AMERICAN AIRLINES DOMINATES INTERNATIONAL AVIATION

UNCLAS PORT AU PRINCE 000864 SIPDIS SIPDIS STATE FOR WHA/CAR WHA/EPSC EB/TRA EB/IFD INR IAA/MAC (BEN YEHUDA) STATE PASS TO AID FOR LAC/CAR TREASURY FOR JEFFREY LEVINE USDOC FOR 4322/ITA/MAN/WH/OLAC (SMITH, S.) E.O. 12958: N/A TAGS: EAIR ECON PGOV HA SUBJECT: AMERICAN AIRLINES DOMINATES INTERNATIONAL AVIATION IN HAITI ¶1. (U) This cable is Sensitive but Unclassified ¶2. (SBU) SUMMARY: Ambassador and Emboffs recently toured Haiti,s Toussaint Louverture international airport in Port-au-Prince as guests of American Airlines. American is the largest presence at the airport with approximately 70 percent of international traffic. Flights are nearly full but American told us that cargo is also a major source of revenue for them. Despite the challenges of working in Haiti, including flying out of an airport on &Public Notice,8 American is looking to help improve the airport and expand service to the northern city of Cap Haitien. END SUMMARY. AA Dominates in Haiti - - - - - - - - - - ¶3. (SBU) Currently, nine international carriers service Toussaint Louverture airport flying mostly to the United States and the Caribbean. However, the dominant carrier by far, with approximate 70 percent of international traffic, is American Airlines. American flies five times a day to the United States: three times to Miami and once each to Fort Lauderdale and New York JFK. The only other carrier to fly to the U.S. is Air France with three flights per week to Miami. ¶4. (SBU) American flies both Airbus (A300-600) and Boeing (757 and 737) planes, but prefers Airbus, according to American officials, because Airbus planes can hold more cargo, a major part of American,s revenue. For passengers, American,s flights have averaged 70 percent occupancy this year, although for the past month the flights have been almost 100 percent full. American has told us that they need to be 65 percent full to break even on passenger traffic. Unique Challenges of Doing Business in Haiti - - - - - - - - - - ¶5. (SBU) Inbound and outbound traffic for all carriers has been in decline, from 421,900 inbound in 2003 to 351,200 inbound in 2005, and from 438,000 outbound in 2003 to 337,000 outbound in 2005. The decline can be primarily attributed to the security situation in Port-au-Prince, the slowdown in the economy and limited visa issuance at the U.S. Consulate due to post,s ordered departure. ¶6. (SBU) Despite the decline in traffic, the airport will soon begin renovations and improvements, including air conditioning in the terminal and jet bridges to the aircraft. Currently, passengers have to walk across the tarmac and up an exposed stairway to board aircraft, which is difficult for everyone during bad weather and for the elderly at all times. Another unique feature of doing business in Haiti is that American Airlines always has an extra crewmember or two on board to help passengers fill out customs and immigration forms, due to the high percentage of illiteracy among passengers. Emboffs frequently fill out the forms for passengers seated next to them on flights to the U.S. Security a Concern, but Improving - - - - - - - - - - ¶7. (SBU) A major concern of American is the security situation at the airport. In December 2004, the Transportation Safety Administration put the airport on Public Notice due to a number of security deficiencies. Public Notice status requires American to take additional security precautions on flights through Haiti. In addition, notices are posted in all U.S. airports and passengers should be given a written warning with their ticket that the airport has security deficiencies (NOTE: In practice, we have noticed that these regulations are not always followed. END NOTE) Since December 2004, following regular TSA visits for training and inspections, the security situation at the airport has noticeably improved and TSA has told the Embassy and American Airlines that Public Notice may be lifted in the near future. American Looks to Expand in the North - - - - - - - - - - ¶8. (SBU) American would like to expand its service to include Cap Haitien, on Haiti,s northern coast. American estimates that forty percent of its passengers come from northern Haiti, as it is said that 60 percent of Haitians living in south Florida are from northern Haiti. Standing in the way of American,s expansion to Cap Haitien is the poor state of the airport, particularly the lack of security, and also the poor condition of the runway. If the government would fix the runway, American Airlines has said that it would finance much if not all of the terminal refurbishment. Another U.S. carrier, Lynx Air, already services Cap Haitian, with flights to Miami and Ft. Lauderdale on a 19-passenger Fairchild Metroliner turboprop. However, post is aware that TSA has concerns about the safety and security of both Lynx SIPDIS Air and the airport and is examining both. ¶9. (SBU) COMMENT: American Airlines is one of the largest and most visible U.S. commercial entities in Haiti. The Embassy and American have mutual interests that span a number of our offices, including consular, management, economic/commercial and our law enforcement agencies. We have excellent relations and cooperation with this U.S. business and will continue to work with American. Although, a little price competition from another U.S. carrier would be welcome; tickets for the 90-minute flight start at USD 300. END COMMENT SANDERSON