CARACAS-TEHRAN FLIGHT: BUILDING A BOLIVARIAN

UNCLAS CARACAS 000505 SIPDIS SENSITIVE SIPDIS TREASURY FOR KLINGENSMITH AND NGRANT COMMERCE FOR 4431/MAC/WH/MCAMERON NSC FOR DTOMLINSON ENERGY FOR CDAY, DPUMPHERY, AND ALOCKWOOD E.O. 12958: N/A TAGS: PREL EAIR VE SUBJECT: CARACAS-TEHRAN FLIGHT: BUILDING A BOLIVARIAN BRIDGE IN THE SKY REF: CARACAS 91 ¶1. (SBU) Summary: On March 2, an Iran Air Boeing 747 touched down in Caracas, carrying 60 passengers on the inaugural flight of the Caracas-Damascas-Tehran route. Iran Air will operate this route once a week as a code-share with Conviasa, the BRV's fledgling state carrier. The inauguration of this air route is more politically symbolic of the cozy Chavez-Ahmadinejad strategic alliance than it is economically significant. BRV and Iranian officials hailed the launch of this flight as a significant step in "South-South" cooperation, terming it "damaging" to the United States. End Summary. -------------- The Caracas-Damascas-Tehran Route -------------- ¶2. (SBU) The sixty passengers traveling on the maiden flight of the Iran Air/Conviasa code-share from Tehran to Caracas were greeted at Maiquetia airport on March 2 by Minister for the People's Power for Infrastructure Jose David Cabello and Minister for the People's Power for Tourism Cecilia Azuaje. A more elaborate inaugural ceremony was reserved for the arrival of the return flight on March 5 in Tehran, as the plane carried a Venezuelan delegation to the Iran-Venezuela Economic Commission meeting on March 6-7. Minister of People's Power for Industries and Mines Jose Khan and Minister of People's Power for Science and Technology Hector Navarro were among the delegates traveling on the flight. ¶3. (SBU) The Caracas-Damascas-Tehran route will operate weekly. It will leave Tehran Friday mornings at 0500 and arrive in Caracas at 1545 the same day, with a one hour scheduled stop in Damascas. The flight will return on Saturdays, leaving Caracas at 1845 and arriving in Tehran at 1845 Sunday evening. Iran Air has operated the first two flights using Boeing 747-SP aircraft that the company reportedly plans to retire because of age and difficulty in obtaining parts. INAC Deputy Director told EconCouns that Conviasa has leased Airbus A-340 aircraft that will be soon be ready to fly the route. According to a press release from the BRV's Ministry of People's Power for Foreign Affairs, the flight reduces travel time between the two cities from 26 to 16 hours. Despite early claims that the ticket prices would reflect "solidarity," Conviasa has indicated that the price of the round-trip tickets will be USD 2400 from Caracas to Damascas and USD 3400 to Tehran. Econoff attempted to check fares and itineraries on the Conviasa website (www.conviasa.aero) but the website has not yet been updated to indicate either Damascas or Tehran as a destination. ¶4. (SBU) Conviasa is a small airline, even by Venezuelan standards. Conviasa was created by the BRV in 2004 as "the flag carrier of the BRV" and maintains a small fleet of 13 aircraft -- two Dash-7, two Boeing 737-300, two Boeing 737-200, four ATR-42, one Airbus-340, one Boeing 767-300 and one Cessna Caravan-208. Conviasa has limited domestic routes, serving a dozen cities, with even more limited international flights to Grenada, San Vicente and Puerto Espana. Conviasa's President Fernandez Martinez weakly attempted to tout the economic benefit of the code-share, enabling the carrier to offer improved service to its customers by reducing the flying time to Tehran and by offering its customers new international routes. -------------- Political Significance of Flight -------------- ¶5. (SBU) Both BRV and Iranian officials hailed the inaugural flight as "historic." An Iranian vice-minister in the Ministry of Industry and Mines, present at the airport in Tehran to receive the BRV delegation, reportedly proclaimed "this is an aerial bridge between Latin America and the Middle East and for the first time there is a link between these two regions." He continued in this vein, while launching barbs at the "North" (read: United States). "This has great significance for the nations of the south and also for the north and certainly there are benefits for the south, as there is damage for the north." Upon his arrival in Tehran, Minister Khan offered the BRV's perspective, noting "we are participating in a historic day." Minister Cabello added "aerial communication between our two peoples is historic, and will facilitate commercial relations and more importantly, cultural exchanges and the ideology that unites us." Speaking from Damascas, BRV Foreign Minister Maduro alluded to alleged racism against Muslim travelers in the United States and Europe in the post-September 11 security environment. "Our brothers of Arab origin now know that to come to Arab lands they don't need to go through the United States or Europe, directly South-South: Caracas-Damascas," said Maduro. -------------- Upcoming Bilateral Commission -------------- ¶6. (SBU) In total, more than 100 delegates from both countries will participate in bilateral negotiations on a broad range of issues, including science and technology, tourism, culture, education, health, and energy and petroleum. Iran's Ambassador to Venezuela Ahmad Sobhani said the two countries "would open a new page in bilateral relations." The Tehran Times reported that the BRV and the GOI will sign an additional 14 MOUs and 25 agreements on expansion of industrial, mining, economic, commercial, and customs cooperation. These agreements are to complement the 11 agreements Chavez and Ahmadinejad signed during the Iranian President's January 13 visit to Caracas (Reftel). -------------- Comment -------------- ¶7. (SBU) The launching of the Tehran-Damascas-Caracas air route is best understood as a symbolic manifestation of the cozy Chavez-Ahmadinejad alliance. Conviasa is a small, struggling airline that has had a difficult time establishing itself in its own domestic market. In this regard, it is hard to see from a business perspective how a code-share with Iran Air will expand its revenues and operations. The majority of passengers are likely to be employees of either Venezuelan or Iranian state entities. While both Iran and the BRV have touted this flight as a historic milestone, it is unlikely to have a significant impact on commercial and cultural ties as long as the ticket price remains prohibitively expensive and there is only one flight weekly. The inaugural flight provided a stage for both Iran and Venezuela to thumb their noses at the United States on the eve of another round of bilateral MOU negotiations to strengthen their strategic relationship. BROWNFIELD