Identifier
Created
Classification
Origin
05VIENNA3292
2005-10-05 12:22:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Vienna
Cable title:  

AUSTRIAN AIRLINES ON RUSSIA, IRAQ AND ITS BOEING

Tags:  EAIR AU 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 VIENNA 003292 

SIPDIS

SENSITIVE

STATE FOR EB/TRA/AN AND EUR/AGS

DOT FOR STEVEN HATLEY

BRUSSELS FOR FAA/PABDULLAH

FRANKFURT FOR TSA/ABROWN

E.O. 12958: N/A

TAGS: EAIR AU
SUBJECT: AUSTRIAN AIRLINES ON RUSSIA, IRAQ AND ITS BOEING

FLEET

REFS: A) STATE 153814; B) VIENNA 3019

THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED - PLEASE

PROTECT ACCORDINGLY. NOT FOR INTERNET DISTRIBUTION.

Summary

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UNCLAS SECTION 01 OF 02 VIENNA 003292

SIPDIS

SENSITIVE

STATE FOR EB/TRA/AN AND EUR/AGS

DOT FOR STEVEN HATLEY

BRUSSELS FOR FAA/PABDULLAH

FRANKFURT FOR TSA/ABROWN

E.O. 12958: N/A

TAGS: EAIR AU
SUBJECT: AUSTRIAN AIRLINES ON RUSSIA, IRAQ AND ITS BOEING

FLEET

REFS: A) STATE 153814; B) VIENNA 3019

THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED - PLEASE

PROTECT ACCORDINGLY. NOT FOR INTERNET DISTRIBUTION.

Summary

--------------


1. (SBU) Walter Reimann, Austrian Airlines' (AUA)

Director of International Relations and Governmnet

Affairs, confirmed to post recently that AUA would focus

on markets in China, India, and, especially, in Eastern

Europe, where AUA has more destinations than any carrier.

AUA would like to expand its service to Russia and

eventually support Aeroflot participation in the Star

Alliance. However, Reimann opined that Russia would

never agree to a traditional open skies agreement with

the EU. AUA understands the political reality underlying

the European Commission's push for vertical mandates to

negotiate open skies agreements with China, India, and

Russia. However, AUA is concerned the EC's approach

could lead to blockages, similar to the current stalemate

in U.S.-EC negotiations. Riemann said AUA hoped its Star

Alliance partner, United Airlines, would eventually fly a

Chicago-Vienna route. AUA hopes to secure rights to fly

to Iraq in the near future. AUA will continue to use its

Airbus fleet for short- and medium-haul flights and its

Boeing 777s for long-range flights, with plans to

purchase an additional 777 in the near-term.

Cooperation with Russia

--------------


2. (SBU) In a recent meeting with post, Walter Reimann,

Austrian Airlines' (AUA) Director of International

Relations and Governmnet Affairs, confirmed that AUA's

focus remained on markets in the Balkans, Russia,

Urkaine, India, and China. AUA currently serves four

Russian destinations (Moscow, St. Petersburg, Rostow and

Krasnodar),but has a code sharing agreement with

Aeroflot only on two (Moscow and St. Petersburg). AUA

has repeatedly attempted to extend the codeshare to other

Russian destinations pursuant to the bilateral air

services agreement (ref B). Reimann said AUA believes

Aeroflot will eventually become a partner in the Star

Alliance, but he admitted the Russian carrier was not yet

ready to join. During October bilateral talks with


Russian officials, AUA hopes to receive permission to

serve a fifth destination, Yekaterinburg, and to extend

the codesharing agreement to all its Russian

destinations.


3. (SBU) Echoing the views of the Austrian Civil

Aviation Authority (ref B),Reimann noted that Russia was

very reluctant to negotiate with EU member states,

because of pending EU Commission initiatives on open

skies agreements. Reimann opined that Russia would not

agree to a traditional open skies agreement, much less to

the Commission's goal of an open aviation area.

EU Mandate for Air Services Agreement

--------------


4. (SBU) Riemann noted that there was pressure from the

Commission to pursue vertical mandates on all open skies

negotiations, thus preventing bilateral talks with

important partners, such as China, Russia, and India.

Riemann said AUA acknowledged the political reality that

the EC would become more dominant vis--vis member states

on open skies negotiations. However, he warned that an

ineffective vertical mandate could provoke a standstill,

similar to the situation with U.S.-EC open skies talks.

Riemann also expressed concern that smaller carriers

would lose out to carriers from the larger member states

in EC-led open skies talks with Russia, China, and India.

AUA Service to the U.S.

--------------


5. (SBU) AUA remains the only carrier offering non-

stop service between Austria and the U.S. (daily

flights from Vienna to Washington and New York).

According to Reimann, AUA presently has no plans to

fly to other U.S. destinations, but has encouraged its

alliance partner United Airlines to service Vienna

from Chicago. Reimann pointed out that United lacked

code sharing rights to fly to Russia and Ukraine via

Germany. Riemann noted that United flights to Russia

via Vienna would be more attractive because AUA

already possessed code-sharing agreements with Russia.

Service to Iraq

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6. (SBU) Reimann said AUA would like to obtain rights to

fly to Iraq. AUA plans to start discussions with the

Iraqi Government in the near future. Riemann cautioned

that, ultimately, the security situation would determine

whether or not AUA would fly to Iraq, especially to

Baghdad. However, Riemann stated that AUA was

particularly interested in obtaining rights to fly to

Arbil and Sulaymanyah in northern Iraq, where the

security situation was more stable. Riemann added that

AUA would offer United code sharing possibilities in the

event AUA begins flights to Iraq.

Fleet Plans

--------------


7. (SBU) AUA's fleet currently comprises 100 planes,

including 28 Airbus and 18 Boeing jets. Of the Boeing

aircraft, three 777s and six 767s are for long-distance

flights. Reiman said that AUA plans to order a fourth


777. According to Reiman, AUA wants to utilize its

Airbus aicraft for short- and medium-range routes, and

its Boeing fleet for long-haul flights. In Reiman's

opinion, the A380 is "not the right plane for AUA's long-

haul flights." AUA would like to use the 777s on the

North American routes in the summer, then redirect them

for flights to India during the winter, thus optimizing

cargo and passenger loads.

VAN VOORST