GOVERNMENT OF ARGENTINA CREATES NEW CIVIL AVIATION

UNCLAS BUENOS AIRES 000518 SIPDIS SIPDIS SENSITIVE WHA FOR WHA/BSC AND WHA/EPSC E FOR THOMAS PIERCE PASS NSC FOR JOSE CARDENAS USDOC FOR 4322/ITA/ALFORD US SOUTHCOM FOR POLAD STATE FOR TOM ENGLE, JOEL REIFMAN AND JEFF HORWITZ TRANSPORTATION FOR BRIAN HEDBERG FAA FOR CECILIA CAPESTANY, KRISTA BERQUIST FAA MIAMI FOR MAYTE ASHBY FOR USMISSION TO ICAO E.O. 12958: N/A TAGS: EAIR ECON AR SUBJECT: GOVERNMENT OF ARGENTINA CREATES NEW CIVIL AVIATION AUTHORITY; NO IMMEDIATE CHANGES TO ENSUE ¶1. (SBU) SUMMARY: Last night, President Kirchner, in a dramatic gesture, announced his signing of a decree creating a new National Civil Aviation Administration (ANAC),which will eventually take civil aviation control from the Ministry of Defense to the Ministry of Planning's Secretary of Transportation. Despite the fanfare, any transfer of control will take months or years and there will be no/no immediate change to Argentina's current civil aviation operations or structure. The GOA recently signed an agreement with ICAO for ICAO to provide assistance in this transfer, but this agreement in no way precludes the GOA from seeking FAA guidance in this transition. In light of current high-profile problems with malfunctioning Buenos Aires radar systems that have resulted in major delays and threats of a pilots strike, many observers see the President's action as largely a political gesture. END SUMMARY. ¶2. (SBU) On March 15, the President announced the creation of a National Civil Aviation Administration (ANAC) in a high-profile late night ceremony attended by senior cabinet officials and extensively covered by the media. According to Embassy contacts, this announcement is actually just the start of a transfer process that will take "months or years." Another agency, the Executive Transfer Unit, or UET, was also created, whose function is to handle the regulatory details of this transfer process. Many very complex and contentious technical, regulatory, and labor-related issues are still to be completely worked out. Not the least sensitive issue is what will be the status of some 6000 employees in the current civilian aviation organization, the Air Regions Command, under the Air Force, of which about 80% are military. GOA officials have admitted in private that there is no clear idea of where the employees of any new civilian organization will come from, whether they will be hired from the military, or will there be new recruits. Issues related to salaries, retirement and worker rights are also completely unknown. In addition, there is currently no implementing legislation for this new planned organization, nor have any budget monies been allocated for its start-up. ¶3. (SBU) On March 15, Secretary Jaime previewed this imminent announcement of a transfer from military to civilian control to Econ Counselor and CivAir Officer, and also emphasized how complex and difficult this process would be. Jamie was at pains to emphasize that this transition would be done properly and methodically, and the GOA would take its time. (Note: Jaime also gave full support to the US-GOA liberalization discussions to be held next week, whose GOA delegation will be headed by his subordinate, Under Secretary for Commercial Air Transport, Ricardo Cirielli. End note) ¶4. (SBU) On March 14, Emboff and visiting FAA regional representative met with GOA's civil aviation commander, General Jose Alvarez (please protect),of the Air Regions Command. He frankly stated that his organization was not being consulted in this planned transfer from military to civilian control of aviation. (Note: The announcement one day later of this transition illustrated his point.) Alvarez privately voiced his concern that the transition could be difficult, that it should not be politicized, and that only qualified personnel should work for the new organization. He was concerned that the GOA might make an "abrupt" and "clumsy" transition, and possibly hire unqualified and politically-connected people. He expressed particular concern about how air traffic controllers, currently prohibited from striking while under military authority, will be managed in a new organization under civilian control. ¶5. (SBU) According to Embassy contacts, the GOA Ministry of Defense recently signed an agreement with the International Civil Aviation Organization (ICAO) for the latter to provide general guidance, technical cooperation and consultation in the GOA's transition from military to civilian control of aviation. Embassy contacts expect that, perhaps in a few weeks or months, an ICAO delegation will come to Buenos Aires to begin their formal consultations. The same Embassy contact told Emboff explicitly that this GOA-ICAO agreement would not/not preclude the GOA from also seeking advice from the FAA on this delicate transition. -------------- Comment -------------- ¶6. (SBU) At this time, this announcement of the transfer of aviation to civilian control appears to be a political gesture. Observers speculate that its timing was likely related to the ongoing woes at the two major airports in Buenos Aires (Ezeiza and Aeroparque) due to problems with malfunctioning radar systems that have resulted in major delays and threats of a pilots strike. (Note: There are unconfirmed reports that the GOA will soon purchase two radars to ameliorate this problem. End note) In this election year (presidential, provincial and Buenos Aires),this move could be calculated to demonstrate that the GOA is taking action to address these issues. Finally, this government always finds it convenient to take a swipe at the military, and the President's announcement of this long-anticipated military to civilian control transition is another such example. END COMMENT. WAYNE