TRAGIC CRASH FOCUSES ATTENTION ON HELICOPTER SAFETY.

UNCLAS SECTION 01 OF 02 ULAANBAATAR 000418

SIPDIS

SENSITIVE
SIPDIS

STATE PASS EXIMBANK AND OPIC
STATE PASS TO AID/ANE, EB/TRAN/AN AND EAP/CM
TOKYO, BEIJING AND SINGAPORE FOR FAA REP

E.O. 12958: N/A
TAGS: EAIR PGOV ECON MG
SUBJECT: TRAGIC CRASH FOCUSES ATTENTION ON HELICOPTER SAFETY.

SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION


1. (U) This is an action cable. See action requested in of the FAA
in para 12.



2. (SBU) SUMMARY. The crash of a Mongolia Border Forces
Russian-built MI-8 helicopter that claimed the lives of 15
firefighters has led to renewed focus on the safety of the country's
dwindling helicopter fleet, both private and state-owned. This
crash, and one in February both involved government military
helicopters, and the state-run MIAT suffered a notorious helicopter
crash in 2001 that claimed 10 lives. With the remainder of the
country's chopper fleet now in the hands of two private operators,
the Mongolian Civil Aviation Authority is tightening its oversight.
But questions remain about MCAA's ability to maintain and enforce
ICAO standards on a rapidly aging fleet of MI-8s. END SUMMARY.

Two Helicopter Crashes This Year
--------------


3. (U) Mongolian reaction to the crash has been intense. The 15
firefighters killed enroute to combat forest fires in a remote
section of northern Selenge Aimag (province) have been turned into
national heroes, a national day of mourning was declared on June 22,
and the Minister of Emergency Services, S. Otgonbayar was forced to
resign after a bungled rescue mission took over three days to reach
the crash site. Although the cause of the most recent crash is still
under investigation it appears that human error and bad weather
conditions were contributing factors. Authorities report receiving
radio messages describing foggy conditions shortly before the crash.



4. (U) The crash was the second involving a military helicopter this
year. In February, the Ministry of Defense's lost its sole
remaining MI-8 helicopter when a MP allegedly ordered the military
pilots to fly too low while he was "fox hunting" with Japanese
guests. There were no fatalities. In January 2001, the national
carrier MIAT lost an MI-8 in a notorious crash that killed 10
persons (UN staffers and other prominent passengers including
foreign journalists) during a relief operation flight in the west of
the country. The cause of that accident was found to be a
combination of human error - the pilot tried to land on icy slope-
and overloading of relief supplies.

Military Choppers Seen As Unsafe
--------------


5. (SBU) It has been an open secret that helicopters operated by the
Mongolian military or boarder forces are unsafe, poorly maintained
and that pilots have had little training. Embassy personnel have
long refused to fly military copters citing safety concerns and have
down-played repeated requests from the GOM for monetary assistance
to purchase additional helicopters because of the military's
inability to properly maintain them. Mongolia's Civil Aviation
Authority (MCAA) has no supervisory jurisdiction over military
aircraft, which fall under the broader Civil Aviation Law, and has
thus been unable to apply ICAO standards to their upkeep and
operation.

CAA and Private Sector Scrutiny
--------------


6. (U) Although similar safety concerns exist for the small fleet of
private MI-8 helicopters operated by Central Mongolian Airways (CMA)
and Sky Horse Aviation (SHA),they are generally considered to be
much safer than their military counterparts because the MCAA has
been diligent in its oversight, even grounding one of CMA's choppers
last year when it noticed irregularities in the record keeping

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flight hours. In light of the recent tragedy, MCAA is expected to
tighten its oversight even further. Furthermore, private helicopter
companies also have more resources (business income) for helicopter
upkeep and their pilots tend to receive a lot more flight hours,
especially during peak summer tourist season. With four choppers
between them, these two companies target adventure tourists by
delivering them to remote rugged locations usually for fishing or
hunting.


7. (SBU) Representatives from both Sky Horse Aviation and CMA
recently told Econoff that they operate strictly under permits
issued by MCAA, which adhere to International Civil Aviation
Organization (ICAO) standards. MCAA issues Aircraft Airworthiness
Certificates as well as Air Operator Certificates to all companies
and their aircraft. They also conduct regular inspections to ensure
that they meet international standards. MCAA states that they are in
compliance with ICAO standards. L. Nyambayar, CMA President, told
Econoff that MCAA oversight had become noticeably stricter over the
past decade.


8. (SBU) Both helicopter companies have also undergone professional
audits by Hart Aviation, hired by foreign mining companies who have
charted the helicopters for geological surveys and transporting
mining personal to remote mining areas. Hart Aviation gave Sky
Horse passing grades in an audit last year and a currently valid
Hart Aviation audit on CMA gives the company a clean bill of health
while commending the company for addressing recommendations in
Hart's audit of a year earlier.


9. (SBU) Mongolia's love-hate relationship with the MI-8 stems from
the chopper's extensive use during Soviet-dominated socialist times
and the fact that parts are more readily available for Russian built
helicopters. Service stations are also nearby, just over the border
in Irkutsk. CMA mentioned to Econoff that he had originally wanted
to use Bell helicopters when starting his business over a decade
ago, but the costs were not sustainable. Recently, a representative
from Mongolia's newest airline EZnis mentioned that his company is
currently looking into importing Bell helicopters from China as part
of an expansion plan.


10. (SBU) COMMENT: Our investigation of helicopter safety in
Mongolia, cursory though it was, suggests that choppers operated by
private companies who are subject to oversight by the MCAA are
generally safe. Private audits carried out by Hart Aviation support
this finding. The recent crash has become a national tragedy and
will likely force MCAA to heighten its focus on helicopter safety,
at least in the short term. And we were impressed with MCAA's
decision, likely bucking heavy political pressure, to ground one of
CMA choppers after finding sketchy book keeping. Nevertheless, the
average remaining life span of active privately operated MI-8s in
Mongolia is 7-10 years, we have received no indication from the
executives we spoke to at either Central Mongolian Airways or Sky
Horse Aviation that there was a plan to replace them any time soon.
END COMMENT.


12. (U) ACTION REQUEST: As requested in reftel, post asks regional
FAA reps to consider traveling to Mongolia sometime soon to help
flesh out possible areas for training and technical cooperation with
Mongolia's CAA as well as to provide an assessment of MCAA's
adherence to ICAO standards and the effectiveness of its aviation
oversight operations.

MINTON