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