Identifier
Created
Classification
Origin
06LAPAZ3289
2006-12-05 20:22:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy La Paz
Cable title:
GOB EQUALIZES JET FUEL PRICES
how-toVZCZCXYZ0000 RR RUEHWEB DE RUEHLP #3289 3392022 ZNR UUUUU ZZH R 052022Z DEC 06 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC 1552 INFO RUEHAC/AMEMBASSY ASUNCION 6351 RUEHBO/AMEMBASSY BOGOTA 3675 RUEHBR/AMEMBASSY BRASILIA 7541 RUEHBU/AMEMBASSY BUENOS AIRES 4795 RUEHCV/AMEMBASSY CARACAS 2047 RUEHPE/AMEMBASSY LIMA 2120 RUEHME/AMEMBASSY MEXICO 1943 RUEHMN/AMEMBASSY MONTEVIDEO 4245 RUEHQT/AMEMBASSY QUITO 4684 RUEHSG/AMEMBASSY SANTIAGO 9269 RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEANHA/FAA NATIONAL HQ WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC
UNCLAS LA PAZ 003289
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EB/TRA JHORWITZ AND WHA/AND LPETRONI
STATE PASS TO DOT FOR CCOLDREN AND BHEDBERG
STATE PASS TO FAA FOR CCAPESTANY AND KBERQUIST
COMMERCE FOR EALFORD AND JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EAIR ECON EINV ETRD PGOV PREL BL
SUBJECT: GOB EQUALIZES JET FUEL PRICES
REF: LA PAZ 657 AND PREVIOUS
UNCLAS LA PAZ 003289
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EB/TRA JHORWITZ AND WHA/AND LPETRONI
STATE PASS TO DOT FOR CCOLDREN AND BHEDBERG
STATE PASS TO FAA FOR CCAPESTANY AND KBERQUIST
COMMERCE FOR EALFORD AND JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EAIR ECON EINV ETRD PGOV PREL BL
SUBJECT: GOB EQUALIZES JET FUEL PRICES
REF: LA PAZ 657 AND PREVIOUS
1. (U) In an unexpected move, the GOB issued a Supreme Decree
November 20 equalizing jet fuel prices for foreign and
domestic air carriers operating international routes. Fuel
taxes remain, but domestic carriers servicing international
routes no longer enjoy access to reduced-price fuel, as they
did after December 2004, when the GOB began taxing fuel
uplifted by foreign carriers.
2. (U) American Airlines' Country Manager Drago Komadina told
Econoff December 5 that the company is pleased with the
elimination of domestic carriers' price advantage but would
like to see the GOB lower or abolish fuel taxes, which the
company claims are higher than those in neighboring countries.
3. (SBU) Comment: While the GOB's decision to equalize jet
fuel prices may be good news for American Airlines, it may
not resolve a long-standing bilateral dispute arising from
the GOB's imposition of taxes on fuel uplifted by U.S.
carriers (reftels). In the absence of reciprocal tax
exemptions, the USG must by law proceed with steps to remove
Bolivian air carriers' current exemptions from U.S. fuel
taxes. End comment.
URS
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EB/TRA JHORWITZ AND WHA/AND LPETRONI
STATE PASS TO DOT FOR CCOLDREN AND BHEDBERG
STATE PASS TO FAA FOR CCAPESTANY AND KBERQUIST
COMMERCE FOR EALFORD AND JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EAIR ECON EINV ETRD PGOV PREL BL
SUBJECT: GOB EQUALIZES JET FUEL PRICES
REF: LA PAZ 657 AND PREVIOUS
1. (U) In an unexpected move, the GOB issued a Supreme Decree
November 20 equalizing jet fuel prices for foreign and
domestic air carriers operating international routes. Fuel
taxes remain, but domestic carriers servicing international
routes no longer enjoy access to reduced-price fuel, as they
did after December 2004, when the GOB began taxing fuel
uplifted by foreign carriers.
2. (U) American Airlines' Country Manager Drago Komadina told
Econoff December 5 that the company is pleased with the
elimination of domestic carriers' price advantage but would
like to see the GOB lower or abolish fuel taxes, which the
company claims are higher than those in neighboring countries.
3. (SBU) Comment: While the GOB's decision to equalize jet
fuel prices may be good news for American Airlines, it may
not resolve a long-standing bilateral dispute arising from
the GOB's imposition of taxes on fuel uplifted by U.S.
carriers (reftels). In the absence of reciprocal tax
exemptions, the USG must by law proceed with steps to remove
Bolivian air carriers' current exemptions from U.S. fuel
taxes. End comment.
URS