TRANSPORT MINISTER DISCUSSES FAA ASSESSMENT

C O N F I D E N T I A L LIMA 002095 SIPDIS SIPDIS DEPT FOR WHA/AND, EB/TRA/AN, CA/OCS/AC FAA MIAMI FOR JAY RODRIGUES DEPT PLEASE PASS TO FAA HQ - KRISTA BERQUIST E.O. 12958: DECL: 05/26/2016 TAGS: EAIR ECON PGOV CASC PE SUBJECT: TRANSPORT MINISTER DISCUSSES FAA ASSESSMENT REF: A. LIMA 1927 ¶B. STATE 77824 Classified By: Economic Officer Samantha Carl-Yoder for reasons 1.5 (b) and (d) ¶1. (C) Summary. Ambassador Struble met with Minister of Transport Jose Ortiz on May 19 to deliver Reftel B FAA International Aviation Safety Assessment report. Ortiz understood the FAA's concerns in the report regarding TANS Airlines but emphasized that, despite having an Air Operating Certificate, the airline is not operating. Ortiz highlighted that the Directorate General of Civil Aviation (DGAC) has improved enforcement of safety standards. Both the Minister and the DGAC Director are confident that the FAA will reverse its recommendation for Category II after consultations. The GOP requests that the FAA visit Peru as soon as possible, perhaps in mid-June. End Summary. Discussing the Role of the DGAC -------------- ¶2. (C) The Ambassador met with Minister of Transport Jose Ortiz to deliver the FAA's International Aviation Safety Assessment (IASA) report on May 19. Ortiz, who was accompanied by Director General of Civil Aviation Luis Rivera, was well-versed with the report and on the FAA's concerns about the resolution of safety issues. Ortiz emphasized that the DGAC is an autonomous institution that focuses on technical aspects rather than political considerations. ¶3. (C) Ortiz noted the FAA's consternation about the replacement of DGAC Director General Roberto Rodriguez two hours after the FAA's assessment out brief in January but explained that the Administration had planned on replacing Rodriguez, who was the Acting Director for 1.5 years, before the FAA assessment. Ortiz convinced the Administration to wait until after the assessment, arguing that Rodriguez could respond to any FAA concerns or questions. The Minister commented that it would have been more difficult for the FAA to conduct its assessment in January if a newly installed director was not yet up to speed. While the GOP did appoint a new Director of Civil Aviation immediately after the assessment, Ortiz emphasized that it was not due to political concerns but rather to ensure leadership at the DGAC. He also underscored that the rest of the DGAC team remains the same. TANS: Not Flying -------------- ¶4. (C) Minister Ortiz also took the opportunity to address the Air Force-owned TANS Airline issue, acknowledging that the DGAC suspended TANS' Air Operating Certificates in January due to safety concerns. Ortiz and Rivera emphasized that the airline took significant measures in the following weeks to rectify its safety problems, resulting in the DGAC reauthorizing the company's Air Operating Certificates in mid-February. Director Rivera also pointed out that the DGAC's approval hinged on a restructuring of TANS' operations and a guarantee of funding by the GOP. The airline, noted Rivera, is currently not flying nor is likely to fly, regardless of whether it has flight permits -- permits that expired on May 20, 2006. ¶5. (C) Minister Ortiz then informed the Ambassador that the GOP decided that it would not continue to fund TANS' operations, although the official decision has not yet been formalized due to the sensitivity of the issue and the upcoming elections. The company, which has drawn down its operations to just 30 staff, will be liquidated in the next few months. The military will likely reestablish the airline, which will only be allowed to fly "civic flights" (flights for military and police to remote areas) rather than commercial flights. As such, the new airline will not be under DGAC authority. Comment -------------- ¶6. (C) Minister Ortiz appeared to understand the FAA's concerns about the resolution of safety issues but remains confident that, upon return, the FAA will reverse its recommendation. The GOP has requested that the FAA return to Peru for consultations as soon as possible, perhaps in mid-June. STRUBLE