VENEZUELA'S NOT SO FRIENDLY SKIES

C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 000822 SIPDIS HQ SOUTHCOM ALSO FOR POLAD DEPT OF DEFENSE TREASURY FOR MMALLOY COMMERCE FOR 4431/MAC/WH/MCAMERON PM/ISO RBETHEA 53 WRS KEESLER AFB MS//DO//, LT COL JOHN M. SHANNON HQ USAF WASHINGTON DC//A5XP//, DALE CHENEY E.O. 12958: DECL: 06/10/2018 TAGS: EAIR ECON PGOV MARR VE SUBJECT: VENEZUELA'S NOT SO FRIENDLY SKIES REF: A. 2007 CARACAS 916 ¶B. CARACAS 695 ¶C. SECSTATE 49329 ¶D. CARACAS 583 Classified By: Acting Economic Counselor Shawn Flatt for reasons 1.4 (b) and (d). ¶1. (C) SUMMARY: On June 3, Embassy officials met with Venezuela's civil aviation authority (INAC) for the first time since February 2007 to discuss TSA visits as well several other aviation issues (ref A). The meeting may have been prompted by former INAC President Yoffreda, who is rumored to be unofficially supervising INAC and is said to be open to TSA visits. The Ambassador also raised this issue in May with Foreign Minister Maduro (ref B). Venezuela's refusal to allow TSA inspections became public knowledge following a series of aviation articles in Venezuela's largest newspaper. Airlines have reported concerns with the current INAC President's new role as president of competing state-owned airline CONVIASA. They also remain concerned over the proposed tourism law, the approval process for "irregular" international routes, and possible reprisals for DOT's decision not to approve a Venezuelan airline's request for a Miami flight. END SUMMARY. -------------- ON-GOING COMMUNICATION DIFFICULTIES -------------- ¶2. (C) On June 3 an INAC official, Dr. Maria Salazar, met with Econoffs for the first time in 2008. Salazar emphasized she was not a decision-maker and was only there to relay concerns to INAC management. Econoffs raised TSA security inspections, blanket clearances for hurricane reconnaissance missions, and waiver procedures for aircraft traveling to the U.S. (ref C). Salazar repeated earlier statements that INAC sent their response to TSA's requests for inspections to the Ministry of International Relations (MRE) on May 16. ¶3. (C) The MRE has yet to give INAC's response to the Embassy. Initially the MRE stated they had a response ready on the hurricane reconnaissance missions and would send it to the Embassy on June 3. They also said they were just waiting for the return of Vice Foreign Minister and Ambassador to the UN Valero on June 5 to hand over INAC's response on TSA inspections. However, the hurricane reconnaissance response has yet to arrive and the MRE told the Charge on June 9 they were not prepared to deliver INAC's TSA response either. ¶4. (SBU) El Universal, the newspaper with the largest circulation in Venezuela, published a series of articles on aviation security beginning June 5. The articles quoted TSA spokesman Christopher White as saying "unlike most South American countries and the rest of the world, U.S. inspectors have not been able to properly ascertain whether or not the Venezuelan aviation system is vulnerable in terms of terrorism and airport security." While the initial article reported TSA is disappointed the BRV has not permitted inspections, it indicated White declined to discuss the consequences. ¶5. (SBU) Thus far, INAC has not commented. The only response reported to date has been from Venezuelan Airline Association (ALAV) President Humberto Figuera quoted in the June 6th El Universal article as saying the Venezuelan aviation system complies with International Civil Aviation Organization (IACO) standards. He expressed surprise at TSA's apparent dissatisfaction with current Venezuelan security controls but stated INAC should ultimately be the party to respond to TSA. -------------- RUMORS ABOUND REGARDING INAC'S LEADERSHIP -------------- ¶6. (C) On June 9 Econoff met with Copa General Manager for Venezuela and Chairman of the Board of Directors for ALAV Roberto Pulido (strictly protect throughout.) Polido believes that former INAC president General Giuseppe Angelo Yoffreda Yorio is unofficially heading the new aviation commission formed when the BRV transferred INAC from the Ministry of Infrastructure to the Central Planning Commission CARACAS 00000822 002 OF 002 headed by the Vice President (ref D). If this is true, it might help explain the meeting INAC suddenly offered the Embassy after months of unanswered calls. Yoffreda appeared ready to allow TSA inspections while President of INAC. ¶7. (C) Pulido stated that to his knowledge, no non-Venezuelan airline has had any contact with current INAC President Martinez Bravo. President Martinez Bravo is now also the president of CONVIASA, the Venezuelan state-owned airline. Pulido stated he is uncomfortable bringing Copa's plans to INAC for approval knowing the head of the organization is also one of his competitors. He also noted even the Venezuelan airlines believe Martinez Bravo favors CONVIASA over all others. -------------- -------------- DAILY "IRREGULAR" FLIGHTS AND OTHER INTERESTING REGULATIONS -------------- -------------- ¶8. (C) Pulido expressed serious concern with the proposed tourism law (which would apply a one percent tax to gross earnings for all airlines) and with Panama's bilateral aviation treaty with Venezuela. The treaty currently only authorizes one Panamanian flight a day. PANAMA has been trying to re-open the treaty since 1997 without success. Pulido stated business is booming in Venezuela and, as a result, Copa added two new routes to Colombia in May. However, the new flights have not received full authorization from INAC and are considered "irregular". As a result, Copa has to re-apply for permission for these routine flights every ten days. ¶9. (C) Continental Airlines faces a similar situation with its New York flight. Constantly re-applying for these routes puts the airlines at the mercy of the BRV on a weekly basis. Pulido stated this situation is not only highly unusual; it is also illegal in terms of Venezuela's treaty obligations and domestic law. Copa responded by putting a disclaimer on tickets for each of its "irregular" flights. The disclaimer warns passengers the flight is subject to government approval as INAC has the right to terminate the route with only a few days notice. -------------- INAC TO RETALIATE? -------------- ¶10. (C) On May 29, the country manager for American Airlines reported he had heard from industry sources that the U.S. DOT had delayed Venezuelan Airline Santa Barbara's request for a new Valencia/Miami route. On May 30, the American Country Manager told Econoff he understands INAC is planning to retaliate by cutting flights for each of the three U.S. airlines with operations in Venezuela. The American Manager stated he heard the rumor from Santa Barbara's Miami manager. The Consulate has received multiple visa applications from Santa Barbara employees who stated they would be staffing a new U.S. route. ¶11. (C) On January 29, 2007 INAC sent a letter informing Post that American Airlines request for a Miami/Valencia route had been approved provided the airline completed all the necessary documentation. However, Minister of Infrastructure Jose David Cabello Rondon reversed INAC's decision and denied American Airlines the same route Santa Barbara is currently requesting from the U.S. -------------- COMMENT -------------- ¶12. (C) INAC's willingness to meet with the Embassy for the first time this year initially gave rise to hopes for greater communication on aviation issues. However, MRE's failure to give INAC's communications to the Embassy dampened the initial optimism. Even if Yoffreda is running INAC from behind the scenes and is still open to TSA inspections, it seems the BRV has not changed its general strategy of non-response on aviation issues. Downes