ORION AIR SAYS IT HAS ENDED CONTRACT WITH SYRIAN

UNCLAS MADRID 000578 SENSITIVE SIPDIS STATE FOR NEA/ELA A.MONZ AND EUR/WE SZERDECKI/ESAMSON STATE ALSO FOR EEB/ESC/TFS C.BACKEMEYER COMMERCE FOR BIS: TCHRISTINO, JSONDERMAN, J.JUST, M.RUFE, R.JERESKI E.O. 12958: N/A TAGS: EAIR ETRD ETTC PGOV PREL SP SY SUBJECT: ORION AIR SAYS IT HAS ENDED CONTRACT WITH SYRIAN PEARL, REQUESTS USG ASSISTANCE REF: A. DUDLEY-JERESKI E-MAIL EXCHANGE 6/10 ¶B. LONDON 1185 ¶C. STATE 49690 ¶D. MADRID 489 AND PREVIOUS ¶1. (U) Please see request for guidance paragraph 5. ¶2. (SBU) On June 14, post received an e-mail message from Orion Air advising that Orion has terminated its contract with Syrian Pearl. Informal Embassy translation follows: Begin text: Dear Sirs: ref: Orion Air This is to inform you that this company, following the guidance of the U.S. Government - once confirmed by Spanish authorities - has terminated, effective immediately (Note: The Spanish expression used, "de manera fulminante," is stronger and implies a sudden and drastic action. End Note.),its relationship with the company Syrian Pearl. Therefore, via this letter we request that you take the necessary measures to cancel the TDO against this company and proceed to communicate to all concerned businesses to cease to take measures against Orion Air and to lift the restrictions in force. As a result of the rupture with Syrian Pearl, the EC-IVO aircraft currently in Damascus has been illegally retained by Syrian Pearl, making it impossible for the plane to return to Europe. We would appreciate your advice on the steps to take to withdraw the plane from the Syrian airport. We look forward to your reply. Sincerely, Arancha Merino Director General Orion Air End text. ¶3. (SBU) On June 15, Orion Air Manager Jose Maria Orea called post to convey again the message that Orion had broken off dealings with the Syrian airline and to request that the TDO be lifted. He clarified that it was Syrian airport authorities who were not allowing Orion's crew access to the aircraft in order to fly it back. Orea said it was not clear whether the Syrian airline or the Syrian government was behind this. He added that the Spanish Embassy in Damascus was engaged. ¶4. (SBU) On a related subject, as reported in ref A e-mail, post was contacted June 10 by Elena MacCormick, Director General of Pan Air, a company with a maintenance contract with Orion Air for its plane in Syria. MacCormick advised that upon learning on June 8 of the TDO, she had that day recalled Pan Air's three mechanics who were working on the plane. She stated that the removal of the employees effectively grounded the aircraft. ¶5. (SBU) Request for guidance: Please advise how post should reply to Orion's message, or, alternatively, whether we should urge Orion to contact Commerce/BIS directly. CHACON