VZCZCXYZ0003
OO RUEHWEB

DE RUEHAN #1005 2741002
ZNR UUUUU ZZH
O 011002Z OCT 07
FM AMEMBASSY ANTANANARIVO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0463
INFO RUEHFR/AMEMBASSY PARIS 0936
RUEHSA/AMEMBASSY PRETORIA 1105
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS ANTANANARIVO 001005 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
PARIS FOR D'ELIA 
DEPT FOR AF/E MBEYZEROV 
DEPT FOR EB/TRA AND EB/CBA 
PRETORIA FOR FCS 
 
E.O. 12958: N/A 
TAGS: EAIR BEXP ECON EFIN PREL MA
SUBJECT:  BOEING PRESENTATION WELL RECEIVED BY AIR MAD 
 
 
¶1.  (SBU)  A perfectly-timed Boeing visit to Madagascar September 
24-28 included a sales presentation for new long-haul aircraft to 
the Board of Directors of Air Madagascar.  Consistent with President 
Ravalomanana's recent pledge to "keep Air Madagascar a Boeing 
airline," Board members were reportedly very engaged during the 
presentation.  Air Madagascar executives also spent one full day 
with the Boeing fleet management advisor and a representative of 
Boeing Capital to offer services on Air Madagascar's fleet needs. 
 
¶2.  (SBU)  The Boeing team arrived one week after the GOM cancelled 
the management contract of Lufthansa Consulting and fired Director 
General Ulrich Link.  Acting Director General Olivier Robinson, a 
senior Malagasy telecommunications official who was recently 
appointed to Air Madagascar, will run the airline until a new leader 
is found.  While Robinson is new to the airline business, he is a 
decisive and dynamic senior official who we expect to breathe new 
life into Air Madagascar.  The Boeing team was impressed with the 
amount of time and attention they received from Robinson. 
 
¶3.  (SBU)  At a reception September 28, Acting DG Robinson was 
effusive with gratitude for Boeing's visit.  New to Air Madagascar, 
he faces a crisis in which four long-haul aircraft must be replaced 
starting in the first quarter of 2008.  He suspects former Air Mad 
DG Link was pushing for Air Bus behind the scenes, noting the 
European airline made an unexpected proposal to the Board a few 
weeks ago.  With directives both to acquire Boeing aircraft and to 
maintain Air Mad's international presence on Paris and Bangkok 
routes, Robinson was pleased at the level of service offered by 
Boeing.  PolEcon Chief shared Boeing's equally-positive reaction 
with Robinson, reporting the four Boeing executives had the maximum 
access possible to offer fleet solutions and finance options. 
 
¶4.  (SBU)  Before departing, the Boeing team also reported on 
meetings with Minister of Finance Radavidson and Minister of 
Transportation LaPorte.  The former, who has been preoccupied 
campaigning for the National Assembly, was reportedly ignorant of 
the financial implications for the GOM regarding Air Madagascar. 
Fortunately Minister LaPorte, previously President Ravalomanana's 
Chief of Staff, was fully-briefed and enthusiastic.  According to 
Boeing, LaPorte returned early from a conference outside of 
Antananarivo to meet them and provide his full support. 
 
Bridging The Gap 
---------------- 
 
¶5. (SBU)  Boeing continues to actively support Air Madagascar's 
efforts to find aircraft to bridge the gap between obsolescence in 
2008 and delivery in 2012-16.  In the last six months, according to 
Boeing, the company has provided four leads on used aircraft 
available for lease or purchase.  Air Madagascar and the GOM have 
missed each opportunity, however, because the bureaucracy to approve 
acquisitions was too slow and the planes were quickly gone from the 
market.  Air Madagascar's Robinson accepted the Boeing suggestion 
that pre-approval be sought for a given model aircraft at a given 
cost so the airline will be nimble enough to take advantage of the 
next opportunity. 
 
MARQUARDT