VENEZUELA THREATENS TO ELIMINATE U.S. AIRLINES'

C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 001237 SIPDIS HQ SOUTHCOM ALSO FOR POLAD TREASURY FOR MMALLOY COMMERCE FOR 4431/MAC/WH/MCAMERON E.O. 12958: DECL: 01/01/2018 TAGS: EAIR ECON PGOV MARR VE ASEC SNAR SUBJECT: VENEZUELA THREATENS TO ELIMINATE U.S. AIRLINES' FLIGHTS REF: A. CARACAS 1111 ¶B. CARACAS 583 Classified By: Economic Counselor Darnall Steuart for reasons 1.4 (b) and (d). ¶1. (C) SUMMARY: On August 28 the Venezuelan Ministry of Foreign Affairs confirmed receipt of a Diplomatic Note reiterating the August 8 statement to the Venezuelan Charge in Washington that TSA would issue a Public Notice on September 8 if the Venezuelan Government continues in its refusal to allow TSA assessments of Venezuelan airports. The Bolivarian Republic of Venezuela (BRV) has formally, and informally, rejected TSA assessments and has refused every USG attempt to establish a dialogue on the issue (ref A). Industry sources report the BRV is looking for a fight with the U.S. to boost its standing in the polls prior to the November elections and the Chavez administration thinks the TSA Public Notice serves this end perfectly. However, the BRV would also exploit a USG decision not to issue the notice. Sources report the BRV is fully prepared to reduce, or even eliminate U.S. carrier service. END SUMMARY. ¶2. (C) On September 3 and 4 Venezuelan Civil Aviation Authority (INAC) President Captain Jose Martinez Bravo held separate meetings with each of the three U.S. carriers with operations in Venezuela to threaten them with flight reductions, or the possible elimination of their operations in Venezuela, if the USG does not back down on the September 8 deadline for the TSA Public Notice. These meetings were the first time any U.S. carrier has met with Martinez, in spite of requests dating back to his March appointment. The Embassy, which has been requesting meetings with Martinez since he took office, also without success, sent yet another written request for a meeting with Martinez on August 28 and has followed up every day since. As of September 4, INAC has chosen not to grant the meeting and there has been no official response to the August 28 Diplomatic Note. ¶3. (C) On September 4, the President of the Association of Airlines in Venezuela (ALAV) Humberto Figuera told Econoff he has advocated for TSA assessments with both the Venezuelan Minister of the Interior and the Vice President's aviation advisor and former INAC president General Giuseppe Angelo Yoffreda Yorio (ref B). Based on his conversations with these two influential decision makers, Figuera believes the BRV intends to, at the very least, reduce U.S. carrier frequencies to the same number Venezuelan carriers currently fly to the U.S. if the TSA notice goes forward as planned. He emphasized that the BRV is "simply looking for a fight." ¶4. (C) Figuera said many Chavez-backed candidates are low in the polls and the TSA public notice represents a perfect opportunity for the BRV to boost their standing prior to the November elections. He added that the BRV will take full political advantage of the Public Notice and suggested it would be better to wait until after the elections to issue the notice. Figuera believes that in its public statements following the release of the TSA notice, the BRV will choose to focus on the overwhelming advantage U.S. carriers have in the Venezuelan market and will hardly mention the request for security assessments. The BRV will use this opportunity to demonstrate to its supporters its ability to "stick it to the yankees" by reducing U.S. carriers to parity with Venezuelan carrier flights to the U.S. The more passengers stranded in the U.S., Figuera said, the better as the BRV can loudly proclaim that those wealthy Venezuelan citizens never should have traveled to the "empire" in the first place. ¶5. (C) On September 3 Continental Country Manager Andres Tinoco (strictly protect throughout) told Econoff that during his meeting with INAC, Martinez stated that INAC is not interested in inspecting U.S. airports and has no intention of allowing TSA inspections in Venezuela in return, as this is a question of national sovereignty. Tinoco asked Martinez what would happen to Continental if INAC reduced flights for all U.S. carriers as Continental only has one daily flight. Martinez refused to speculate saying that it wouldn't come down to such detail, as Martinez fully expects that the USG and U.S. carriers will come around to the Venezuelan point of view on this issue. Martinez also stated his belief that the TSA public notice will accuse Venezuelan airports of being unsafe and conducive to terrorist activity and drug trafficking. CARACAS 00001237 002 OF 002 ¶6. (C) On September 4 Airline Association President Figuera told Econoff that no Venezuelan airport currently meets U.S. standards. He did not comment on whether or not the airports meet international standards. He said drug trafficking is in fact a serious concern at Venezuelan airports citing an example last week where the manager for Panamanian Airline Copa at Caracas' main airport turned in two suitcases stuffed with drugs to the Venezuelan airport police. The police refused to follow up with the offending passengers and instead blamed the Copa manager for the situation. On August 31, U.S. Customs found 24 kilos of cocaine on a Venezuelan airline Santa Barbara aircraft in Miami. (NOTE: The case is ongoing with ICE and DEA in Miami. Santa Barbara staff tipped off customs because the airline president was on the aircraft. END NOTE.) Santa Barbara notified the Embassy that the Venezuelan National Guard is not allowing airline security to be present during searches of passenger luggage. ¶7. (C) COMMENT: It seems clear the BRV will do nothing to avoid, and is in fact encouraging, a head-on collision with the U.S. on TSA security assessments, as it believes any public confrontantion with the U.S. will contribute to the BRV's chances for success in the November elections. If the U.S. backs down on the September 8 Public Notice deadline, the BRV would likely trumpet this news as well, using it as a further example of BRV sucess in confronting the United States. DUDDY