VZCZCXYZ0023
RR RUEHWEB

DE RUEHBU #1270/01 1571757
ZNR UUUUU ZZH
R 061757Z JUN 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 4790
INFO RUEHAC/AMEMBASSY ASUNCION 5560
RUEHBR/AMEMBASSY BRASILIA 5362
RUEHLP/AMEMBASSY LA PAZ JUN MONTEVIDEO 5606
RUEHSG/AMEMBASSY SANTIAGO 5171
RUEHRI/AMCONSUL RIO DE JANEIRO 1999
RUEHSO/AMCONSUL SAO PAULO 2911
RUEANHA/FAA WASHDC
RUCPDOC/USDOC WASHDC

UNCLAS BUENOS AIRES 001270 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
EB/TRA/AN FOR ZACHARY TEICH AND JEFF HORWITZ 
FAA FOR CECELIA CAPESTANY 
USDOC FOR 4322/ITA/MAC/OLAC/ANDERSEN/PEACHER 
 
E.O. 12958: N/A 
TAGS: EAIR ECON AR
SUBJECT: ARGENTINA OFFERS MORE FLIGHTS TO U.S. CARRIERS 
 
REF: A. (05) STATE 203010 
     ¶B. (05) BUENOS AIRES 2945 
 
¶1.  This message is sensitive but unclassified and not for 
internet distribution.  This is an action request: see 
paragraph 6. 
 
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Summary 
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¶2.  (U) Econoffs met with Under Secretary of Transportation 
for Commercial Aviation Ricardo Cirielli on May 19 as a 
follow-up discussion on Open Skies (Reftel A).  Cirielli 
acknowledged that Argentine carriers had done little to 
operate more of the flights available under the 
U.S.-Argentina Air Transport Services Agreement.  He 
recognized that the demand for flights between the U.S. and 
Argentina remained high, but he maintained that 
implementation of Open Skies would be difficult (see Reftel 
B).  He suggested doubling the current allotment of flights 
available to carriers of both countries, from 56 to 112. 
Post views this offer as a unilateral benefit to U.S. 
carriers because: U.S. carriers are already operating at the 
maximum allowed number of 56 flights per week; Argentine 
carriers do not have plans to use the capacity already 
available to them; and tourism growth is expected to generate 
a rising demand for flights during the coming years.  Post 
requests guidance to make this offer operational.  End 
Summary. 
 
--------------------- 
Open Skies, Revisited 
--------------------- 
 
¶3.  (U) Econoffs discussed Reftel A points on Open Skies with 
Under Secretary of Transportation for Commercial Aviation 
Ricardo Cirielli in November 2005.  Cirielli recommended 
waiting six months before taking steps to expand capcity.  He 
said that since the FAA had restored Argentina's Category 1 
international flight safety rating in October 2005, moving 
toward ratification of Open Skies so soon afterward would be 
regarded as a quid pro quo.  He said that he also wanted to 
provide Argentine carriers the opportunity to develop plans 
for using more of the country's allotment of flights under 
the current bilateral air transport agreement (see Reftel B). 
 Econoffs met with Cirielli six months later, as previously 
agreed, on May 19 to discuss the possibility of taking steps 
to expand capacity. 
 
¶4.  (SBU) Cirielli acknowledged that neither Aerolineas 
Argentinas nor LAN Argentina had taken steps to utilize more 
of the frequencies allotted to Argentina under the current 
bilateral air transport agreement.  Conversely, he mentioned 
that U.S. carriers had approached his office about the 
possibilities for more flights from the U.S.  (Comment: 
Cirielli specifically mentioned that Delta would like to 
begin a direct flight from Atlanta to Cordoba.  Delta is 
unable to do so, however, because U.S. carriers were already 
operating the maximum number of 56 flights per week.  This 
would be the first direct flight from the U.S. to an 
Argentine city other than Buenos Aires.  End Comment.)  The 
Argentine carriers' inaction on this issue was a function of 
their particular financial and operational conditions, 
according to Cirielli.  He noted that the Kirchner 
administration had made continued growth in the tourism 
sector a high economic policy goal, and he recognized that an 
increased number of flights from the U.S. would be an 
essential component of that growth. 
 
-------------------------- 
Moving Toward More Flights 
-------------------------- 
 
¶5.  (SBU) Cirielli explained that the GOA could respond to 
the demand for flights in one of three ways.  First, his 
office could authorize charter flights.  However, individual 
carriers would need to request a desired route, which would 
be operational only on a short-term basis, according to 
Cirielli.  Second, the GOA could resume consideration of 
ratifying Open Skies.  Cirielli suggested that its terms 
would be subject to review in large part because of "popular 
mistrust" of the Menem administration that negotiated the 
agreement.  Third, the GOA could double the number of weekly 
frequencies from 56 to 112.  Cirielli commented that he 
thought this option would be politically viable and would 
serve as a step toward meeting the demand for additional 
flights between the U.S. and Argentina. 
 
----------------------------------- 
Action Request: Responding to Offer 
----------------------------------- 
 
¶6.  (U) Post supports Cirielli's offer of doubling the 
frequencies available to both U.S. and Argentine carriers. 
Such a measure would provide a virtually unilateral benefit 
for U.S. carriers since U.S. carriers are already operating 
at the maximum allowed number of 56 flights per week; 
Argentine carriers do not have plans to use the capacity 
already available to them; and tourism growth is expected to 
generate a rising demand for flights during the coming years. 
 Post requests Department guidance to make this offer 
operational in the near future.  Once this expanded agreement 
is in place, the USG will still be free to discuss the Open 
Skies agreement in Reftel A whenever the GOA is willing to do 
 
so. 
 
¶7.  (U) To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sgov.gov/p/wha/buenosaires.< /a> 
GUTIERREZ