CIVAIR: REPONSE TO AMERICAN/SPIRIT DESIGNATION

UNCLAS CARACAS 000214 SIPDIS SIPDIS EB/TRA/AN FOR JOEL REIFMAN STATE PLEASE PASS TO DEPT OF TRANSPORTATION FOR BRIAN HEDBERG E.O. 12958: N/A TAGS: EAIR VE SUBJECT: CIVAIR: REPONSE TO AMERICAN/SPIRIT DESIGNATION REF: 06 SECSTATE 198168 ¶1. In response to Post's diplomatic note No. 809, dated December 13, 2006 (reftel),the BRV has provided the Embassy a list of requirements for Spirit Airlines to operate route 1 between the United States and Venezuela and has approved our designation of American Airlines (AA) to operate route 6. On January 19, 2007, Embassy received a diplomatic note from the MFA with a letter attached from the National Institute of Civil Aviation (INAC) outlining requirements for Spirit Airlines to operate the route, the text of which is translated below (paras 3-4). ¶2. INAC also sent Ambassador Brownfield a letter which Post received January 29, 2007 informing us that our designation of American Airlines has been approved (para 5),provided all necessary documents are provided to INAC. AA's country manager told EconCouns on January 30 that INAC's Air Transport General Manager Raul Rodriguez Lopez had given AA the "green light" pending submission of all necessary documentation, but that some of the requirements appeared onerous (e.g., submission of crew licenses, etc). AA is working to meet the requirements and would like to inaugurate the route in April. Copies of notes in paras 3-5 have been e-mailed to EB/TRA/AN attn: Joel Reifman. Post's informal translations of the text of the notes follows: -------------- Spirit Airlines -------------- ¶3. Begin text of diplomatic note DGECI/DTCI Number 006021 received January 19, 2007: The Ministry of Foreign Affairs Director General for International Cooperation and Economics, extends greetings to the Embassy of the United States of America, and has the opportunity to refer to your Verbal Note number 809 dated 13 December 2006, designating Spirit Airlines, Inc. and American Airlines, Inc. to operate regular air transport services between the United States of America and the Bolivarian Republic of Venezuela. With respect to this issue, find attached communication GGTA/GOAV/DOI-07-008, dated 16 January 2007, sent by the National Institute for Civil Aeronautics (INAC),enumerating the requirements to authorize the referenced designation. The Ministry of Foreign Relations, General Direction of Economics and International Cooperation, Transportation and International Communications Division, reiterates to the Honorable Embassy of the United States of America assurances of our highest and distinguished consideration. End text. ¶4. Begin text of letter (GGTA/GOAV/DOI-07-008),attached to dip-note, from INAC's General Manager for Air Transport, Raul Rodriguez Lopez, to the MFA's Director General for International Economic Cooperation Sohail Hernandez: It is an honor to write to you, in the opportunity to make reference to the diplomatic note sent by the Embassy of the United States of America, through which the company Spirit Airlines, Inc. is designated to operate Regular Aerial Transport between the United States of America and Venezuela. To this end, I ask your cooperation (MFA) in sending the requisites as follows: A) Legal documents showing the company's address in Venezuela (mercantile registry). B) Authorization by its government to conduct the proposed international service. C) Articles of Incorporation of the company and any amendments thereto, especially those referring to the sale and transfer of shares and capital increases. D) Letter of Undertaking by the company in which it submits to the legal dispositions of Venezuela's Civil Aviation Law, its regulations, and jurisdiction of Venezuelan authorities. E) Insurance policy or guarantees (original and two copies) covering the payment of obligations arising from the operation, service, and liability to third parties: a. personal accidents (passengers, crew) b. civil responsibility (third party liability) in assigned routes F) Description of flight equipment indicating all their features such as make, registration, internal layout, specifying the number of seats by service or class, lifting capacity, rental contracts (if applicable) and liens, taxes or other obligations on them. G) Proposed itinerary schedule. H) Information pertaining to the hub airport, stopovers, and alternate routes. I) List of crew with copies of flight licenses. J) List of flight dispatchers. K) Operations manual. L) Maintenance manual. M) Air Operators Certificate (AOC). N) Operational specifics, listing of aircraft (D85), authorized airports (C70),routes to follow (B50),base airports and stopovers (A28) and (G106). O) Airworthiness certificate and registration of the aircraft(s) to operate. P) Name and nationality of the legal representative and notarized documents showing the legality of the appointed representative. Q) Land handling contract. R) Certified copies of the company's financial statements. S) Meet the obligations of the Stamp Duty Law. All documents must be notarized by Venezuelan consular authorities in the pertinent countries and translated into Spanish, if necessary, by a sworn interpreter. Without any other particular agenda, I take this opportunity to express my best consideration and regards. End text. -------------- American Airlines -------------- ¶5. Begin text of letter from INAC's General Manager for Air Transport Raul Rodriguez Lopez to Ambassador Brownfield dated January 25, 2007 (received by Post on January 29): I would like to take the opportunity to deliver my salutations and refer to Verbal Note number 809, dated 13 December 2006, informing us of the designation of American Airlines, Inc. to provide regular airline service for passengers, mail and cargo on United States route 6. This Institute accords, with the conditions established in the Bilateral Accords in effect, and informs you of the acceptance of the aforementioned designation, nonetheless, the company American Airlines should deposit with the National Institute of Civil Aviation the necessary documents to formalize its operations on the said route. Without further reference, I reiterate to you my highest consideration and respect. End text. BROWNFIELD