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CIVIL AVIATION ACT

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					                                 CIVIL AVIATION ACT
  Denomination of July 5, 1999, Promulgated Official State Gazette Issue No. 94 of December 1,
 1972; Amended, SG 30/1990, SG 16/1997; Amended and supplemented, SG 85/1998; Amended,
SG 12/2000; Amended and supplemented, SG 34/2001; Amended and supplemented, SG 52/2004;
       Amended and supplemented, SG 37/2006; Amended and supplemented, SG 10/2007


                                             Chapter One

                                      GENERAL PROVISIONS

                                               Article 1
                                        (Amended, SG 85/1998)
This Act shall govern all public relations pertaining to civil air navigation in the Republic of
Bulgaria as well as to ensuring its safety and security.
                                                 Article 2
                               (Amended and supplemented, SG 85/1998)
(1) The Republic of Bulgaria shall have complete, exclusive and irrevocable sovereignty over the
     airspace above its territory, inclusive of its inland and territorial waters.
(2) (Amended and supplemented, SG 85/1998) The Council of Ministers shall designate the
     airspace zones wherein aerial navigation may be restricted.
                                              Article 2a
                                         (New, SG 85/1998)
(1) (Amended, SG 34/2001; Amended and supplemented, SG 37/2006) The organization and
     supervision of the usage of civil airspace, as well as the management and air traffic control over
     the civil airspace of the Republic of Bulgaria shall be governed by such terms and procedures
     as laid down by the Minister of Transport and Communications.
(2) (Amended, SG 34/2001; Amended and supplemented, SG 37/2006) The Minister of Transport
     and Communications, in coordination with the Minister of Defense, shall stipulate the terms
     and procedures of introducing a unified system of civil and military airspace control, as well as
     its rules of operation.
(3) (Amended, 34/2001) The Minister of Transport and Communications and the Minister of
     Defence shall stipulate the rules and procedures for using the airspace in a state of transition to
     military air and air-traffic control in the event of increasing levels of an emergency.
                                             Article 3
                                       (Amended, SG 85/1998)
(1) Civil aerial navigation shall be any flying performed by civil aircraft and intended for:
     1. Carriage of passengers, baggage, cargo and mail by air;
     2. Providing services to agriculture, forestry and other sectors of economy;
     3. Geological and geographic exploration and other scientific research;
     4. Giving emergency medical attention;
     5. Cultural and educational purposes, aerial photography and advertising;
     6. Fire-fighting, flood-control, response to other calamities;
     7. Flight training, sports, etc.
(2) Civil aircraft shall be all non-governmental planes.

                                            Article 4
                                  (Amended, SG 85/1998)
Applicable on board every aircraft registered in the Republic of Bulgaria shall be the laws of
Bulgaria, unless otherwise provided in an international agreement that has been ratified,
promulgated and put in force.
                                               Article 5
                                         (Amended, SG 85/1998)
(1) Every aircraft engaged in civil navigation shall be registered under this Act.
(2) Every aircraft entered in the Republic of Bulgaria's Civil Aircraft Register shall bear the
     distinctive nationality and registration marks of the Republic of Bulgaria.
(3) Civil aircraft used for sanitary purposes shall additionally bear the Red Cross emblem.
(4) (Amended, SG 52/2004) The Minister of Transport and Communications shall issue an order for
     the order of determination and application of the registration marks.
                                               Article 6
                                       (Amended, SG 85/1998)
(1) (Amended, SG 34/2001) Bulgarian airline operators shall be required to perform air services
     both domestically and abroad under commercial contracts, and in the absence of such contracts
     — under such terms and procedures as stipulated in a regulation enacted by the Minister of
     Transport and Communications.
(2) (Amended, SG 34/2001) Foreign airline operators shall be granted the privilege of operating air
     services in this country pursuant to an international agreement whereto the Republic of
     Bulgaria is a contracting party, and in the absence of such agreement — under such terms and
     procedures as stipulated in a regulation enacted by the Minister of Transport and
     Communications.
                                               Article 7

(1) (Amended, SG 85/1998) International air carriage of passengers, baggage, cargo and mail on a
scheduled service basis shall be performed by Bulgarian and international airline operators (air
carriers) in compliance with such international agreements to which the Republic of Bulgaria is a
signatory.

(2) (New, SG 52/2004) The appointment of a Bulgarian air carrier shall be performed under
bilateral or multilateral international contracts.

(3) (New, SG 52/2004) Monopoly market position shall not be allowed to an air carrier on a regular
air transportation route, unless otherwise provided by an international contract to which Bulgaria is
a party. When in an international contract there are limitations for the number of Bulgarian air
carriers, for the frequencies of operation of the route, or for the capacity offered, the choice shall be
performed by the Minister of Transport and Communications based on a competition or through
assignment when only one candidate has appeared for participation in the competition for a given
route.
                                                Article 8
                                        (Amended, SG 85/1998)
(1) (Amended, SG 34/2001) The Minister of Transport and Communications shall be vested with
     the administration and supervision of civil air navigation, civil aircraft and aeronautical
     facilities within the Republic of Bulgaria.
(2) (Amended, SG 2001) The Minister of Transport and Communications shall discharge his
     functions under paragraph (1) through the Civil Aviation Administration. The Civil Aviation
     Administration shall be a juristic person budgeted by the Ministry of Transport and
     Communications and domiciled in the city of Sofia.
(3) (Amended, SG 34/2001) The Minister of Transport and Communications shall enact Rules and
     Regulations prescribing the structure, tasks and functions of the Civil Aviation Administration.
                                              Article 9
                                       (Rescinded, SG 30/1990)
                                               Article 10
 (1) (Amended, SG 52/2004) Aircraft can be leased out based on a written contract in the country or
     abroad with or without a crew.
(2) (Amended, SG 52/2004) A Bulgarian lessor or leaseholder can enter into a contract for the lease
     of an aircraft with or without crew (respectively wet or dry lease) after a preliminary written
     approval by the Director of the Civil Aviation Administration or by an official legally
     authorized by him.
(3) (Amended, SG 52/2004) When a Bulgarian airline operator is a party in a contract for the lease
     of an aircraft for a period exceeding thirty (30) days, the lease contract shall be recorded in the
     Civil Aircraft Register of the Republic of Bulgaria.
(4) (New, SG 52/2004) When a Bulgarian airline operator provides to a foreign airline operator an
     aircraft under a dry lease contract, and signing out of the aircraft from the Civil Aircraft
     Register of the Republic of Bulgaria is not stipulated, the approval under Par. 2 shall be given
     in the condition that:

1. the country of the airline operator has ratified in the appropriate order the Protocol for
    Amendment of the International Civil Aviation Convention, signed in Montreal on 6 October
    1980 regarding Art. 83 bis;
2. the aviation administration of the country of the airline operator signs an agreement for the
    undertaking of all or part of the functions and obligations of the state of registration with regard
    to the aircraft.

(5) (New, SG 52/2004) The application for a preliminary approval under Par. 2 shall be made by the
     Bulgarian aircraft operator to the Director of the Civil Aviation Administration and shall
     contain:

1. name and address of the lessor and the leaseholder;
2. type of lease;
3. reason and purpose of the lease;
4. beginning date and term of the lease contract;
5. type and registration marks of the aircraft;
6. country of registration of the aircraft;
7. name of the Bulgarian aircraft operator under whose aircraft operator license the aircraft is going
     to be operated, respectively a copy of the aircraft operator license or another equivalent
     document of the foreign aircraft operator;
8. name of the aircraft operator or of the entity under whose commercial control and commercial
     rights the aircraft is going to be operated;
9. detailed description of the planned activity, including regular or irregular air services,
     transportation of passengers, transportation of cargo, region of operation, destinations and
     airports;
10. base airport and the names of the person or persons who realize the technical maintenance and
     the repair of the aircraft.

(6) (New, SG 52/2004) A copy of the draft lease contract shall be attached to the application under
     Par. 5.

(7) (New, SG 52/2004) The approval shall be given for the term of validity of the lease contract
    except for the cases when the aircraft is being operated under a wet lease contract. In these
    cases the approval shall be given for a term of up to 6 months.
(8) (New, SG 52/2004) The Director of the Civil Aviation Administration shall review the
     submitted applications within 10 days from the date of their entry, and in the cases under Par. 4
     - within 20 days. If necessary, a term for the elimination of non-compatibilities or non-
     comprehensiveness may be given.
(9) (New, SG 52/2004) The Director of the Civil Aviation Administration shall notify the applicant
     in writing about his decision and shall motivate it.
(10) (New, SG 52/2004) All conditions connected with the provision of safe operation of the
     aircraft, which are part of the approval under Par. 2, shall be necessarily reflected in the lease
     contract.
(11) (New, SG 52/2004) The refusal for issuance of approval is subject to an appeal in the order of
     the Administrative Procedures Act.
(12) (New, SG 37/2006) Bulgarian air operators may wet lease an aircraft for up to 30 days without
     the preliminary written approval of the director of the Directorate General Civil Aviation
     Administration given that:
1. the lessor holds a valid air operator license or an equivalent document issued by a member state
     of the International Civil Aviation Convention;
2. the lessee notifies in writing the Directorate General Civil Aviation Administration of the lease
     within 14 days.

(13) (New, SG 52/2004; Previously art. 12, SG 37/2006) The Minister of Transport and
    Communications shall issue an order for the application of Art. 83 bis of the Protocol for
    Amendment of the International Civil Aviation Convention, signed in Montreal on 6 October
    1980 for the requirements for entering into a contract for the lease of an aircraft.
                                                Article 11
                                         (Amended, SG 85/1998)
(1) Passengers, crews, baggage, cargo, mail and consignments shall be subject to inspection with a
     view to ensuring security and safety of flight.
(2) (Amended, SG 34/2001) The Minister of Transport and Communications, the Minister of Home
     Affairs and the Minister of Finance shall lay down in a regulation the terms and procedures for
     ensuring the security of civil air navigation.
                                              Article 12
                                       (Amended, SG 85/1998)
This Act's provisions shall be applicable to:
    a) Bulgarian civil air navigation, as well as to foreign civil flying in all cases stipulated by law;
    b) (Amended and supplemented, SG 85/1998) any and all aircraft recorded in the Republic of
       Bulgaria's State Register, inclusive of the time while outside national territory, as well as to
       sports and training aircraft;
    c) governmental aircraft when flying under the control and guidance of civil air-traffic
       controllers.
                                                 Article 13
Property rights in aircraft shall be settled in accordance with the laws of the state in which an
aircraft is registered.
                                            Article 14
                                      (Amended, SG 85/1998)
The form and the validity terms of any deed embodying transfer of title to an aircraft shall be
governed by the laws of the country where such deed is executed.
                                             Article 15
Fees for assistance (service) rendered by and to an aircraft shall be stipulated by the law of the
assisting aircraft's state of registry.
                                             Article 16
                            (Amended, SG 85/1998, Amended SG 34/2001))
All physical and juridical persons engaged in civil aircraft operation, airport administration, or civil
air traffic control shall be required to submit to the Ministry of Transport and Communications an
updated statistics about their operations under such terms and procedures as laid down by the
Minster of Transport and Communications.
                                                Article 16a
                               (New, SG 85/1998; Amended, SG 52/2004)
The Minister of Transport and Communications shall direct and control the civil aviation by:
    1. organizing the Republic of Bulgaria's participation in all international civil aviation
       organizations of which this country is a member;
    2. organizing and coordinating the use of airspace for the purposes of civil flying;
    3. (Amended, SG 52/2004) coordinating the issuance of permits for the building of air
       transportation infrastructure sites;
    4. (Abolished, SG 52/2004);
    5. implementing and further elaborate a National Program for the Security of Civil Aviation;
    6. establishing norms, rules and procedures in the field of civil aviation, inclusive of the terms
       and procedures for the carriage of dangerous freight;
    7. (Amended, SG 52/2004) determining with orders the requirements and order for the
       issuance, amendment, limitation, termination, and suspension of certificates, approvals,
       permits, and licenses under this law;
    8. laying down the terms of keeping the appropriate registers and maintaining a data base on all
       certified facilities, installations and persons;
    9. supervising the administration of airports open to public use not ceded to concessionaires;
   10. (Amended, SG 52/2004; Amended, SG 37/2006) issuing an order for the general rules of
      passenger reimbursement and assistance upon refusal by an air carrier to admit them onboard
      the aircraft and upon flight cancelation or delay;
   11. (Amended, SG 52/2004) establishing through orders the requirements regarding the tariffs
      for regular and charter air transportation, as well as the general rules for the introduction and
      usage of computerized reservation systems;
   12. exercising such other powers as stipulated by law or in an international agreement to which
      the Republic of Bulgaria is a signatory;
   13. (New, SG 52/2004) endorsing the investment programs of the legal entities using resources
      from the fees under Art. 120;
   14. (New, SG 52/2004) issuing an order for the working hours of the aviation staff holding
      qualification licenses.
   15. (New, SG 37/2006) issuing regulations for the implementation of the air traffic control
      safety requirements of the European Organization for the Safety of Air Navigation
      (Eurocontrol).
   16. (New, SG 10/2007) issuing a regulation on ramp inspection rules for third party aircraft
      taking off and landing from and to airports on the territory of the Republic of Bulgaria;
   17. (New, SG 10/2007) issuing a regulation on the rules and procedures for implementing noise-
      related operating limits at civil airports for public use.
                                             Article 16b
                                         (New, SG 52/2004)
   (1) The Civil Aviation Administration performs state regulatory and control functions for the
       insurance of safety and security of aviation by:
   1. performing the functions of a civil aviation administration in correspondence with the
    international contracts in the sphere of civil aviation to which Bulgaria is a party;
2. controlling civil aviation, civil airports and flight platforms, civil aircraft, air navigation and
    other devices connected with civil aviation on the territory of the country regardless of their
    ownership;
3. controlling the observance of this law and the sub-law normative acts by issuing obligatory
    guidelines in the cases stipulated by law;
4. controlling the actions of physical and legal bodies in connection with the security and safety
    of civil aviation;
5. maintaining the registers stipulated by law;
6. coordinating the structural schemes and plans, including airport terrains, and the investment
    projects for the building of object in the region of the airports and their vicinity in the scope
    of the zones on sufferance determined by norm and the influence zones, as well as of the
    airways in connection with the insurance of security and safety of aviation;
7. investigating aircraft incidents in the country or ordering the investigation to be performed by
    the air carrier, the airline operator, the airport administration, or the air traffic management
    related to the incident; after completion of the investigation, notifying about the results the
    specialized unit under Art. 16d;
8. suggesting the issuance of sub-law acts in the sphere of civil aviation by the Minister of
    Transport and Communications;
9. realizing the coordination between the administration and the legal entities in the sphere of
    aviation in connection with the security and safety of flights;
10. controlling the provision of security at the security zones of civil airports;
11. maintaining a unified database and issuing identification cards and passes to physical and
    legal entities, as well as to motor vehicles for access to the security zones of civil airports for
    public use;
12. controlling the application of the requirements for simplification of the procedures in
    passenger service, the processing and service of aircraft, luggage, cargo, and mail;
13. controlling the performance by legal entities of the functions assumed as an obligation by
    the country under international contracts and in correspondence with the existing standards,
    rules, and categories for securing aviation;
14. ordering the detention of aircraft takeoff in the cases stipulated by law;
15. organizing the collection, the update maintenance and the provision of specialized data for
    the objects under Art. 32, Par. 1, Item 1 of the Law of Cadaster and Property Register, and
    the creation of specialized maps, registers and information databases;
16. collecting fees in the cases stipulated by law;
17. performing other functions stipulated by law.
(2) The control functions of the Civil Aviation Administration shall be realized by aviation
    inspectors appointed by the order of the Director of the Civil Aviation Administration.
(3) The inspectors shall have the right to:
1. a free access to the entities and objects controlled by them, for the performance of aviation
    security and safety checkups;
2. require the necessary data, evidence, explanations, operative and other information from the
    respective officials, including for the qualification of personnel, as well as any other
    information connected with the observance of legislation in the sphere of civil aviation;
3. draw up statements for administrative violations under this law;
4. give obligatory written guidelines for the insurance of observance of normative acts in the
    sphere of aviation and guaranteeing of the security and safety of civil aviation, by which they
    shall prescribe the removal within a determined time period of any established violations
    connected with the safety of flights;
5. make suggestions for ceisure, termination, suspension and limitation of the rights under the
    issued licenses, permits, certificates, and approvals.
(4) For the results from the checkup, the inspectors prepare an establishing protocol to which
      they attach the collected evidence. The protocol shall be presented to the entity being
      checked which has the right to give explanations and objections within 7 days from its
      presentation.
   (5) Based on the results from the checkups, the Director of the Civil Aviation Administration
      shall enforce administrative punishments or enforcing administrative measures, or shall
      terminate. cease, suspend or limit the rights originating from the issued licenses, permissions,
      certificates and approvals.

                                            Article 16c
                                         (New, SG 37/2006)

(1) The Directorate General Civil Aviation Administration is a national control authority with
regard to the safe and effective operation of air navigation services providers. In performing its
functions, the national authority shall be independent from the air navigation services providers.

(2) The Directorate General Civil Aviation Administration shall issue air navigation service licenses
to air navigation service providers.

(3) The Minister of Transport shall issue a regulation stipulating:

1. the terms and procedures for issuing and revoking air navigation service licenses and the
requirements for license applicants;

2. the way of organizing and carrying out requirements compliance inspections of air navigation
service license applicants or holders;

3. the terms and procedures under which the inspections under item 2 may be performed by other
organizations approved by the Directorate General Civil Aviation Administration and the Minster
of Transport, the requirements for these organizations, as well as the terms and procedures for
withdrawing the assignment of the inspections.

(4) (*) In airspace functional blocks encompassing the airspace of the Republic of Bulgaria and that
of a European Union member state or states, the Republic of Bulgaria may conclude an agreement
with the European Union member state for the performance of control by the national control
authority under par. 1 over providers of air navigation services in the functional block airspace.

(5) (*) The Republic of Bulgaria may conclude an agreement with a European Union member state
for the performance of control by the national control authority under par. 1 with regard to the safe
and effective operation of an air navigation services provider whose main place of activity is on the
territory of the European Union member state.

(6) (*) The national control authority under par. 1 shall cooperate with the national control
authorities of other European Union member states for the observation of the requirements for
issuance of air navigation service licenses and for ensuring the necessary control over the safe and
effective operation of air navigation service providers holding licenses issued by European Union
member states and providing air navigation services in the controlled airspace of the Republic of
Bulgaria.

                                             Article 16d
                       (New, SG 52/2004; Previously Art. 16c, SG 37/2006)
   (1) The applications for the issuance of licenses, permissions, certificates, or approvals shall be
      submitted at the Civil Aviation Administration and shall be reviewed within 30 days.
   (2) When the applicant corresponds to the requirements, the Director of the Civil Aviation
    Administration shall issue the corresponding act within 10 days after the expiration of the
    term under Par. 1.
(3) Director of the Civil Aviation Administration may authorize officials for the issuance or
    suspension of permissions, certificates, or approvals.
(4) The rights under the acts under Par. 1 shall not be subject to transfer or assignment.
(5) Upon established violations of the requirements for security and safety and of the other
    obligations stipulated by law, by the entity to which an act has been issued under Par. 1, as an
    enforcing administrative measure, the Director of the Civil Aviation Administration or the
    official authorized by him shall:
1. limit the rights under the issued act until removal of the violation and performance of the
    given obligatory guidelines if the performance of the limited activity would not endanger the
    security and safety of aviation and would not create a danger for occurrence of harm or
    threatening of the life and health of people;
2. suspend temporarily the rights under the issued act until removal of the violation and
    performance of the given obligatory guidelines if the performance of the activity would
    endanger the security and safety of aviation and would create a danger for occurrence of
    harm or threatening of the life and health of people;
(6) The rights originating from the acts issued under Par. 1 shall be suspended:
1. upon suspension of the act by decision of the Director of the Civil Aviation Administration or
    by decision of the official authorized by him for the acts under Par. 3:
a) when the entity or the object for which they have been issued ceases to correspond to the
    requirements for their issuance;
b) when the act has been issued based on untrue documents or on documents with untrue
    contents;
c) upon violation of the law or of the sub-law acts connected with the issuance of the act, and
    nonperformance of the given obligatory guidelines in the specified time period;
2. upon declaration by the owner;
3. upon termination of the activity of the entity.
(7) The explicit or implicit refusal for the issuance of the acts under Par. 1, as well as of their
    limitation, termination of operation or suspension shall be subject to an appeal in the order of
    the Administrative Procedures Act.

                                           Article 16e
                      (New, SG 52/2004; Previously Art. 16d, SG 37/2006)
(1) A special unit for the investigation of aviation events shall be created at the Ministry of
    Transport and Communications, which shall:
1. maintain a system for obligatory and voluntary reporting of aviation events: aviation
    accidents, serious incidents and incidents;
2. organize and control technically the investigation of aviation accidents and serious incidents,
    and support the work of the committees created for this purpose;
3. maintain an archive for the investigations and an information database for the aviation events;
4. prepare and distribute an information bulletin for the aviation events;
5. in the investigation of aviation events, analyze the actions of the physical and legal entities in
    the sphere of aviation and the functioning of the objects and facilities connected with the
    concrete event.
(2) The support of the specialized unit under PAr. 1 shall be realized from the budget of the
    Ministry of Transport and Communications.
(3) The specialized unit under Par. 1 and the Civil Aviation Administration shall mutually notify
    each other upon reception of information for an aviation event.
                                        Chapter Two
                                         AIRCRAFT
                                               Article 17
Useable for civil air navigation shall be only aircraft meeting the requirements stipulated herein.

                                              Article 18
                                       (Amended, SG 34/2001)
An aircraft shall be used solely for the purpose it was originally designed for. Any change in an
aircraft's function shall be admissible by the permission of the Civil Aviation Administration with
the Ministry of Transport and Communications.
                                               Article 19
                                        (Amended, SG 85/1998)
(1) Prior to commissioning, an aircraft shall be invariably inspected, registered and provided with a
     certificate of airworthiness.
(2) (Amended, SG 52/2004; Amended, SG 10/2007) The Director of the Civil Aviation
     Administration shall issue a certificate of airworthiness to an aircraft when it corresponds to the
     respective norms and has a type certificate or another equivalent document issued or
     recognized by the European Aviation Security Agency (EASA) when such certificate is
     required for the aircraft.
(3) (New, SG 52/2004) When the aircraft does not correspond to the respective norms for
     airworthiness or correspondence with them has not been proven, the Director of the Civil
     Aviation Administration may issue a permit for admission to flight, given that the aircraft may
     safely perform a flight with certain limitations and in certain conditions. The Minister of
     Transport and Communications shall issue an order by which he shall determine the terms and
     procedures for the issuance of the permit for admission to flight.
(4) (New, SG 10/2007) Every aircraft registered in the aircraft register of the Republic of Bulgaria
     must meet the requirements of Regulation (EC) No. 1592/2002 of the European Parliament and
     the Council on general civil aviation rules and the development of a European Aviation Safely
     Agency, together with the respective amendments and supplements; and of Regulation (EC)
     No. 1702/2003 of the European Committee establishing rules on airworthiness and
     environmental protection certification of aircraft and related products, as well as on the
     certification of designer and manufacturer organizations, together with the respective
     amendments and supplements.
                                              Article 20
                               (Amended and supplemented, SG 85/1998)
(1) (Amended, SG 34/2001) Civil aircraft shall be recorded in the Republic of Bulgaria's Civil
     Aircraft Register, kept by the Civil Aviation Administration with the Ministry of Transport and
     Communications).
(2) (Amended, SG 85/1998) Entries in such Register, as well as deletions therefrom, shall be made
     at the request of an aircraft's owner, tenant or holder. An application to that effect must be filed
     within thirty (30) days of the date when the grounds for recordation or deletion, respectively,
     emerged.
(3) (New, SG 10/2007) An aircraft registered in the register under par. 1 shall be formally deleted
     from the register when the airworthiness certificate of the aircraft has been revoked or its
     validity has expired more than 6 months before.
                                               Article 21
(1) An aircraft recorded in a foreign country's registry may be entered in the Republic of Bulgaria's
    Civil Aircraft Register only after its deletion from the foreign one.
(2) No legal consequences shall be ensuant on the recordation of Bulgarian aircraft in a foreign
    registry while not yet deleted from the Republic of Bulgaria's Civil Aircraft Register under the
    established terms and procedures.
                                              Article 22
(1) (Amended, SG 85/1998, previous text of Art. 22, 52/2004) The Civil Aviation Administration
shall provide every aircraft recorded in the Civil Aircraft Register with a certificate of registration
inscribed wherein shall be its distinctive nationality and registration marks.
(2) (New, SG 52/2004) The terms and procedures for entering and signing out of aircraft from the
Civil Aircraft Register of the Republic of Bulgaria shall be determine with the order under Art 5,
Par. 4.
                                                 Article 23
                                          (Amended, SG 85/1998)
(1) All transfers of title, any establishment and transfer of property rights, and other transactions
     relating to private rights in aircraft, such as liens and mortgages, shall be effected in writing.
(2) Transactions set forth under paragraph (1) may be invoked against third parties following their
     recordation in the Civil Aircraft Register.
(3) No contract of sale or charter concerning aircraft owned by Bulgarian private persons or public
     bodies shall be valid if concluded in contradiction with the international agreements, or with
     some resolution of an international organisation, ratified by the Republic of Bulgaria.
(4) Transactions relating to liens (mortgages, privileges) on aircraft shall be effective as of the date
    of entry in the Civil Aircraft Register. In the event where two or more liens have been
    established on one and the same aircraft, the order of priority in satisfying lien claimants shall
    be determined by the date of entry in the Civil Aircraft Register, and where such recordation
    was effected on the same day, authoritative shall be the serial number of entry.
                                                 Article 24
                                        (Amended, SG 85/1998)
(1) Aircraft shall be subject to inspection to certify their conformity to norms of airworthiness,
     aviation noise and gas emissions from aircraft engines as established in the Republic of
     Bulgaria.
(2) (New, SG 85/1998) The Civil Aviation Administration may recognise a certificate of
     airworthiness for an imported aircraft providing it conforms to the applicable norms of
     airworthiness.
(3) (New, SG 85/1998) In any event of modifying an aircraft's equipment the Civil Aviation
     Administration shall issue also a certificate of airworthiness for the aircraft equipment.
(4) (New, SG 85/1998, Amended, SG 52/2004) The Civil Aviation Administration shall recognize
     certificates of aviation noise of aircraft and gas emissions from aircraft engines, issued by the
     respective foreign aviation administration.
(5) (New, SG 85/1998; Amended, SG 52/2004) The Minister of Transport and Communications
     shall issue an order for the terms and procedures for certification of aircraft and the products,
     parts and devices associated with it, as well as for the approval of the entities which design
     and/or manufacture them.
(6) (New, SG 52/2004) The Minister of Transport and Communications shall issue an order by
     which he shall determine the requirements for the formation of airworthiness of newly
     manufactured aircraft, for the maintenance and certification of airworthiness of aircraft and the
     products, parts and devices associated with it.
(7) (New, SG 52/2004) The Minister of Transport and Communications shall determine by an order
     the terms and procedures for the issuance of certificates for aviation noise and gas emissions of
     aircraft engines.
                                        Article 24a
                                     (New, SG 52/2004)
(1) (Amended, SG 10/2007) The manufacture or restoration of aircraft or products, parts and
    devices for it shall be performed by physical or legal entities holding a certificate and
    registered under the Commercial Act, or by entities registered in accordance with the
    legislation of a European Union member-state or of another state which is a party to the
     European Economic Space Agreement.
(2) The Director of the Civil Aviation Administration or the official authorized by him shall issue a
     certificate for manufacture or restoration of the respective type of aircraft and the products,
     parts and devices for it, if the entities correspond to the requirements for financial stability and
     professional competence.
(3) The terms and procedures for the issuance of certificates for manufacture or restoration of the
     respective type aircraft or products, parts and devices for it shall be stipulated with an order
     under Art. 24, Par. 6.

                                                 Article 25
                                          (Amended, SG 85/1998)
(1) Maintenance of aircraft's airworthiness shall be provided by natural and juridical persons
      authorised to carry out technical service and repair of aircraft and aviation equipment.
(2) (Amended and supplemented, SG 34/2001) The Minister of Transport and Communications
      shall lay down the terms and procedures for granting of certificates and licences to the persons
      referred to in the preceding paragraph (1).
(3) (New, SG 34/2001) The licence for carrying out of activities under paragraph (1) shall be issued
      by the head director of the Civil Aviation Administration.
(4) (New, SG 34/2001) The licence is personal and not subject to transfer.
(5) (New, SG 34/2001; Amended, SG 10/2007) The licence for technical service and repair of
      aviation equipment shall be granted to physical or juridical persons, registered under the Trade
      Act, or to entities registered in accordance with the legislation of a European Union member-
      state or of another state which is a party to the European Economic Space Agreement, on the
      following conditions:
all necessary installations, equipment, tools, materials and technical documentation (approved data)
     shall ensure the execution of all activities pertaining to the technical service and repair of
     aviation equipment and create conditions for the correct keeping of the aircraft’s components;
the staff assuring the technical service shall meet the qualification requirements for certification of
     aviation staff from the civil aviation and will be sufficient for the planning, perfomance,
     administration and control of activities connected with the technical service and repair of civial
     aircraft and their components.
(6) (New, SG 34/2001, Abolished, SG 52/2004)
(7) (New, SG 34/2001, Amended, SG 52/2004) The Head Director of the Civil Aviation
      Administration shall reject the issuance of a license in case the applicant does not correspond to
      any of the conditions under Par. 5, stipulated in detail in the order under Par. 2.
(8) (New, SG 34/2001, Abolished, SG 52/2004)
(9) (New, SG 52/2004) The maintenance of airworthiness of aircraft with maximum takeoff mass
      below 5,700 kg which perform noncommercial flights may be performed by physical entities
      who own an aircraft technical service qualification license.

                                              Article 25a.
                                          (New, SG 34/2001)
(1) (Amended, SG 52/2004) The license for technical service and repair of aviation equipment
    shall be without term.
(2) (Abolished, SG 52/2004)
(3) (Amended, SG 52/2004) The license may be suspended, as well as its operation may be ceased
    entirely or partially for a certain period of time, in case the licensee violates the conditions
    under Art. 25, Par. 5 and the order under Art. 25, Par. 2. The act of suspension or cessation of
    the operation of the license is subject to an appeal in the order of the Administrative Procedures
    Act.
(4) (Amended, SG 52/2004) For the issuance of a license for technical service and repair of aviation
    equipment fees shall be collected at a rate determined by the Council of Ministers.
                                              Article 26
                                       (Amended, SG 85/1998)
Any certificate of airworthiness, of aviation noise and of gas emissions issued to an aircraft
registered in this country shall be revoked should it be ascertained on inspection that the applicable
requirements set forth herein have been disobeyed.
                                               Article 27
                                         (Amended, SG 85/1998)
Certificates of airworthiness issued by the competent authorities of another state shall be rendered
valid in the Republic of Bulgaria providing:
     1. the applicable requirements concerning airworthiness in the state whose competent authority
        has issued the certificate of airworthiness are either identical with the international standards
        and recommendations, or surpass them;
     2. the Civil Aviation Administration has given its consent to have the inspection of a Bulgarian
        aircraft carried out in another country in compliance with the requirements referred to in
        subparagraph 1 above.
                                             Article 28
                                       (Amended, SG 85/1998)
The Civil Aviation Administration shall have full discretion to subject also a foreign aircraft to
control in the event its airworthiness proves questionable.
                                               Article 29
                                     (Supplemented, SG 52/2004)
Any aircraft without a certificate of airworthiness or for registration, without a permit for admission
to flight, or whose distinctive marks do not correspond to the marks specified in such certificates,
shall be detained by the controlling authorities.
                                                Article 30
                          (Supplemented, SG 85/1998, Amended, SG 52/2004)
(1) Every aircraft performing international flights, as well as every aircraft with a maximum takeoff
    mass over 750 kg performing internal flights shall have onboard during flight the following
    documents:
     1. a certificate of registration;
     2. a certificate of airworthiness or a permission for admission to flight;
     3. a licence for operation of aircraft radio station;
     4. certificates of qualification for every member of the crew;
     5. insurance documents;
     6. a journey logbook;
     7. a flight plan;
     8. a passenger list (waybill) indicating the seats, departure and destination;
     9. a manifest and detailed declarations of the cargo if there is any on the plane;
     10. an airline operator license if the flight is commercial.
(2) The Minister of Transport and Communications shall issue an order with which he shall
    determine other documents as well, besides those under Par. 1, which shall be onboard the
    aircraft in accordance with the regional agreements of the International Civil Aviation
    Organization (ICAO).
(3) With the order under Par. 2, the necessary documents which shall be onboard aircraft with
    maximum takeoff mass under 750 kg during performance of internal flights, shall be
    determined as well.
                                        Article 31
                                  (Amended, SG 85/1998)
Flight documents carried by foreign aircraft shall be rendered valid providing they are in
compliance with the requirements of the international conventions to which the Republic of
Bulgaria is a signatory.
                                             Article 31 a
                                         (New, SG 85/1998)
(1) An airport administration shall be entitled to reposition an aircraft, or parts, or units thereof
    within airport grounds in any case where they have, without representing an obstruction to
    operating aircraft, been situated in the. airport territory for more than six (6) months during
    which time the aircraft has not "been airworthy, or in the event
    the owner, tenant or holder has not been paying the due-parking fee or rental price for more than
    three (3) months.
(2) Any action as per paragraph (1) shall be taken on condition that one (1) month written notice
     shall have been given to the person that has abandoned the aircraft, or parts, or units thereof, or
     that is a party to a valid parking agreement.
(3) An airport administration shall have the right to remove an immobilised aircraft from the
     landing field (airfield) in the event it represents an obstruction to operating aircraft and the
     operator of such aircraft has failed to take the requisite efficient measures for a prompt removal
     after the occurrence.
 (4) An airport administration shall not be held liable for any damage caused while repositioning or
          removing an aircraft or units of an aircraft, respectively, under the terms of this Article.

                                            Chapter Three
                         FLIGHT PERSONNEL AND FLIGHT CREWS
                                 (Title amended, SG 85/1998)
                                              Article 32
                                         (Amended, SG 85/1998)
(1) (Amended, SG 34/2001) The Minister of Transport and Communications shall stipulate all
     positions requiring certificates of competency.
(2) (Amended, SG 52/2004) Flight personnel shall be all persons who own qualification license.
     During flight, the persons who are in the process of training for the acquisition of qualification
     shall be made equal to them.
(3) (Amended, SG 34/2001) The Civil Aviation Administration shall issue certificates of
     competency and keep a register of all flight personnel under such terms and procedures as laid
     down by the Minister of Transport and Communications.
                                           Article 33
                          (Amended, SG 85/1998; Amended, SG 34/2001)
The Minister of Transport and Communications shall prescribe:
    1. the terms and procedures for opening aviation training centers and the requirements they
        must comply with;
    2. the requirements and procedures for issuing teaching certificates to instructors employed in
        aviation training centers and the courses of study for their preparation;
    3. the list of occupations associated with aviation and the applicable qualifying requirements;
    4. the criteria to be met by the applicants for training in the aviation training centers, the
        courses of instruction, the terms and procedures for conducting examinations and the
        examination requirements.
                                               Article 34
                    (Amended, SG 85/1998, 52/2004; Amended, SG 37/2006)
(1) Crew members of aircraft registered in the Republic of Bulgaria must have licenses issued or
    recognized as valid by the Directorate General Civil Aviation Administration.

(2) (Amended, SG 52/2004) With the permission of the Minister of Transport, foreign nationals
    shall also be admitted to employment in civil aviation for a period not longer than one year.
(3) (Amended, SG 85/1998) Positions directly associated with flight safety and aircraft
    airworthiness maintenance shall be held only by persons with higher education and aviation
    qualification and shall be appointed according to a procedure established by the Minister of
    Transport.
                                            Article 35
                                      (Amended, SG 85/1998}
Certificates of competency issued by foreign institutes and bodies to the airmen referred to in
Article 32, paragraph (1) hereof shall be rendered valid on the basis of reciprocity providing the
applicable requirements concerning the issuance of competency certificates pursuant to the said
Article 32, paragraph (1) are either comparable to the currently established international standards
or surpassing them.
                                             Article 36
No trainee shall be held liable for any damage caused in training flights unless the damage resulted
from the trainee's willful misconduct.
                                            Article 37
                                      (Amended, SG 85/1998)
(1) (Amended, SG 34/2001) The Minister of Transport and Communications shall specify the
     persons engaged in civil air navigation subject to medical certification, as well as the
     requirements they must meet.
(2) (Amended, SG 34/2001) The fitness of aviation personnel to perform a particular activity,
     qualified from the viewpoint of their state of health, shall be ascertained by a specialised
     aeromedical commission, whose status, structure and rules of business shall be laid down by
     the Minister of Transport and Communications.
                                                Article 38
                                         (Amended, SG 85/1998)
(1) (Supplemented, SG 52/2004; Amended and supplemented, SG 37/2006) Aircraft crew shall be
     the aviation personnel to which the performance of the flight has been assigned. The members
     of the aircraft crew shall be in labor legal relations with the airline operator. The requirements
     for labor legal relations with aviation personnel shall not apply to air operator crew members
     performing flights pursuant to art. 64b while performing flights with other air operators.
(2) Crew strength and crew positions shall be prescribed by the Civil Aviation Administration
     depending on the type of aircraft and the nature of flight. Undermanned flights shall be
     positively disallowed.
(3) (New, SG 37/2006) While operating aircraft, crew members shall bear responsibility for
     observing the requirements of the regulation under art. 16a, item 14.
                                              Article 39

(1) (Amended and supplemented, SG 85/1998) Every civil aircraft in flight shall be managed by a
     commander, whose speciality must be an airman-pilot. He shall be responsible for the pre-
     flight preparation of the crew and for conducting the flight in conformity with existing
     regulations for preserving the aircraft, the lives of the persons belonging to it, and the cargo
     carried on the flight.
(2) (Supplemented, SG 52/2004) The aircraft commander is obliged to refuse to perform a flight
     when he establishes a fault in the aircraft which is not included in the list of the admissible
     refusals in the flight operation manual for the aircraft type.
                                          Article 40
(1) Any and all commands given by an the aircraft commander with regard to conducting the flight
    and ensuring law and order on board his aircraft shall be binding on all persons belonging
   thereto.
                                                                           r.

(2) An aircraft commander shall have the power to take all appropriate measures in respect to any
    persons disobeying his instructions, inclusive of the right to disembark them from the aircraft in
    the airport of departure or of intermediate stopping.
                                               Article 41
(1) An aircraft commander who has received a signal of distress from another aircraft or from a
    vessel, or has discovered a distressed aircraft or vessel, or distressed people, shall be obliged to
    extend aid, identify the location of distress and notify it to the air traffic control authorities.
(2) The aircraft commander shall not be allowed to take any rescue action endangering his aircraft,
    the passengers or the crew.
                                             Article 42
                                       (Amended, SG 85/1998)
In the event of forcible unlawful seizure of an aircraft, its commander must take all appropriate
measures to restore control thereof, providing the lives of the crew and passengers and the integrity
of the aircraft shall not be thereby exposed to danger.
                                             Chapter Four
                                              AIRPORTS

                                             Article 43
                                       (Amended, SG 85/1998)
(1) Aircraft shall be required to take off and land at airports and landing fields.
(2) (Amended SG 85/1998) Civil airports shall encompass:
      1. airports for public use open, for compensation, to aircraft engaged in international and
          domestic air carriage, scheduled air services and non scheduled flights;
      2. (Amended, SG 34/2001, 52/2004) airports for service of flights for aviation services for
          payment, including for single flights for transportation services, performed with aircraft with
          maximum takeoff mass up to 5,700 kg or with passenger capacity up to 19 seats;
      3. technological airports — employed, without compensation, for the owners' needs alone.
(3) (Amended – SG 85/1998; Amended SG 34/2001) The Council of Ministers shall, on a motion of
     the Minister of Transport and Communications, designate the civil airports for public use in the
     Republic of Bulgaria, as well as those of them to serve international flights.
(4) (Amended – SG 85/1998; Amended SG 34/2001) Civil airports per paragraph 2, subparagraph 2
     and 3 open to civil aircraft shall be designated by the Minister of Transport and
     Communications in concert with the Minister of Defence, the Minister of Finance and the
     Minister of Home Affairs with the explicit consent of the owner of the airport.
(5) (New, SG 34/2001) A civil airport per paragraph 2, subparagraphs 2 and 3 may acquire the
     statute of a civil airport for public use after the property acquires the quality of public state
     property by resolution of the Council of Ministers on request of the individuals possessing the
     title over it, should the airport meets the requirements of the law. New airports for public use
     shall be constructed on sites which are public state property.
(6) (New, SG 85/1998, preceding paragraph 5, Amended SG 34/2001) The Minister of Transport
     and Communications and the Minister of Defence shall lay down the terms and procedures for
     joint operation of civil airports for public use and military airports.
(7) (New, SG 52/2004) Flight platforms shall be used for service of noncommercial flights with
     aircraft with maximum takeoff mass under 5,700 kg for payment or without payment, as well as
     for technological needs of the owner without payment. The limitation for the maximum takeoff
     mass shall not be applicable to helicopters.

                                              Article 43a
                               (New, SG 85/1998, Amended, SG 34/2001)
Civil airports shall be public and private property.
Civil airports for public use shall be public state property.
Airports per Article 43, paragraph 2, subparagraphs 2 and 3, might be privately owned by the state,
    the municipalities, natural or juridical persons.
(4) All tracts of land containing aeronautical and air traffic control installations serving aircraft
     engaged in international or domestic public carriage, along with all the technologically
     indispensable terrains, shall be designated as public state property..


                                              Article 43b
                                           (New, SG 34/2001)
(1) Civil airports for public use shall be used by airport operators – businessmen, who have
    received concession under the conditions and in the order of the Concession Act and this act, or
    by companies in which the state is a sole owner of the capital.
(2) The Minister of Transport and Communications shall make a proposal to the Council of
    Ministers for a concession to be granted for civil airport for public use, shall hold competitions,
    auctions, negotiate and enter concession contracts, control the fulfillment of the conditions and
    liabilities per the concession contracts.
(3) When granting of a concession over existing civil airport for public use, in the resolution of the
    Council of Ministers under Art.7, Par. 1 of the Concession Act, as a condition for carrying out
    the concession, the requirements for airport operator shall be necessarily indicated as well. An
    airport operator’s license shall be issued to the concessionaire specified by the Council of
    Ministers, after conclusion of the concession contract within the terms stipulated in it, if the
    concessionaire corresponds to the requirements for issuing a license indicated in this Act.
(4) The rights and liabilities concerning the activities under Art. 48a, Par. 3 and Art. 48e, Par. 3,
    Items 3,4,5 and 7 performed by the concessionaire shall be stipulated in the resolution under
    Par. 3 as well and so shall be the terms and procedures in which the concessionaire shall collect
    airport fees under Art. 120, Par. 1, including the respective part of these fees which he collects
    for his benefit in connection with the performance of the assigned activities.

(5) Upon granting of a concession over a civil airport for public use, which will be built entirely or
    partially with funds of the concessionaire, the building of the object and certification of its
    operability shall be conditions for the realization of the concession. In these cases the orders of
    paragraphs 3 and 4 shall be respectively applicable as well.
(6) Additional criteria for admission of applicants to participation in the auction or the competition,
    including financial and qualification, may be specified in the resolution of the Council of
    Ministers for granting a concession over a civil airport for public use. In these cases, in carrying
    out the auction or the competition, the following rules shall be applied:
1.       in the announcement under Art. 11, Par. 1 of the Concession Act the additional criteria for
admission to participation shall be indicated as well and so shall be the documents required to
certify the correspondence of the applicants with the criteria for admission, except for the ones
indicated in Art. 12 of the Concession Act.
2.        the auction or competition committee shall determine in its resolution under Art. 11, Par. 3
of the Concession Act the part of the documentation which shall be presented to all applicants and
the part of it which shall be presented only to the applicants admitted to participation, as well as the
terms and procedures for presenting the documentation.
3.       along with the application under Art.12, Par. 1 of the Concession Act applicants shall also
present the particular documents certifying their correspondence with the additional criteria for
admission to participation; a deposit for participation and submission of a document for it shall not
be required upon submission of the application;
4.        with the resolution under Art. 14, Par. 1 of the Concession Act the committee determines
the applicants who correspond to Art. 12 of the Concession Act and to the additional criteria for
admission to participation and have the right to submit their offers under Art. 15, Par. 1 of the
Concession Act;
5.      only applicants admitted to participation shall make a deposit and the document for the
deposit shall be presented with the offer under Art.15, Par. 1 of the Concession Act; an offer of a
candidate who has not presented a document for a participation deposit shall not be reviewed.
(7) In carrying out a competition the competition committee may specify with the competition
papers:
1. a time period within which the applicants admitted to participation may request clarifications on
the competition procedure and on the competition documentation, and a time period and order for
providing clarifications to the applicants;
2. terms and procedures for conducting own research of the condition of the concession object, on
the part of the applicants admitted to participation.
3. terms and procedures for presentation of offers on the project of a concession contract and for
their discussion; when as a result of the offers made the committee performs amendments or
supplements to the concession contract, they shall be presented to all applicants admitted to
participation before expiration of the time period for offer presentation under Art.15, Par. 1 of the
Concession Act.
(8) The competition committee may request explanations on the offers made. In an attendance
competition applicants shall give the requested explanations during the oral presentation, or in
writing within a time period determined by the committee, which is equal for all applicants. In a
non-attendance competition the committee shall indicate the questions in writing and shall
determine equal time period for written clarifications for all applicants. The clarifications made by
the applicants shall be an integral part of the offers but shall not present amendments or
supplements to them. The competition ends within 7 days after the term for the written
clarifications has expired.
(9) With the resolution under Art. 7, Par. 1 of the Concession Act, the Council of Ministers may
determine a longer time period for holding the competition than the one determined in Art. 11, Par.
4 of the Concession Act.
(10) Business unions may also participate in the competition or auction for granting of concession
over a civil airport for public use. If an applicant for a concession is a businessman - foreign entity
and/or a business union of foreign and/or local entities, and such an applicant is determined to be
winning the competition or auction, the concession shall be granted to a company founded under
the Commercial Act in which the foreign entity or the participants in the union own the entire
capital in the proportion from their unifying contract. In that case the concession contract shall be
concluded with the newly founded company, which shall be bounded by the offers made by the
applicant winning the competition or auction. The concession contract shall be concluded within the
time determined with the resolution under Art. 18, Par. 2 of the Concession Act, but not later than 6
months from the enacting of this resolution.

                                            Article 43c
                                       (New, SG 34/2001)
The granting of a concession over a municipal airport – public municipal property shall be carried
    out under the terms and procedures of the Municipal Property Act.

                                              Article 43d
                                         (New, SG 34/2001)
(1) The expenses incurred by the concessionaire related to the construction, operation and
    maintenance of the subject of concession shall be acknowledged as actual expenses.
(2) The expenditures per paragraph 1, formulated as financial losses shall be deducted
    consecutively from the year in which the operation of the subject of concession has started for a
    period of time and conditions, set forth in the concession contract.
(3) Additional expenses, incurred by the concessionaire, shall be acknowledged for actual expenses
    when they had been fixed in the concession contract.

                                           Article 43e
                                       (New, SG 34/2001)
The single-man companies with state property shall use the civil airports for public use without
    concession. The scope of their specific rights and liabilities shall be specified by the Minister
    of Transport and Communications who exercises the rights of single-man owner of the capital.

                                            Article 44
                                       (Amended, SG 85/1998)

(1) (Suplemented, SG 52/2004) The Civil Aviation Administration shall certify the operability of
     the civil airports, flight platforms and navigation facilities, as well as of the systems and
     facilities for passenger service, aircraft service and securing, loading and unloading of luggage
     and cargo.
(2) All installations and facilities as per paragraph (1) above that comply with the established
     standards, terms and requirements shall be provided with a certificate of operability.
(3) (Amended, SG 52/2004) The terms and procedures for certifying the operability of airports,
     flight platforms, the systems and facilities for navigation, as well as the systems and facilities
     for passenger service, aircraft service and securing, loading and unloading of luggage and
     cargo, as well as the requirements for these objects shall be determined with an order of the
     Minister of Transport and Communications.

                                              Article 45

The Civil Aviation Administration shall have the authority to restrict or disallow the operations of
    airports and airfields failing to comply with safety of flight requirements.

                                            Article 46
                                       (Amended, SG 85/1998)

(1) (Amended, SG 34/2001) The Minister of Transport and Communications shall be vested with
     the co-ordination of all projects relating to construction, enlargement or reconstruction of civil
     airports and navigation facilities.
(2) Prerequisite to any project co-ordination as per paragraph (1) shall be:
1. a valid master plan for the airport's development;
2. (Amended, SG 52/2004) approved detailed layout plan and completion of the procedures under
     the Environmental Protection Act, the Regional Development and Town-and-Country Planning
     Act, the State Property Act and the Municipal Property Act, under this and other acts that
     might have a bearing on the permission being issued;
(3) (Amended and Supplemented, SG 52/2004) The Minister of Transport and Communications,
     the Minister of Regional Development and Planning and the Minister of Agriculture and
     Forestry shall determine with an order the permission regime in the zones on sufferance and
     the influence zones of the airports. The issuing of permissions for the construction of buildings,
     installations, reservoirs, landfills, over-ground high-voltage lines, quarry pits and other
     suchlike facilities in these zones shall be coordinated with The Minister of Transport and
     Communications.

                                            Article 46a
                                         (New, SG 52/2004)

The Minister of Transport and Communications in coordination with the Minister of Regional
   Development and Planning shall issue an order which is to specify the content of the
   specialized map and the register, created on the basis of the data under Art. 32, Par. 1 of the
    Cadaster and Property Register Act, as well as the terms and procedures for their creation and
    maintenance.

                                             Article 47
                                        (Amended, SG 85/1998)

  (1) (Amended, SG 34/2001) The Minister of Transport and Communications shall lay down the
       restrictions relating to the safety of air navigation with regard to the construction of facilities
         under Article 46, paragraph 3 hereof, as well as the requirements, standards and mode of
                   positioning warning devices on top of high buildings and installations.
(2) (Amended, SG 34/2001) The Minister of Transport and Communications and the Minister of
     Agriculture, Forestry and Agrarian Reform shall have the power to impose expedient
     restrictions on the nature of crops planted in the vicinity of airports with a view to securing
     protection from birds.
(3) The Civil Aviation Administration shall have the power to prescribe that any structure, or a
     portion thereof, exceeding safety height be taken down.
(4) In the event of non-compliance with a prescription as per paragraph 3 above, the Civil Aviation
     Administration shall notify the appropriate competent authorities and demand that the
     obstruction(s) be forcibly removed for the account and risk of the person failing to comply with
     its bidding.
(5) (New- 52/2004) The obstructions under Par. 3 shall be removed at the expense of the entity who
     has performed the illegal actions and in case of construction of a new or expansion of an
     existing airport - at the expense of the airport operator.
(6) (Former Par. 5 - SG 52/2004) The airport administration shall control the compliance with the
     restrictions under Par. 1 and 2, including for nearby posts, pillars, trees, masts, dikes,
     excavations.

                                             Article 47a
                                          (New, SG 37/2006)

Aircraft for which there is no issued valid airworthiness certificate shall not be allowed on the
territory of public civil airports.
                                           Article 48
                                     (Amended, SG 85/1998)

The Civil Aviation Administration shall be vested with the co-ordination of construction projects
    for erection and reconditioning of buildings, installations, facilities and other works within
    airport grounds on the basis of the validated master plan.

                                              Article 48a
                                          (New, SG 85/1998)
(1) (Amended, SG 34/2001) The Minister of Transport and Communications shall lay down the
     standards, terms and regulations relative to securing safety of flight at airports.
(2) The Civil Aviation Administration shall oversee the performance of all functions assumed by
     the government as obligations under the various international conventions on the adherence to
     existing standards, terms and regulations for securing safety of flight.
(3) An airport administration shall:
1. be required to ensure the level of validated categories and standards in the fulfillment of all the
     functions assumed by the government as obligations under international conventions relative
     to:
a) maintenance of airfield and development of airport infrastructure;
b) restricting and removal of obstructions;
c) maintenance of visual ground aids;
d) securing emergency, rescue and fire-prevention services both within the limits and in the vicinity
     of the airport;
e) airport security and protection;
f) safety of flights;
g) co-ordination among the various administrations and business enterprises concerning airport
     operations and utilisation;
h) control and management of ground movement within airport limits;
i) power-supply equipment and installations;
k) streamlining the usual airport formalities;
2. have the power to assign contracts for elaborating and updating the airport's master plan and
     cadastral plans;
3. (Amended, SG 52/2004) create conditions for economic activity on the airport territory for the
     ground service operators licensed under this Act;
4. be required to take measures to reduce aviation noise;
5. have the power to effect a precautionary arrest of an aircraft (unless engaged in a scheduled air-
     service flight) in the event its user has failed to pay the owing fees, or has not given an
     adequate bond or posted satisfactory security;
6. have the power to collect the airport fees charged pursuant to this Act.
(4) (Amended, SG 52/2004) The Minister of Transport and Communications shall be able to assign
     fully or partially the functions of an airport administration to the airport operator.

                                            Article 48b
                               (New, SG 85/1998, Abolished, 52/2004)

                                           Article 48c
                           (New, SG 85/1998, Amended 34/2001, 52/2004)

(1) (Amended, SG 10/2007) The activities of managing and operating a civil airport under Art. 43,
     Par. 2, Items 1 and 2 shall be performed by businessmen to whom an airport operator license
     has been issued and who have been registered under the Commercial Act, or by entities
     registered in accordance with the legislation of a European Union member-state or of another
     state which is a party to the European Economic Space Agreement.
(2) The airport operator is obliged to provide access under equal conditions to every aircraft, which
     has received a permission for the performance of as flight.
(3) The airport operator is obliged to accept and service aircraft, suffering disasters, and state
     aircraft.
(4) The Civil Aviation Administration shall control the performance of the obligations under Par. 2
     and 3.
(5) Upon systematic nonperformance of the obligations, and in connection with the prevention and
     elimination of the harmful consequences of their nonperformance, the Civil Aviation
     Administration shall apply as an administrative measure a suspension of the airport managing
     and operating activities of the airport operator.
(6) The terms and procedures for issuance of a license under Par. 1 shall be defined with an order of
     the Minister of Transport and Communication.

                                           Article 48d.
                              (New - SG 34/2001, amended - 52/2004 )

(1) The airport operator license shall certify that the organization, equipment, technologies and staff
     of the licensed entity correspond to the standards and requirements for safe and quality
     maintenance of the airport's operability.

(2) An airport operator license shall be issued given that:
1. an operability certificate has been issued for the airport;
2. the entity has provided proof for financial stability;
3. the personnel of the entity has the qualification, professional experience and length of service,
     necessary for the performance of the activities;
4. the organization, equipment and technologies ensure the compliance with the established
     standards and procedures for the provision of safety and security of flights at the respective
     airport;
5. the entity has a management and operation manual for the respective airport, approved by the
     Civil Aviation Administration.

                                            Article 48e.
                            (New - SG, 34 /2001, Аmended, SG 52/2004)

(1) (Amended, SG 10/2007) The activities for ground service of a civil airport under Art. 43, Par. 2,
     Items 1 and 2 shall be performed by businessmen registered under the Commercial Act to
     whom a ground service operator license has been issued, or by entities registered in accordance
     with the legislation of a European Union member-state or of another state which is a party to
     the European Economic Space Agreement.
(2) A ground service operator license shall be issued if the applicant corresponds to the following
     requirements:
1. the staff of the applicant has the qualification, professional experience and length of service
     necessary for the performance of the activity;
2. he has provided proofs for financial stability;
3. he has created an organization and owns equipment and/or technologies securing the compliance
     with the active standards and procedures for security and safety of the persons, aircraft,
     equipment and facilities at the respective airport.
4. he has a manual for the performance of the activity at the respective airport, approved by the
     Civil Aviation Administration.

(3) A ground service (or self-serving) operator license shall be issued for each of the following
    activities at the respective airport:
    1. ground administration and supervising;
    2. passengers service;
    3. luggage processing;
    4. cargo and mail processing;
    5. platform aircraft service;
    6. aircraft service;
    7. aircraft fuel and oil service;
    8. technical aircraft service;
    9. flight operations and crew administration;
    10. ground transportation;
    11. onboard buffet service.

(4) Every entity to which a license has been issued under Par. 3 has the right of access to the market
     for ground service of a given airport for public use under the conditions of Par. 5, 6 and 7.

(5) The number of operators providing to third parties services connected with luggage, cargo and
mail processing, platform aircraft service and aircraft service with fuel and oil, and who have
received access to the market, at an airport with yearly passengers turnover over 2 million
passengers or yearly cargo turnover over 50,000 ton, cannot be less than two for each of these
activities unless there are no applicants.
(6) When the ground service operators under Par. 5 are two or more at least one of them must not
     be directly or indirectly controlled by:
     1. the airport operator;
     2. an air carrier which transports more than 25 per cent of the passengers or cargo at a
     particular airport, or
     3. an authority controlling or controlled, directly or indirectly, by the airport operator or the air
     carrier.
(7) At an airport with yearly passengers turnover over 1 million passengers or with yearly cargo
     turnover over 25,000 ton, the right to perform self-service for the activities under Par. 3, Items
     3, 4 and 7 shall be granted to not less than two air carriers, unless there are no applicants.
     Below the above thresholds, the right to perform self-service for the activities under Par. 3,
     Items 3, 4 and 7 shall be owned by only one air carrier which transports the biggest share of
     the passengers or cargo of the airport.
(8) The Civil Aviation Administration may:
     1. limit the number of operators, performing ground service of third parties and providing one
     or more activities beyond those under Par. 5, as respectively the restrictions under Par. 6 shall
     be applied to the operator;
     2. grant to only one operator, performing ground service of third parties, the right to perform
     one or more of the activities under Par. 5;
     3. limit the number of self-service air carriers, performing activities beyond the indicated in
     Par. 7.
     4. disallow the self-service or grant the right of self-service only to one air carrier in the cases
     under Par. 7.

(9) The limitations under paragraph 8 shall be imposed upon shortage of technological surfaces or
    capacity of a particular airport, arising as a result of overloading and high surface use
    percentage.
(10) The limitation under Par. 8, Item 2 may be imposed for a time period of up to two years, and
    the ones under Par. 8, Items 1, 3 and 4 for up to three years.
(11) The Civil Aviation Administration can prolong once the time period of the limitation under
    Par. 8, Item 2 by 2 years.
(12) Regardless of the passengers and cargo turnover and the restrictions imposed, the airport
    operator shall perform without competition the activities of ground service, for which he has
    received a ground service operator license.

                                             Article 48f
                                          (New, SG 52/2004)

(1)     At an airport with yearly passengers turnover over 1 million passengers or with yearly cargo
turnover over 25,000 ton, a consumers of ground service activities committee can be created.
(2)     Every consumer of ground service activities shall have the right to participate in the
consumers of ground service activities committee through their representatives or organization
created for such purpose.
(3)     (New, SG 10/2007) At least once a year, the airport operator shall consult with the ground
service users and operators committee at the respective airport on the issues related to ground
service market access. Consultations shall conclude with the issuing of a statement by the airport
operator.
(4)     (New, SG 10/2007) In case restrictions have been imposed pursuant to art. 48e, par. 8, item
1, the consultations pursuant to par. 3 shall also include discussion of the prices of ground services
for which imposition of restrictions has been planned, and of the organization for providing these
services. Consultations shall conclude with the issuing of a statement by the airport operator.
(5)     (New, SG 10/2007) The statements of the airport operator pursuant to par. 3 and 4 are
administrative statements and shall be subject to appeals in accordance with the procedures of the
Administrative Procedure Code.
                                             Article 48g
                                          (New, SG 52/2004)

(1)     When for a particular airport, restrictions under Art. 48e, Par. 5 or Par. 8, Items 1 and 2 are
introduced, a competition for access to the ground service operators market shall be held. The
competition shall be held by the airport operator or by the Civil Aviation Administration when the
activity - object of the competition is performed by the airport operator or by an entity controlled
directly or indirectly by the airport operator.
(2)     The competition under Par. 1 shall be held after consultation with the consumers of ground
service activities committee.
(3)     (Amended, SG 10/2007) The conditions of the competition shall be publicly announced in at
least two daily papers, one of which by the location of the airport, and in the Official Journal of the
European Union.
(4)     The announcement for the competition shall contain the time period for access to the
market, which cannot be longer than 5 years.
(5)     The competition documentation shall be prepared after a consultation with the consumers of
ground service activities committee and shall contain minimum financial and other conditions,
requirements connected with evaluation of the participants in the competition, draft contract, and
other requirements with regard to the subject of the competition.
(6)     The applicants shall present:
1.      declaration for the circumstances under Par. 8;
2.      operator license for the respective activity of ground service;
3.      business plan;
4.      organizational project for the organization of the activity and for the interaction with the
airport operator, including the conditions of interaction acceptable for the Civil Aviation
Administration;
5.      other documents required in the competition documentation under Par. 5.
(7)     The organizational project under Par. 6, Item 4 shall contain a proposal for the settling of the
operator on the territory of the airport (necessary rooms and areas needed for the machines,
equipment and staff of the operator), a proposal for necessary access to power and water supply
sources, necessity for communication means, insurance of conditions for environmental protection
during the activity of the operator, including the organization of the activity and the admission
regime.
(8)     An entity shall be removed from the competition if:
1.      it has been announced as insolvent or it is at legal proceedings for announcement of
insolvency;
2.      it has been convicted for bankruptcy;
3.      it is in liquidation
4.      it has been deprived of the right to practice commercial activity;
5.      it has obligations to the country, established with an enacted statute of a competent
authority, or obligations towards insurance funds, unless the competent authority has allowed an
extension or a delay of the obligations;
6.      it has been convicted for a crime against property or against the economy.
(9)     The conditions under Par. 8, Item 6 shall be applicable to the managers or members of the
administration authorities of the participants.
(10) The airport operator or the Director of the Civil Aviation Administration shall issue a
permission for access to the ground service market to the applicant who has won the competition.
The decision of the airport operator for a choice of a ground service operator shall be an individual
administrative act and shall be subject to an appeal in the order of the Administrative Proceedings
Act.
(11) The permission for access of a ground service operator to the airport activities market of a
particular airport shall be withdrawn:
1.       when the ground service operator does not start the activity within 60 days after receiving
the permission;
2.       upon suspension of the ground service operator license;
3.       when the ground service operator has been announced in insolvency.
4.       (New, SG 10/2007) when the ground service operator does not observe the rules of art. 48h
at the respective airport.
(12) In the events under Par. 11, Items 2 and 3, until the holding of a new competition, a ground
service operator shall be determined who shall perform the activities of the removed operator.
(13) With the order under Art. 48c, Par. 6 the terms and procedures for access to the ground
service market, the issuance of ground service operator license, the ground service activities, as well
as the terms and procedures upon which access restrictions can be imposed, shall be arranged.

                                             Article 48h
                                          (New, SG 10/2007)

(1)     In order to ensure the safe operation of the airport, the airport operator shall issue mandatory
orders to ground service operators in correspondence with the approved manual for management
and operation of the respective airport.
(2)     The airport operator shall allocate the free space available for ground services and shall
provide ground service and self-service operators with access to the airport facilities to the extent
necessary for carrying out their operations.
(3)     The statements of the airport operator pursuant to par. 1 and 2 are administrative statements
and shall be subject to appeals in accordance with the procedures of the Administrative Procedure
Code.

                                               Article 48i
                                          (New, SG 10/2007)
(1)     Airport operators and air carriers also performing ground services, as well as ground service
operators shall keep analytic accounting records of income and expenses associated with ground
service operations, and of income and expenses associated with other operations.
(2)     The entities under par. 1 providing ground services shall, within 20 days following the end
of the respective quarter, submit to the Directorate General "Civil Aviation Administration"
statements from the respective accounting documentation. The Directorate General "Civil Aviation
Administration" shall check compliance with the obligation under par. 1.

                                            Chapter Five

                                              FLIGHTS

                                            Article 49
                                       (Amended, SG 85/1998)

(1) Aircraft shall be required to perform flights within the Republic of Bulgaria's controlled
     airspace in compliance with a flight plan.
(2) (Amended, SG 34/2001) The Minister of Transport and Communications shall lay down the
     regulations applicable to flights within the controlled airspace of the Republic of Bulgaria.
(3) In air transportation, besides the measurement units of the International System of Units (SI),
     the units foot, sea mile and knot, as well as their derivatives and composites can be used as
     well.

                                            Article 50
                                       (Amended, SG 85/1998)

(1) Scheduled international air carriage to or from airports within the Republic of Bulgaria shall be
    subject to prior permission.
(2) The permission under Par. 1 shall include requirements and conditions for the approval of an
    airline operator's access to each route, coordination and approval of flight schedules or other
    requirements defined in an international contract.
(3) Non-scheduled commercial flights to or from airports within the Republic of Bulgaria shall
    require the permission of the Civil Aviation Administration, while international non-
    commercial flights of Bulgarian and foreign governmental aircraft that do not require
    permission from the National Assembly or from the Council of Ministers, shall require the
    prior diplomatic permission of the Minister of Foreign Affairs.
(4) The right to carry domestic state traffic by aircraft shall be granted by the Head of the Civil
    Aviation Administration.
(Amended, SG 34/2001) The Minister of Transport and Communications shall lay down the terms
    and rules of authorising aircraft flights.

                                             Article 51
                                        (Amended, SG 85/1998)

(1) A deviation of an aircraft from the flight plan shall be admissible solely in the interests of the
     safety and security of flight.
(2) In the event of deviation as per paragraph (1) the aircraft commander and the air traffic control
     bodies shall notify each other of the decision taken.
(3) Any foreign aircraft entering or crossing the controlled airspace of the Republic of Bulgaria
     without authorisation, as well as any aircraft using the airspace illegally or in violation of flight
     regulations shall be regarded as a transgressor.

                                               Article 52

All airways shall be equipped with the appropriate means of radio communication, aircraft
    monitoring and flight direction designed to secure air traffic control and safety of flight.

                                               Article 53.

             (Amended, SG 16/1997, amended SG 34 /2001, enforced January 1, 2001)

(1) (Amended, SG 37/2006) Transforms the juridical person "Air Traffic Control" in State
     enterprise "Air Traffic Control" (SE "ATC") in the sense of Article 62, paragraph 3 of the
     Trade Act - legal person domiciled in Sofia, holding an air navigation service license and
     performing state functions connected with the provision of air navigation services in the served
     civil airspace of Republic of Bulgaria.
(2) (Amended, SG 37/2006) The main subject of activity of the State enterprise "Air Traffic
     Control" is:
1. air traffic control to achieve safety, effectiveness and timeliness of flights in the controlled civil
     airspace;
2. planning, provision, implementation, operation and maintenance of installations, systems and
     equipment for communication, navigation, surveillance, energy, lighting, meteorological and
     air navigation services for the controlled air traffic and the related infrastructure;
3. communication services, navigation services and surveillance services;
4. meteorological services;
5. air navigation information services;
6. metrology services;
7. information services for aircraft search and rescue;
8. air traffic safety system control within its competency;
9. fulfillment of the obligations of the Republic of Bulgaria under international air traffic control
     contracts to which the Republic of Bulgaria is a party;
10. collection of aircraft navigation service charges pursuant to art. 120, par. 2.
(3) The State enterprise "Air Traffic Control" is entitled to render also other services connected
     with the subject of its activities.
(4) (Amended, SG 102/2005; Amended, SG 37/2006) Upon execution of its activities under
     paragraph 2, p.1 the State enterprise "Air Traffic Control" has rights and obligations with
     regard to all aircraft, performing flights in the controlled civil airspace. With regard to military
     aircraft, the State Enterprise Air Traffic Control shall perform the activities under par. 2, items
     1, 2 and 3 in coordination with the Ministry of Defense.

(5) The property of the State enterprise "Air Traffic Control" consists of property, placed at its
     disposal in type, volume and value by the Minister of Transport and Communications and of
     property, acquired by the State enterprise "Air Traffic Control". Placed at the disposal of the
     State enterprise "Air Traffic Control" for management are the land and and the technologically
     serving areas - public state property in the sense of Article 43а, paragraph 4.
(6) No execution could be started against the property of the State enterprise “Air Traffic Control”.
(7) No procedure for bankrupcy could be opened for the State enterprise “Air Traffic Control”.
(8) For the purpose to guarantee its solvency the State enterprise “Air Traffic Control” maintains
     pecuniary reserve. The rate and the terms and conditions for its maintenance and spending are
     determined by the Minister of Transport and Communications and the Finance Minister.
(9) For the purpose to exercise its activities the State enterprise “Air Traffic Control” creates and
     maintains training and qualification centers.
(10) For the purpose to exercise its activities the State enterprise “Air Traffic Control” assigns state
     orders under the Public Orders Act, save for the activities, related to the aviation safety, the
     management of air space and the securing of the airnavigational service. The State enterprise
     “Air Traffic Control” could be executor per contracts for public orders, whose subject of
     activity is the activity performed by it.

                                           Article 53а.
                           (New, SG, 34/2001, enforced January 1, 2001)

(1) Managing bodies of the State enterprise “Air Traffic Control” are:
1. the Minister of Transport and Communications;
2. the Board of Directors;
3. the General Manager.
(2) The control body of the State enterprise “Air Traffic Control” is the Control Board.

                                           Article 53b.
                           (New, SG, 34/2001, enforced January 1, 2001)

(1) The Minister of Transport and Communications:
1. exercises the government rights of property in the State enterprise “Air Traffic Control” and
     conducts the state policy in the field of organisation and control for the use of the airspace, as
     well as securing the safety, efficiency and regularity of flights;
2. appoints and releases the members of the Board of Directors and of the Control Board;
3. appoints and releases the General Manager of the State enterprise “Air Traffic Control”, who by
     rights is member of the Board of Directors;
4. authorises the participation of the State enterprise “Air Traffic Control” in trade and public
     societies;
5. approves rules for the structure, functions and the activity of the State enterprise “Air Traffic
     Control”;
6. approves the resolutions of the Board of Directors for participation of the State enterprise “Air
     Traffic Control” in international organisations;
7. approves the programme for development of the State enterprise “Air Traffic Control”.

                                           Article 53c.
                           (New, SG, 34 /2001, enforced January 1, 2001)

(1) The Board of Directors consists of five members, including the General Manager, who are
     nominated by the Minister of Transport and Communications for a period of five years.
(2) The Minister of Transport and Communications concludes contract for management with every
     member of the Board of Directors.
(3) Member of the Board of Directors could not be a person who had been convicted of a crime of
     general character, ascertained with sentence which has come in force, who is a spouse or
     relative by direct line of descent, as lateral branch of family or by marriage up to third degree
     inclusive of another member of the Board of Directors or the Control Board.
(4) The Board of Directors sits for sessions at least once at two months.
(5) The sessions of the Board of Directors are organised and presided by the Chairman of the Board
     of Directors, while in his absence - by the Deputy Chairman.
(6) The session of the Board of Directors is regular provided there are present at least three
     members.
(7) The resolutions of the Board of Directors are accepted with open voting and with common
     majority by all members.
(8) The supervision over the fulfilment of the resolutions of the Board of Directors is executed by
     the Chairman of the Board of Directors.
(9) Minutes are taken at the sessions of the Board of Directors and they are signed by all present
     members.
(10) The Minister of Transport and Communications releases prior to the expiration of the term of
     the contract for management this member of the Board of Directors, who:
1. does not meet the requirements per paragraph 3;
2. violates the conditons, provided for in the contract for management;
3. has lodged a written application to be released.
(11) The Board of Directors:
1. elects among its members a Chairman and a Deputy Chairman;
2. approves draft of rules for the structure, functions and activities of the State enterprise “Air
     Traffic Control” and submits it to the Minister of Transport and Communications for
     authorisation;
3. submits a programme for development of the State enterprise “Air Traffic Control” to be
     approved by the Minister of Transport and Communications;
4. approves the annual financial plan of the State enterprise “Air Traffic Control” in
     correspondence with the international requirements;
5. accepts the structure, budget and the funds for the working salaries in the State enterprise “Air
     Traffic Control” in compliance with the annual financial plan;
6. approves the annual accounting report of the State enterprise “Air Traffic Control”;
7. appoints certified chartered accountant or auditing company to certify the annual accounting
     report;
8. takes decisions about the allocation of profit and covering of loss;
9. takes decisions about the arrangement, rejection or liquidation of long term material assets, for
     establishment of property rights and for leasing of real estates - property of the State enterprise
     “Air Traffic Control”;
10. approves drafts of resolutions for participation of the State enterprise “Air Traffic Control” in
     international organisations and submits them to the Minister                  of Transport and
     Communications for authorisation and takes decisions concerning the collaboration of the State
     enterprise “Air Traffic Control” with similar organisations in the field of aviation;
11. fulfils also other functions related to the administration of the State enterprise “Air Traffic
     Control”, in compliance with the normative acts in force or assigned to it by the Minister of
    Transport and Communications.

                                           Article 53d.
                           (New - SG, 34/2001, enforced January 1, 2001)

(1) The General Manager of the State enterprise “Air Traffic Control”:
1. represents the State enterprise “Air Traffic Control” before the governmental authorities, courts
     and third persons in this country and abroad;
2. manages the overall activity of the State enterprise “Air Traffic Control”;
3. concludes contracts for the activities performed by the State enterprise “Air Traffic Control”;
4. concludes and terminates the labour relations with the employees of the State enterprise “Air
     Traffic Control”;
5. reports his activities before the Board of Directors.
(2) The General Manager has the right to authorise other employees from the State enterprise “Air
     Traffic Control” with his powers under paragraph 1.

                                           Article 53e.
                           (New - SG, 34/2001, enforced January1, 2001)

(1) The Control Board consists of three members. Its members are not entitled to enter in labour
     relations with the State enterprise “Air Traffic Control” and to be members of the Board of
     Directors.
(2) The Minister of Transport and Communications concludes with every member of the Control
     Board a contract for a period of five years.
(3) Member of the Control Board could not be a person who had been convicted of a crime of
     general character, ascertained with sentence which has come in force, who is a spouse or
     relative by direct line of descent, as lateral branch of family or by marriage up to third degree
     inclusive of another member of the Board of Directors or the Control Board.
(4) The sessions of the Control Board are presided by a Chairman. The Chairman of the Control
     Board participates in the sessions of the Board of Directors without the right to vote.
(5) The Control Board takes decisions unanimously.
(6) The Minister of Transport and Communications releases prior to the expiration of the term of
     the contract for management this member of the Control Board, who:
1. does not meet the requirements per paragraph 3;
2. violates the conditions, provided for in the contract for management;
3. has lodged a written application to be released.
(7) The Control Board:
1. exercises control with regard to the observance of the normative acts and the financial discipline
     in the State enterprise “Air Traffic Control”;
2. exercises control with regard to the preservation of the property of the State enterprise “Air
     Traffic Control”;
3. gives conclusion concerning the annual financial report of the State enterprise “Air Traffic
     Control”;
4. carries out inspections at request of the Minister of Transport and Communications, of the Board
     of Directors of the State enterprise “Air Traffic Control” or through its own initiative.

                                              Article 54
                                       (Rescinded, SG 85/1998)

                                           Article 55
                           (Amended, SG 85/1998, Amended, SG 34/2001)

Any flight of aircraft shall be allowed solely by permission from the air traffic control.
                                           Article 56
                           (Amended, SG 85/1998, Amended, SG 34/2001)

All instructions from the air traffic control shall be positively binding upon aircraft operating crews.

                                           Article 57
                          (Amended, SG 85/1998, Amended, SG 34/2001).

In case of emergency representing an imminent danger to the flight, an aircraft commander shall
    have the power to take a decision to deviate from the flight plan and from the air traffic control
    instructions. The aircraft commander must forthwith give notification of such decision to the
    appropriate air traffic control authority.

                                            Article 58
                                       (Amended, SG 85/1998)

Performance of aerobatics as well as any test and sports flights of civil aircraft over settled (built-
    up) areas shall be disallowed.

                                              Article 59

(1) The disposal of any objects from an aircraft in flight shall be prohibited.
(2) (Amended, SG 34/2001) Should safety of flight necessitate the disposal of either objects or fuel
     from board an aircraft, this may be effected solely in strict compliance with the terms and
     procedures prescribed by The Minister of Transport and Communications.
(3) (New, SG 52/2004) The disposal of objects and cargo from aircraft shall be permitted in giving
     aid to the population during disasters, catastrophes and commercial accidents, and in giving aid
     to passengers who have suffered an aviation accident, only after a preliminary coordination
     with the Civil Aviation Administration.

                                              Article 60

(1) (Amended, SG 85/1998, Former text of Art. 60, Amended, SG 52/2004) Parachute jumps and
     parachute cargo drops from aircraft within airport or airway regions, or above populated areas
     shall be prohibited. The Minister of Transport and Communications may permit such activities
     for training and sports purposes.
(2) (New, SG 52/2004) Parachute jumping and parachute cargo dropping from aircraft shall be
     permitted in giving aid to the population during disasters, catastrophes and commercial
     accidents, and in giving aid to passengers who have suffered an aviation accident, only after a
     preliminary coordination with the Civil Aviation Administration.
                                             Article 61
                                       (Amended, SG 85/1998)

(1) Flights of unpowered or unmanned aircraft in the airspace of the Republic of Bulgaria, inclusive
     of those intended for sports, shall be sanctioned by the authority specified in Article 50,
     paragraph (4) hereof.
(2) Flights of aircraft not carrying radio equipment shall be authorised by the authority specified in
     Article 50, paragraph (5) hereof.

                                            Article 62
                                       (Amended, SG 85/1998)

(1) Any aircraft which has entered the airspace of the Republic of Bulgaria without authorisation, or
    has violated the flight regulations, or bears no distinctive nationality and registration mark, or
     disobeys the instructions of the air traffic control authorities shall be regarded as a transgressor
     and forced to land.
(2) (Amended, SG 85/1998) An aircraft that has been ordered to make a landing shall be required to
     do so at an appropriate airport.
(3) (New, SG 85/1998, Amended, SG 34/2001)) The mode of procedure for forcing an aircraft
     which has transgressed the regulations of this Act to make a landing, as well as the mode of
     procedure for allowing such aircraft to continue its flight shall be prescribed in an ordinance
     enacted by The Minister of Transport and Communications, the Minister of Defence and the
     Minister of Internal Affairs.
(4) (Formerly paragraph 3, SG, 85/1998) Any damages resulting from a forced landing shall be
     sustained by the transgressor.

                                    Chapter Six
                      CONTRACT FOR TRANSPORT OF PASSENGERS

                                              Article 63.
                                       (Rescinded, SG, 85/1998)

                                            Article 64.
                                       (Amended, SG, 85/1998)

(1) (Amended, SG 52/2004; Amended, SG 10/2007) An airline operator is an entity registered
     under the Commercial Act, or an entity registered in accordance with the legislation of a
     European Union member-state or of another state which is a party to the European Economic
     Space Agreement, holding an airline operator license which certifies that the operator has the
     professional suitability and organization for guaranteeing the safe operation of aircraft in
     performance of the air activities inscribed in the license. The airline operators are subject to
     technical and financial control for guaranteeing their operations in stable economic conditions
     and high flight safety level.
(2) The airline operators are obliged to create conditions for constant and overall control on behalf
     of the Civil Aviation Administration for the purpose to guarantee safety of flights.
(3) In its’ control activity the Civil Aviation Administration is guided by the principle of
     equivalence of all airline operators.
(4) (Amended, SG 52/2004) The airline operators shall obligatory insure:
1. their aviation staff against accidents, and
2. their responsibility:
a) towards the passengers in case of an accident;
b) in the cases of missing or damaged luggage, cargo and mail;
c) towards third parties.
(5) (Amended, SG 52/2004) The Civil Aviation Administration shall issue airline operator
     certificates.
(6) The Civil Aviation Administration recognizes the validity of a certificate issued to foreign
     airline operator by the aviation administration of a country where the respective requirements
     are equivalent to the national ones or surpass them.
(7) The terms and procedures for issuance of the certificates and the licences are prescribed by the
     Minister of Transport and Communications.

                                         Article 64a.
              (New, SG, 85/1998, Supplemented, SG 34/2001, Amended, SG 52/2004)

(1) Commercial air transportation shall be performed by air carriers which meet the requirements of
     this Act.
(2) The order of Par. 1 shall not be applied to commercial air transportation of passengers, luggage,
     cargo and mail performed with gliders or over light engine-driven aircraft, as well as on flights
     which do not include transportation between different airports.
(3) The Bulgarian air carriers shall be businessmen registered under the Commercial Act or entities
     created with an act of the Council of Ministers, which own an airline operator license and an
     air carrier license.
(4) Every air carrier must at all times have at its disposal own capital not smaller than 160,000
     BGN.
(5) The license for a Bulgarian air carrier shall be without time limit and shall be issued to an entity
     which:
1. has been registered as a businessman under the Commercial Act or has been created with an act
     of the Council of Ministers for performance of flights with special purpose;
2. has air transportation for its main activity, solely or jointly with other aircraft operation or
     aircraft repair and technical service;
3. submits grounded business plan for securing the activity;
4. has an issued airline operator license;
5. presents proof for own capital under Par. 4 and for financial stability.
(6) When an air carrier does not conform with the requirements for provision of information for
     financial stability evaluation or cannot perform its current or potential obligations for a period
     of 12 months, the Director of the Civil Aviation Administration shall cease the operation or
     suspend the license, or shall issue a temporary license until restoration of the air carrier's
     financial stability, given that flight safety has not been endangered.
(7) The Director of the Civil Aviation Administration shall suspend the license of an air carrier
     who has been announced as insolvent or is in liquidation.
(8) The Director of the Civil Aviation Administration shall issue a temporary license to an air
     carrier against whom proceedings in insolvency have been opened, for the period of adoption
     and performance of the remedy plan, and given that flight safety has not been endangered and
     that a possibility for remedying of the company is at hand.
(9) The Director of the Civil Aviation Administration shall cease the operation or suspend the
     license of an air carrier whose airline operator license has been terminated or suspended.

                                            Article 64b.
                                         (New, SG, 34 /2001)

(1) The flights with special designation are carried out by an airline operator - Aviosquad 28 - legal
     person under Article 60 of the Administration Act with the Minister of Transport and
     Communications, whose support is formed from the budget funds and from the income from
     their own activity.
(2) (Amended, SG 37/2006) Flights with special designation are the flights for transport and service
     of the:
1. President of Republic of Bulgaria;
2. Chairman of the National Assembly of Republic of Bulgaria;
3. Prime Minister of Republic of Bulgaria;
4. (Abolished, SG 52/2004);
5. Vice-President of the Republic of Bulgaria
6. (Amended, SG 52/2004) Foreign and state leaders, corresponding in rank to the authorities under
     Items 1,2, 3 and 5;
7. persons included in the strength of the delegation, the accompanying teams, security guards and
     their luggage - in the events according to p.1-5.
(3) In the events when Aviosquad 28 conducts flights for the needs of ministries and
     administrations the payment is effected from the budget of the respective ministry or
     administration.
(4) The activity, functions and strength of Aviosquad 28 are determined with system rules,
     approved by the Council of Ministers on the motion of the Minister of Transport and
    Communications.
(5) To the basic monthly remuneration of the staff in Aviosquad 28 additional money is paid for
    specific conditions of work – up to 25% from the basic remuneration, at conditions and at rate,
    set forth by the Minister of Transport and Communications in congruence with the Minister of
    Labour and Social Policy and the Finance Minister.
(6) To the employees in Aviosquad 28, working per official or labour relationship, food allowance
    is paid which is not taxable and is not included in the gross monthly remuneration. The rate of
    the food allowance is determined per annum by the Minister of Transport and Communications
    in congruence with the Finance Minister.

                                             Article 65.
                                     (Supplemented, SG 52/2004)

With the contract for air transportation of passengers, the carrier shall bind himself to transport with
   his own or a leased aircraft the passenger and his luggage from one place to another for
   payment of a transportation price.

                                               Article 66.

(1) The contract for Transport of passengers is proved with travel ticket, and the hanging over of
     the luggage - with luggage receipt.
(2) In the event the ticket is not valid, not available at the trip or has been lost, the contract remains
     valid and the relationship between the carrier and the passenger is settled under the provisions
     of this Act.

                                               Article 67.

(1) (Amended, SG, 85 /1998) The Transport price also includes the carriage of luggage at rate, set
     by the carrier.
(2) Luggage exceeding the established rate is accepted for Transport with the same aircraft against
     payment of an additional Transport fee.

                                               Article 68.

The employees of the airline organisation, when travelling on business, and other persons, when
    travelling in connection with the accomplishment of tasks, connected directly with the activity
    of the airline organisation or following international conventions, contracts and rules, are
    entitled to obtain official tickets for free of charge trip should unoccupied seats are available in
    the aircraft.

                                               Article 69.

(1) Each of the countries may renounce the contract due to war which had been declared or started,
     which represents danger to the carriage, due to blockade of the airport of departure or of the
     airport of destination, due to detention of the aircraft by the competent authorities, due to
     closing of the airport of departure or the airport of destination by orders of the authorities or
     due to other hindrances of similar kind.
(2) In case of renouncement from the contract due to the reasons mentioned in the preceeding
     paragraph, the passenger may request the return of the paid Transport price in total, in the event
     the renouncement has been made prior to the start of the Transport, and if it was made after the
     start of the Transport - the difference between the price of the ticket and the price of the
     Transport carried out in fact.

                                               Article 70
                                      (Abolished, SG 37/2006)

                                           Article 70a.
                           (New - SG, 85 /1998, Abolished, SG 52/2004)

                                             Article 71.

(1) The passenger has the right to renounce from the contract for Transport and to receive back the
     Transport price in the following cases:
а) illness, including of a member of his family, who is travelling with him, ascertained by a health
     establishment;
б) non-observance of the time-schedule for take-off of the aircraft with more than 60 minutes;
в) substitution of the aircraft with another category of aircraft.
(2) (Amended - SG, 85 /1998) The passenger has the right to renounce from the contract also
     beyond the events listed in the preceeding paragraph, but not later than 8 hours prior to the
     take-off of the aircraft. In such a case from the paid Transport price are deducted 25% from the
     tariff for Transport in one direction.

                                            Article 72.
                                      (Amended - SG, 85 /1998)

In the event of unfulfilled Transport due to death of the passenger, of a member of his family or of
     a parent, brother or sister, as well as of relatives from lateral branch of the family to second
     degree the carrier returns the Transport price in total.

                                               Article 73.
(1) Not admitted for Transport are passengers in a state of intoxication, contagiously ill, as well as
    mentally ill, representing threat to the remaining passengers of the flight safety.
(2) Passenger, who transgresses the established rules for trip and conduct in the aircraft and
    disobeys its’ commander may be forced to leave the aircraft at the airport of departure or
    intermediate one, deprived of the right to request return of the paid Transport price.

                                              Article 74.
(1) The carrier is liable for caused damages in case of death or body injury, suffered by a passenger,
     when the incident that has caused the damages, had occurred on board of the aircraft or during
     the time of getting on or off board and the connected with this actions.
(2) (Amended - SG, 85 /1998) This liability is effected in compliance with the legislation of
     Republic of Bulgaria and in congruence with international agreements and conventions, to
     which Republic of Bulgaria is a signatory.

                                           Article 75.
The carrier is liable for the damages, which have occurred as a result of damage or lack of the
    checked-in luggage, in the event the damage had occurred during the time the luggage had
    been under its guidance.

                                             Article 76.
(1) For damages caused during the Transport of luggage, the carrier bears responsibility in the
    following rates:
а) (Amended - SG, 85 /1998) for lack or damage - the actual value of the missing or damaged
    luggage, but not more than 40 BGL for each kilogram gross weight;
б) for missing or damaged luggage, handed over with declared value - the declared value or this
    part of it corresponding to the missing or damaged part of it. In the event the carrier proves that
    the declared value exceeds the actual one, the compensation to be paid is at the rate of the real
    value.
(2) (Amended - SG, 85 /1998) The liability of the carrier for the personal belongings of the
     passenger and for the belongings, under passenger’s control is up to BGL 800.
In case of lack he returns also the paid Transport fee.

                                            Article 77.
                                    (Supplemented, SG 52/2004)

The carrier shall not be liable for caused damages due to a delay if he proves that he had taken the
    necessary measures to avoid the damages, or it has been impossible for him to undertake such
    measures.

                                           Article 78.
For lacks and damages of the luggage and personal belongings of the passenger a statement of facts
    is prepared under the terms and procedures of chapter ХI of this Act.

                                               Article 79.
In the event the passenger fails to inform the carrier in writing for lack or damage of the luggage in
     the terms stated in chapter ХI herein, it is accepted that the luggage had been delivered in good
     order and in compliance with the ticket or the luggage receipt.

                                             Article 80.
The carrier is not liable for lacks or damages of the passenger’s luggage which have occurred as a
     result of:
а) specific properties of the luggage;
б) defects in packing which could not have been noticed upon acceptance;
в) not mentioning in the shipment document the specific properties of the luggage, requiring special
     storage conditions.
                                             Article 81.
In combined Transports and Transports, carried out by several air carriers, the provisions of Article
     108 and 109 herein are applied.

                                           Chapter Seven

                         CONTRACT FOR TRANSPORT OF CARGO

                                             Article 82.

(1) (Supplemented, SG 52/2004) With the contract for transportation of cargo by air the carrier
     shall bind himself to transport for payment with his own or a leased aircraft to a particular
     place a cargo which the consignor is handing over or will hand over to him, and to deliver this
     cargo to the destination.
(2) Upon acceptance of the cargo the carrier issues a bill of lading.


                                            Article 83.
                                     (Rescinded, SG, 85 /1998)

                                             Article 84.

(1) The non-issuance, invalidity or loss of the manifest do not influence the validity of the contract.
(2) Official cargoes of the aviation organisations could be transported free of charge with official
     bill of lading.

                                             Article 85.
(1) (Supplemented, SG, 85 /1998) The sender is obliged to state in the bill of lading the exact
     denomination of cargo and its specific properties, if any, as well as the type of packing.
(2) Concurrently with the freight the sender hands over to the carrier all papers, required by the
     sanitary, customs and other authorities.

                                             Article 86.

The sender owes an indemnification to the carrier or third persons for caused damages due to
   incorrect, inaccurate or incomplete data, filled in the bill of lading.

                                             Article 87.

(1) The consignor could request the breaking of the contract for air carriage in the following terms:
а) at least seven days prior to the day of flight, by paying penalty of 10% from the fixed or
     contracted price;
б) at least three days prior to the day of flight by paying penalty of 30% from the fixed or
     contracted price.
(2) The parties could agree shorter terms as well.

                                             Article 88.

(1) In the event the consignor does not hand over the cargo for Transport, he pays the full tariff or
     contracted Transport price. If with the same flight instead of the undelivered cargo had been
     transported cargo of another consignor, the faulty consignor pays 50% from the Transport
     price.
(2) The consignor is not liable if the non delivery of cargo for Transport is due to irresistible force
     or average in the manufacturer’s facilities, as a result of which the manufacturing process had
     stopped for more than three days.

                                             Article 89.

Cargo with damaged packing is accepted for Transport at the risk and responsibility of the sender,
    for which a note is made in the bill of lading.

                                             Article 90.

(1) The sender could declare the value of the cargo delivered for Transport. The declared value
     could not exceed the real value of cargo. The declaration of value is mandatory for cargo, the
     actual price of which could not be determined in case of loss or destruction.
(2) For the declared value is collected fee, provided for in a tariff.
(3) Not admitted for Transport with declared value is cargo, if accepted with defects in packing on
     sender’s responsibility, easily perishing or hazardous goods, as well as goods transported with
     companion.
                                               Article 91.
                                        (Amended, SG 34/2001)

The hazardous cargo, which is not admitted for Transport together with passengers, as well as the
    conditions for Transport of explosives, munitions, poisonous and easily inflammable
    substances, easily perishing goods, animals, birds and insects, corpses and mortal remains,
    radioactive substances, cinema and photo cameras, radio equipments, cargo without packing
    etc. are stipulated by the Minister of Transport and Communications in congruence with the
    ministers and heads of the respective ministries and administrations.

                                             Article 92.
(1) If during Transport break-down of the aircraft or its equipment occurs, which endangers the
     cargo or the continuation of the flight, the carrier is obliged to notify the sender.
(2) In case of impossibility to dispatch the notice per the preceeding paragraph or instructions have
     been received from the sender, which could not be followed, the carrier has the power to
     transfer the cargo to another aircraft of his or chartered by him aircraft or to the aircraft of
     another carrier.
                                                Article 93.

The carrier is obliged to effect the Transport along the established and agreed route. The deviation
    from this route because of considerations for safety or due to rendering of assistance by the
    aircraft commander is not considered violation of the Transport contract and the carrier is not
    liable for the damages resulting from this.

                                              Article 94.

The carrier is obliged to deliver the cargo at the point of destination in the term, if such a term has
    been specified in the contract.

                                              Article 95.

(1) The cargo together with the manifest is handed over to the recipient stated in the bill of lading
    or to a proxy of his.
(2) The delivery of cargo to customs or other authorities, executed in compliance with legal
    regulations, is considered as delivery to the recipient.

                                              Article 96.

(1) In the event the recipient refuses to accept the cargo or does not appear within three days, for
     easily perishing goods within 48 hours, the carrier has the power to return the cargo at the
     airport of departure or to give it for storage for the account and for the risk of the sender, for
     which he will be notified.
(2) If in forty five days the cargo is not cleared or no instructions received from the sender, a
     liquidation of cargo is undertaken.
(3) The expenses for storage, liquidation etc. are deducted from the sum obtained at the liquidation,
     while the remainder is remitted to the sender.
The liquidation of cargo is carried out in terms and procedures stipulated by the Minister of
    Transport and Communications and the Minister of Justice.

                                              Article 97.

If the recipient fails to inform the carrier in written about missing or damaged cargo, until the
     delivery is finished, it is considered until the opposite is proven, that he has received the cargo
     in accordance with the bill of lading.
                                                Article 98
                                                     .
In case of missing or damaged cargo, ascertained till the moment of its delivery to the recipient a
     statement of facts is prepared, one copy of which is handed to the recipient.

                                              Article 99.

The Minister of Transport and Communications stipulates the types of cargo, which are carried
   obligatory with a companion. In such cases the accompanying person should be provided with
    valid flight ticket.

                                              Article 100.

The carrier is responsible for the preservation of the cargo from the moment of its acceptance for
    Transport until it is delivered to the recipient or for storage.

                                              Article 101.

(1) The carrier is not responsible if he proves that he had undertaken the necessary measures, to
     avoid the damages, or that it was impossible for him to undertake such measures.
(2) The carrier is not responsible also when the damages have occurred as a result of:
а) through the sender’s or recipient’s fault;
b) characteristic specifications of the cargo and the natural reduction of its weight in the margin of
     the established rates;
c) defects in packing, which could not have been noticed at the time of acceptance of cargo;
d) defects in packing when the cargo was accepted with such packing and a preliminary note has
     been made in the bill of lading that the Transport is carried out for the risk and responsibility of
     the sender;
e) failure to undertake the necessary measures by the accompanying person for the preservation of
     the cargo;
f) failure to state in the bill of lading the specific properties requiring special conditions for its
     storage.

                                              Article 102.

The carrier is exempted from liability for not providing the aircraft, if this had happened due to
    irresistible force, military operations, meteorological and other reasons, not depending on him.

                                              Article 103.

For damages caused at Transport of cargo the carrier is due to pay compensation at the following
     rates:
а) for missing cargo handed over with declared value - the declared value. If the carrier succeeds to
     prove that the declared value surpasses the real one, the indemnification paid is at the rate of
     the actual value;
b) (Amended, SG, 85 /1998) for missing or damaged cargo - the actual value of the missing or
     damaged cargo but not more than BGL 40 for kilogram gross weight.

                                              Article 104.

Besides the indemnification under Article 103 the carrier is obliged to return the respective
    Transport and additional fees, paid for the missing or the entirely destroyed part of the cargo.
                                             Article 105.

(1) In case of non observance of the delivery term, if such term had been agreed, the carrier is due
     to pay to he recipient a compensation at the rate of 10% of the Transport fees for each day
     overdue but not more than 50% from the Transport price.
(2) In case the recipient fails to clear the arrived cargo within one day from the moment of his
     notification, and when according to the contract the notification should have been effected by
     the sender within two day after the receipt of cargo at the airport of destination, he shall pay to
     the carrier a compensation at the rate of 10% from the Transport fees for each day overdue but
     not more than 50% from the Transport price.
It could be provided for in the contract that the carrier should bear greater liability than the one
    provided for herein for untimely delivery.

                                             Article 106.

Should the cargo is not delivered within 10 days from the day it was supposed to arrive, is is
   considered lost.

                                             Article 107
                                                   .
The air carriage of cargoes does not include the land, naval or river Transport, carried out outside
    the airports. If such Transport has been carried out on the grounds of the contract for air
    carriage for the purpose the cargo to be loaded or reloaded on board the aircraft, or to be
    delivered to the recipient, it is considered, till the opposite is proven, that the damages have
    occurred during the air Transport.

                                             Article 108.

In mixed Transport, carried out partly by air, partly by other kind of transport, the provisions of this
    law are applied only with regard to the air carriage.

                                             Article 109.

In Transport, carried out by several air carriers, as well as in mixed Transports, the liability of the
    carriers is joint in all cases when it is impossible to ascertain through whose fault has occurred
    the damage.



                                            Chapter Eight

                           CONTRACT FOR AVIATION SERVICES

                                      (Rescinded, SG, 85 /1998)
                             Article 110-112 (Rescinded, SG, 85 /1998)

                                            Chapter Nine

                                            AIR SPORTS

                                      (Rescinded, SG, 85 /1998)
                             Article 113-119 (Rescinded, SG, 85 /1998)

                                           Article 119a
                                        (New, SG 52/2004)
Parachute jumps and flights for sports purposes shall be performed in areas designated by the Civil
    Aviation Administration.

                                            Article 119b
                                         (New, SG 52/2004)
(1) (Amended, SG 10/2007) Training of sportsmen exercising air sports as well as sports flights
     outside of the system of the Ministry of Defense or the Ministry of Internal Affairs shall be
     performed by parties registered under the Commercial Act, or by entities registered in
     accordance with the legislation of a European Union member-state or of another state which is
     a party to the European Economic Space Agreement, or under the Legal Entities Act with a
     noncommercial goal for the realization of socially beneficial activity in air sports.
(2) Training shall be performed by rules developed by the parties under Par. 1 and approved by the
     Civil Aviation Administration.

                                           Article 119c
                                        (New, SG 52/2004)
The parties which organize sports events in the sphere of air sports and the parties which realize
    them shall create conditions for the safe performance of the indicated activities as well as for
    the safety of third parties.

                                             Article 119d
                                          (New, SG 52/2004)
The parties performing activities in air sports shall insure the seats in the aircraft as well as the
    aviation staff and their responsibility in case of an accident, with regard to the sportsmen and
    towards third parties.

                                           Chapter Ten

                                             FEES
                                          Article 120.
                                     (Amended, SG, 85 /1998)

(1) (Amended, SG 52/2004) At the airports for public use airport fees shall be collected for:
1. landing of aircraft;
2. parking;
3. passengers commencing a trip from the airport;
4. (New, SG 37/2006) use of passenger arm.
(2) (Amended, SG, 34/2001, enforced January 2001; Amended, SG 37/2006) State Enterprise “Air
     Traffic Control” shall collect:
1. charges for air navigation service and use of navigational resources of State Enterprise Air
     Traffic Control in airport areas and regions;
2. traveling charges for flying in the controlled airspace of the Republic of Bulgaria
(3) Exempted from the fees under paragraph 1, p. 1 and 2 and under paragraph 2 are:
1. aircraft, carrying out search and rescue flights;
2. aircraft, carrying out humanitarian flights;
3. governmental aircraft, when fulfilling governmental flights;
4. (Rescinded, SG, 34/2001)
5. aircraft in distress or subjected to illegal interference;
6. aircraft carrying out an initial flight training;
7. aircraft, used for flying over the aviation installations;
8. aircraft in special cases, enacted by the Council of Ministers.
(4) (Supplemented, SG 52/2004) The Civil Aviation Administration shall collect fees for
     administrative service and performing procedures for:
1. issuance of certificates to airports and flight platforms;
2. (Amended, SG 52/2004) issuance of airport and ground service operator licenses;
3. issuance of certificates to aviation staff;
4. issuance of licenses for performance of technical service or repair of aviation equipment;
5. issuance of licences to laboratories for objective control;
6. issuance of certificates for airworthiness of aircraft;
7. issuance of certificates for airworthiness of aviation equipment;
8. (Amended, SG 52/2004) issuance of certificates for aviation training centers;
9. issuance of certificates to airline operators;
10. registration of aircraft or entering of changes in the public register of aircraft and issuance of
     certificates for registration;
11. issuance of references connected with aviation except those being issued for the needs of the
     state administration authorities.
12. (New, SG, 34/2001, Enacted since 1 Jan 2001, Amended, SG 52/2004) issuance of certificates
     for operability of navigational equipment for air navigation and landing
13. (New, SG 52/2004) issuance of certificates for operability of the systems and equipment for
     passenger service, aircraft service and securing, loading and unloading of luggage, cargo an
     mail;
14. (New, SG 52/2004) issuance of permanent passes to the security areas at civil airports for public
     use and of identification cards to personnel and motor vehicles;
15. (New, SG 52/2004) issuance of air carrier license;
16. (New, SG 52/2004) issuance of certificates for aviation noise of aircraft;
17. (New, SG 52/2004) issuance of certificates for gas emissions of aircraft engines;
18. (New, SG 52/2004) issuance of certificates for airworthiness of newly manufactured aircraft or
     newly manufactured aviation equipment.
19. (New, SG 52/2004) issuance of export certificates for airworthiness;
20. (New, SG 52/2004) issuance of certificates for airworthiness of the corresponding type of
     aircraft;
20a. (New, SG 37/2006) issuance of air navigation service license;
21. (New, SG 52/2004) recognition of licenses and certificates through the issuance of a recognition
     document;
22. (New, SG 52/2004; Amended, SG 37/2006) certification or amendments of licenses and
     certificates.
(5) (New, SG 52/2004) The airport fees under Par. 1 shall be collected:
1. by the Civil Aviation Administration if not otherwise stipulated in a concession contract or an
     international contract, ratified, promulgated and enacted for the Republic of Bulgaria;
2. by the concessioner, under conditions and in an order defined in the concession contract, in
     accordance with the decision of the Council of Ministers for granting of a concession, when for
     the civil airport for public use a concession has been granted;
3. in the cases of an international contract, ratified, promulgated and enacted for the Republic of
     Bulgaria, under the conditions defined in it.
(6) (New, SG 52/2004) In the cases under Par. 5, Item 2, the right to collect for his own benefit all
     or part of the fees, up to the amounts defined under Art. 122, can be granted to the
     concessioner.
(7) (Former PAr. 5, Amended, SG 52/2004) The fees under this article shall be taxable with the
     exception of the cases under Par. 5, Item 2.

                                            Article 121.
                                     (Rescinded, SG, 85 /1998)

                                          Article 122.
                         (Amended, SG, 85 /1998; amended, SG, 34/2001)

The Council of Ministers on the motion of the Minister of Transport and Communications and of
    the Finance Minister stipulates the rates of fees, the terms and procedures and the events at
    which they are collected.

                                         Chapter Ten "А"

    FINANCING OF THE ACTIVITY OF THE STATE ENTERPRISE “AIR TRAFFIC
                               CONTROL”
                          (New, SG,16/1997, Title amended, SG, 34/2001)

                                          Article 122a.
                            (New, SG, 16/1997, Amended, SG, 85/1998)

(1) (Rescinded, SG, 34/2001, enforced January 1, 2001)
(2) (Amended and supplemented, SG, 85 /1998, Amended, SG, 34/2001, enforced January 1, 2001)
     The activity of the State enterprise “Air Traffic Control” is floated by:
1. (Amended, SG, 34/2001, enforced January 1, 2001; Amended, SG 37/2006) the fees under
     Article 120, paragraph 2;
2. funds per credit contracts;
3. (New, SG, 85 /1998) interests per deposits of own funds and overdue payments;
4. (New, SG, 85 /1998, Amended, 34/2001, enforced January 1, 2001) relief funds, donations,
     training, qualification;
5. (New, SG, 34/2001, enforced January 1, 2001) the services under Article 53, paragraph 3.
(3) (Amended and supplemented, SG, 85 /1998, Amended, SG, 34/2001, enforced January 1, 2001)
     The funds raised under paragraph 2, p. 1 are spent for:
1. (Amended, SG, 85/1998, amended, SG, 34/2001) support of the activity of the State enterprise
     “Air Traffic Control”, the funds for labour salary are formed in percents from the collected fees
     for provided aviation services;
2. (Amended, SG, 34/2001, enforced January 1, 2001) acquisition of long-term assets;
3. incurring of expenses for large-scale construction and technical furnishing, connected with the
     integration and harmonisation of the national system for air traffic control with the European
     system and with other international conventions, to which Republic of Bulgaria is a signatory;
4. (New, SG, 85 /1998) search and rescue activities;
5. (New, SG, 85 /1998) pay-off of credits;
6. (New, SG, 34/2001, enforced January 1, 2001) accomplishment of programmes for training,
     maintenance and enhancement of the professional qualification and rehabilitation and
     prophylactic remedial actions for the staff of the State enterprise “Air Traffic Control”;
7. (New, SG, 34/2001, enforced January 1, 2001) fulfilment of programmes and obligations per
     international contracts in the field of air traffic per which Republic of Bulgaria is a signatory;
8. (New, SG, 34/2001, enforced January 1, 2001) expenditures for administration of property under
     Article 53, paragraph 5;
9. (New, SG, 34/2001, enforced January 1, 2001, Amended, SG 52/2004) payment of fees under
     Art.120, Par. 4.
10. (New, SG 52/2004) payment of TPL insurance premiums.

(4) (Amended - SG, 34/2001, enforced January 1, 2001, SG 52/2004; Amended, SG 37/2006) State
     enterprise “Air Traffic Control” may refuse air navigation services to air operators or aircraft
     owners if they have not paid the fees due under Art. 120, Par. 2, for which it shall inform in
     due time the Directorate General Civil Aviation Administration and the debtors.

                                            Article 122b.
                                         (New, SG, 16/1997)

The funds from the excess of income above expenses at the end of the fiscal year remain available
    for utilisation in the next fiscal year, as whole this is used for fulfilment of the European
    programme for integration and harmonisation of the national systems for air traffic control with
    of the European countries.

                                         Chapter Ten "B"

FINANCING OF THE ACTIVITY PROVIDING FLIGHT SAFETY AND MAINTENANCE
                    AND DEVELOPMENT OF AIRPORTS FOR PUBLIC USE
                                (New, SG, 85 /1998)

                                          Article 122c.
                                      (Amended, SG, 34/2001)

(1) (Supplemented, SG 52/2004) The financing of activities providing the flight safety and
     maintenance and development of civil airports for public use shall be realized through the
     budget of the Ministry of Transport and Communications with the exception of the cases when
     otherwise has been stipulated in an international contract or when a concession has been
     granted for a civil airport for public use and it has been otherwise stipulated in the concession
     contract in correspondence with the decision of the Council of Ministers under Art. 7 of the
     Concession Act.
(2) The activities under paragraph 1 are financially provided through:
1. (Supplemented, SG 52/2004) the fees under Art. 120, Par. 1 collected by the Civil Aviation
     Administration, and in the cases when an international or a concession contract stipulates
     otherwise - under the conditions stipulated in the contract;
2. (Rescinded, SG, 34/2001, enforced January 1, 2001)
3. the fees under Article 120, paragraph 4;
4. the interests per deposits of owned money and overdue payments.
(3) With the funds accrued under paragraph 2 are provided the expenses for:
1. support of the Civil Aviation Administration;
2. (Supplemented, SG, 12/2000, Amended, 34/2001, enforced January 1, 2001) safety of flights,
     including for flying training of airmen-pilots, passing the higher course of training - state
     order: 6 % from fees under Article 120, paragraph 1;
3. (Supplemented, Sg 52/2004) airports to which the fulfillment of the state functions under Art.
     48а, Par. 3, Item 1 had been assigned, and when a concession for a civil airport for public use
     has been granted - in accordance with the decision of the Council of Ministers under Art. 7 of
     the Concession Act, and the concession contract;
4. (Amended, SG, 34/2001) additional remuneration for specific conditions and requirements to the
     labour of aviation inspectors - under terms and procedures stipulated by the Minister of
     Transport and Communications.
(4) (New, SG 12/2000, Abolished, SG 111/2001)
(5). (New, SG 52/2004) The financing of the activities for providing the security and safety of
     flights, the building, maintenance, development and support of the civil airports for public use,
     for which a concession has been granted and the right to collect for his own benefit all or a
     particular part of the fees under Art. 120, Par. 1 has been granted to the concessioner, shall be
     performed under conditions and in an order defined in the concession contract, in
     correspondence with the decision of the Council of Ministers under Art. 7 of the Concession
     Act.

                                          Article 122d.
                                      (Amended, SG 52/2004)

An airport operator performing the functions of airport administration financed by the airport fees
   under Art. 120, Par. 1 shall prepare and present for coordination with the Civil Aviation
   Administration a program for the necessary expenses for paying off the received credit, for the
   investment expenses for infrastructure development and for the expenses for support of the
   airport administration.
                                          Article 122e.
                           (New, SG, 12/2000, Amended, SG, 34/2001)

All funds granted from the budget of the Ministry of Transport and Communications according to
    the provisions of this Chapter for financing of the activities for providing and maintenance of
    the safety of flights, as well as the fees collected under Article 120, paragraph 4, are not
    taxable.

                                          Chapter Eleven

            STATEMENTS OF FACTS, CLAIMS AND LEGAL PRESCRIPTION

                                             Article 123.

Statement of facts is drawn up in the following cases:
а) when the circumstances necessitating the carrier’s liability are present;
b) when the luggage or cargo does not comply with the denomination or weight, quantity or number
    of items stated in the shipping document;
c) when luggage or cargo is missing or is damaged;
d) for cargo or luggage without shipping documents or for shipping documents without cargo or
    luggage.
                                             Article 124

In the event the recipient has not requested statement of facts to have been prepared, it is considered
     until the opposite is proven that the luggage or cargo have been handed over in good order.
                                              Article 125.

The statement of facts is drawn up at the moment the irregularity had been ascertained but not later
    than the hanging over of the luggage or cargo to the recipient.

                                             Article 126.

(1) The statement of facts is drawn up by the carrier or by a person authorised by him and is signed
     by him and by the passenger, sender or recipient of luggage or cargo.
(2) When the passenger, sender or recipient of luggage or cargo fails to appear or refuses to sign the
     statement of facts it will be signed by two witnesses.

                                             Article 127.

(1) For lacks or damages the passenger, sender, recipient or their legal agents or authorised persons
     put in a claim in written before the carrier not later than seven days from the day of receipt of
     the luggage and fourteen days from the day of receipt of cargo, and in case of total loss - from
     the day they were supposed to have been received. The claim for time delay should be put not
     later than twenty one days from the day of hanging over of the luggage or cargo to the rightful
     claimant.
(2) The term to lodge a claim for overtop Transport fees is three months, considered as of the pay of
     payment.

                                             Article 128.

A claim could be put in also after the expiry of the terms under Article 127, should the rightful
     claimant proves:
a) he was not in a position to put it in;
b) that he had not put in a claim as a result of him being mislead by the carrier or an agent of the
     latter;
в) that the carrier had been advised of the damage that has occurred.
                                             Article 129.

The claim is lodged in written, stating the subject of the claim and the requested amount. All
   documents substantiating the claim are attached to it.

                                             Article 130.

(1) The claim is put in before the carrier or a person empowered by him.
(2) Upon Transport carried out by air or other kind of transport the claims are put in before the
     carrier, who has caused the damage, and in the event this could not be proved - before the first
     or last carrier, keeping the terms, specified for the respective type of transport.

                                      Article 131.
Upon Transport performed by two or more air carriers, the claim could be put in before each of
   them.

                                             Article 132.

(1) In the case when to the lodged claim are not enclosed the proofs on which it is based the carrier
     is obliged to inform the claimant and to set a term, not less than seven days for elimination of
     the irregularity.
(2) If in the set term the irregularity is not eradicated the claim will be considered not lodged and
     will be returned.
(3) The claim that has been repaired will be considered valid from the day it had been lodged.

                                             Article 133.

The carrier is obliged in two months period from filing of the claim to consider it and to inform the
    claimant about the result.

                                             Article 134.

Proceedings against the carrier could be instituted solely when the latter had entirely or partially
    rejected the claim or when the claimant had not received an answer in the term stipulated under
    Article 133.

                                             Article 135.

The right of proceedings against the carrier per international Transport contracts lapses in two years
    term, and per domestic contracts - in six months period, considered as of the day of arrival of
    the aircraft at the point of destination, of the day when the aircraft was supposed to arrive, or of
    the day the Transport had been terminated.

                                             Article 136.

(1) In case of bodily injury or death of the passenger the rightful claimant is entitled to bring an
     action before the competent court within two years from the day of injury.
(2) The carrier is exempted from payment of court and correspondence expenses, if he is sentenced
     to pay as indemnification a sum, which does not surpass the amount, proposed by him in
     written within six months period from the day of the injury.

                                             Article 137.

(1) The prescription terms under Article 135 are suspended with the beginning of the lodging of the
     claim and start again from the day the answer of the carrier had been received or after the
     expiration of the term for answer.
(2) The terms are defined under the provisions of the Civil Code of Procedures.

                                              Article 138.

Every stipulation in the contract for exemption from or diminishing of the liability provided for
    herein is void.

                                           Chapter Twelve

                  ACCIDENTS WITH AIRCRAFT. SEARCH AND RESCUE.
                             (Title Amended, SG 52/2004)

                                            Article 139.
                                       (Amended, SG, 85 /1998)

(1) (Amended, SG, 34/2001) The State enterprise “Air Traffic Control”, which has received
     message or has learned about a state of menace or distress, related to the aircraft, as well as in
     case of an air accident shall immediately inform:
1. the search and rescue service or the emergency rescue service in the respective region;
2. The Civil Aviation Administration.
3. (New, SG 52/2004) the Ministry of Transport and Communications;
4. (New, SG 52/2004) the specialized unit under Art. 16d.
(2) (Amended, SG 52/2004) The crew of the aircraft undergoing a disaster shall inform the State
     enterprise “Air Traffic Control”, as well as the authorities under Par. 1, Item 1 if it is able to do
     so.
(3) (New, SG 52/2004) The aircraft operators, airport operators and the ground service operators
     registered in the Republic of Bulgaria shall notify the authorities under Par. 1 upon the
     emergence of an aviation accident, a serious incident or an incident.

                                            Article 140.
                                       (Amended, SG, 85 /1998)

In case of an accident with a foreign aircraft or with an aircraft on board of which there are foreign
    citizens, which had occurred in the controlled airspace of Republic of Bulgaria, the head of the
    Civil Aviation Administration shall inform the Ministry of Foreign Affairs, wherefrom shall
    be informed the country where the aircraft had been registered, accordingly the embassies of
    the countries, whose citizens had been affected by the event.

                                              Article 141.

(1) (Amended and supplemented, SG, 85 /1998) The local state and municipal authorities in the
     region of the accident, and in case of accident in the vicinity of the airport - the head of the
     airport, are obliged to take forthwith all possible measures to render assistance to the crew and
     the passengers and for preservation of the aircraft, its cargo and the evidence, connected with
     the accident, as well as security measures and measures to restrict the access to the accident
     area.
(2) (New, SG 85 /1998) The fire-fighting services, the civil defence, the police and the military
     police carry out emergency rescue works, connected with the air accident following a schedule
     prepared by :
1. the airport administration - for accidents in the vicinity of airports;
2. the airport administration jointly with the municipalities - for the region with radius 5 km from
     the check point of the airport;
3. the Civil Aviation Administration jointly with administrative authorities and the Civil defence
     and the municipalities - for accidents beyond the radius of 5 km from the check point of the
     airport.
(3) (New, SG 52/2004) The emergency-rescue works on the territory of the airport and in a region
     with a radius of 5 km from the control point of the airport shall be be directed by an airport
     emergency situation center.
(4) (New, SG 52/2004) The emergency-rescue works connected with an aviation accident outside
     the region under Par. 3 shall be directed by the situation center of the Ministry of Transport and
     Communications.
(5) (New, SG 85/1998, Former Par. 3, SG 52/2004) The persons, participating in the emergency
     rescue works at the airports shall be subject to training and periodic practices.
(6) (New, SG 85/1998, Former Par. 4, SG 52/2004) The order, requirements, liabilities and
     obligations connected with the organization of the emergency-rescue and anti-fire and medical
     securing of flights in the area of the airports shall be determined with an order of the Minister
     of Transport and Communications.
(7) (New, SG 85 /1998, Amended, SG 34/2001, Enforced January 1, 2001, Former Par. 5, SG
     52/2004) The terms and procedures as well as the requirements towards the search and rescue
     system upon an aviation accident shall be determined with an order of the Minister of
     Transport and Communications, the Minister of Defense and the Minister of Internal Affairs.
(8) (Former Par. 2, SG 85 /1998, Former Par. 6, SG 52/2004) Telephone conversations, as well as
    accepting and dispatching of telegrams for rendering help to an aircraft which has suffered an
    accident shall be performed with priority and at the expense of the Civil Aviation
    Administration.

                                          Article 142.
                                 (Amended, SG 85 /1998, 52/2004)

(1) The investigation shall be a process carried out with the goal of preventing aviation accidents,
which shall include collection and analysis of information, preparation of conclusions, including
establishing of the causes, and elaboration of recommendations for securing the safety of aviation.
(2) The investigation of an aviation accident on the territory of Republic of Bulgaria shall be
performed by a commission appointed with an order of the Minister of Transport and
Communications.
(3) The work of the commission shall be coordinated by the specialized unit under Art. 16d.
(4) (Amended, SG, 34/2001) The terms and procedures for organizing and performing the
     investigation of aviation accidents and serious incidents shall be determined with an order of
     the Minister of Transport and Communications.
(5) Upon an aviation accident emerging in air space outside of the jurisdiction of the Republic of
     Bulgaria, with an aircraft entered in the register of the Republic of Bulgaria, the Minister of
     Transport and Communications shall appoint one or more authorized representatives for
     participation in the investigation in the country of the place of the event.
(6) The establishing and the degree of guilt or responsibility shall not be a subject of the
     investigation activity.

                                         Chapter Thirteen

                            ADMINISTRATIVE PUNITIVE RULES

                                              Article 143.
                                       (Amended, SG, 85 /1998)
(1) A fine at the rate of BGL from 3000,- to 10000,- is imposed on anybody, who:
1. permits a flight or alone performs a flight with an aircraft which is technically out of order;
2. permits a flight or alone performs a flight with an aircraft which, has not been registered or has
     no certificate of airworthiness;
3. (Amended, SG 52/2004) operates or participates in the operation, service, securing of an aircraft,
     or in the service of passengers without possessing a competence license, as well as the one,
     who orders or allows this;
4. (Amended, SG 52/2004) allows, operates or participates in the operation, service, securing of an
     aircraft, or in the service of passengers after having consumed alcohol or other narcotic;
5. provides services or participates in the service of flights after having consumed alcohol or other
     narcotic;
6. performs a flight or permits a flight to be performed with improper fuel or lubricants;
7. orders landing or performs landing alone at an unsuitable airport, not being forced to do so;
8. violates or orders the requirements of the sanitary norms for rest of the licensed personnel to be
     violated;
9. performs, orders or admits flight with an aircraft under conditions not corresponding to its
     operational specifications;
10. propagates false information related to the provision of flights.
11. (New, SG 52/2004) does not comply with written directions or orders of the competent
     authorities under this act;
12. (New, SG 52/2004) does not provide access in equal conditions on an aircraft which has
     received a permission for performance of a flight;
13. (New, SG 52/2004) refuses to accept and service an aircraft undergoing a disaster or a state
     aircraft;
14. (New, SG 52/2004) performs an activity in violation of Art. 6.
(2) Regardless of the imposed fine the transgressor is deprived of the right to excercise the
     respective profession or aviation activity in the cases per p. 1, 4, 5 and 9 for a period of one to
     three years, and in the remaining cases - for up to one year.

                                               Article 144.
                                        (Amended - SG, 85 /1998)
A fine at the rate of BGL from 1000,- to 10000,- is imposed on anybody, who:
1. admits an airport or airfield to be used prior to their registration;
2. does not keep the term for registration and deletion of the aircraft in and from the register of the
     Civil Aviation Administration;
3. orders or admits change of the aircraft to be done or equipment to be used without the sanction of
     the Civil Aviation Administration;
4. orders or performs a flight with a crew of not full strength;
5. breaks the rules of flights;
6. does not fulfil the requirements of the manufacturer and the prescriptions of the competent
     bodies for maintenance of the aircraft airworthiness;
7. (Amended, SG 52/2004) violates the traffic rules on the territory of an airport;
8. through his conduct or activity violates the safety of flights or endangers the life of people;
9. hides an information about an event or circumstance related to an aircraft, thus creating
     conditions for deterioration of the safety of flights;
10. does not follow a prescription of the Civil Aviation Administration under Article 47, paragraph
     3 for removal of obstructions, concerning the provision of flight safety.
11. performs a flight not carrying on board of the aircraft the papers stated in Article 30 and in other
     normative acts;
12. orders Transport by air or other aviation service to be performed against consideration, for
     which he has not been authorised;
13. operates installations, buildings, machines or equipment which do not meet the requirement for
     safety labour.

                                           Article 145.
                                      (Amended - SG, 85 /1998)
A person who does not follow the established order, in the aircraft or at the airport, is fined with
   BGL from 50,- to 200,-.

                                                Article 146.
                                         (Amended - SG, 85 /1998)
In the event of second violation within one year from the coming into force of the punitive decision
     for the first violation, the fine under Articles 143 and 144 is from BGL 4000,- upto13 000,-.

                                           Article 147.

(1) (Preceeding text of Article 147, Amended, SG, 85 /1998) For infringements of this Act, of the
     rules and regulations concerning its application, for which has not been provided other
     punishment a fine will be imposed to the guilty persons at the rate of BGL from 100,- to 500,-.
(2) (New, SG 85 /1998) A head or other official who orders or deliberately admits his subordinate
     to commit violation under this Act is punished with the penalty provided for the committed
     infringement.

                                           Article 147a
                                        (New, SG 52/2004)

When the violation under Art. 143, 144, 145, 146 and 147, Par. 1 has been performed by a legal
   entity, a property sanction amounting to the penalty for the respective violation shall be
   enforced.

                                           Article 148.

(1) (Supplemented - SG, 85 /1998, Amended, SG, 34/2001) The violations are ascertained with
     deeds, worked out by officials appointed by the Minister of Transport and Communications,
     and in the cases under Article 145, should the violation had been performed on board of the
     aircraft - by the commander of the aircraft.
(2) (Amended - SG, 85 /1998, Amended, SG 34/2001)) On the grounds of the drawn up deeds the
     Minister of Transport and Communications or appointed by him official issues punitive
     decisions.
(Paragraph 3, Rescinded - SG, 85 /1998)

                                           Article 149.

The drawing up of deeds and the issuance of punitive decisions for administrative violations under
    this Article as well as their appeal and execution is carried out under the terms and procedures
    of the Administrative violations and punishments Act.

                                ADDITIONAL PROVISIONS
                         (Previous title “Special Orders” SG, 85 /1998)

                                             § 1.
            (Preceeding Article 150, Amended, SG, 85 /1998, Amended, SG, 34/2001)

The aviation inspectors and the officers of the Civil Aviation Administration upon fulfilment of
    their official duties fly free of charge with all Bulgarian aircraft under terms and procedures
    stipulated by the Minister of Transport and Communications.

                                             § 2.
                    (Amended, SG, 30/1990, preceeding Article 151, 85 /1998)
Entitled to free of charge and at reduced prices non business flights with Bulgarian aircraft is the
    aviation staff under the terms, defined in the Structural Rules or the Articles of Association of
    the company or the organisation, performing aviation activities in the sense of this Act.

                                                 § 3.
                               (Preceeding Article 152а, SG, 85 /1998)
In the sense of this Act:
1. (Abolished, SG 52/2004)
2. (Amended, SG 52/2004) An "Aviation Accident" is an event connected with the use of an
     aircraft, which has emerged at the moment of boarding of a person intending to perform a
     flight, to the moment when all persons onboard have left the aircraft, and during which:
a) a death or a major or minor injury has occurred as a result of being aboard the aircraft; direct
     contact with any part of the aircraft, including any part detached from it; direct effect of a jet
     stream from the engines, with the exception of the cases when the death or injury has occurred
     as a result of a natural cause or a self injury, or an injury by other persons, or when the injuries
     have been caused to passengers without a ticket, who have hidden at places which normally are
     not used by the crew or passengers;
b) an aircraft has received a failure or a structural damage upon which a damage of the structural
     strength has occurred, or a deterioration of the technical or flight characteristics of the aircraft,
     which usually requires a repair or a replacement of the damaged elements, with the exception
     of the cases of failure or damage of an engine when only the engine has been damaged, its
     streamliners or accessory units, or only the pneumatic screws, wing edges, antennae, tires,
     break devices, streamliners have been damaged, or when there are minor recesses or holes on
     the casing;
c) the aircraft has vanished without a trace or the access to it is impossible.

3. "Safety of flights " is a characteristic of the aviation system for providing freely carrying out and
     execution of flights, preserving the life and health of the participants in them, as well as the
     integrity of cargo and of the aircraft.
4. "Aviation" is the traffic of aircraft, as well as any activity and action of persons, related to
     providing its security in air and aground.
5. "Aircraft" is every plane, which could get support in the atmosphere for the account of the
     reaction of air, except for the reaction of the air from the land surface
6. "Aviation service" is a service performed with an aircraft against consideration.
7. "Air Traffic" means all aircraft in flight or moving over the maneouver area of the airport.
8. "Government flight " is non-commercial flight, carried out with state aircraft.
9. "State aircraft " is an aircraft, used for military, police or customs flights, regardless of its
     nationality.
10. (Amended, SG 52/2004) "Aviation Inspector" is a person appointed by the Director of the Civil
     Aviation Administration, having the right to control the observance of this Act and the
     normative acts issued on its basis, and to issue obligatory directions and acts for the
     establishment of violations.
11. "Airport check point" is a conditioned point determining the geographic location of the airport.
12. “Airworthiness of the aircraft" is a complex characteristic of the aircraft, defined by the
     designers, and the realized principles in the construction and flying qualities, making possible
     the performance of safe flight in the estimated conditions and with established methods of
     operation.
13. (Amended, SG 52/2004) "Airport" is a specified part of the land or water surface (inclusive of
     all buildings, installations and equipment), intended fully or partially for landing, takeoff and
     movement of aircraft over this surface, and for service of their passengers, cargo and mail.
14. "Airfield" is a specific part from an installation, land or water surface, destined for rake-off and
     landing of aircraft.
15. "Airport Administration" is a service for administration of the airport for public use.
16. (Amended, SG, 34/2001, enforced January 1, 2001, SG 52/2004) "Airport Operator" is a
     privately owned company with state property or a businessman, who had received a concession
     under the terms and procedures of the Concession Law, as well as a businessman who uses the
     civil airports under Art. 43, Par. 2, Items 2 and 3 of it.
17. "International flight " is every flight, in which the place of departure, the intermediate landing,
     if any, or of destination is situated on the territory of two or more countries.
18. "Ground service" are activities, performed in the guarded borders of the airport, connected with
     the pre-flight or after-flight service of the aircraft.
19. "Controlled airspace " is an airspace with defined dimensions, in whose borders specific types
     of flights could be performed, for which are specified particular types of air traffic control and
     flight rules. In the structure of the controlled airspace of Republic of Bulgaria is included also
     the authorised airspace per international contracts.
20. "Guided borders" are the areas surrounded by the perimetric fence of the airport for public use.
21. (Abolished, SG 52/2004)
22. (Amended, SG, 34/2001, enforced January 1, 2001, Abolished, SG 52/2004)
23. "Obstacles" are all immobile (temporary or permanent) and mobile objects or parts of them,
     situated in the zone designed for descent of aircraft on land, or which exceed a specific surface
     designed to provide the safety of the aircraft in flight.
24. (Amended, SG 52/2004) An "Air Carrier License" is an individual administrative act which
     gives to the air carrier the right to perform commercial air transportation.
25. "Certificate of airline operator" is a document confirming, that the operator possesses the
     professional competence and organisation for providing of safe work of the aircraft for the
     aviation activities specified in the certificate.
26. "Security" is an element of safety, which characterises the state of defence of the civil aviation
     from acts of illegal intervention.
27. "Standard" is each requirement to physical characteristics, configuration, material, condition,
     personnel or procedures, whose uniform application is recognised as necessary for providing
     the safety or regularity of aviation.
28. "Facilities for take-off and landing " is general term for designation of the track, rolling paths,
     platform, as well as the air navigation aid on the airport.
29. "Sports and training aircraft" are the aircraft, designated for sports or training purposes.
30. "National mark" is the combination of letter and numeric-letter symbols, which is unique for
     any country - member of ICAO.
31. "Distinctive nationality and registration mark " is the combination of letter or numeric-letter
     symbols, which is unique for any country - member of ICAO.
32. (New, SG 34/2001, enforced January 1, 2001) "Road fees" are fees orientated to expenses, fixed
     in compliance with the requirements of the International Civil Aviation Convention and of the
     International Convention of European control for collaboration for aviation safety dated
     December 13,1960, amended with minutes dated February 12, 1981, which cover the expenses
     for operation of the air navigation installations for air navigation and landing and the expenses
     for air navigation service of aircraft during flights in the airspace of Republic of Bulgaria.
33. (New, SG 52/2004) A "commercial air transportation" is a flight of an aircraft for the
     performance of a transportation through the air, of passengers, cargo and/or mail for payment.
34. (New, SG 52/2004) A "serious incident" is an incident in which the circumstances shaw that an
     aviation accident has almost occurred. The difference between an accident and a serious
     incident is that in the serious incident the consequences of an aviation accident have been
     avoided or have not occurred.
35. (New, SG 52/2004; Amended, SG 37/2006) An "incident" is every event which is not an
     aviation accident and is connected with the use of an aircraft, which influences or could
     influence aviation safety.
36. (New, SG 52/2004) "Airport fees" are fees determined in accordance with the principles of the
     International Civil Aviation Convention, which cover the expenses for the creation of the
     necessary conditions and standards providing the safe and secure landing and parking of
     aircraft, as well as the expenses for the service and security of passengers commencing their
     trip from the airport.
37. (New, SG 52/2004) "Self service" at an airport for public use is present when an airline operator
     provides himself with one of more of the ground service activities under Art. 48e, Par. 3 by
     himself or through a ground service operator hired by him for the needs of the airline operator,
     without providing of services to third parties by the hired operator being admissible. The airline
     operators shall not consider each other as third parties when one of them owns the bigger part
     of the stock of the other or the owner of the bigger part of the stock of each of the airline
     operators is one and the same.
38. (New, SG 52/2004) A "dry lease" is a contract pursuant to which the lessor (airline operator or a
     person) leases out an aircraft without a crew to another airline operator (leaseholder), and the
     aircraft is being operated under the terms of the airline operator certificate or of another
     equivalent document of the leaseholder, under his commercial control and in accordance with
     his commercial rights.
39. (New, SG 52/2004) A "wet lease" is a contract pursuant to which the lessor (airline operator)
     leases out an aircraft with a crew of another airline operator or a person (leaseholder), and the
     aircraft is being operated under the terms of the airline operator certificate or of another
     equivalent document of the lessor, under the commercial control and in accordance with the
     commercial rights of the leaseholder.
40. (New, SG 52/2004; Amended, SG 37/2006) An entity is "financially stable" when as a result of
     an analysis and evaluation of the presented balance sheet, income and expenses report and cash
     flow report, certified by a registered auditor, it is established that the entity is at good financial
     status, it is solvent and can provide the necessary funds for ensuring flight safety.
41. (New, SG 52/2004) A"control in the meaning of Art. 48e, Par. 6 and Art. 48g, Par. 1" is present
     when an entity:
a) owns, including through a subsidiary or pursuant to an agreement with another party, more than
     the half plus one of the number of votes in the general meeting of the company, or
b) may determine directly or indirectly more than the half of the members of the managing
     authority of the company, or
c) may otherwise exercise a decisive influence on the making of decisions connected with the
     activity of the company.
42. (New, SG 52/2004) A"consumer of a ground service activity" is every entity which customarily
     performs transportation of passengers, mail and/or cargo through the air from and to the
     respective airport.
43. (New, SG 52/2004) "Air traffic service" is a common term which in the concrete case denotes
     flight information service, emergency announcement service, air traffic consultation service, air
     traffic control - region control, approach control, airport traffic control.
44. (New, SG 52/2004) "Air traffic control" is an aggregate of onboard and land functions (air
     traffic service, airspace management and air traffic stream management ) for provision of
     safety and effectiveness of aircraft movement in every stage of the flight.

          45. (New, SG 37/2006) "Airspace control" is a planning activity for the purpose of
 maximum utilization of available airspace through the dynamic allocation of its separation in
 time and in particular moments among the various user categories based on their short-term
 needs.
          46. (New, SG 37/2006) "Air traffic control" is an activity ensuring safe, orderly and
 efficient air traffic while at the same time ensuring the maximum capacity utilization possible
 and ensuring correspondence of the number of aircraft with the capacities indicated by the
 persons performing air navigation services.
          47. (New, SG 37/2006) "Airspace users" are all aircraft performing general air traffic
 flights.
           48. (New, SG 37/2006) "Air navigation services" are air traffic services including
 communication, navigation and surveillance services, air navigational meteorological services
 and air navigational information services.
           49. (New, SG 37/2006) "Communication services" are stationary and mobile air
 navigation services for the performance of earth-to-earth, air-to-earth and air-to-air
 communication for the purposes of air traffic control.
           50. (New, SG 37/2006) "Navigation services" are equipment and services providing
 aircraft with information about their location and about astronomical time.
           51. (New, SG 37/2006) "Surveillance services" are services, equipment and information
 for determining the positions of aircraft for ensuring safe separation.
           52. (New, SG 37/2006) "Meteorological services" are equipment and services providing
 aircraft with meteorological forecasts, brief reports and observations, as well as other
 meteorological information and data provided by the countries for air navigation use.
           53. (New, SG 37/2006) "Air navigational information services" is the provision, in a
 particular coverage area, of air navigational information and data necessary for the safety,
 timeliness and effectiveness of aviation.
           54. (New, SG 37/2006) "General air traffic" is civil and state aircraft traffic performed
 in accordance with the procedures of ICAO.
           55. (New, SG 37/2006) "Controlled civil airspace" is airspace which does not include
 the prohibited areas, the active dangerous areas, the active limited areas, the temporarily reserved
 airspace in the regions and areas of military airports in the cases when air traffic operations are
 being performed.
           56. (New, SG 37/2006) "Operating data" is information about all flight stages regarding
 which operating decisions must be made by the person providing air navigation services, the
 airspace users, the airport operators and other participating parties.

§ 4. (New, SG, 85 /1998, Enacted on 1 Jan 1998, Supplemented, SG 12/2000, Amended, SG
    52/2004) No VAT, excise duty, fees and customs duties upon the import of goods and upon
    taxable deliveries on the territory of the country, realized for the performance of projects,
    related to civil aviation, financed directly from free aid and/or with loans from international
    finance institutions, when warrantor for the loan is the Republic of Bulgaria are due, as well as
    when the value of the VAT, excise duty, fees and customs duties upon the import of goods and
    upon deliveries on the territory of the country, realized for the accomplishment of projects,
    related to civil aviation, is recognized by the respective financing organization as co-financing
    on the part of the Republic of Bulgaria.

                         TRANSITIONAL AND FINAL PROVISIONS
                                             § 5.
                            (Preceeding Article 152, SG, 85 /1998)

For the events not provided for in this Act and the international agreements to which Republic of
    Bulgaria is a signatory, are applied the provisions of the respective Bulgarian acts.

                                               § 6.
                         (Preceding Article 153, Amended, SG, 85 /1998)

(1) (Amended, SG, 34/2001) For the implementation of this act and of the ratified international
     contracts in the field of the civil aviation the Minister of Transport and Communications issues
     rules and instructions.
(2) The rules, norms and standards under this act should be in compliance with the respective
     requirements of the International Civil Aviation Organisation and of the European Union.
(3) (Abolished, SG 10/2007)
                                                § 7.

                  (Preceeding Article 154, SG, 85 /1998, Amended, SG, 34/2001)

(1) This Act rescinds the Civil Aviation Act, promulgated in State Gazette, issue 1 dated January 4,
     1963, and the Articles of association of the air traffic in Republic of Bulgaria, promulgated in
     “Izvestia”, issue 93 dated November 18, 1960. The execution of this Act is assigned to the
     Minister of Transport and Communications.
This act had been approved by the XXXVIII National Assembly on July 10th 1998 and bears the
     official stamp of the National Assembly.


                                 TRANSITIONAL PROVISION

  TO THE ACT FOR AMENDMENTS AND SUPPLEMETS TO THE CIVIL AVIATION
                     ACT (PROMULGATED, SG, 16/1967)

                                              § 3.
     The funds accrued per non-budget income/expenses account non budget account for income
and expenses, established with Decree No. 44 of the Council of Ministers of 1991 (promulgated in
SG, 23/1991; Amended, SG 26/91; Amended and Supplemented, SG, 45 and 70/1991, SG, 40, 43,
47 and 51/1992, SG, 5, 96 and 104/1993, SG, 2, 6, 24 and 33/1995, SG, 108/1996 г.), and per the
fund " Development of the system for air traffic control ", established with Decree 102 of the
Council of Ministers of 1992 (SG, 51/1992 г.), are transferred per the Fund " Development of the
system for air traffic control ".

                         TRANSITIONAL AND FINAL PROVISIONS

 TO THE ACT FOR AMMENDMENTS AND SUPPLEMETS TO THE CIVIL AVIATION
                          ACT ( SG, 85/1998)

                                                § 89.

In the whole text of this Act the words "People’s Republic of Bulgaria” are substituted by
    "Republic of Bulgaria"; the words "удостоверение of airworthiness" are substituted by
    "certificate of airworthiness"; the words "The state aviation inspection" are substituted by "The
    civil aviation inspection"; the word “entry” is replaced with “registration”and the words "Chief
    Administration "Ръководство въздушно Движение" are replaced with “Air Traffic Control”.

                                                § 90.

(1)    The airports – which are state property, are taken out from the property of the trade
companies with state property from the moment of coming into force of this Act.
(2)     The Minister of Transport, executing the property rights of the state in the companies under
paragraph 1, within 6 months from the coming into force of this Act undertakes measures for the
reduction of their capital
(3)     The installations and facilities under paragraph 1are used by the trade companies in
compliance with the Concession Act.

FINAL PROVISIONS
to the Act for Amendments and Supplements to the Civil Aviation Act
(SG 52/2004)
                                             §62
Everywhere in the act, the words:
1. ...
2. "Minister of Agriculture, Forestry and Agrarian Reform" shall be replaced with "Minister of
       Agriculture and Forestry".

                        Transitional Provisions
 TO THE ACT FOR AMENDMENTS AND SUPPLEMENTS TO THE CIVIL AVIATION
                                   ACT
                      (Promulgated, SG 37/12006)

§ 16. The provisions of § 4 (regarding art 16c, par. 4-6) shall be enacted on the date of enactment of
the contract for accession of the Republic of Bulgaria to the European Union.

        TRANSITIONAL AND CONCLUSIVE PROVISIONS
    To the Act Amending and Supplementing the Civil Aviation Act
                  (Promulgated, SG 10/2007; Effective as of 30.01.2007)

       § 15. (Effective as of 28.03.2007) (1) The Director General of the Directorate
General "Civil Aviation Administration" shall invalidate with an order:
       1. all airworthiness certificates issued to aircraft for which no type certificate or
equivalent document has been issued or recognized by the European Aviation Safety
Agency (EASA), if such certificates are required for the aircraft;
       2. all maintenance and overhaul licenses issued for aircraft included in the civil
aircraft register of the Republic of Bulgaria and operated by Bulgarian air operators,
for which no type certificate or equivalent document has been issued or recognized
by the European Aviation Safety Agency (EASA), if such certificates are required for
the aircraft;
       3. all air operator licenses issued to operators which operate only aircraft for
which no type certificate or equivalent document has been issued or recognized by
the European Aviation Safety Agency (EASA), if such certificates are required for
the aircraft;
       (2) The order under par. 1 shall be promulgated in the State Gazette.
       (3) Following application submission, the Director General of the Directorate
General "Civil Aviation Administration" shall issue:
       1. airworthiness certificates to aircraft for which a type certificate has been
issued or recognized by the European Aviation Safety Agency (EASA), if such
certificates are required for the aircraft;
       2. maintenance and overhaul licenses for aircraft included in the civil aircraft
register of the Republic of Bulgaria, for which a type certificate has been issued or
recognized by the European Aviation Safety Agency (EASA), if such certificates are
required for the aircraft;
       3. air operator licenses to operators which operate only aircraft for which a type
certificate has been issued or recognized by the European Aviation Safety Agency
(EASA), if such certificates are required for the aircraft;
       (4) The Director General of the Directorate General "Civil Aviation
Administration" shall promulgate in the State Gazette a list of all certificates and
licenses under par. 3.
     § 16. The Act shall become effective on the day of its promulgation in the State
Gazette except for § 15 which shall become effective on 28 March 2007.

				
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