GOVERNMENT OF ITALY OBJECTIONS TO U.S. AIR CARRIER

UNCLAS ROME 003465

SIPDIS


STATE FOR EB/TRA (BYERLY, FAUX-GABLE, JONES)
BRUSSELS FOR PAUL FELDMAN

E.O. 12958: N/A
TAGS: EAIR IT FAA AVIATION
SUBJECT: GOVERNMENT OF ITALY OBJECTIONS TO U.S. AIR CARRIER
PRICES ON ITALY-MUMBAI ROUTES

REF: SECSTATE 182292


1. Econoff and post FAA representative met September 7 with
Ente Nazionale per L'Aviazione Civile (ENAC) Deputy Director
General Sciacchitano to deliver reftel points. Sciacchitano
confirmed to Econoff that ENAC had "suspended" its attempts
to force Delta and Northwest Airlines, among other airlines,
to raise fifth freedom fares. (Note: The Italian press had
earlier reported that ENAC had backed down from its threat to
sanction fifth freedom carriers for undercutting prices
offered by Alitalia. End Note.)


2. Sciacchitano said approximately 40 airlines received such
letters requesting that they not undercut third and fourth
freedom carriers. In light of Sciacchitano's confirmation of
the suspension, Econoff did not raise reftel points orally
but left them as a non-paper.

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2004ROME03465 - Classification: UNCLASSIFIED