CIVAIR SURINAME--TIME FOR OPEN SKIES?

UNCLAS STATE 081957

SIPDIS

E.O. 12958: N/A
TAGS: EAIR KTIA XL NS
SUBJECT: CIVAIR SURINAME--TIME FOR OPEN SKIES?

REF: A. UTSCHIG/MENSCHER/FRANGIE --
HORWITZ/LIMAYE-DAVIS/HEDBERG EMAILS JULY
2007-JULY 2008

B. 07 PARAMARIBO 622

C. 07 STATE 146737


1. This is an action request. Please see paragraphs 6 and

13.


2. Summary. Surinamese Transportation officials met with
DOT and DOS on July 8 to discuss Suriname Airways' planned
flights to the United States. During the meeting, the GOS
had numerous questions about our bilateral air services
agreements and Open Skies. Given the renewed interest on
their side, Washington agencies request Post follow up with
Surinamese officials to discuss a U.S.-Suriname Open Skies
agreement. End Summary.


3. During a July 8 visit to Washington, Minister Richel
Apinsa and officials from Suriname's Ministry of
Transportation met with U.S. Department of Transportation
Deputy Assistant Secretary Susan McDermott and other DOT and
State officials. The purpose of the visit was to review the
processes and procedures necessary for Suriname Airways to
begin flights to the United States in August or September.
Several statutory and regulatory requirements apply to
foreign airlines interested in serving the United States,
including economic authority approval from the U.S.
Department of Transportation, Operating Specifications from
the Federal Aviation Administration (FAA),and a security
assessment by the Transportation Safety Administration (TSA)
of the airport serving as the last point of departure to the
United States. Suriname Airways holds the necessary DOT
approvals, and Suriname has a Category 1 IASA rating from the
FAA. Furthermore, the Surinamese officials characterized
their work with the TSA as "almost complete."


4. Director of Civil Aviation Vivian Hanenberg and Minister
Apinsa had several questions pertaining to bilateral air
services rights. Hanenberg asked if Suriname Airways would
be able to fly to the United States and points beyond, and he
also asked about intermediate points. Under Suriname
Airways' economic authority, the airline may serve only Miami
and New York. We informed the delegation that if the United
States and Suriname were to enter into an Open Skies
agreement, there would be no limitations on the number of
intermediate and beyond points. Hanenberg asked about the
procedural requirements for negotiating an Open Skies
agreement. We explained that the first step would be for GOS
to review our model Open Skies text. If GOS is satisfied
with our text, then a protracted negotiation would be
unlikely. We also informed the Surinamese that, were we to
reach agreement on a text, it could be applied on the basis
of comity and reciprocity pending formal ratification by the
GOS. This would allow carriers of both sides to immediately
benefit from the provisions in the agreement before it
formally enters into force.


5. We further pointed out that in our experience, all our
Open Skies partners --92 of them to date-- have benefited
from the arrangement. In addition to offering flexible route
rights, an Open Skies agreement ensures a more streamlined
DOT regulatory process and opportunities for carriers to
enter into code-sharing arrangements. Apinsa asked about
cargo rights, and we informed her that cargo and charter
operations are also included under Open Skies agreements. In
response to her question about USG discussions with CARICOM,
we provided a summary of our previous negotiations with the
regional body (Reftel C). Since Suriname Airways plans to
commence service to the United States via Aruba, the
Surinamese officials appeared especially interested to know
that Aruba (as well as Jamaica and the Netherlands Antilles
in the region) negotiated Open Skies agreements with the
United States without assistance or intervention from
CARICOM.


6. During our July 8 meeting, Apinsa specifically asked us
to provide more information, including our Open Skies model
text. Follow-up emails between DOT and Hanenberg indicate
the Minister may soon set up a committee to review entering
into an Open Skies agreement with the United States. Given
the Surinamese carrier's planned service to the United States
and the renewed interest in Open Skies, Washington agencies
request Post re-approach the Ministry of Transportation and
deliver suggested talking points and related reference
material to Minister Apinsa and to the Director of Civil
Aviation, Vivian Hanenberg. Post should request that
officials review the model Open Skies text and provide
questions and comments in writing as soon as possible.
Opening a dialogue between the United States and individual
states (not via CARICOM),initially by correspondence, will
provide the basis to assess whether an agreement will be
possible.

OBJECTIVE
--------------


7. The objective of this demarche is to determine host
government receptivity to the liberalization of the aviation
sector through an individual (non-CARICOM),bilateral Open
Skies agreement.


8. Please note that the USG negotiating team would prefer
first to receive written comments on the Open Skies text from
the host government and, when possible, to negotiate via
written correspondence. If an agreement reasonably appears
to be achievable, and "face-to-face" negotiations would
facilitate conclusion of negotiations, we can arrange for a
digital video conference (DVC),or for negotiations in
Washington. USG travel to the region is unlikely due to
budget and logistical constraints.

REPORTING DEADLINE AND POINT OF CONTACT
--------------


9. Embassy should report results of efforts by August 20.
Please slug response for EEB/TRA/AN. Post may also wish to
e-mail the response to Viki Limaye-Davis at
Limaye-DavisYV@state.gov, and Brian Hedberg at
Brian.Hedberg@dot.gov.

BACKGROUND
--------------


10. It is U.S. policy to pursue Open Skies agreements with
our aviation partners based on our model Open Skies text. By
liberalizing air transport between the United States and our
partners through such agreements, the United States seeks to
facilitate the growth of worldwide air services. The United
States is very interested in negotiating an Open Skies
agreement with Suriname.


11. Liberal, market-oriented air transport agreements
enhance aviation relations by allowing airlines to make
commercial decisions with minimal government intervention.
Liberalized agreements provide for open routes, capacity,
frequencies, designations and pricing, as well as
opportunities for cooperative marketing arrangements,
including code-sharing. We believe an Open Skies regime
offers the best environment for developing markets to attract
additional air services for the benefit of travelers,
shippers, tourism, and the broader economy. The United
States has 92 Open Skies partners around the globe.


12. The United States, New Zealand, Singapore, Brunei,
Chile, Samoa, and Tonga are parties to the Multilateral
Agreement on the Liberalization of International Air
Transportation (MALIAT). Parties to the MALIAT enjoy the
benefits of Open Skies with all the other parties without
having to negotiate individual bilateral agreements. The
MALIAT is open for accession by any country that agrees to be
bound by the terms of the MALIAT and by four key aviation
security conventions: the Convention on Offenses and Certain
Other Acts Committed on Board Aircraft, done at Tokyo
September 14, 1963; the Convention for the Suppression of
Unlawful Seizure of Aircraft, done at The Hague December 16,
1970; the Convention for the Suppression of Unlawful Acts
against the Safety of Civil Aviation, done at Montreal
September 23, 1971; and the Protocol for the Suppression of
Unlawful Acts of Violence at Airports Serving International
Civil Aviation, done at Montreal February 24, 1988. Although
we encourage countries to accede to the MALIAT, a bilateral
Open Skies agreement is often a more realistic objective.

ACTION REQUEST
--------------


13. Post is requested to sound out decision-makers in the
host government, especially Mr. Hanenberg, on Surinamese
interest in concluding an Open Skies agreement. In building
support for Open Skies within country, Post may also wish to
contact tourism, foreign affairs, and trade officials.
Embassy may draw on talking points provided below, which may
be left as a non-paper. Embassy should provide government
officials copies of the updated 2008 model Open Skies text
and Open Skies Fact Sheet, available on the internet at
http://www.state.gov/e/eeb/tra/c661.htm. The MALIAT text is
also available at the same internet address. The Department
(EEB/TRA/AN) can also forward the Open Skies model text and
related fact sheets to the Embassy's civil aviation officer
by unclassified e-mail. Embassy should encourage officials
to review the model texts and offer comments or questions for
Embassy to transmit to Department. Embassy is also requested
to report its assessment of overall local interest in an Open
Skies agreement. Based on Embassy's report, Washington
agencies will consider next steps.


14. Begin talking points.

-- U.S. officials appreciated the opportunity to meet with
GOS transport/aviation officials during their recent visit to
Washington. We were encouraged by the progress of the GOS to
invigorate its transportation system.

-- In particular, Washington officials appreciated the
discussion concerning improving air services between our two
countries.

-- An Open Skies agreement would further our efforts to
reinforce joint economic cooperation and strengthen bilateral
ties.

-- U.S. international aviation policy is based on enabling
marketplace competition to expand worldwide air services
through bilateral Open Skies agreements.

-- The U.S. model Open Skies text encompasses both passenger
and cargo service, as well as scheduled and charter
operations.

-- Our experience, as well as that of many other nations,
demonstrates that the best way to develop aviation to its
fullest potential is to allow operating decisions to be made
in an open marketplace rather than by government regulators.

-- We are confident that Suriname Airways could benefit from
an Open Skies agreement.

-- Open Skies agreements establish liberal ground rules
designed to facilitate growth of an efficient, market-based
international aviation system, with enhanced potential for
increasing commercial and business exchanges, investment,
exports, and tourism. Growth in aviation also benefits the
broader economy and promotes integration with the world
economy.

-- Open Skies agreements remove restrictions on routes,
capacity, frequencies, designations, and pricing. They also
include liberal "doing-business" rights, provide a basis for
cooperative marketing arrangements and give carriers the
flexibility to respond to market conditions.

-- An Open Skies agreement would enhance the ability of our
countries' airlines to enter into cooperative marketing
arrangements, including code-sharing with each other, with
third-country airlines, and even with surface transportation
providers.

-- Efficient air transportation is a prerequisite for
developing tourism, manufacturing sites, financial centers,
and distribution hubs. Daily international air service can
add significantly to a locality's economy.

-- International air links are as important for cargo as they
are for passengers. It is estimated that air carriers
transport 2 percent of the world's trade by weight, but 40
percent of the world's trade by value. The message is clear:
a nation must have efficient air links to develop its trade
in high-value goods.

-- Since 1992, the United States has concluded Open Skies
agreements with countries at all levels of economic
development in Europe, the Middle East, Africa, Asia, the
Pacific, Latin America and the Caribbean. The United States
has ninety-two Open Skies partners.

-- Our Open Skies partners in the Caribbean include Aruba,
Jamaica, the Netherlands Antilles and the French Overseas
Departments.

-- We suggest that authorities review the model text and
provide questions, comments, and areas of agreement for the
Embassy to transmit to Washington. This will open a dialogue
between our governments and help to define the best way to
move forward to negotiate an agreement.

As appropriate:
-- The United States, New Zealand, Singapore, Brunei, Chile,
Samoa, and Tonga are parties to the Multilateral Agreement on
the Liberalization of International Air Transportation. The
MALIAT is the first multilateral aviation agreement based on
Open Skies principles. Parties to the MALIAT enjoy the
benefits of Open Skies with all the other parties without
having to negotiate individual bilateral agreements. It is
open for accession by any country that agrees to be bound by
four key aviation security conventions. Should you consider
the MALIAT more appropriate for your aviation regime than a
bilateral Open Skies agreement with the United States, we
invite you to become a party.

End talking points.


15. Washington agencies appreciate Post's assistance.
RICE