Identifier
Created
Classification
Origin
07ANTANANARIVO1005
2007-10-01 10:02:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Antananarivo
Cable title:  

BOEING PRESENTATION WELL RECEIVED BY AIR MAD

Tags:  EAIR BEXP ECON EFIN PREL MA 
pdf how-to read a cable
VZCZCXYZ0003
OO RUEHWEB

DE RUEHAN #1005 2741002
ZNR UUUUU ZZH
O 011002Z OCT 07
FM AMEMBASSY ANTANANARIVO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0463
INFO RUEHFR/AMEMBASSY PARIS 0936
RUEHSA/AMEMBASSY PRETORIA 1105
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS ANTANANARIVO 001005 

SIPDIS

SENSITIVE
SIPDIS

PARIS FOR D'ELIA
DEPT FOR AF/E MBEYZEROV
DEPT FOR EB/TRA AND EB/CBA
PRETORIA FOR FCS

E.O. 12958: N/A
TAGS: EAIR BEXP ECON EFIN PREL MA
SUBJECT: BOEING PRESENTATION WELL RECEIVED BY AIR MAD


UNCLAS ANTANANARIVO 001005

SIPDIS

SENSITIVE
SIPDIS

PARIS FOR D'ELIA
DEPT FOR AF/E MBEYZEROV
DEPT FOR EB/TRA AND EB/CBA
PRETORIA FOR FCS

E.O. 12958: N/A
TAGS: EAIR BEXP ECON EFIN PREL MA
SUBJECT: BOEING PRESENTATION WELL RECEIVED BY AIR MAD



1. (SBU) A perfectly-timed Boeing visit to Madagascar September
24-28 included a sales presentation for new long-haul aircraft to
the Board of Directors of Air Madagascar. Consistent with President
Ravalomanana's recent pledge to "keep Air Madagascar a Boeing
airline," Board members were reportedly very engaged during the
presentation. Air Madagascar executives also spent one full day
with the Boeing fleet management advisor and a representative of
Boeing Capital to offer services on Air Madagascar's fleet needs.


2. (SBU) The Boeing team arrived one week after the GOM cancelled
the management contract of Lufthansa Consulting and fired Director
General Ulrich Link. Acting Director General Olivier Robinson, a
senior Malagasy telecommunications official who was recently
appointed to Air Madagascar, will run the airline until a new leader
is found. While Robinson is new to the airline business, he is a
decisive and dynamic senior official who we expect to breathe new
life into Air Madagascar. The Boeing team was impressed with the
amount of time and attention they received from Robinson.


3. (SBU) At a reception September 28, Acting DG Robinson was
effusive with gratitude for Boeing's visit. New to Air Madagascar,
he faces a crisis in which four long-haul aircraft must be replaced
starting in the first quarter of 2008. He suspects former Air Mad
DG Link was pushing for Air Bus behind the scenes, noting the
European airline made an unexpected proposal to the Board a few
weeks ago. With directives both to acquire Boeing aircraft and to
maintain Air Mad's international presence on Paris and Bangkok
routes, Robinson was pleased at the level of service offered by
Boeing. PolEcon Chief shared Boeing's equally-positive reaction
with Robinson, reporting the four Boeing executives had the maximum
access possible to offer fleet solutions and finance options.


4. (SBU) Before departing, the Boeing team also reported on
meetings with Minister of Finance Radavidson and Minister of
Transportation LaPorte. The former, who has been preoccupied
campaigning for the National Assembly, was reportedly ignorant of
the financial implications for the GOM regarding Air Madagascar.
Fortunately Minister LaPorte, previously President Ravalomanana's
Chief of Staff, was fully-briefed and enthusiastic. According to
Boeing, LaPorte returned early from a conference outside of
Antananarivo to meet them and provide his full support.

Bridging The Gap
--------------


5. (SBU) Boeing continues to actively support Air Madagascar's
efforts to find aircraft to bridge the gap between obsolescence in
2008 and delivery in 2012-16. In the last six months, according to
Boeing, the company has provided four leads on used aircraft
available for lease or purchase. Air Madagascar and the GOM have
missed each opportunity, however, because the bureaucracy to approve
acquisitions was too slow and the planes were quickly gone from the
market. Air Madagascar's Robinson accepted the Boeing suggestion
that pre-approval be sought for a given model aircraft at a given
cost so the airline will be nimble enough to take advantage of the
next opportunity.

MARQUARDT