VZCZCXRO9765
RR RUEHDU RUEHJO
DE RUEHSA #0399 0331032
ZNR UUUUU ZZH
R 021032Z FEB 06
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 1262
INFO RUEHBU/AMEMBASSY BUENOS AIRES 0176
RUEHTN/AMCONSUL CAPE TOWN 2313
RUEHDU/AMCONSUL DURBAN 7424
RUEHJO/AMCONSUL JOHANNESBURG 3780

UNCLAS PRETORIA 000399 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAIR SF
SUBJECT: CIVAIR: NO SOUTH AFRICA INTEREST IN OPEN SKIES 
NEGOTIATIONS 
 
 
¶1. (SBU) Summary.  South Africa's Acting Chief Director for 
Aviation and Bilateral Affairs reiterated that South Africa 
preferred incremental liberalization to an open skies 
agreement with the United States. South Africa's current 
strategy was to improve access for its carriers to African 
markets by pursuing the pan-African Yamoussoukro Agreement. 
He said that South Africa was warning African countries that 
if U.S. or EU carriers started linking their 5th freedom 
rights in Africa, it would lead to greatly discounted prices 
on legs where the passenger loads were low, thus hurting 
African carriers. He argued that these countries should 
rather open their markets to South Africa. Bierman said that 
the Department of Transport (DOT) gave up on trying to learn 
more about the needs of South Africa's growing air cargo 
market.  Its only concern was whether there seemed to be 
sufficient capacity.  End Summary. 
 
¶2. (SBU) South Africa's Acting Chief for Bilateral 
Negotiations, Johann Bierman, reiterated that South Africa 
was not interested in pursuing an open skies agreement with 
the United States, but remained interested in discussing 
incremental improvements to the existing bilateral agreement. 
 Bierman explained that South Africa's current strategy was 
to improve access for its carriers to African markets by 
pursuing the pan-African Yamoussoukro Agreement.  The 
Yamoussoukro Agreement calls for the liberalization of 
intra-Africa air transport. 
 
¶3. (SBU) Bierman commented that allowing U.S. or European 
carriers to operate freely in Africa would come at a cost to 
the development of African aviation.  He said that South 
Africa objected to other African countries, such as Namibia, 
Ghana, and Nigeria, negotiating bilateral agreements with the 
United States and others.  He argued that these countries 
should rather open their markets to South Africa, they 
resisted doing so because they knew that South Africa would 
actually enter and dominate their markets.  He said that 
South Africa was warning African countries that if U.S. or EU 
carriers started linking their 5th freedom rights, it would 
lead to greatly discounted prices on legs where passenger 
loads were low, thus hurting African carriers.  He further 
noted that if South Africa signed an open skies agreement 
with the United States, then South Africa would not have much 
to stand on when it came to keeping African countries united 
in the pursuit of Yamoussoukro.  He added that an open skies 
agreement with the United States would also weaken South 
Africa's position vis--vis the United Kingdom, which was 
pushing hard for greater access to the South African market. 
 
¶4. (SBU) Econoffs highlighted the benefits of open skies for 
Bierman. During the August 2005 bilateral negotiations in 
Washington, Bierman's predecessor, Godfrey Selepe, identified 
three objections to the U.S. open skies proposal: no 
cabotage, limitations from the Fly America Act, and 
limitations on the foreign ownership of airlines.  Bierman 
acknowledged these objections, but did not elaborate.  He 
said that Minister Radebe had agreed in principle to moving 
toward open skies over time, but not necessarily under the 
U.S. model.  Bierman said that while South Africa would 
request a significant number of supplemental flights in 2010 
when it hosted the World Cup Soccer event, it saw no reason 
to speed liberalization simply to serve this one event.  He 
also explained that the DOT gave up on trying to learn more 
about the needs of South Africa's growing air cargo market 
because airlines provided a myriad of volume discounts and 
rebates to their customers, making understanding the industry 
rather difficult.  DOT's only concern was whether there 
seemed to be sufficient capacity. 
 
¶5. (SBU) Bierman is normally the Department of Transport's 
Manager for Infrastructure and Multinationals, where he 
focuses on the development of aviation policy.  He is 
currently also serving as Acting Chief Director for Aviation, 
Bilateral Affairs.  Former Chief Director Godfrey Selepe now 
works for South African Airways as head of Aeropolitcal 
Affairs and Alliances. 
TEITELBAUM