FRENCH AVIATION AUTHORITY TO DECIDE ARIANA AIRLINE'S LEASE

UNCLAS SECTION 01 OF 02 KABUL 004890 SIPDIS SENSITIVE, SIPDIS DEPARTMENT FOR SCA/FO, SCA/A, EB/OTP, EB/CBA CENTCOM FOR CG CFC-A COMMERCE FOR ITA/SHAMROCK FAA FOR JHANCOCK AND RSMITH PARIS FOR ECON/CIVAIR E.O. 12958: N/A TAGS: EAIR ECON BEXP AF SUBJECT: FRENCH AVIATION AUTHORITY TO DECIDE ARIANA AIRLINE'S LEASE DEAL KABUL 00004890 001.2 OF 002 -------------- SUMMARY AND ACTION REQUEST -------------- ¶1. (SBU) Ariana Airlines is attempting to wet-lease two Boeing aircraft to fly between Kabul and Frankfurt, among other routes. The aircraft are to be based in Dubai and operated by Eagle Aviation France, with Eagle flight operations and maintenance crews. The French civil aviation authority is to decide on October 12 whether they will allow Eagle to operate the aircraft on its Air Operating Certificate (AOC). The French civil aviation authority has delayed meeting to consider this decision at least twice, and Ariana has become concerned about the delays. Embassy requests that the Department communicate with the French civil aviation authority to urge quick and favorable action on Eagle's application. End summary. -------------- Critical Decision in French CAA Hands -------------- ¶2. (SBU) Ariana Afghan Airlines has been moving for several months toward a wet-leasing deal for two Boeing 757 aircraft that would allow Afghanistan's flag carrier to resume passenger service to Europe (Frankfurt and possibly London). The deal would have a French company, Eagle Aviation France, operate the two planes for Ariana on Eagle's AOC. Eagle plans to physically base the airplanes in Dubai with French oversight of the flight operations and maintenance. ¶3. (U) The French civil aviation authority (DGAC) plans to meet on 12 October to consider whether it should allow Eagle to put the aircraft on Eagle's AOC. At issue is whether the DGAC would consider the lease to be a flag-of-convenience arrangement for a blacklisted carrier (Ariana) to provide service to Europe. ¶4. (SBU) We believe that this deal does not represent a flag-of-convenience arrangement, since the aircraft will be operated by a company based in France, and the aircraft themselves will be based and maintained in the UAE. Both France and the UAE are rated IASA Category I. Though the aircraft will fly under Ariana livery, the only aspects of the operation to be run by Ariana are scheduling and ticketing. -------------- The Best Short-Term Solution �0A; -------------- ¶5. (U) As a practical matter, enabling Ariana to resume flights to Europe will bring significant economic benefits to Afghanistan. The country is currently underserved, and neither the Afghan civil aviation authority nor Ariana has good short-term prospects of increasing the quantity, quality, or safety of passenger service to and from Afghanistan. We believe wet-leasing aircraft from operators in IASA Category I countries is a viable short- to medium-term solution to grow air service quickly and safely while Ariana and the GoA improve their ability to operate and oversee safe passenger airline service. ¶6. (SBU) Another consideration is that this wet-lease is a bridge to the sale of Boeing 737 aircraft to Ariana in 2008. If the Eagle wet-lease does not happen, Ariana may shop for alternatives to put it on a path to buying Airbus aircraft. We do not know whether the DGAC may consider disapproving this deal to create an opportunity for a more Airbus-friendly lease and purchase arrangement. -------------- Action Request and Talking Points -------------- ¶7. (SBU) Embassy requests the Department to communicate our KABUL 00004890 002.2 OF 002 perspective to the DGAC via Embassy Paris and urge the DGAC to take swift and favorable action on Eagle's request. Talking points follow. BEGIN TALKING POINTS -- Eagle Aviation France, a French wet-lease aviation operator, is applying for permission to list on its air operating certificate (AOC) two aircraft to fly between Europe (Frankfurt) and the Afghan market for Ariana Afghan Airlines. -- The proposed lease conditions are for Eagle to operate and maintain the aircraft based in Dubai, with Eagle's air crew and maintenance, under the oversight of the French civil aviation authority. This arrangement ensures the safe operation of passenger service to ICAO and IASA standards under the close control of a French operator and the French internationally recognized safety oversight program. -- As recent history has demonstrated, Afghanistan is a special case among post-conflict developing countries. We believe the international community has an obligation to do everything it can to help Afghanistan move quickly to economic well-being. It must not fail to discharge this obligation. -- Passenger air service is an important component in rebuilding Afghanistan's economy. Air links between Afghanistan and the rest of the world--particularly Europe--are severely underdeveloped. At the present time, the Afghan government and Ariana are not in a position to grow the Afghan aviation industry on their own. For the short term, serving and growing this market is best done by safe and reliable operators from developed countries, like France's Eagle Aviation, with good safety oversight. -- We urge the DGAC to weigh the application of Eagle Aviation France carefully and with due consideration to the special needs of Afghanistan. END TALKING POINTS. NORLAND