VZCZCXYZ0015
RR RUEHWEB

DE RUEHBU #1629/01 2331203
ZNR UUUUU ZZH
R 211203Z AUG 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 8969
INFO RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC
RUEHC/DEPT OF LABOR WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RUEHAC/AMEMBASSY ASUNCION 6463
RUEHCV/AMEMBASSY CARACAS 1423
RUEHMN/AMEMBASSY MONTEVIDEO 6671
RUEHSG/AMEMBASSY SANTIAGO 0693
RUEHBR/AMEMBASSY BRASILIA 6317
RUEHLP/AMEMBASSY LA PAZ AUG SAO PAULO 3482
RUEHRI/AMCONSUL RIO DE JANEIRO 2315
RUEHPE/AMEMBASSY LIMA 2138
RUEHBO/AMEMBASSY BOGOTA 1615
RUEHMT/AMCONSUL MONTREAL 0026
RHMFIUU/FAA MIAMI ARTCC MIAMI FL

UNCLAS BUENOS AIRES 001629 
 
SIPDIS 
 
SIPDIS 
 
TRANSPORTATION FOR BRIAN HEDBERG 
AMCONSUL MONTREAL FOR US MISSION TO ICAO 
FAA NATIONAL HQ FOR JIM FILIPPATOS AND DI REIMOLD 
FAA FOR CECILIA CAPESTANY AND KRISTA BERQUIST 
STATE FOR IO/T AND EEB/TRA 
PASS NSC FOR DPRICE AND MSMART 
USDOC FOR 4322/ITA/MAC/OLAC/PEACHER, EALFORD 
US SOUTHCOM FOR POLAD 
FAA MIAMI ARTCC MIAMI FL FOR MAYTE ASHBY 
 
E.O. 12958: N/A 
TAGS: EAIR ECON KTIA EINV ETRD AR
SUBJECT: FAA'S FILIPPATOS DISCUSSSES ARGENTINA AVIATION TRANSITION, 
FAA ASSISTANCE, ICAO GENERAL ASSEMBLY 
 
REF: (A) Buenos Aires 1287, (B) Buenos Aires 1046, (C) Buenos Aires 
518 
 
This cable contains sensitive information.  Not for internet 
distribution. 
 
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Summary 
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¶1. (SBU) The August 13 visit to Argentina of FAA Assistant 
Administrator for International Aviation James Filippatos and Acting 
Western Hemisphere Director Cecilia Capestany reinforced close ties 
with senior-level GOA aviation officials.  FAA officials also met 
with U.S. carriers operating here.  GOA officials discussed the 
measured pace of Argentine civil aviation's transition from military 
to civilian control (ref C), and indicated that further policy and 
personnel decisions will likely not occur until after the October 
presidential elections.  GOA and FAA officials also discussed 
possible FAA technical assistance to support this transition, 
including having GoA aviation policy and technical officials visit 
FAA centers in the United States.  Discussions also focused on the 
upcoming September ICAO General Assembly (ICAO GA), and our common 
concern with the European Union's emissions trading scheme (ETS, ref 
A), the extension of our technical assistance program with the GOA's 
civil aviation authority, and the FAA's plan to open a regional 
office in Brasilia.  Press coverage and GOA's reaction to the FAA 
visit were extremely positive.  END SUMMARY. 
 
--------------------------------------------- ------- 
U.S. AIR CARRIERS DISCUSS CHALLENGING POLTICAL, COMMERCIAL AND 
SECURITY ENVIRONMENT - BUT REMAIN PROFITABLE 
--------------------------------------------- ------- 
 
¶2. (SBU) Representatives from five of the six U.S. passenger and 
parcel carriers operating in Argentina said that their main problem 
was what they described as the overt politicization of all aspects 
of aviation.  They said that most aviation problems are dealt with 
on the political, not technical, level.  They said that the many 
different GOA aviation-related authorities make "arbitrary" 
decisions not subject to discussion, and that there is little 
communication among the many authorities themselves.  The carriers 
said no major aviation policy or decision will be made until at 
least after the October presidential election.  On the transition to 
civilian control of aviation, they expressed concern that the move 
will be politicized, and put into further risk what they 
characterized as an already poorly run system. 
 
¶3. (SBU) The carriers renewed their complaints against the GOA's 
continued use of a manual system for remote dispatch control, in 
place of a computerized system.  (Note: remote dispatch is the 
electronic submission of aircraft information with digital 
signatures to improve aircraft utilization and efficiency.  End 
note.)  The carriers also renewed their complaints about the poor 
and expensive service of the state-owned ground handling company, 
Intercargo, which most carriers are forced to use, and that many of 
the carriers' baggage and parcels have been occasional victims of 
thefts from the company.  Speaking of airport security matters in 
general, the carriers said that they must employ additional 
personnel just to monitor the work that these and other state 
service providers (airport police, scanners, ground-handling) 
perform, such as securing the aircraft, watching checked baggage, 
and cargo unloading. 
 
--------------------------------------------- ------- 
TRANSPORT SECRETARY JAIME: REVIEWING TRANSITION PROGRESS, FAA 
ASSISTANCE OFFER, ICAO GENERAL ASSEMBLY 
--------------------------------------------- ------- 
 
¶4. (SBU) Secretary Ricardo Jaime and Vice President of the Airports 
Regulator Alejandro Orchansky said that Transport Secretary and 
Ministry of Defense teams have been meeting to plan the transition 
and incorporate best practices.  Jaime noted that a recent ICAO team 
had also submitted recommendations about the transition, and that 
U.S. company Mitre has also been involved in transition assistance. 
Jaime and FAA officials noted that Jaime and FAA Administrator 
Marion Blakey had exchanged letters about the possibility of the FAA 
providing assistance with the transition.  Filippatos described the 
FAA's technical assistance programs, and said that the FAA would 
also be willing to host appropriate GOA policy and technical teams 
at the FAA's Headquarters and air traffic control and training 
centers to help the Argentines to better plan their transition, and 
witness our own civilian-military aviation cooperation in action. 
He noted that the FAA has done this service for other nations. 
Jaime promised to look into such a visit, perhaps in conjunction 
with the upcoming September ICAO GA in Montreal. 
 
¶5.  (SBU) The two sides discussed plans for the September ICAO GA, 
and in particular our common concerns about the EU's ETS (ref A). 
Filippatos explained the U.S. position on the ETS, and how we are 
coordinating a common position with many nations.  Although Jaime 
expressed general agreement with the U.S. position (as did other GOA 
interlocutors throughout the day, see below), Jaime said that in the 
end, any GOA position will be a "political" decision from the 
president. 
 
--------------------------------------------- ------ 
UNDER SECRETARY CIRIELLI DISCUSSES GOA TRANSITION, ICAO AND EU 
EMISSIONS PLAN, SECURITY, COMMERCIAL ISSUES 
--------------------------------------------- ------- 
 
¶6. (SBU) Under Secretary for Commercial Air Transport Ricardo 
Cirielli said that his staff had been working with the current civil 
aviation authority, Air Regions Command, to ensure a smooth 
transition, and to "use their experience."  He said that Transport 
Secretary Jaime (his immediate superior) and the Ministry of Defense 
 
SIPDIS 
were "too busy" with other issues to focus on the transition. 
Cirielli expressed a strong interest in Filippatos's offer for him 
to visit the FAA in the U.S. to assist him in this transition. 
Cirielli said that he was hopeful that new air traffic controllers 
under a civilian agency could be fully trained in two years - an 
estimate that FAA officials opined could be overly optimistic. 
Cirielli said that generally low level of English proficiency among 
Argentina's controllers was likely a factor in some of its own 
recent aviation problems, such as the reported near-misses. 
 
¶7. (SBU) Cirielli confirmed that an ICAO technical team, whom he 
said would charge the GOA US$5 million for a five-year contract to 
assist in the transition, had recently submitted a report on various 
policy options from which the GOA might choose among for its 
transition.  He jokingly said the report was largely just a 
repackaging of the information that the GOA had submitted to the 
ICAO at the outset of the contract.  He said that the ICAO's report 
included three different scenarios on how the new civilian agency 
(ANAC) might operate, with various mixtures of Secretary of 
Transport, Ministry of Defense, and outside contractor involvement 
and responsibilities.  Cirielli strongly expressed his preference 
for a single and strong head of ANAC, instead of a weaker and 
 
diluted structure, but acknowledged that any decision will be made 
after the elections, and that "politics" are always paramount. 
(Note: Cirielli himself is rumored to be one of the candidates to 
head ANAC, and is strongly lobbying for it.  End note.) 
 
¶8. (SBU) Cirielli said that he and Air Regions Command chief 
Alvarez, who will likely lead the GOA delegation to the ICAO GA, had 
been meeting recently to coordinate common GOA positions in 
anticipation of September's meeting.  Cirielli and Filippatos 
discussed the EU's ETS.  Cirielli expressed his opposition to it, 
and said that it was about "a tax, not the environment," but said 
that he could not commit to any action to support the U.S. position. 
 Filippatos related the U.S. view that this should be an ICAO-wide 
issue and not a unilateral decision, and that technological 
innovations are a better method to solve these emissions issues. 
 
¶9. (SBU) Responding to our concerns about the problems with the 
state-owned ground handling company Intercargo (reported thefts, and 
expensive and poor service), Cirielli frankly acknowledged that the 
group is a "mafia," that it was "contaminated from top to bottom," 
but also said that just as it "steals" things from passengers' bags, 
it could also just as easily "put things inside" as well in 
retaliation against any action against them (i.e. planting 
disallowed items), and that we all have to be careful how this 
situation is handled.  He said that his office is working on a 
decree to open up the airport's ground-handling services to more 
providers.  (Note:  Intercargo reportedly has its near-exclusive 
service contract until 2009.  End note.) 
 
¶10. (SBU) Responding to our concerns that the GOA still requires 
airlines to manually perform the functions of remote dispatch, which 
should be done by computer, Cirielli said that Argentina does not 
have this capability, and dismissed as a "minor, extra expense" to 
employ extra local personnel to perform this function manually. 
 
--------------------------------------------- -------- 
RENEWING FAA TECHNICAL ASSISTANCE CONTRACT WITH CIVIL AVIATION 
AUTHORITY 
--------------------------------------------- -------- 
 
¶11. (SBU) Filippatos and Air Regions Command (Argentina's civil 
aviation authority, under the Ministry of Defense) Commander, 
Brigadier Jose Antonio Alvarez signed their recently-negotiated 
agreement extension for continued FAA safety and air worthiness 
technical assistance.  (This FAA technical assistance program has 
been widely praised by GOA officials.)  On the GOA's transition from 
military to civilian control of aviation, Alvarez said that due to 
the "unclear" political environment, any and all decisions on policy 
and personnel must await the outcome of the October presidential 
elections, including who will head the nascent civil aviation 
authority ANAC.  Speaking of Brazil's own ongoing civil aviation 
transition, he said that its recent aviation accidents, controller 
strikes, and other turmoil were a "bad situation," and a "caution" 
for Argentina's own transition.  On ICAO GA, Alvarez noted that he 
had been recently meeting with Under Secretary Cirielli to 
coordinate a common GOA position and strategy.  On the EU's ETS, 
Alvarez said that within Argentina's aviation community, there is 
wide agreement with the U.S. position, but lamented the 
"Europeanization" of the Ministry of Foreign Affairs, and 
acknowledged that the latter's view - more in line with the EU - 
would be a factor in any final GOA position. 
 
-------- 
COMMENT 
 
-------- 
 
¶12. (SBU) GOA officials and U.S. carriers expressed their 
satisfaction with this visit.  For the GOA, a visit of such a senior 
U.S. official is important to demonstrate our engagement.  The media 
also reported this visit in a very positive way.  Our goal, to 
bolster our already strong ties with GOA aviation officials, was 
clearly met.  Further, both sides appear to agree on our main 
issues: that the transition from military to civilian control of 
Argentine civil aviation is done with care, that our offer for FAA 
technical assistance on the transition is understood, and that we 
express our views on ICAO and ETS.  Post will continue to engage the 
GOA on our position with regard to the EU's ETS and seek their 
support, and identify appropriate GOA officials to visit the FAA on 
the transition.  END COMMENT 
 
¶13. (U) Assistant Administrator Filippatos cleared on this cable. 
 
WAYNE