VZCZCXRO6677
PP RUEHAO
DE RUEHCV #0573/01 0621109
ZNR UUUUU ZZH
P 031109Z MAR 06
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC PRIORITY 3429
RUEANHA/FAA WASHDC PRIORITY
INFO RUEHBO/AMEMBASSY BOGOTA 6092
RUEHLP/AMEMBASSY LA PAZ 1729
RUEHPE/AMEMBASSY LIMA 9935
RUEHQT/AMEMBASSY QUITO 1801
RUEHAO/AMCONSUL CURACAO 0639
RUEHGL/AMCONSUL GUAYAQUIL 0330
RUCPDOC/DEPT OF COMMERCE
RHEHNSC/NSC WASHDC
RUEAYVF/FAA MIAMI FL

UNCLAS SECTION 01 OF 02 CARACAS 000573 
 
SIPDIS 
 
SIPDIS 
 
STATE PLEASE PASS TO TRANSPORTATION DEPT 
 
E.O. 12958: N/A 
TAGS: EAIR VE
SUBJECT: CIVAIR VENEZUELA: ENGAGING WITH INAC AND VP CHIEF 
OF STAFF ON THREATENED FLIGHT CUTS 
 
REF: A. SECSTATE 32811 
 
     ¶B. SECSTATE 30776 
     ¶C. BOWEN-DANIEL TELCON/E-MAILS 
 
------- 
SUMMARY 
------- 
 
¶1. (SBU)  On March 1, EconCouns met with the President of 
Venezuela's National Civil Aviation Institute (INAC) to 
deliver talking points (Ref A), underscoring that the USG 
objected to the unilateral restrictions on U.S. air carrier 
frequencies and that we had no political agenda regarding air 
safety issues.  The same day, the Ambassador spoke to Rene 
Arreaza, the Vice-President's Chief of Staff, to note our 
readiness to offer an accelerated FAA visit to assess their 
International Aviation Safety Assessment (IASA) status, but 
conveyed disappointment with the BRV's failure to use 
available mechanisms to bring this to our attention.  Arreaza 
noted his wish to de-politicize the issue and noted that 
flight cancellations would take effect if Venezuela was not 
elevated to Category 1.  Vice-President Rangel, in a media 
statement March 2, made the same threat.  Post has been 
actively mediating the issue and engagement with the BRV 
offers promise of resolution.  The ball is now in their 
court.  End Summary. 
 
----------------- 
MEETING WITH INAC 
----------------- 
 
¶2. (SBU)   On March 1, EconCouns was summoned to a meeting 
with INAC President, Francisco Paz Fleites.  Also attending 
were EconOff and various MFA and INAC representatives. 
EconCouns delivered a non-paper with the talking points (Ref 
A), noting our objection to unilateral restrictions on U.S. 
air carrier frequencies and that we had no political agenda 
with regard to air safety issues.  EconCouns delivered FAA 
contact information and urged INAC to request a date for an 
IASA inspection, noting the assessment was no guarantee of a 
return to Category 1.  He also stressed we have a 
constructive basis to move forward. 
 
¶3. (SBU)   Paz agreed this was a technical issue, and noted 
that since the International Civil Aviation Organization 
(ICAO) 2004 report where the BRV was found to be in "89% 
compliance" with safety standards, they had "exhausted all 
means of communication" with FAA in their attempts to get 
back to Category 1.  He added that ICAO's American delegate 
voted against an ICAO inspection in 2005.  When EconCouns 
noted the proposed Technical Review by the FAA in early 
December 2005 had offered a way forward, Paz said that the 
review couldn't take place because the visit contract was not 
something the BRV was willing to sign. 
 
¶4. (SBU)  Paz maintained that the BRV had been more 
respectful of the civair relationship than the USG.  He said 
that in 1995, the FAA did not notify the BRV in writing of 
the decision to demote Venezuela to Category 2, while INAC 
had courteously informed the airlines prior to the date. 
(Note: INAC's notification came one business day before the 
Carnaval holiday and the flight cancellation deadline, and 
Post was never notified directly.  End Note).  Paz argued 
that moving to Cat 2 had caused a loss of 5000 plus jobs and 
had shut Venezuelan carriers out of the U.S. market. 
 
¶5. (SBU)  Paz said that INAC's move was not to hurt U.S. 
business, but to bring the Category 2 issue to the USG's 
attention.  He emphasized that he believes the BRV has made 
the case for Category 1 reclassification, as they've invested 
considerably in the sector and made improvements even since 
the 2004 ICAO review.  He stressed the BRV wanted fair 
categorization and the ability to tap on a "fairer" basis 
into the lucrative U.S.-Venezuela commercial aviation market. 
 
¶6. (SBU)  Paz didn't say how soon they would request the 
assessment but noted they'd be in touch with the FAA and Post 
soon. (Note:  Per EconCouns tel-con with Mike Daniel, manager 
of FAA's International Programs and Policy Office, FAA was 
looking to come down April or sooner.  End Note.)  On March 
 
CARACAS 00000573  002 OF 002 
 
 
2, media reports quoted an unnamed source in INAC, who said 
that U.S. Embassy representatives promised an FAA visit by 
the March 30 deadline.  (Note: Obviously, that's not what we 
said.  End Note.)  EconCouns told Paz that they needed to 
work out scheduling with FAA directly, and made no guarantee 
of the visit by that deadline or lifting of Venezuela to 
Category 1 status. 
 
------------------------------------ 
AMB - VP CHIEF OF STAFF CONVERSATION 
------------------------------------ 
 
¶7. (SBU)  On March 1, just prior to the INAC meeting, the 
Vice-President's Chief of Staff, Rene Arreaza, called the 
Ambassador to discuss the airline situation.  Ambassador 
Brownfield informed Arreaza that we disagreed with the 
process by which BRV brought this issue to a head, but were 
ready to offer them an accelerated visit by the FAA in order 
to assess their IASA status -- without guarantee that any 
particular result would be achieved.  He referenced the 
non-paper that was delivered by EconCouns to INAC, which 
would offer an opportunity for INAC to contact FAA to set a 
date for the assessment. 
 
¶8. (SBU)  Arreaza noted that the BRV's goal was to set a date 
for the visit and he agreed that INAC should deal directly 
with FAA, but thought Post should push as well (to which the 
Ambassador agreed).  He also noted that the issue needed to 
be de-politicized.  He said that if no concrete date was set 
for an FAA visit by end of March, the BRV would probably 
proceed with flight terminations.  Separately, on a sterner 
note, Vice-President Rangel publicly declared on March 2 that 
if the issue were not resolved, U.S. carriers would not be 
allowed to fly to Venezuela.  The Ambassador conveyed to 
Arreaza his hope that this would be resolved satisfactorily 
through government to government consultations.  He also 
noted that it would be annoying if, at the end of the day, 
the only winners in this affair were Avianca, Copa, and Taca. 
 
------- 
COMMENT 
------- 
 
¶9. (SBU)  Both the meeting with INAC and the conversation 
with the VP's Chief of Staff offer promise that the situation 
can be resolved.  Post has been actively mediating the issue, 
reaching out to airlines, and opening a dialogue with INAC. 
The ball is now in INAC's court.  Post understands (Ref C) 
that INAC has contacted FAA's Mike Daniel to request the 
assessment for the week of April 17. 
BROWNFIELD