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Viewing cable 07SANTODOMINGO1694, DOMINICAN REPUBLIC CELEBRATES UPGRADE TO CATEGORY

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Reference ID Created Released Classification Origin
07SANTODOMINGO1694 2007-07-13 16:35 2011-08-26 00:00 UNCLASSIFIED Embassy Santo Domingo
VZCZCXYZ0016
RR RUEHWEB

DE RUEHDG #1694/01 1941635
ZNR UUUUU ZZH
R 131635Z JUL 07
FM AMEMBASSY SANTO DOMINGO
TO SECSTATE WASHDC 8761
UNCLAS SANTO DOMINGO 001694 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR WHA/CAR, EB/TRA; DEPT PASS FAA WASHDC; DEPT PASS 
DEPT OF TRANSPORTATION (INTERNATIONAL) 
 
E.O. 12958: N/A 
TAGS: EAIR DR
SUBJECT: DOMINICAN REPUBLIC CELEBRATES UPGRADE TO CATEGORY 
I FOR AIR SAFETY 
 
1. (U) In a ceremony at the Presidential Palace on July 2, 
the Charge d'Affaires presented President Leonel Fernandez 
and the Director of the Dominican Civil Aviation Institute 
(IDAC) with a letter officially notifying the Dominican 
Government that its aviation safety rating has been 
elevated to Category I.  The country had languished in 
Category II status for the past 14 years, since the FAA 
first began publicizing its evaluations of countries' 
compliance with the standards.  The upgrade means that 
Dominican commercial airliners may now operate directly to 
U.S. airports as well as enter into code-share agreements 
with U.S. carriers.  The news has been met with elation by 
Dominican government officials and private business groups, 
particularly those interested in expanding tourism 
opportunities. 
 
What is Category I? 
---------------------------- 
 
2. (U) As a result of pressure from the U.S. Congress to 
improve the airline safety of foreign air carriers 
operating in the U.S., in 1992 the FAA instituted an 
International Aviation Safety Assessment (IASA) review 
process of governments' efforts to provide technical 
oversight of their airline industries.   The assessment is 
intended to measure countries' abilities to meet the ICAO's 
standards and recommended practices and results in a public 
appraisal of government civil aviation authorities.  The 
assessment places countries in one of two categories, with 
Category I representing a passing grade on airline safety. 
 
Will Category I Generate Economic Benefits? 
--------------------------------------------- --------------- 
----- 
3. (SBU) There is general consensus that the Dominican 
Republic's upgrading will have some economic benefit. 
However, the depth and sustainability of this benefit are 
both debatable. First, the designation as a Category I 
country will last for just two years before the country is 
reevaluated.  This means its compliance is dependent upon a 
sustained commitment by IDAC to train personnel and 
maintain its oversight functions.  In a positive sign, IDAC 
has requested ongoing technical assistance from the FAA to 
help it meet this goal.  A team of FAA inspectors will be 
visiting the Dominican Republic on a monthly basis over the 
course of the next two years.  However, Melvin Cintron, the 
FAA's Division Manager for International Policy and 
Programs, confided to officials of IDAC following the 
announcement ceremony, that the elevation of the Dominican 
Republic's rating was a borderline decision and that they 
would need to improve over the course of the coming years 
in order to maintain this rating. 
 
4. (SBU) Cintron told the Deputy Director of IDAC 
explicitly that IDAC's staff lacks experience.  The 
official assessment, as written in the diplomatic note sent 
to the Secretary of State for Foreign Relations on July 2, 
also stated, "Though surveillance is being conducted, IDAC 
inspectors do not yet have the depth of experience 
necessary to discover all areas of noncomplianceQ IDAC 
inspectors both operations and airworthiness need more time 
and experience."  Mr. Cintron informed IDAC that he 
preferred that the Dominican government acquire this 
experience under Category I, but emphasized the hurdles to 
be overcome over the next two years if they hope to 
maintain their newfound rating. 
 
5. (SBU) Second, there are serious questions about the 
commercial viability of the establishment of a national 
airline or any large-scale commercial airline development. 
Andrew O'Brian, the Operations Manager for Aerodom, which 
is the airport concession holder for all but three of the 
airports in the country, including Las Americas airport in 
Santo Domingo, expressed skepticism to Econoff that 
Category I would have much economic benefit.  O'Brian 
estimated that the principal economic benefit from Category 
I would be from the development of small-scale air 
carriers, operating primarily charter flights to nearby 
destinations within the United States and its territories, 
including Puerto Rico and the Virgin Islands.  He said that 
the establishment of a national Dominican airline has more 
to do with national pride than sound business planning. 
 
6. (SBU) Santiago Rosa, Director of Air Navigation Services 
for IDAC, told Econoff that he's unaware of any specific 
proposals from Dominican carriers to fly to the United 
States., but estimated that two to three small carriers 
will begin operations eventually.  In support of Mr. 
O'Brian's analysis, three small scale air carriers have 
already contacted the FAA with proposals to operate a 
 
minimal number of flights between the Dominican Republic 
and the United States. (Note: Destinations and frequency of 
flights are to be determined in the review of these 
applications.)  In addition to the economic benefit of 
initiating direct flights, another potential economic 
consequence of the country's attainment of Category I is 
the possible relocation of a few very small U.S. air 
carriers' headquarters from the United States to the 
Dominican Republic in an effort to save costs.  While no 
specific examples are at hand, officials from IDAC and the 
FAA both agreed that this is likely to happen, particularly 
if the Dominican Republic can maintain its Category I 
status after the next review in two years. 
 
7. (SBU)  Comment: It is clear from the elated atmosphere 
of the ceremony at the presidential palace and the 
week-long series of celebratory events that the attainment 
of Category I represents a tremendous boost to the morale 
of the Dominican government, in particular that of the 
staff of IDAC.   Secretary of Economy, Planning and 
Developme Juan Temistocles Montas was so elated at a gala 
dinner to commemorate the achievement that he used the 
occasion to make a strident political speech asserting that 
only the ruling Democratic Liberation Party and President 
Fernandez could have accomplished this feat.  Despite the 
elation and political posturing no clear plans have emerged 
for how the government or the private sector will take full 
advantage of this opportunity outside the discussion of the 
establishment of a national airline. 
BULLEN