This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 BELGRADE 000168 
 
SIPDIS 
 
EB FOR EB/TRA/AN T. ENGLE/L. JONES 
PARIS FOR FAA/L. LUI 
USDOT FOR FAA/NANCY ANGELO 
 
E.O. 12958: N/A 
TAGS: EAIR SR MW KTIA ICTY
SUBJECT: PROGRESS NOTED IN FAA TECHNICAL REVIEW 
 
REF: BELGRADE 1803 
 
SUMMARY 
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¶1.  A Federal Aviation Administration (FAA) team completed 
its technical review of the Serbia and Montenegro Civil 
Aviation Directorate (CAD) on January 27 in Belgrade.  The 
review results found significant progress in all areas of the 
CAD's oversight capabilities since the last technical review 
in October 2003.  The most important recommendation is 
approval of identical civil aviation laws in both Serbia and 
Montenegro (SAM) that give the Director General full 
authority to regulate civil aviation.  The review results 
give the CAD a road map in preparation for an International 
Aviation Safety Assessment (IASA) audit and also provide a 
basis for offering technical assistance through a USTDA 
grant. END SUMMARY. 
 
SIGNIFICANT PROGRESS SINCE OCTOBER 2003 
--------------------------------------- 
¶2.  From January 23 through January 27, 2006, a team from the 
FAA conducted a technical review of the CAD in Belgrade.  The 
purpose of the visit was to identify progress on the October 
2003 recommendations and benchmark the CAD's compliance with 
the International Aviation Safety Assessment (IASA) 
checklist.  Serbia and Montenegro currently is in Category 2, 
meaning the FAA assessed the CAD in the past and determined 
that it does not provide safety oversight of its air carrier 
operators in accordance with the minimum safety oversight 
standards established by the International Civil Aviation 
Organization (ICAO).  As a consequence, carriers from SAM are 
not permitted to commence service to the United States while 
in Category 2 status, although they may conduct services if 
operated using aircraft wet-leased from a duly authorized and 
properly supervised U.S. carrier or a foreign air carrier 
from a Category 1 country that is authorized to serve the 
United States with its own aircraft. 
 
¶3.  The team noted in their debriefing with CAD authorities 
on January 26 that significant progress in all areas had been 
made since the October 2003 review.  One of the team's main 
recommendations was completion of a new aviation law that 
would be identical in both republics.  Since the FAA visit in 
2003, this new draft law has progressed and is expected to be 
in Parliament by April 2006.  However, there are currently 
two drafts of the law, one for each republic, since each 
republic must separately enact the aviation law.  However, 
these drafts are not identical, and if approved, serious 
problems could arise since the CAD would operate according to 
two laws with different provisions. 
 
¶4.  The draft laws also require important revisions to ensure 
that the Director General has full authority to prescribe 
regulations, issue orders and carry out necessary functions 
in order to provide effective safety oversight in accordance 
with minimum international standards.  If these changes are 
not made to the existing draft law, FAA officials say, it 
will not meet minimum international standards.  The CAD 
officials agreed with the team on these recommendations and 
are working to make the necessary changes. 
 
¶5.  Other areas needing improvement are listed below, but the 
FAA team noted that most of these recommendations would be 
relatively easy to implement. 
 
SPECIFIC OPERATING REGULATIONS 
-- Continue the final work to promulgate the rest of the 
Joint Aviation Regulations (JARs), including development of 
the bylaws or cover sheets to incorporate the JARs under the 
new aviation law once it enters into force. 
 
-- Ensure that CAD personnel are adequately trained on the 
JARs, and the new aviation law, once it is enacted. 
 
CAA STRUCTURE AND SAFETY OVERSIGHT FUNCTIONS 
-- Ensure each specialty (technical personnel) in the CAD 
documents its hiring standards. 
 
-- Review and document compliance with the appropriate 
standard for each newly hired technical employee and ensure 
that they have industry experience commensurate with the 
industry they will oversee. 
 
TECHNICAL GUIDANCE 
-- Develop guidance material for all medical functions. 
 
-- Develop guidance material for all Aircraft Engineering 
Department (AED) functions. (This should be developed prior 
to addition of these functions to CAD.) 
 
-- Technical guidance must be developed for the medical 
department documenting the processes either electronically or 
by a policy and procedures manual. The department must 
establish a file to include examiner's training records. 
 
QUALIFIED TECHNICAL PERSONNEL 
-- Implement, and document a comprehensive OJT training 
program, for all technical personnel to include aircraft 
engineering, operations, airworthiness, cabin safety, and 
avionics inspectors; licensing; and medical personnel. 
 
-- Implement, and document a program to insure that the 
inspectors are as current and qualified at the same level as 
the personnel they oversee. 
 
LICENSING AND CERTIFICATION OBLIGATIONS 
-- Develop, implement, and document a training program for 
designated medical examiners. 
 
-- Develop, implement, and document a surveillance program to 
oversee designated examiners by appropriately qualified 
inspectors. 
 
RESOLUTION OF SAFETY ISSUES 
-- Ensure the new law and regulations include appropriate 
enforcement provisions. 
 
-- Ensure CAD inspectors have adequate guidance materials to 
prepare enforcement actions and that they are properly 
trained in the new penalty requirements. 
 
OPEN SKIES AGREEMENT IMMINENT? 
------------------------------ 
¶6.  During the technical review, econoff asked Deputy 
Director General Dragoljub Trgovcevic for an update of the 
Open Skies Agreement.  Trgovcevic said that he believed that 
approval of the draft text by the Council of Ministers is 
imminent, stating that Montenegro had already approved the 
draft and Serbia most likely would approve it in the next two 
weeks.  Once the draft text is approved by the full Council, 
the agreement will be ready for signing and then ratification 
in the Parliament.  We expect this text to include the minor 
language changes already agreed to in talks between the 
Embassy and the directorate last year. 
 
NEXT STEPS 
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¶7.  The recommendations from the technical review provide the 
CAD with a road map of what remains to be done in order to 
complete a successful IASA audit that would move Serbia and 
Montenegro to Category 1.  In addition, funds remain from a 
US Trade and Development Agency grant that can be provided to 
the CAD for developing its oversight capacity.  There is 
approximately a remaining USD 60,000 that must be spent by 
the end of FY 2006.  Based on the recommendations of the FAA 
team, technical assistance and training opportunities can be 
targeted at areas in need of improvement.  Post will work 
with the FAA and the CAD to ensure that these funds are used 
to strengthen the CAD's oversight capacity as it prepares for 
an FAA IASA assessment. 
 
POLT