GOI WANTS LINATE DISPUTE RESOLVED

UNCLAS ROME 001666

SIPDIS


EB/TRA FOR LJONES
DOT FOR OST

E.O. 12958: N/A
TAGS: EAIR KTIA IT AVIATION
SUBJECT: GOI WANTS LINATE DISPUTE RESOLVED

REF: ROME 000372


1. During a meeting with EcMin and Econoff May 6, MFA Office
Director for North American Affairs Francesco Tafuri
underscored the GOI desire to see a "final resolution" of the
Linate codeshare dispute. Tafuri was reacting to the April
28 U.S. Department of Transportation extension of the review
period for the joint American Airlines - United Air Lines
complaint against Alitalia and the GOI over codeshare access
to/from Milan's Linate airport. The GOI firmly believes
AlitaliQs already addressed the complainants' concerns
(refQ, and therefore the complaint should be closed.
Tafuri claimed the open complaint is holding up a strategic
agreement between Alitalia and Continental.


2. EcMin asked wh the GOI was willing to accept a solution
that effectively prevented both U.S. and Italian airlines
from competing in a market currently occupied by
third-country carriers. Tafuri had no ready reply, but
simply reiterated his position.


3. Comment: The MFA appears more concerned about closing
the complaint quickly than finding a solution that benefits
Alitalia and the two U.S. carriers. Unless the GOI can be
convinced of the potential benefits under an alternative
resolution, it will continue to press for the immediate
closure of the Linate complaint. End comment.

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2005ROME01666 - Classification: UNCLASSIFIED