Identifier
Created
Classification
Origin
05DUBLIN296
2005-03-10 07:54:00
CONFIDENTIAL
Embassy Dublin
Cable title:  

IRISH GIVE GREEN LIGHT FOR NEGOTIATING OPEN SKIES

Tags:  EAIR ECON 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 DUBLIN 000296 

SIPDIS

E.O. 12958: DECL: 01/31/2015
TAGS: EAIR ECON
SUBJECT: IRISH GIVE GREEN LIGHT FOR NEGOTIATING OPEN SKIES
ARRANGEMENT

REF: DUBLIN 177

Classified By: Ambassador James C. Kenny; Reasons 1.4 (B) and (D).

C O N F I D E N T I A L SECTION 01 OF 02 DUBLIN 000296

SIPDIS

E.O. 12958: DECL: 01/31/2015
TAGS: EAIR ECON
SUBJECT: IRISH GIVE GREEN LIGHT FOR NEGOTIATING OPEN SKIES
ARRANGEMENT

REF: DUBLIN 177

Classified By: Ambassador James C. Kenny; Reasons 1.4 (B) and (D).


1. (C) Summary: On March 8, Transport Minister Martin Cullen
informed the Ambassador that Ireland was prepared to pursue a
new bilateral aviation arrangement, along the lines of the
Open Skies approach outlined in reftel discussions.
Transport officials requested USG proposal texts as the first
step in moving to follow-on discussions. Minister Cullen
noted that a new bilateral relationship would be central to a
larger air transport strategy that involved the possible
privatization of Aer Lingus, the separation of the Irish
airports authorities, and the building of a new airport
terminal in Dublin. End summary.

Getting to Yes
--------------


2. (C) In a March 8 meeting, Transport Minister Martin
Cullen informed the Ambassador that the Irish Government
Cabinet had, earlier in the day, authorized the Transport
Department to pursue a new bilateral aviation arrangement
with the United States. (Per reftel, Transport officials
expressed interest in an Open Skies arrangement during
February 7 discussions with State Department Deputy Assistant
Secretary for Transportation Affairs, John Byerly, and

SIPDIS
Department of Transportation Director for International
Aviation, Paul Gretch.) Cullen noted that the Transport
Department had spent the preceding weeks marshaling political
will among GOI agencies, including the Department of Foreign
Affairs, to support the move to a new bilateral arrangement.
On March 8, the Cabinet delivered the judgment that "Ireland
needed to do this." Cullen expressed his preference that the
U.S. and Irish sides move as quickly as possible to next
steps.


3. (C) The Ambassador welcomed the news and noted that an
Open Skies arrangement would significantly benefit both
sides. Restrictions at Shannon, he pointed out, had led a
number of U.S. carriers to avoid the Irish market, to the
detriment of both sides' economies. He added that Open Skies
would be a boon to the Irish aviation sector, which was
unique in Europe in boasting two profitable major airlines
(Aer Lingus and Ryanair). The Ambassador also observed that
senior Administration officials had been instrumental in the
USG's original formulation of Open Skies policy and would be

happy to hear of the GOI's decision.


4. (C) Transport's Director General for Aviation, John
Murphy, who attended the meeting with the Ambassador along
with the Minister's Advisor, Colin Hunt, said that he would
call DAS Byerly to activate the steps outlined in reftel
paras 8 and 9 and to request USG proposal texts for GOI
review. (Murphy made the phone call later the same evening.)
Murphy noted that the first priority should be to identify
the best arrangement for both sides. Second, it was
important that the arrangement pass legal muster, and he
mentioned that Ireland's Attorney General's office was
engaged on the issue.

A Low-key Approach
--------------


5. (C) Minister Cullen said that the GOI did not plan to
issue a press statement on the Cabinet decision, preferring
to pursue follow-on talks with the USG in a low-key manner.
He noted, however, that he would welcome a St. Patrick's Day
discussion between Prime Minster Ahern and President Bush on
the prospects for a new aviation relationship. Cullen
acknowledged that the U.S. side would need to consult with
industry on proposal texts and that this necessity would put
this issue into the open, possibly ahead of St. Patrick's
Day. He noted that the GOI had no plans at the moment to
inform the Commission, though it was likely that word from
industry would arrive in Brussels quickly. Cullen quipped
that Dublin had "heard enough" from Brussels this week
(alluding to Commission-Ireland dudgeon associated with the
GOI's March 2 decision to withdraw a euro 170 million grant
to Intel under threat of a Commission investigation.)

Open Skies as Part of a Larger Strategy
--------------


6. (C) Cullen said that a new U.S.-Irish aviation
arrangement was central to a larger air transport strategy
that involved the possible privatization of Aer Lingus, the
separation of the Irish airports authorities, and the
building of a new airport terminal in Dublin. The Ambassador
observed that a new terminal would embody Ireland's economic
success and would create the kind of initial impression that
would help Ireland to attract foreign visitors and
investment. He cited comments from U.S. visitors on transit
problems at Heathrow and the advantages in making European
connections in Dublin. Cullen said that the Dublin terminal
would be designed with an eye to capturing a portion of the
Heathrow market. A challenge in that effort, added Murphy,
would be to build a terminal that was large enough for such
purposes but sufficiently cost-effective to attract low-cost
carriers.


7. (C) Comment: Post would greatly appreciate USEU and
Embassies in other Member States not discussing this
development with host government civair officials. The U.S.
and Irish sides will be working out the best way to play this
issue publicly in the coming weeks, particularly in the
context of the U.S.-EU aviation negotiations.
KENNY