AIRLINE EXECUTIVES DETAINED, MADRID FEVER RISES

UNCLAS LA PAZ 000855 SIPDIS SENSITIVE SIPDIS STATE FOR EB/TRA/OTP, EB/TRA/AN, WHA/AND LPETRONI STATE PASS TO DOT FOR CCOLDREN AND BHEDBERG STATE PASS TO FAA FOR CCAPESTANY AND KBERQUIST COMMERCE FOR JANGLIN E.O. 12958: N/A TAGS: EAIR ECON PGOV BL SUBJECT: AIRLINE EXECUTIVES DETAINED, MADRID FEVER RISES REF: LA PAZ 850 ¶1. (U) Bolivian authorities detained three Lloyd Aereo Boliviano executives March 28 on charges of fraud. Passengers have accused the carrier of collecting an estimated $2.4 million in ticket sales for flights it never intended to operate; according to the Santa Cruz district attorney, the money has disappeared. ¶2. (U) An estimated 500 passengers remain camped out in Santa Cruz' international airport, angrily demanding refunds after having abandoned hope of traveling to Spain before the April 1 imposition of new EU/Shengen visa requirements (reftel). With just two days of visa-free travel remaining, many Bolivians continue to hope for a last-minute miracle or, failing that, to reach Spain via Brazil, Argentina, or Venezuela. Demand for alternative routes has reportedly driven up ticket prices, with tickets via Brazil and Argentina selling for $2,000, up from approximately $1,400 normally. ¶3. (U) Bolivian Defense Minister Walker San Miguel, meanwhile, defended the GOB's March 26 decision to use Bolivian Air Force-operated Transporte Aereo Militar (TAM) aircraft to transport would-be Bolivian immigrants to Sao Paolo to catch connecting flights to Europe. The minister highlighted TAM's successful completion of its first international flight, accused domestic airlines of seeking a "monopoly" over air travel, and said that while everyone considered the TAM flight "something bad, in reality it was providing a service" to Bolivians desperate to reach Spain. According to press reports, TAM is not backing down; instead, it is offering $390 tickets for a March 30 flight to Sao Paolo, just in time to get to the EU before the April 1 deadline. ¶3. (SBU) Comment: As the sense of urgency intensifies, the GOB is stepping up its assistance, facilitating rather than trying to prevent the travel of thousands of illegal immigrants -- a spectacle that may only worsen as the April 1 cut-off approaches. End comment. GOLDBERG