VZCZCXRO1111
PP RUEHFL RUEHNP
DE RUEHRO #1303/01 1221646
ZNR UUUUU ZZH
P 021646Z MAY 06
FM AMEMBASSY ROME
TO RUEHC/SECSTATE WASHDC PRIORITY 4615
INFO RUEHBS/AMEMBASSY BRUSSELS PRIORITY 1498
RUEHMIL/AMCONSUL MILAN PRIORITY 7020
RUEHNP/AMCONSUL NAPLES PRIORITY 1426
RUEHFL/AMCONSUL FLORENCE PRIORITY 1352

UNCLAS SECTION 01 OF 02 ROME 001303 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
BRUSSELS FOR FAA REP KURT EDWARDS 
 
E.O. 12958: N/A 
TAGS: EAIR IT
SUBJECT: MILANO-MANHATTAN/EUROFLY: GOI HAS NOT AUTHORIZED, 
EUROFLY STILL INTENDS A MAY 8 START-UP 
 
REF: SECSTATE 55307 
 
This cable is Sensitive But Unclassified.  Not for 
distribution outside the United States Government.  Not for 
Internet publication. 
 
¶1. (SBU) Summary:  On May 1, Eurofly representatives told 
Rome TSA attache the company will start flying an 
all-business-class service between Milan-Linate and New 
York-JFK May 8, though an official at Italian aviation 
regulator ENAC said the agency has yet to approve the plan. 
Unless instructed otherwise, Rome TSA, in response to 
Eurofly's intention to start service, plans to inspect Linate 
May 4-6, and to inspect the inaugural flight itself on May 8. 
 Silvano Manera, ENAC Director General, earlier said he 
"doubts" the GOI will approve the Eurofly/Milano-Manhattan 
Club proposal; however, he emphasized the GOI is withholding 
judgment, until the GOI receives more information from 
Eurofly. The proposal, as ENAC currently understands it, does 
not comply with rules governing business charter flights; and 
the GOI will not sign off on any charter that resembles a 
scheduled service.  Nevertheless, Manera did warn there are 
loopholes in Italian regulations that might allow the service 
to go forward.  He also indicated that some in the GOI 
support Eurofly's idea.  Manera added that the GOI will 
review traffic restrictions at Linate, but he views this 
aspect of the situation as unrelated to Eurofly's proposal. 
End summary. 
 
Eurofly Has Yet To Receive GOI Authorization. 
--------------------------------------------- 
 
¶2. (U) Econoff delivered reftel demarche April 21 to Silvano 
Manera, Director General of ENAC, Italy's aviation authority. 
 Manera stated that ENAC is aware of Eurofly's intention to 
start an all-business-class service between Milan-Linate and 
New York, but neither the Milano-Manhattan Club (Mi-Ma), nor 
Eurofly, had officially requested GOI authorization of any 
such air service.  Manera said he recently sent letters to 
Eurofly/Mi-Ma seeking clarification about the planned 
flights. 
 
¶3. (SBU) Manera said Eurofly is attempting to exploit a 
loophole in the GOI's 2001 decree restricting traffic at 
Linate Airport by operating the flight as a private business 
charter from Linate's general aviation terminal.  Manera said 
private business charters, unlike scheduled commercial 
flights, are not subject to destination restrictions under 
the 2001 decree and can fly trans-Atlantic.  Furthermore, 
Italian regulations do not restrict the size of general 
aviation charters.  Manera was blunt in describing 
Eurofly/Mi-Ma's plan as a "backdoor" attempt to open Linate 
to trans-Atlantic service. 
 
GOI Will Deny Any Scheduled Service... 
-------------------------------------- 
 
¶4. (SBU) Manera said the GOI was withholding official 
judgment until the GOI learns more about Eurofly's proposal. 
(Note: As of May 2, ENAC had yet to make a decision, 
according to a contact at the agency. End note.)  To qualify 
as a business charter, Eurofly could not publicize the 
service, sell tickets, or place flights in the Computerized 
Reservation System.  Nor, he added, could the GOI approve any 
business charter that involved regularly scheduled flights. 
Manera agreed that the Milano-Manhattan Club, as currently 
envisioned, has the trappings of a scheduled service and that 
he "doubted" the GOI would approve the plan in present form. 
Even setting aside the question of GOI approval, Manera said 
there is little chance Eurofly could start operating the 
flights in May, as the company supposedly intends. 
Nevertheless, Eurofly representatives told Rome TSA attache 
on May 1 that the company still plans to begin the flights on 
May 8.  Unless instructed otherwise, Rome TSA will conduct an 
inspection of Linate May 4-6.  Rome TSA also plans to inspect 
the inaugural flight May 8, if it goes forward. 
 
...But Loopholes Do Exist. 
-------------------------- 
 
¶5. (SBU) Though skeptical about the plan, Manera warned that 
ENAC might not have a basis to deny permission should the 
Mi-Ma Club actually take ownership of the aircraft--i.e., 
meaning the flights would no longer operate as commercial 
business charters.  He said under current Italian 
regulations, there is nothing to stop a private individual or 
 
ROME 00001303  002 OF 002 
 
 
group from flying daily in their own private airplane, no 
matter what the size. (Comment: We understand that the Mi-Ma 
Club does not actually own the aircraft and that Eurofly 
wants to provide the flights to the Club as a private 
business charter.  Manera seemed to be highlighting the 
possible acquisition of a plane by the Club itself as a 
future tactic Eurofly might adopt. End comment.) 
 
¶6. (SBU) Manera also indicated that there is some support 
within the GOI for the service, which supporters say will 
boost business ties between Milan and New York.  Manera said 
Transportation Minister Lunardi "is not opposed" to the 
Eurofly/Mi-Ma idea.  (Note: Lunardi will leave the government 
soon, due to the center-left victory in the April 9-10 
elections. End note.)  Alitalia, however, is strongly 
opposed; and Manera predicted the flag carrier will file 
suit, if Eurofly's Mi-Ma scheme goes forward. 
 
Linate Traffic Restrictions "Have Failed." 
------------------------------------------ 
 
¶7. (SBU) Manera characterized the Milano-Manhattan Club as a 
symptom of the GOI's failed effort to regulate traffic at 
Linate.  He said while the 2001 decree was meant to solidify 
Malpensa airport as Milan's main international hub, this 
policy has failed.  Passenger traffic has actually increased 
at Linate, Manera explained, because airlines are using even 
larger aircraft to service their limited landing slots. 
Also, despite code share restrictions, many trans-Atlantic 
passengers still prefer Linate, even though they must 
purchase two tickets and change planes in Paris or London. 
 
¶8. (SBU) Several mayors of towns surrounding Linate have 
filed suit against the airport for failure to comply with 
noise and pollution regulations.  These lawsuits, Manera 
said, have prompted him to recommend that the Ministry of 
Transport revise the 2001 decree.  Manera said, in the 
future, the GOI should regulate traffic to and from Linate 
based on hours of operation and noise and pollution levels, 
rather than destination.  However, he clarified that the fact 
that the GOI is beginning to rethink the decree does not mean 
it will necessarily approve the Eurofly/Mi-Ma service.  He 
urged that the GOI and USG maintain communication on the 
Eurofly/Mi-Ma proposal to insure Eurofly is consistent in its 
respective requests for authorization.  He said Eurofly is 
"feeling the ground" on both sides to figure out ways to get 
the Mi-Ma Club venture approved. 
 
Comment 
------- 
 
¶9. (SBU) Manera clearly does not like the idea of Eurofly 
promoting this service under the guise of a private club and 
seems inclined to deny authorization.  However, ENAC is not 
completely closing the door on the idea, which, we believe, 
reflects the fact that Eurofly does have some backing in the 
GOI, including from officials in charge of Linate airport. 
Also, as Manera fully acknowledged, there are holes in 
Italian regulations that might be just big enough to allow 
Eurofly to operate this "private" air service.  Judging by 
Rome TSA's conversations with Eurofly executives here, the 
company seems to believe it already has the requisite 
permissions from both sides.  We cannot rule out that, given 
the ambiguous nature of these flights, Eurofly will simply 
start operations May 8.  End comment. 
SPOGLI