VZCZCXYZ0015
RR RUEHWEB

DE RUEHMU #0983/01 1091545
ZNR UUUUU ZZH
R 191545Z APR 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 9864
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000983 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAIR PTER EIND ECON NU
SUBJECT: NICARAGUA: MISSTEPS BY NEW AVIATION ADMINISTRATION 
CONCERN AIRLINES 
 
 
SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY. 
 
¶1. (SBU) Summary.  In a March 28 meeting with Econoffs and 
the TSA representative for Central America Victor Guardia, 
country managers and security directors from American, 
Continental, TACA, and Delta airlines hesitated to criticize 
new administrators at Empresa Administradora de Aeropuertos 
Internacionales (EAAI), the state-owned airports company, and 
the Civil Aviation Authority (CAA), but could not conceal 
their growing concern about airport management and security. 
In its first three months, new CAA and EAAI officials have 
demonstrated their preference for heavy-handed tactics.  The 
overall sentiment is that the new administration lacks 
experience and is unfamiliar with the technical aspects of 
security and airport management.  In response, Post has 
reached out to the airlines, creating two working groups, one 
on air transport and the other on airline security, to meet 
regularly to discuss their respective issues.  End Summary. 
 
¶2. (SBU) In a March 28 meeting with Econoffs and the TSA 
representative for Central America Victor Guardia, country 
managers and security directors from American, Continental, 
TACA, and Delta airlines hesitated to criticize new 
administrators at Empresa Administradora de Aeropuertos 
Internacionales (EAAI), the state-owned airports company, and 
the Civil Aviation Authority (CAA), but could not conceal 
their growing concern about airport management and security. 
They described new management at EAAI and CAA as 
inexperienced and autocratic.  The recent dismissal of the 
airport security chief, missteps in the formulation of new 
security procedures, and a demand for the retroactive payment 
(up to 16 years) of electricity topped the list of concerns. 
 
CAA Flubs on Security 
--------------------- 

¶3. (SBU) On February 7, CAA sent a memo to all airlines 
notifying them that, effective February 16, airport security 
would no longer screen passengers for liquids and gels at 
airport security checkpoints.  Instead, individual airlines 
would be responsible.  With only a week to ramp up, 
Continental Airlines Security Director Ivan Cortez scrambled 
to hire and train enough staff to perform boarding area 
checks, called &liquid and gel8 searches in the industry. 
At the last minute, Cortez discovered that CAA had reversed 
its decision without bothering to notify the airlines. 
Airline security directors still do not know what CAA policy 
is when it comes to liquid and gel searches. 
 
¶4. (SBU) On March 23, CAA's new Director General Captain 
Carlos Salazar Sanchez abruptly dismissed Airport Security 
Chief Julio Mondragon, a civilian with more than 18 years of 
experience, immediately replacing him with Captain Hector 
Salgado Herrera, a military officer with no experience in air 
transportation security.  American Airlines Security Director 
Rosa Chavez described the move as no less than shocking. 
Again, CAA made the move without notifying the airlines or 
offering an explanation.  Defending the change to Econoff, 
CAA's Chief of Office Hugo Mendietta explained that Law 595, 
enacted December 2006, mandates CAA to appoint a military 
officer to the position of Airport Security Chief. 
 
¶5. (SBU) These flubs have caused U.S. airline security 
directors to seriously question the capability of new 
officials at CAA.  They doubt that an inexperienced security 
chief will be able to competently manage security for a 
complex, international industry like air transportion. 
 
EAAI Flubs on Airport Management 
-------------------------------- 

¶6. (SBU) New EAAI managers exhibit some of the same 
inexperience.  Instead of consulting client airlines, 
discussing system improvements and changes, and proceeding 
with staged implementation, new EAAI managers are prone to 
issuing edicts without consultation and expecting immediate 
implementation.  As a case in point, on February 12, EAAI 
officials circulated a memo to the airlines demanding 
retroactive payment for all electricity charges dating back 
to each airline's first day of service.  For American 
Airlines and Continental Airlines, which have been operating 
in Managua for 16 years, these charges totaled more than $2 
million.  Our understanding, however, is that the cost of 
electricity already has been rolled into each individual 
airline rental contract, and that electricity usage has not 
been separately metered. 
 
¶7. (SBU) On February 13, EAAI Director Orlando Castillo told 
Econoff that the memo was an administrative mistake, that 
EAAI had no plans to collect the money.  Nonetheless, EAAI 
never retracted the memo.  Econoff later learned that, in a 
March 26 meeting with the airlines, Castillo said that the 
charges were still under consideration. 
 
Concerns 
-------- 

¶8. (SBU) At this point, U.S. airlines are more concerned 
about excess charges and fees than security issues.  However, 
airline security directors have asked their personnel to 
closely monitor security procedures and immediately report 
any anomalies to them.  The overall sentiment is that the new 
administration lacks experience and is unfamiliar with the 
technical aspects of security and airport management. 
Country managers fear that this inexperience will lead to 
further mistakes that may damage their ability to provide air 
services. 
 
Embassy Creates Air Transport Groups 
------------------------------------ 

¶9. (SBU) In response to CAA and EAAI's heavy handedness, Post 
has reached out to the airlines, creating two working groups, 
one on air transport and the other on airline security.  The 
respective groups have agreed to meet regularly with Econoffs 
to discuss their issues.  U.S. airline representatives agree 
that they should present a unified front to CAA and EAAI 
whenever possible. 
TRIVELLI