NICARAGUA: MISSTEPS BY NEW AVIATION ADMINISTRATION

UNCLAS MANAGUA 000983 SIPDIS SIPDIS E.O. 12958: N/A TAGS: EAIR PTER EIND ECON NU SUBJECT: NICARAGUA: MISSTEPS BY NEW AVIATION ADMINISTRATION CONCERN AIRLINES SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY. ¶1. (SBU) Summary. In a March 28 meeting with Econoffs and the TSA representative for Central America Victor Guardia, country managers and security directors from American, Continental, TACA, and Delta airlines hesitated to criticize new administrators at Empresa Administradora de Aeropuertos Internacionales (EAAI),the state-owned airports company, and the Civil Aviation Authority (CAA),but could not conceal their growing concern about airport management and security. In its first three months, new CAA and EAAI officials have demonstrated their preference for heavy-handed tactics. The overall sentiment is that the new administration lacks experience and is unfamiliar with the technical aspects of security and airport management. In response, Post has reached out to the airlines, creating two working groups, one on air transport and the other on airline security, to meet regularly to discuss their respective issues. End Summary. ¶2. (SBU) In a March 28 meeting with Econoffs and the TSA representative for Central America Victor Guardia, country managers and security directors from American, Continental, TACA, and Delta airlines hesitated to criticize new administrators at Empresa Administradora de Aeropuertos Internacionales (EAAI),the state-owned airports company, and the Civil Aviation Authority (CAA),but could not conceal their growing concern about airport management and security. They described new management at EAAI and CAA as inexperienced and autocratic. The recent dismissal of the airport security chief, missteps in the formulation of new security procedures, and a demand for the retroactive payment (up to 16 years) of electricity topped the list of concerns. CAA Flubs on Security -------------- ¶3. (SBU) On February 7, CAA sent a memo to all airlines notifying them that, effective February 16, airport security would no longer screen passengers for liquids and gels at airport security checkpoints. Instead, individual airlines would be responsible. With only a week to ramp up, Continental Airlines Security Director Ivan Cortez scrambled to hire and train enough staff to perform boarding area checks, called &liquid and gel8 searches in the industry. At the last minute, Cortez discovered that CAA had reversed its decision without bothering to notify the airlines. Airline security directors still do not know what CAA policy is when it comes to liquid and gel searches. ¶4. (SBU) On March 23, CAA's new Director General Captain Carlos Salazar Sanchez abruptly dismissed Airport Security Chief Julio Mondragon, a civilian with more than 18 years of experience, immediately replacing him with Captain Hector Salgado Herrera, a military officer with no experience in air transportation security. American Airlines Security Director Rosa Chavez described the move as no less than shocking. Again, CAA made the move without notifying the airlines or offering an explanation. Defending the change to Econoff, CAA's Chief of Office Hugo Mendietta explained that Law 595, enacted December 2006, mandates CAA to appoint a military officer to the position of Airport Security Chief. ¶5. (SBU) These flubs have caused U.S. airline security directors to seriously question the capability of new officials at CAA. They doubt that an inexperienced security chief will be able to competently manage security for a complex, international industry like air transportion. EAAI Flubs on Airport Management -------------- ¶6. (SBU) New EAAI managers exhibit some of the same inexperience. Instead of consulting client airlines, discussing system improvements and changes, and proceeding with staged implementation, new EAAI managers are prone to issuing edicts without consultation and expecting immediate implementation. As a case in point, on February 12, EAAI officials circulated a memo to the airlines demanding retroactive payment for all electricity charges dating back to each airline's first day of service. For American Airlines and Continental Airlines, which have been operating in Managua for 16 years, these charges totaled more than $2 million. Our understanding, however, is that the cost of electricity already has been rolled into each individual airline rental contract, and that electricity usage has not been separately metered. ¶7. (SBU) On February 13, EAAI Director Orlando Castillo told Econoff that the memo was an administrative mistake, that EAAI had no plans to collect the money. Nonetheless, EAAI never retracted the memo. Econoff later learned that, in a March 26 meeting with the airlines, Castillo said that the charges were still under consideration. Concerns -------------- ¶8. (SBU) At this point, U.S. airlines are more concerned about excess charges and fees than security issues. However, airline security directors have asked their personnel to closely monitor security procedures and immediately report any anomalies to them. The overall sentiment is that the new administration lacks experience and is unfamiliar with the technical aspects of security and airport management. Country managers fear that this inexperience will lead to further mistakes that may damage their ability to provide air services. Embassy Creates Air Transport Groups -------------- ¶9. (SBU) In response to CAA and EAAI's heavy handedness, Post has reached out to the airlines, creating two working groups, one on air transport and the other on airline security. The respective groups have agreed to meet regularly with Econoffs to discuss their issues. U.S. airline representatives agree that they should present a unified front to CAA and EAAI whenever possible. TRIVELLI