Exemption of air-transport income from host-state taxation, except for internal traffic, under a bilateral tax agreement. The agreement provides mutual exemption from the host State's income taxes for income derived from the business of air transport by enterprises of the other Contracting State, excluding income from internal traffic; it covers defined categories of taxes and enterprises, extends exemptions to pooled or joint operating arrangements, and includes provisions on entry into force, indefinite duration, and bilateral termination.