossession of an aircraft.
Authority for the Security of an Aircraft and the Goods of an Aircraft
Article 178
(1) The court, on whose territory the Aircraft Register is maintain containing the entry of the aircraft, shall decide upon the proposal for the collateral of the aircraft and shall enforce the collateral.
(2) The enforcing the collateral of the aircraft shall be exclusively competent concerning the proposal for security of goods which due to transportation are on the aircraft subject to enforcement of the collateral.
(3) If this Law contains no special provisions, the provisions of the Law regulating the rules according to which the court is proceeding in relation the security of the claims shall apply on the collateral of the aircraft or the goods which due to transportation are on the aircraft subject to enforcement of the collateral.
SECTION FIVE
CONFLICT OF LAWS
Application of the Provisions of this Law on Relations Arising in International Air Traffic
Article 179
The provisions of this Law on the contracts for transport of passengers, baggage, goods, postal parcels and for carrying out specialised services with an aircraft shall also apply on the relations arising in international air traffic, if not otherwise specified by an international agreement.
Exclusion of Reciprocity
Article 180
If according to the provisions of this Law, the Law of another country should be used, the rules of such Law for the resolution of the conflict of the Laws.
Exclusion of application of this Law and binding application of this Law
Article 181
(1) The provisions of this Law concerning contracts for aircraft transport, shall not apply if the parties have concluded a written contract for the application of the Law of a foreign country.
(2) Independent of the provision of paragraph (1) of this Law and the provisions of this or any other
Law regulating conflict of Laws in the area of contracts, the provisions of this Law shall mandatorily apply on contracts on use of aircraft, if:
1) both contractual parties – the transport orderer and the air carrier - are natural persons with residence in the Republic of Macedonia or legal entities with a registered seat in the Republic of Macedonia, whereas the airport of departure or destination is located in the Republic of Macedonia;
2) the application of the Law of the foreign country violates the mandatory provisions of this Law, which in agreement with the parties may be waived or changed, whereas the airport of departure or destination is located in the Republic of Macedonia, and
3) by the application of the Law of a foreign country the passenger would be placed in a less favourable state in comparison to the application of the provisions of this Law.
(3) A contract concluded in violation of the provisions referred to in paragraph (2) of this Article shall have no legal effect.
Application of the Law which is in Closest Relation
Article 182
(1) If the Law which the contractual parties have agreed to apply cannot be applied in the entire contract, or on some of the relations arising from the contract, or if the parties have not exclusively expressed the Law which shall apply, while their intention for application of a certain Law cannot be clearly determined either by the circumstances of the case, the contract or the contract relationship, the Law which is the most closely related to it shall apply.
(2) The incidental rights and the incidental obligations, such as the manner of receiving and handover of the goods or the manner of payment of the transportation fees, etc., how the Law applies the closest to the place where the actions were performed, i.e. where they were supposed to be performed.
Determining the Applicable Law for the Insurance in Air Traffic
Article 183
(1) The Law of the country where the insurer is based shall apply on the air traffic insurance contract and the relations arising thereof provided that:
1) the parties have not expressly the Law that shall be applicable to the contract, and from the circumstances of the case one cannot determine their intention relating to the application of the determined Law and
2) the Law whose application the parties agreed to cannot apply to part of the air traffic insurance contract or to a certain relation arising from such contract, or only to such part of the contract, i.e. the legal relationship arising from the contract.
(2) By way of derogation of paragraph (1) of this Law, the relations arising from the air traffic insurance contract shall be subject to the Law of the Republic of Macedonia, if all parties concerned in the contract are citizens of the Republic of Macedonia, with residence in the Republic of Macedonia or a legal entities registered in the Republic of Macedonia with a seat in the Republic of Macedonia and the contract concerns insured items subject to covered risks exclusively to the territory of the Republic of Macedonia.
Establishing of the Applicable Law for the Form of the Contract
Article 184
The contract and any other legal action performed in the fulfilment of the contract shall be fully effective in regards to the form if it has been concluded, i.e. executed in the form which prescribes the Law of the country in which the contract was concluded, i.e. the legal action performed, or pursuant to the Law assessing the main rights and main obligations of the contract.
Establishing the Applicable Law for the Real Rights of the Aircraft
Article 185
The Law of the country in which the aircraft is registered shall apply in regards to the right of ownership and other real rights of the aircraft.
Establishing the Applicable Law on the Liability for the Damage which an Aircraft has Caused on the Ground During Flight
Article 186
The Law of the state in whose territory the damage was caused shall be applicable to the liability for the damage referred to in Article 107 of this Law.
Application of Other Rules for Establishing the Applicable Law
Article 187
If this Law contains no provision on the Law which is applicable for a certain relation, the general regulations governing international private Law and the legal order principles of the Republic of Macedonia.
Exclusion of Application of Foreign Law
Article 188
(1) The provisions of the foreign country’s Law shall not apply if the consequences of their application would be in violation of the public order of the Republic of Macedonia.
(2) The foreign Law which would be applicable pursuant to the provisions of this Law shall not apply if the applicability of the Law was made possible by contravention of the provisions of the Law of the Republic of Macedonia.
SECTION SIX
INSPECTION SUPERVISION
Inspection Supervision
Article 189
(1) The Civil Aviation Agency shall perform inspection supervision on the implementation of the obligation of the air carrier or the contractual air carrier on:
1) ensuring damages compensation and assistance to the passengers in the case of flight cancellations, refusing entry of a passenger in the aircraft and in the case of a long of the flight, in a manner envisaged with the provisions of Regulations (EC) 261/2004;
2) conclusion of an insurance contract on liability for damages cause to the passengers, baggage, goods and towards third parties, pursuant to the Law governing the mandatory traffic insurance and Regulation (EC) 785/2004 and
3) Informing the passengers about the identity of the true air carrier pursuant to Regulation (EC) 2111/2005 on the establishment of a Community list of air carriers subject to an operating ban within the Community and on informing air transport passengers of the identity of the operating air carrier.
(2) The inspection supervision referred to in paragraph (1) of this Law shall be implemented pursuant to the provisions of the Aviation Act.
SECTION SEVEN
OFFENCE PROVISIONS
Offence Provisions
Article 190
(1) A fine to the amount of 3,000 to 5,000 Euros in denars equivalent value shall be imposed for an offence committed by a legal entity, which is:
1) a air carrier, but who has not ensured damages compensation and assistance to the passengers in the case of flight cancellations, refusing entry of a passenger in the aircraft and in the case of a long of the flight, in a manner envisaged with the provisions of Regulations (EC) 261/2004;
2) a air carrier which has not concluded an insurance contract on liability for damages cause to the passengers, baggage, goods and towards third parties, pursuant to the Law governing the mandatory traffic insurance and Regulation (EC) 785/2004 and
3) a contracted air carrier, but has not informed the passengers about the identity of the true air carrier pursuant to Regulation (EC) 2111/2005 on the establishment of a Community list of air air carriers subject to an operating ban within the Community and on informing air transport passengers of the identity of the operating air air carrier.
(2) A fine to the amount of 1,000 to 2,000 Euros in denars equivalent value shall also be imposed to the responsible person in a legal entity for the offence referred to in paragraph (1) of this Article.
Mediation
Article 191
(1) For the offences referred to in Article 190 of this Law, the authorised inspector may propose to the offender mediation and reaching agreement whereby the offender shall pay the fine, the other duties and eliminated the consequences of the offence.
(2) The inspector referred to in paragraph (1) of this Article shall make a report on the offence establishing the contract of the two parties for initiation of a mediation procedure which shall signed by the offender.
(3) The mediation procedure shall be initiated by delivery of the report referred to in paragraph (2) of this Article to the Mediation Commission, which the inspector is obliged to deliver within three days from the day of its composition and writing.
(4) The mediation procedure shall be conducted before the Mediation Commission created by the Director of the Civil Aviation Agency.
(5) The Commission shall consist of three members of which one shall be in the capacity of President. The Commission members shall be selected from within the employees of the Agency, of whom one shall be a graduated Lawyer.
(6) The Commission President is obliged to begin the procedure within 24 hours of the data of the report’s delivery.
(7) The Commission shall work during sessions with mandatory presence of representatives of the offender and the aviation inspector.
(8) A Contract shall be concluded with the offender on the reached consent during the mediation procedure.
(9) The Contract referred to in paragraph 8 of this Article shall regulate the obligation of the offender, especially:
(10) In the cases when consent was reached during the mediation procedure, the fine of the offender for the perpetrated offence may be reduced by at least one half of the maximum prescribed fine for the offence.
(11) The Director of the Civil Aviation Agency shall adopt a Rules of Procedure and schedule of costs for the work of the Commission.
(12) For their work, the members of the Mediation Commission shall have the right to a reward which need to be reasonable and appropriate to the significance, scope and complexity of the offences.
(13) The amount and type of the costs stipulated in the schedule of costs referred to in paragraph shall be determined depending on the real costs that the authority has that are needed for ensuring the work of the Mediation Commission.
(14) The Mediation Commission is obligated to keep records of the conducted mediation procedures and of their outcomes.
(15) The contract referred to in paragraph (8) of this Article shall have the legal effect of an executive document.
(16) If the mediation procedure does not succeed, a request shall be filed for initiation of an offence procedure before the competent court.
SECTION EIGHT
TRANSITIONAL AND FINAL PROVISIONS
Application of This Law
Article 192
The relations arising before the entry into force of this Law shall be subject to the applicability of the regulations that were in force before such relation arose.
Termination of Applicability of Other Regulations
Article 193
The validity of the Law on Contractual and Real Right Relations in respect of Aviation Transport ("Official Gazette of the SFRY“ no 22/77 and 12/85) shall cease on the day of application of this Law.
European Union Regulations
Article 194
The Secretariat for European Affairs of the Government of the Republic of Macedonia shall translate and publish in the Official Gazette of the Republic of Macedonia the European Regulations upon which this Law refers to, within six months from the date that this Law entered into force.
Entry Into Force
Article 195
This Law shall enter into force on the eighth day after its publication in the Official Gazette of the Republic of Macedonia” and its application shall commence upon expiration of six months from the date of its entry into force.
(Acts whose publication is obligatory)
REGULATION (EC) No 261/2004 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 11 February 2004 establishing common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights, and repealing Regulation (EEC) No 295/91
(Text with EEA relevance)
REGULATION (EC) No 785/2004 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 21 April 2004 on insurance requirements for air carriers and aircraft operators
COUNCIL REGULATION (EC) No 2027/97 of y October 1997 on air carrier liability in the event of accidents
(Acts whose publication is obligatory)
COUNCIL REGULATION (EEC) No 2299/89 of 24 July 1989
REGULATION(EC)No2111/2005OFTHEEUROPEANPARLIAMENTANDOFTHECOUNCIL of14December2005 on the establishment of a Community list of air carriers subject to an operating ban within the Community and on informing air transport passengers of the identity of the operating air carrier, and repealing Article9 of Directive 2004/36/EC
COUNCIL REGULATION (EEC) No 2409/92 of 23 July 1992 on fares and rates for air services
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