NIGERIAN AVIATION MINISTER ON OPEN SKIES

UNCLAS SECTION 01 OF 02 ABUJA 001609

SIPDIS

SENSITIVE

PASS DOT FOR OIA, ALSO FAA

E.O. 12958: N/A
TAGS: EAIR NI
SUBJECT: NIGERIAN AVIATION MINISTER ON OPEN SKIES

REF: STATE 139112


1. (U) This cable contains an action request. Please see
paragraph 7.


2. (SBU) Summary. Embassy officers met on August 25 with
Nigerian Minister of Aviation Babalola Borishade on two
aviation disputes: the GON's failure to grant American
Airlines the authorization to introduce codeshare service to
Nigeria on flights operated by British Airways, and the
GON's failure to grant Continental Airlines the necessary
operating authority to begin direct service between the
United States and Nigeria. Borishade predicated the GON's
approval of Continental's service to Nigeria with the USG's
favorable consideration of U.S. landing rights for Virgin
Nigeria, even though Virgin Nigeria has not yet formally
applied for operating authority. Borishade equated
Nigeria's delay in approval of Continental's Lagos service
to what he called the USG failure to respond in writing that
the USG accepted the GON's designation of Virgin Nigeria
under the Open Skies Agreement. End summary.


3. (SBU) Economic counselor, economic officer, and economic
specialist met on August 25, 2005 with Imoro Kubor, the
Nigerian Ministry of Aviation's director of air transport
management, and then with Minister of Aviation Babalola
Borishade. The two sides discussed the GON's failure to
grant American Airlines the authorization to introduce
codeshare service in Nigeria on flights operated by British
Airways, and the GON's failure to grant Continental Airlines
the necessary operating authority to begin direct service
between the United States and Nigeria. Kubor expressed
surprise that former Minister of Aviation Isa Yuguda had not
granted codeshare approval to American for flights serving
Nigeria. Kubor noted that Northwest Airlines already had a
codesharing arrangement with KLM Royal Dutch Airlines for
such flights, and ventured that if American re-applied for
codeshare approval, "I believe it will be accepted."


4. (U) Embassy officers then met with Minister of Aviation
Borishade, with Kubor in attendance. The economic counselor
delivered ref talking points on U.S.-Nigerian aviation
disputes, which embassy had earlier sent to the Ministries
of Foreign Affairs and Aviation. Borishade acknowledged
that U.S. had a right to be concerned if Nigeria failed to
abide by the Open Skies Agreement. He then went on to say,
however, an agreement should work both ways and said the
GON's was concerned that while Continental had been poised
to begin flights to Nigeria, Virgin Nigeria's efforts to
begin direct service to the United States were only in the
early stages. Borishade termed these differences
"lopsided."


5. (SBU) Kubor said that the USG had not responded to the
GON's diplomatic note designating Virgin Nigeria under the
Open Skies Agreement (OSA),to begin direct flights to the
United States. He said Virgin Nigeria had applied formally
"months ago" to the U.S. Department of Transportation
(USDOT) to operate direct flights. Economic Counselor noted
the embassy was aware of Virgin Nigeria's discussions with
the USDOT but said that the information we had from DOT was
that Virgin Nigeria had not yet applied for economic
authority (landing rights). (Begin comment: The Department
earlier informed Embassy Abuja that as of August 3, Virgin
Nigeria had not applied for economic authority. The
Ministry of Aviation apparently is not distinguishing
between the GON's and Virgin Nigeria's continued
discussions, over several months, with the USDOT, and Virgin
Nigeria's actually completing the application process.
Ambassador John Campbell, in his talking points for his July
29 meeting in Lagos with Virgin Nigeria's chief executive
officer, confirmed that the USDOT had indeed received the
GON's designation of Virgin Nigeria under the OSA. End
comment.)


6. (SBU) Borishade requested a formal written USG acceptance
of the GON's designation of Virgin Nigeria under the OSA,
contending that if the USG "does not approve a designation,
there is no use in applying." Kubor linked Continental's
difficulties to Virgin Nigeria's efforts for direct U.S.
flights, saying, "It is this lack of a reply from the U.S.
Government that is the problem." They equated such
acceptance with a pre-assurance that the USDOT would approve
Virgin Nigeria's direct service to the United States. The
Economic Counselor said the U.S. had received the GON's
designation and told the Minister that the GON's designation
meant that Virgin Nigeria was free to apply for operating
authority, and that this was the necessary next step for any
action regarding Virgin Nigeria. She agreed, however, to
contact Washington regarding providing written
acknowledgment that the USG had received the GON's
designation. The August 25 meeting with embassy officers was
the first time GON aviation officials explicitly tied the
approval of Continental's Lagos service to the new GON
demand that the USG confirm receipt of Nigeria's diplomatic
note designating Virgin Nigeria under the OSA.


7. (U) Action request: Embassy Abuja requests authorization
to provide a diplomatic note to the Nigerian Ministry of
Aviation confirming that the USG has received Virgin
Nigeria's request for designation under the OSA.
We suggest language along the lines of "Complimentary
opening... the U.S. government received of Diplomatic
No.xxx of month, day, year in which the Government of
Nigeria's designated Virgin Nigeria under the bilateral Open
Skies Agreement. Virgin Nigeria may make formal application
to the U.S. Department of Transportation for operating
authority. Complimentary closing."


8. (SBU) Begin comment: Minister of Aviation Borishade
started the meeting by saying he was unprepared for the
meeting. This was despite his having discussed these issues
informally at length fewer than three weeks ago with the
embassy's former political counselor, and also at that time
receiving copies of reftel talking points. Both Borishade
and Air Transport Management Director Kubor made clear that
Nigeria intended to treat the matter as a quid pro quo that
predicated the GON's approval of Continental's service to
Nigeria with the USG's favorable consideration of U.S.
landing rights for Virgin Nigeria. Though the insistence on
linking the issues is in violation of the agreement and will
remain a problem, it may be worthwhile to remove the excuse
that the USG has not responded in writing to Nigeria's
designation by sending the dip note, thus putting the action
on both Continental's application and Virgin Nigeria's
application firmly in the Nigerian court. End comment.
CAMPBELL