VENEZUELAN AIRLINE WITH KNOWN DRUG TRAFFICKING

S E C R E T CARACAS 001545 SIPDIS HQ SOUTHCOM ALSO FOR POLAD TREASURY FOR MMALLOY COMMERCE FOR 4431/MAC/WH/MCAMERON E.O. 12958: DECL: 01/01/2018 TAGS: VE ASEC MARR PGOV ECON EAIR SNAR PREL CVIS SUBJECT: VENEZUELAN AIRLINE WITH KNOWN DRUG TRAFFICKING TIES SEEKS TO RESUME U.S. ROUTES REF: DIA REPORT AUG. 30 2007 S-119 883-07/CNT Classified By: Economic Counselor Darnall Steuart for reasons 1.4 (b) and (d). ¶1. (S) SUMMARY: Venezuelan airline Aeropostal, which halted its flights to the U.S. earlier this year, has filed an application with the Department of Transportation (DOT) to resume its U.S. routes. Given that the new owners of Aeropostal, the Makled family, are Venezuela's preeminent drug traffickers, Post recommends that DOT consult with all USG agencies with information on the family before considering the Aeropostal request. The Venezuelan government's decision to allow the Makleds to purchase a commercial airline in Venezuela sheds further doubt on Venezuelan aviation security. END SUMMARY. ¶2. (S) On November 4 Econoffs met with the President of Venezuelan airline Aeropostal, Dr. MUSTAFA Flores, who emphasized Aeropostal's desire to resume flights to the United States. He repeatedly stated that the new owners of Aeropostal, the Makled Group, do not have ties to drug trafficking. Mustafa produced an October 22, 2008 Venezuelan court ruling to support his claims of the Makled's innocence. The court stated that due to insufficient evidence and an incorrect filing of charges, it would not order an investigation of the owners of Aeropostal for crimes including money laundering. On August 30, 2007, the Defense Intelligence Agency (DIA) issued a detailed report on the Makleds entitled "Venezuela: Business Entrepreneur Dominates Cocaine Trade." Walid Makled, who Mustafa reports was personally involved in purchasing Aeropostal from former owner Nelson Ramiz in March 2008, is listed in the DIA report as "Venezuela's preeminent drug trafficker..." who "leverages his involvement in the transportation industry to facilitate drug shipments and provide cover for his own illicit activities." ¶3. (S) At the same time that Mustafa was emphasizing the Makleds' innocence, he also sought to distance Aeropostal from the family by stating that they know nothing about aviation and live far, (two hours by car) from Caracas. (Note: This claim of ignorance about aviation seems odd, when according to the DIA report, the Makleds own a small airport they use to ferry drugs to Mexico twice a week. A senior Mexican drug cartel lieutenant, Gerardo Alvarez Vazquez, once recommended that the Makled's buy a Boeing 727 for regular cocaine shipments to Mexico. End Note.) He also noted that former Aeropostal owner, Nelson Ramiz, who accused the Makleds of money laundering in the press on October 7, 2008, has yet to file formal charges against the family in any court. (Note: The head of the Embassy's DEA office stated that no one files charges against the Makleds out of fear of reprisal. End Note.) ¶4. (S) Mustafa stated Aeropostal's primary goal is to resume flights to the U.S., saying that "Aeropostal is not really an airline if it is not able to fly to the U.S." He explained that the routes have already been approved by both the Department of Transportation (DOT) and the Venezuelan Civil Aviation Authority (INAC) and that Aeropostal is actively seeking code share agreements with Continental and Delta Airlines. He said that Aeropostal is currently in negotiations to acquire seven McDonnell Douglas aircraft to cover the U.S. routes as the airline currently only has three planes in operation needed for domestic routes. Mustafa reported the Makled Group is not having trouble coming up with the money to invest heavily in Aeropostal as 80 percent of imports to Venezuela end up in Makled family warehouses and they own the second largest ground transportation company in the country. ¶5. (S) COMMENT: Post recommends that DOT carefully review all USG reporting and consult with the appropriate agencies before considering a possible resumption of air service to the U.S. under current Aeropostal management. The Venezuelan government's decision to allow the most powerful drug traffickers in the country to buy a commercial airline is yet another indication that aviation security is not as it should be in Venezuela. END COMMENT. CAULFIELD