BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON

UNCLAS PARIS 001717 SIPDIS SENSITIVE SIPDIS STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR E.O. 12958: N/A TAGS: ETTC KOMC FR SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON APPLICATION 050038126 REF: SECSTATE 43252 ¶1. (SBU) SUMMARY. On April 12, emboffs conducted a pre-license check on application 050038126 for the export of 12 filter assemblies to Sabena Technics in France via the UK. Sabena Technics has a good reputation in the aircraft maintenance field, and post has no derogatory information about the company. The company services both civilian and military aircraft. On the military side, Sabena Technics only services NATO, French, Dutch, and Belgian military aircraft. The firm has the plant necessary to perform its services and the office space required to provide administrative support. It has strict security procedures, particularly in the parts of its facilities that store spare parts and service military aircraft. End summary. ¶2. (SBU) On April 12, econoff and APP Rennes Commercial Specialist conducted a pre-license check on application 050038126 for the export of CASA CN235 aircraft spare parts to France via the UK. We met with Sabena Technics Quality Assurance Manager Olivier Lefevre, Subcontacting Department Head Gildas Grasland, and Executive Strategic Buyer Peter Woodward. Company History - From Regional Airline to Aircraft Maintenance Specialist ============================================= ====== ¶3. (SBU) Sabena Technics has a good reputation in the aircraft maintenance field, and post has no derogatory information about the company. Our American Presence Post in Rennes had contacts within the firm, and had intended to provide the company with a list of suppliers before this case arose. Sabena reps gave us an overview of their operations and their firm's history. The company was founded in 1969 as Touraine Air Transport, a regional airline that also leased aircraft and had a maintenance arm. This group evolved into the TAT group, a 600-member firm that focused primarily on aircraft maintenance. TAT doubled its workforce when it acquired the Nimes maintenance facility of the AOM Group, a maintenance arm of regional airlines Minerve and Air Outremer. The acquisition of AOM also allowed TAT to expand into the maintenance of wide-bodied aircraft. In 2005, TAT Industries acquired Brussels-based firm Sabena Technics, adopting its name. Sabena Technics was originally the maintenance arm of Belgium-based Sabena Airlines, which later spun it off. This acquisition expanded the company's workforce to 3,300, with 1,100 working in Brussels. The firm now has an annual turnover of 300 million euros (USD 390 million) and 150,000 square meters of space for hangers and workshops. It is not involved in any missile, nuclear, chemical, or biological programs. Broad Array of Operations ========================= ¶4. (SBU) Throughthese acquisitions, Sabena has become involved in a broad array of aircraft maintenance activities. It provides repairs, service, painting, and hydraulic component support services for both regional aircraft and wide-bodied aircraft. The facility we visited in Dinard, the firm's original repair facility and the company's headquarters, only services regional aircraft of up to 100 seats. The company also offers a complete range of landing gear, wheels, and brakes. ¶5. (SBU) Sabena Technics also modifies and upgrades military aircraft. The company states that it is an authorized Lockheed Hercules service center since 1977, and it complies with NATO Allied Quality Assurance Standards. Since 1988, Sabena Technics has serviced NATO's B707 AWACS training cargo aircraft. It also performs maintenance operations for the national air forces of France, the Netherlands, and Belgium. Sabena Technics has established relationships with all of these entities. The firm has the plant necessary to perform its services and the office space required to provide administrative support. Security ======== ¶6. (SBU) Sabena Technics understands the restrictions of U.S. military list articles, including its re-export provisions. The Dinard headquarters of Sabena Technics was located at the Dinard airport. The entire facility is fenced in with one control point. We, like all other visitors, had to provide an official ID (national ID card or passport) and be accompanied during our entire visit. Company personnel must inform Security in advance of the arrival of all visitors. Sabena Technics has a Security Manager who has six full-time employees working for him. They man the control booth, monitor surveillance cameras, and walk around the site. Someone from Security is on-site 24 hours a day, seven days a week. All employees must wear their badges, which specify the areas to which the employees have access. Sabena Technics services military aircraft in dedicated areas that are also fenced off. Surveillance cameras monitor these areas and other zones that contain spare parts to prevent unauthorized access and theft. To obtain a badge that allows entrance to these sensitive areas, employees undergo dedicated training. After the 8 AM to 6 PM office hours, administrative staff no longer have access to the sensitive areas. Customers ========= ¶7. (SBU) Sabena Technics does not do business or have contacts with embargoed countries or entities. Fifty percent of Sabena's clients are French. Eighty to ninety percent of the aircraft the firm services is manufactured in Europe. Its clients also include African and Indian Subcontinent airlines, but Sabena Technics provides no servicing for military aircraft from these countries. Its supplies come exclusively from Europe and North America. The firm mainly sources its parts in the U.S. from OEM general brokers. ¶8. (SBU) Sabena Technics placed orders for filter assemblies in 2005, 2006, and 2007. However, it requested that we provide the order number associated with export license number 05-0038126 before confirming whether it had ordered a filter assembly associated with that particular license. Sabena Technics did not have the export license numbers since Eaton Corporation applied for the license, not Sabena. Please visit Paris' Classified Website at: http://www.state.sgov.gov/p/eur/paris/index.c fm STAPLETON