VZCZCXRO3168
OO RUEHDBU RUEHIK RUEHYG
DE RUEHBUL #4890/01 2801308
ZNR UUUUU ZZH
O 071308Z OCT 06
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3352
INFO RUCNAFG/AFGHANISTAN COLLECTIVE PRIORITY
RUEHFR/AMEMBASSY PARIS PRIORITY 2954
RUEHBS/USEU BRUSSELS PRIORITY
RUEHAD/AMEMBASSY ABU DHABI PRIORITY 1678
RUEHDE/AMCONSUL DUBAI PRIORITY 4558
RUEKJCS/OSD WASHINGTON DC PRIORITY
RHMFISS/JOINT STAFF WASHINGTON DC PRIORITY
RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RULSDMK/DEPT OF TRANSPORTATION WASHDC PRIORITY 0098
RHMCSUU/FAA NATIONAL HQ WASHINGTON DC PRIORITY

UNCLAS SECTION 01 OF 02 KABUL 004890 
 
SIPDIS 
 
SENSITIVE, SIPDIS 
 
DEPARTMENT FOR SCA/FO, SCA/A, EB/OTP, EB/CBA 
CENTCOM FOR CG CFC-A 
COMMERCE FOR ITA/SHAMROCK 
FAA FOR JHANCOCK AND RSMITH 
PARIS FOR ECON/CIVAIR 
 
E.O. 12958: N/A 
TAGS: EAIR ECON BEXP AF
SUBJECT: FRENCH AVIATION AUTHORITY TO DECIDE ARIANA AIRLINE'S LEASE 
DEAL 
 
KABUL 00004890  001.2 OF 002 
 
 
-------------------------- 
SUMMARY AND ACTION REQUEST 
-------------------------- 
 
¶1. (SBU) Ariana Airlines is attempting to wet-lease two Boeing 
aircraft to fly between Kabul and Frankfurt, among other routes. 
The aircraft are to be based in Dubai and operated by Eagle Aviation 
France, with Eagle flight operations and maintenance crews.  The 
French civil aviation authority is to decide on October 12 whether 
they will allow Eagle to operate the aircraft on its Air Operating 
Certificate (AOC).  The French civil aviation authority has delayed 
meeting to consider this decision at least twice, and Ariana has 
become concerned about the delays.  Embassy requests that the 
Department communicate with the French civil aviation authority to 
urge quick and favorable action on Eagle's application.  End 
summary. 
 
------------------------------------- 
Critical Decision in French CAA Hands 
------------------------------------- 
 
¶2. (SBU) Ariana Afghan Airlines has been moving for several months 
toward a wet-leasing deal for two Boeing 757 aircraft that would 
allow Afghanistan's flag carrier to resume passenger service to 
Europe (Frankfurt and possibly London).  The deal would have a 
French company, Eagle Aviation France, operate the two planes for 
Ariana on Eagle's AOC.  Eagle plans to physically base the airplanes 
in Dubai with French oversight of the flight operations and 
maintenance. 
 
¶3. (U) The French civil aviation authority (DGAC) plans to meet on 
12 October to consider whether it should allow Eagle to put the 
aircraft on Eagle's AOC.  At issue is whether the DGAC would 
consider the lease to be a flag-of-convenience arrangement for a 
blacklisted carrier (Ariana) to provide service to Europe. 
 
¶4. (SBU) We believe that this deal does not represent a 
flag-of-convenience arrangement, since the aircraft will be operated 
by a company based in France, and the aircraft themselves will be 
based and maintained in the UAE.  Both France and the UAE are rated 
IASA Category I.  Though the aircraft will fly under Ariana livery, 
the only aspects of the operation to be run by Ariana are scheduling 
and ticketing. 
 
---------------------------- 
The Best Short-Term Solution 
---------------------------- 
 
¶5. (U) As a practical matter, enabling Ariana to resume flights to 
Europe will bring significant economic benefits to Afghanistan.  The 
country is currently underserved, and neither the Afghan civil 
aviation authority nor Ariana has good short-term prospects of 
increasing the quantity, quality, or safety of passenger service to 
and from Afghanistan.  We believe wet-leasing aircraft from 
operators in IASA Category I countries is a viable short- to 
medium-term solution to grow air service quickly and safely while 
Ariana and the GoA improve their ability to operate and oversee safe 
passenger airline service. 
 
¶6. (SBU) Another consideration is that this wet-lease is a bridge to 
the sale of Boeing 737 aircraft to Ariana in 2008.  If the Eagle 
wet-lease does not happen, Ariana may shop for alternatives to put 
it on a path to buying Airbus aircraft.  We do not know whether the 
DGAC may consider disapproving this deal to create an opportunity 
for a more Airbus-friendly lease and purchase arrangement. 
 
--------------------------------- 
Action Request and Talking Points 
--------------------------------- 
 
¶7. (SBU) Embassy requests the Department to communicate our 
 
KABUL 00004890  002.2 OF 002 
 
 
perspective to the DGAC via Embassy Paris and urge the DGAC to take 
swift and favorable action on Eagle's request.  Talking points 
follow. 
 
BEGIN TALKING POINTS 
 
-- Eagle Aviation France, a French wet-lease aviation operator, is 
applying for permission to list on its air operating certificate 
(AOC) two aircraft to fly between Europe (Frankfurt) and the Afghan 
market for Ariana Afghan Airlines. 
 
-- The proposed lease conditions are for Eagle to operate and 
maintain the aircraft based in Dubai, with Eagle's air crew and 
maintenance, under the oversight of the French civil aviation 
authority.  This arrangement ensures the safe operation of passenger 
service to ICAO and IASA standards under the close control of a 
French operator and the French internationally recognized safety 
oversight program. 
 
-- As recent history has demonstrated, Afghanistan is a special case 
among post-conflict developing countries.  We believe the 
international community has an obligation to do everything it can to 
help Afghanistan move quickly to economic well-being.  It must not 
fail to discharge this obligation. 
 
-- Passenger air service is an important component in rebuilding 
Afghanistan's economy.  Air links between Afghanistan and the rest 
of the world--particularly Europe--are severely underdeveloped.  At 
the present time, the Afghan government and Ariana are not in a 
position to grow the Afghan aviation industry on their own.  For the 
short term, serving and growing this market is best done by safe and 
reliable operators from developed countries, like France's Eagle 
Aviation, with good safety oversight. 
 
-- We urge the DGAC to weigh the application of Eagle Aviation 
France carefully and with due consideration to the special needs of 
Afghanistan. 
 
END TALKING POINTS. 
 
NORLAND