VZCZCXYZ0017
RR RUEHWEB

DE RUEHMU #1344 1701955
ZNR UUUUU ZZH
R 191955Z JUN 06
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 6673
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC

UNCLAS MANAGUA 001344 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
FOR WHA/CEN AND EB/TRA 
STATE PASS TO DEPT OF TRANSPORTATION FOR FAA OFFICE OF 
INTERNATIONAL PROGRAM AND POLICY - MEL CINTRON 
 
E.O. 12958: N/A 
TAGS: EAIR ECON NU
SUBJECT: NICARAGUAN CIVIL AVIATION BILL IN 'HOLDING PATTERN' 
 
REF: MANAGUA 0937 
 
¶1. (U) Summary: In this election year, a proposed civil 
aviation bill is stuck in a holding pattern in the Nicaraguan 
General Assembly.  The bill, which was approved in general in 
2004 but is still awaiting a second vote on individual 
articles, would bring Nicaragua into compliance with 
International Civil Aviation Organization standards and 
facilitate an upgrade of Nicaraguan Civil Aviation to 
Category I.  Election year politics and the lack of a 
coordinated lobbying effort by industry have stymied chances 
of quick passage.  End Summary 
 
¶2.  (U) ECONOFF met with three contacts in the industry and 
government regarding civil aviation legislation to gather 
opinions on the bill's prospects for passage before the 
November 2006 presidential election.  While the bill has been 
placed on the legislative agenda for this session, it has not 
been assigned a date for discussion. 
 
¶3. (U) Dr. Edwin Illescas, Legislative Counsel for the 
Assembly Commission on Communications, Transport, Energy and 
Construction, did not express optimism for the bill's chances 
of a final vote this legislative session.  He indicated on 
June 14 that a group of bills pending a second vote require a 
political decision for passage, and that such a decision is 
unlikely given that election year politics have diverted the 
Assembly's attention.  He explained that while the office of 
the Director General of Civil Aviation (DGAC) in the Ministry 
of Transportation and Infrastructure (MTI) has made clear its 
desire to see the bill move, other interested parties, 
including airlines and travel agents, have not been active 
advocates for the bill.  According to Dr. Illescas, President 
Bolanos has not made the bill a top priority.  On the other 
hand, Captain Orrin Watson, DGAC, was optimistic on June 9 
that the bill will pass within the next month. 
 
¶4. (SBU) Rosa Chavez, General Manager for American Airlines 
in Nicaragua expressed concern on June 7 about certain 
articles of the proposed legislation, including a proposed 6 
percent commission to be paid to local travel agents and a 
requirement that all fares be submitted for approval to the 
GON.  These are issues that the Embassy has often raised with 
the Assembly over the course of the last two years.  Dr. 
Illescas confirmed later that the 6 percent travel agent 
commission article had been removed from the bill.  However, 
Dr. Illescas put forth his view that the airlines do not want 
to be regulated and that their resistance to the GON approval 
of fares represented a manifestation of that mind-set.  He 
explained that the current version of the article on fares 
allows GON to approve or reject airfares. 
 
¶5.  (SBU) Comment: Given the lack of a lobbying effort from 
U.S. and other carriers on the bill, ECONOFF will arrange a 
meeting with heads of U.S. airlines operating in Nicaragua 
with the Ambassador to discuss the potential for a 
coordinated effort. 
TRIVELLI