BRAZIL CIVAIR: MEETINGS WITH GOVERNMENT OFFICIALS ON

UNCLAS BRASILIA 000169 SIPDIS SENSITIVE SIPDIS STATE FOR EEB/TRA: JREIFMAN, TROBL TSA FOR VREEDER, SHASMAN SIPDIS FAA FOR KBERQUIST, CCAPESTANY DEPT OF TRANSPORTATION FOR BHEDBERG E.O. 12958: N/A TAGS: EAIR ECON BR SUBJECT: BRAZIL CIVAIR: MEETINGS WITH GOVERNMENT OFFICIALS ON PROPOSED GUARULHOS FEE INCREASE, AIRPORT INFRASTRUCTURE REF A) SECSTATE 3163 B) BRASILIA 129 ¶1. (SBU) Ref A points were raised in Ambassador's January 10 meeting with Tourism Minister Suplicy, in Ambassador's January 17 meeting with Defense Minister Jobim (ref B) and by Econcouns and Econoff in January 18 meeting with Ronaldo Costa Filho, the head of the Ministry of External Relations's (MRE's) Division of Negotiations of Services. A follow-up meeting is scheduled with ANAC for February ¶14. All relevant government agencies are aware of submissions sent by the four major US carriers, the Air Transport Association, and the International Transport Association to ANAC during the open comment period that closed January 12 on the proposed Guarulhos airport parking fee increase. ¶2. (SBU) Overall, interlocutors emphasized the Brazilian government must take steps to address the infrastructure challenges faced by the Sao Paulo airport. Interlocutors noted that response during the comment period had been heavy, negative, and from a broad cross-section of carriers. Interlocutors appeared receptive to alternatives to a dramatic fee increase that would address Sao Paulo's short- and medium-term infrastructure challenges. Feedback received by US Mission, and information shared by Japanese and Canadian missions in Brazil indicate that the Brazilian government is consulting heavily internally, will issue a response in several weeks, and that while fees may be increased as part of a proposed solution to congestion issues in Sao Paulo, the dramatic hike originally proposed appears less likely. Mission will continue to track this issue closely and report developments. ¶3. (SBU) On a separate aviation infrastructure-related issue, Foreign Commercial Service accompanied a US manufacturer of equipment that texturizes runways-for better traction upon takeoff and landing, as well as overall water dispersion and drainage-to meetings with the Brazilian Ministry of Defense's Secretariat of Civil Aviation, and later with the GOB's airport authority, INFRAERO. This equipment, used by many of the U.S.'s busiest airports, claims a three-day process for work that INFRAERO's current equipment takes three months to accomplish. INFRAERO plans to draw up a contract proposal within the next few weeks for the company to perform work at the three Sao Paulo area airports (Congonhas, Guarulhos and Campinas-Viracopos),the two Rio de Janeiro airports (Tom Jobim-Galeao and Santos Dumont),and Belo Horizonte's Confins Airport, which should help address some of the problems impacting airport efficiency and safety in the short-term. FCS will continue to follow up. SOBEL