Identifier
Created
Classification
Origin
06LAPAZ1078
2006-04-20 18:13:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy La Paz
Cable title:
BOLIVIA'S TROUBLED AVIATION SECTOR
how-toVZCZCXYZ0002 RR RUEHWEB DE RUEHLP #1078 1101813 ZNR UUUUU ZZH R 201813Z APR 06 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC 8925 INFO RUEHAC/AMEMBASSY ASUNCION 5777 RUEHBO/AMEMBASSY BOGOTA 3065 RUEHBR/AMEMBASSY BRASILIA 6930 RUEHBU/AMEMBASSY BUENOS AIRES 4171 RUEHCV/AMEMBASSY CARACAS 1471 RUEHPE/AMEMBASSY LIMA 1435 RUEHME/AMEMBASSY MEXICO 1685 RUEHMN/AMEMBASSY MONTEVIDEO 3727 RUEHQT/AMEMBASSY QUITO 4113 RUEHSG/AMEMBASSY SANTIAGO 8658 RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC RUEANHA/FAA NATIONAL HQ WASHINGTON DC RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
UNCLAS LA PAZ 001078
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EB/TRA JHORWITZ AND EB/TRA/OTP BMATTINGLEY
STATE ALSO FOR WHA/AND LPETRONI
STATE PASS TO FAA FOR CCAPESTANY
STATE PASS TO DOT FOR CCOLDREN
COMMERCE FOR JANGLIN
E.O. 12958: N/A
TAGS: EAIR ECON PGOV BL
SUBJECT: BOLIVIA'S TROUBLED AVIATION SECTOR
REF: LA PAZ 913 (AND PREVIOUS)
UNCLAS LA PAZ 001078
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EB/TRA JHORWITZ AND EB/TRA/OTP BMATTINGLEY
STATE ALSO FOR WHA/AND LPETRONI
STATE PASS TO FAA FOR CCAPESTANY
STATE PASS TO DOT FOR CCOLDREN
COMMERCE FOR JANGLIN
E.O. 12958: N/A
TAGS: EAIR ECON PGOV BL
SUBJECT: BOLIVIA'S TROUBLED AVIATION SECTOR
REF: LA PAZ 913 (AND PREVIOUS)
1. (U) Summary: Lloyd Aero Boliviano's crisis continues, but
it is not alone in its troubles. The carrier's principal
competitor, AeroSur, is rumored to be struggling with its own
financial problems, and civil and military airlines only
narrowly avoided serious accidents over the weekend. Taken
together, current difficulties and near disasters may
indicate growing weaknesses in Bolivia's aviation sector.
End summary.
2. (U) Lloyd Aero Boliviano continues to teeter on the brink
of collapse (reftels). Flight cancellations and rapidly
falling revenues have made it almost impossible for Lloyd to
buy fuel, and many suspect the airline may be forced to
suspend all operations. In a last-ditch attempt to save the
carrier, its pilots' union recently proposed that employees
buy all shares belonging to chief executive Ernesto Asbun and
take control of the airline, but workers have been unable to
raise the $1.5 million needed for the transaction. GOB
officials have repeatedly declined pilots' requests for
assistance, refusing to fund the share purchase or to assume
liability for Lloyd's estimated $170 million debts. While
those involved struggle to find a solution, the fate of
Lloyd's 2,200 hangs in the balance.
3. (SBU) Lloyd's principal competitor, AeroSur, is rumored to
be struggling with its own financial problems. The carrier
reportedly owes the Bolivian superintendent of transport more
than $620,000 in unpaid regulatory fees and has failed to
meet pension fund obligations totaling $310,000. What's
more, outstanding trade complaints indicate the company may
owe as much as $400,000 to U.S. parts and equipment
suppliers. Industry observers say AeroSur has a history of
financial problems.
4. (U) Meanwhile, civil and military airlines only narrowly
avoided serious accidents over the weekend. A small aircraft
owned by Amaszonas, a carrier serving niche markets in remote
locations, crash landed outside La Paz on April 14, and a
plane operated by Transportes Aereos Militares (TAM),a
carrier associated with the Bolivian Air Force, experienced
similar problems on April 16. Investigators have not
determined the cause of the difficulties.
5. (SBU) Comment: Taken together, current difficulties and
near disasters may indicate growing weaknesses in Bolivia's
aviation sector. Both leading carriers are struggling, and
Lloyd seems increasingly close to collapse. Its troubles
have left thousands of passengers stranded and scattered
exporters' merchandise on runways across the country, forcing
some businessmen, including a leading apparel manufacturer,
to truck cargo across Bolivia and into Chile for shipment to
the United States. Lloyd's continuing crisis seems to
reflect deeper problems, not least a possible decline in
maintenance standards, which should worry domestic and
international observers alike. End comment.
GREENLEE
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EB/TRA JHORWITZ AND EB/TRA/OTP BMATTINGLEY
STATE ALSO FOR WHA/AND LPETRONI
STATE PASS TO FAA FOR CCAPESTANY
STATE PASS TO DOT FOR CCOLDREN
COMMERCE FOR JANGLIN
E.O. 12958: N/A
TAGS: EAIR ECON PGOV BL
SUBJECT: BOLIVIA'S TROUBLED AVIATION SECTOR
REF: LA PAZ 913 (AND PREVIOUS)
1. (U) Summary: Lloyd Aero Boliviano's crisis continues, but
it is not alone in its troubles. The carrier's principal
competitor, AeroSur, is rumored to be struggling with its own
financial problems, and civil and military airlines only
narrowly avoided serious accidents over the weekend. Taken
together, current difficulties and near disasters may
indicate growing weaknesses in Bolivia's aviation sector.
End summary.
2. (U) Lloyd Aero Boliviano continues to teeter on the brink
of collapse (reftels). Flight cancellations and rapidly
falling revenues have made it almost impossible for Lloyd to
buy fuel, and many suspect the airline may be forced to
suspend all operations. In a last-ditch attempt to save the
carrier, its pilots' union recently proposed that employees
buy all shares belonging to chief executive Ernesto Asbun and
take control of the airline, but workers have been unable to
raise the $1.5 million needed for the transaction. GOB
officials have repeatedly declined pilots' requests for
assistance, refusing to fund the share purchase or to assume
liability for Lloyd's estimated $170 million debts. While
those involved struggle to find a solution, the fate of
Lloyd's 2,200 hangs in the balance.
3. (SBU) Lloyd's principal competitor, AeroSur, is rumored to
be struggling with its own financial problems. The carrier
reportedly owes the Bolivian superintendent of transport more
than $620,000 in unpaid regulatory fees and has failed to
meet pension fund obligations totaling $310,000. What's
more, outstanding trade complaints indicate the company may
owe as much as $400,000 to U.S. parts and equipment
suppliers. Industry observers say AeroSur has a history of
financial problems.
4. (U) Meanwhile, civil and military airlines only narrowly
avoided serious accidents over the weekend. A small aircraft
owned by Amaszonas, a carrier serving niche markets in remote
locations, crash landed outside La Paz on April 14, and a
plane operated by Transportes Aereos Militares (TAM),a
carrier associated with the Bolivian Air Force, experienced
similar problems on April 16. Investigators have not
determined the cause of the difficulties.
5. (SBU) Comment: Taken together, current difficulties and
near disasters may indicate growing weaknesses in Bolivia's
aviation sector. Both leading carriers are struggling, and
Lloyd seems increasingly close to collapse. Its troubles
have left thousands of passengers stranded and scattered
exporters' merchandise on runways across the country, forcing
some businessmen, including a leading apparel manufacturer,
to truck cargo across Bolivia and into Chile for shipment to
the United States. Lloyd's continuing crisis seems to
reflect deeper problems, not least a possible decline in
maintenance standards, which should worry domestic and
international observers alike. End comment.
GREENLEE