BLUE LANTERN END-USE CHECK ON HELICA S.A. DE C.V.

UNCLAS SAN SALVADOR 001410

SIPDIS

TATE FOR PM/DTCC - BLUE LANTERN COORDINATOR

SIPDIS

E.O. 12958: N/A
TAGS: KOMC ETTC ES
SUBJECT: BLUE LANTERN END-USE CHECK ON HELICA S.A. DE C.V.

REF: A) SECSTATE 87816


1. On July 5, 2007, Emboff visited the business office of
Helicopteros de Centroamerica, S.A. de C.V.(Helica),to conduct a
blue lantern end-use check as requested in ref. A. Helica is
located at Ilopango Airport, Ilopango, El Salvador. The owner and
President of Helica is Mr. Rogelio Pena. Mr. Pena founded Helica in
1991 but had previously initiated helicopter operations in El
Salvador in 1987 with a USAID/CEL contract for the reconstruction of
the electric grid, using a Bell 212 helicopter.

History
--------------


2. In 1991 Helica was founded and signed a three year contract with
the United Nations Observer Mission in El Salvador (ONUSAL) for the
transportation of personnel. Helica has several other international
operations, creating Helica del Peru in 1992, Helicol in Colombia in
1994, and signing a contract in 1993 with the Timberland West Coast
Company of Auckland, New Zealand for the transportation of
helicopters. In 1996 Helica became the representative of Robinson,
a U.S. helicopter producer, and in 1998 began operating a school of
aeronautical instruction. In 1999 Helica opened an aeronautical
maintenance center for helicopters. In 2007, the company obtained
legal certification as the only School of Aeronautical Instruction
for helicopters in El Salvador.

Business Structure
--------------


3. The company now sells and exclusively distributes all variations
of Robinson Models R22 and R44 helicopters and operates an
authorized, certified helicopter maintenance center to service Civil
Aviation Authority helicopters. Helica also manages the helicopter
school of aeronautical instruction, provides instruction for
obtaining private helicopter licenses, and offers air taxi services.
You can find the Helica web page at
http://www.helicaelsalvador.com/.

Legal Documentation
--------------


4. Helica provided Emboff proper documentation verifying that they
are legally registered to operate in El Salvador. Currently, "The
Law for the Control and Regulation of Guns, Ammunitions, Explosives
and Similar Articles" does not require the registration of
helicopter traders at the Ministry of Defense nor the registration
of their products. Thus, they are only required to incorporate as a
business and to be registered at the National Registry Center. We
are sending scanned copies of both documents via email, plus a copy
of the Robinson Helicopter Company Authorization given to Helica as
a Dealership and Service Center for their products. Helica is member
of the American Chamber of Commerce of El Salvador (AMCHAM) and of
the Chamber of Commerce of El Salvador (CAMARASAL).

Customer Base
--------------


5. The core of Helica's business is helicopter maintenance and
overhaul services, as they have only sold 25 helicopters since 1996.
Four of those Helicopters have been sold first to Salvadoran
customers and then resold internationally, one has been acquired by
a U.S. buyer and the other three by New Zealand buyers. All the
rest are in use and remain in El Salvador. Of those, they have sold
five helicopters to Calvopesca El Salvador, a tuna fishing company
with whom they have a maintenance contract, and the rest to private
customers. In addition, they have two new helicopters ready to be
shipped to New Zealand.

Business Facilities
--------------


6. Helica is located at the Ilopango Airport, inside an area
controlled by the armed forces and the police. Their offices and
installations appear to be in order. They have a central
administrative building with four employees and the President, Mr.
Pena, and 14 employees total. Around the building are hangars where
the helicopter maintenance center is located. Several helicopters
receiving overhauls were visible, as well as the boxes containing
the new helicopters ready to be sent to New Zealand.


The Purpose of the Request to Register as a Broker
-------------- --------------

7. The objective of registering as a broker with the Department's
Office of Defense Trade Controls Compliance is to win a joint
contract with DynCorp International LLC, Maintenance and Technical
Support Services, a U.S. company, to provide local maintenance and
overhaul services to the Salvadoran Air Force helicopter fleet. The
Salvadoran Air Force is receiving a U.S. donation to renovate and
provide maintenance to the Salvadoran helicopter fleet which will
soon go out for bidding. We are also sending by email a copy of the
nondisclosure agreement MTSS-NDA-07-45 signed by Helica and
Dyncorp.


8. Comment: Mr. Rogelio Pena has been working with helicopters for
years and is well known to Embassy officials from when he worked
during the war with USAID to provide maintenance and repair services
by helicopter to the electric grid. He provided emboff with all the
proper legal documentation to operate the business and everything
appears to be in order. Post believes Helica is qualified to
register as a broker with the Department in their efforts to win a
joint contract with Dyncorp to provide services to the Salvadoran
Air Force. End comment.

Glazer