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