ARGENTINA TO AGREE TO EXPANDED FLIGHTS

UNCLAS BUENOS AIRES 001459

SIPDIS

SIPDIS
SENSITIVE

EB/TRA/AN FOR ZACHARY TEICH AND ANDREW HERRUP
DOT FOR BRIAN HEDBERG
FAA FOR KRISTA BERQUIST
USDOC FOR 4322/ITA/MAC/OLAC/ALFORD/PEACHER

E.O. 12958: N/A
TAGS: EAIR KTIA AR
SUBJECT: ARGENTINA TO AGREE TO EXPANDED FLIGHTS

REF: A. STATE 105248

B. BUENOS AIRES 1270


1. (U) This message is sensitive but unclassified and not
for internet distribution.


2. (U) The DCM met with Secretary of Transportation Ricardo
Jaime on June 27 to discuss Reftel A talking points on Open
Skies. The DCM observed that business and tourism travel
between the U.S. and Argentina has grown steadily in each of
the last three years, that U.S carriers report having
consistently full flights to and from Buenos Aires, and that
the growth in demand for U.S. visas has echoed Argentina's
economic recovery. He emphasized that the expansion of
combination frequencies proposed during Open Skies
negotiations would yield benefits to both countries. The DCM
also referred in general terms to the concerns that Under
Secretary of Transportation for Commercial Aviation Ricardo

SIPDIS
Cirielli had raised about implementing Open Skies (Reftel B)
and encouraged the GOA to conduct an internal review of the
negotiated text as necessary. He stated the USG stood ready
to proceed with implementation once this review process had
concluded. The DCM said that the USG was prepared, in the
interim, to accept Cirielli's proposal to double combination
frequencies under the current bilateral air transport service
agreement.


3. (SBU) Secretary Jaime said that he shared Cirielli's
assessment regarding the political difficulty of implementing
Open Skies at the present time. He explained that the GOA
needed to "maintain a certain equilibrium" in the country's
aviation market. He mentioned that LAN Argentina was only
now in a position to offer its first direct flight to Miami
and that the GOA was in the process of changing its role in
Aerolineas Argentinas. Nevertheless, Jaime recognized the
growth in tourism and business travel and said that the GOA
was ready to increase frequencies in accordance with demand.
The DCM asked Jaime for his recommendation on the best
mechanism available to move forward and provided draft
language for possible diplomatic notes as per Reftel A.
Jaime said he would provide a response by June 30 and
indicated that amending the agreement would be "a relatively
quick process."

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Comment
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4. (U) Post expects that Secretary Jaime strongly endorses
Cirielli's proposal to double frequencies. Jaime's support
ensures expeditious administrative processing of the
amendment to the current bilateral air transport services
agreement. Post will follow up with Jaime's office on June

30. We will also continue to encourage the GOA's internal
review of the Open Skies agreement negotiated in 1999 and
will seek out opportunities to make progress on
implementation.


5. (U) To see more Buenos Aires reporting, visit our
classified website at:
http://www.state.sgov.gov/p/wha/buenosaires.< /a>
GUTIERREZ