VZCZCXYZ0000
PP RUEHWEB

DE RUEHNR #4252/01 3031230
ZNR UUUUU ZZH
P 301230Z OCT 07
FM AMEMBASSY NAIROBI
TO RUEHC/SECSTATE WASHDC PRIORITY 3176
INFO RUEHXR/RWANDA COLLECTIVE PRIORITY
RUEHGV/USMISSION GENEVA 4259
RUEHMT/AMCONSUL MONTREAL 0113
RUCPDOC/DEPT OF COMMERCE WASHDC
RULSDMK/DOT WASHDC
RHMCSUU/FAA WASHDC
RUEAYOK/FAA AERONAUTICAL CENTER OKLAHOMA CITY OK
RUEAHLC/HOMELAND SECURITY CENTER WASHDC

UNCLAS NAIROBI 004252 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR AF/E, AF/RSA, AF/EPS, EB/TPP/MTA, AND EB/TRA/AN 
DEPT ALSO PASS TO DOT FOR CONNIE HUNTER AND KEITH GLATZ 
DEPT ALSO PASS TO USTR FOR BILL JACKSON 
TREASURY FOR VIRGINIA BRANDON 
MONTREAL FOR USICAO 
TSA FOR ROBERT MCLAUGHLIN 
 
SIPDIS 
 
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E.O. 12958:  N/A 
TAGS: EAIR KTIA ECON KE
SUBJECT: Open Skies on GOK Agenda for Air Services Negotiations 
 
REF: A)STATE 135337, B)NAIROBI 3667 
 
¶1. (SBU) Summary: Ministry of Transport officials confirmed Kenya is 
ready to negotiate an Open Skies Agreement with the U.S. and 
requests confirmation of the proposed dates so it can complete its 
internal consultations and provide proposals on the model Open Skies 
text.  Ikiara also suggested Nairobi could copy Dakar's passenger 
handling procedures to obtain TSA approval and direct flights to the 
U.S. for Kenya Airways pending achievement of Category One status. 
This suggests Ministry concern that having only Delta fly the route 
could generate political objections about lack of reciprocity in the 
aviation relationship.  See para 9 for action request.  End 
Summary. 
 
Kenya Ready to Negotiate Open Skies Agreement 
--------------------------------------------- 
¶2. (SBU) Econoff met with Ministry of Transport Permanent Secretary 
Gerishon Ikiara to determine the Government of Kenya's (GOK) agenda 
for its proposed November 26-28 bilateral air service negotiations 
in Washington.  Ikiara stated that he had met with all the 
stakeholders, including Kenya Civil Aviation Authority (KCAA), Kenya 
Airports Authority (KAA), the Attorney General, the Ministry of 
Foreign Affairs, and Kenya Airways (KQ).  He said Kenya is ready to 
negotiate an Open Skies Agreement to replace the restrictive 
informal agreement with the U.S. under which Pan Am had been 
designated to fly the U.S.-Kenya route.  He was not pleased that 
Delta was already marketing its flight before applying to the 
Ministry for designation and economic permission.  However, the 
Ministry is anxious to ensure Delta is designated and its proposed 
direct flight via Dakar is approved to begin service in June 2008. 
 
¶3. (SBU) Ikiara said the Yamoussoukro Declaration was a 
complication, since Kenya did not want to appear to offer open skies 
to the U.S. before it opened them to other African countries.  The 
U.S. restriction on foreign ownership of U.S. airlines and the EU's 
use of an airline's principal base of business as the basis for 
designation of the airline makes the African Union "nervous" about 
Open Skies Agreements.  He understood Tanzania and Ethiopia have 
signed Open Skies Agreements, but maintain restrictions on 
neighboring countries' airlines. 
 
¶4. (SBU) Kenya also needs to do further analysis on the potential 
impact of an agreement on Kenyan operators, especially Kenya Airways 
(KQ).  Ikiara expressed concern that U.S. airlines would benefit far 
more than Kenya through Fifth Freedom rights to serve intermediate 
and points beyond.  Kenya will request transition periods for 
unspecified provisions of the agreement. 
 
December Elections Will Not Affect Negotiations 
--------------------------------------------- ---- 
¶5. (SBU) Ikiara claimed the aviation services talks were at the 
technical level, and would not be affected by the December 27 
general election.  Progress made or any agreement reached on a 
technical framework would not be lost if a new government is 
elected.  He would like to initial an agreement and sign an MOU 
within two months to bring it into operation until a Minister can 
sign it.  This would allow Delta and other airlines to begin service 
via Dakar.  If possible, the Ministry will send its proposal before 
the talks in Washington.  Ikiara and his staff would probably lead 
the delegation to the November talks.  KCAA Director General Chris 
Kuto and KAA Managing Director George Muhoho would attend or send 
their deputies.  KQ will send a representative and perhaps a lawyer, 
as would the Attorney General.  PS Ikiara and KAA George Muhoho are 
the only political appointees involved.  Muhoho's term has two more 
years to run, and the KCAA Board has not yet decided whether to 
support an extension of the mandatory retirement age for Director 
General Kuto. 
 
Kenya Airways Interested in U.S. Service, 
----------------------------------------- 
¶6. (SBU) Ikiara stated that KQ wants to offer direct U.S. service as 
part of the Sky Team, and that he hoped Northwest and perhaps Virgin 
would also be interested in Kenya-U.S. flights, presumably via West 
Africa. 
 
But Kenya Needs to Achieve Category One 
---------------------------------------- 
¶7. (SBU)  Ikiara welcomed DOT's willingness to come to Kenya 
December 5-7 to discuss Kenya's efforts towards Category One status, 
noting that President Kibaki has expressed his interest.  Ikiara 
stated KCAA needs to improve its capacity to achieve Category 1 
status.  The low salaries make it difficult to recruit and retain 
staff, so KCAA is seeking permission from the Public Services 
Commission to offer higher salaries.  KCAA is advertising the 
positions to applicants, and may offer them contracts, if necessary, 
to obtain more flexibility on compensation. 
 
¶8. (SBU) Ikiara said that Jomo Kenyatta International Airport (JKIA) 
was considering using the new apron parking for Delta's flights and 
shuttle buses to move passengers between the aircraft and terminal. 
He claimed that TSA had approved such a system in Dakar for direct 
flights to the U.S., and asked if JKIA could use the same procedure 
for KQ to meet the requirement to separate incoming and outgoing 
passengers and enable direct flights.  Econoff agreed to forward the 
idea to the TSA representative at Post for review and forwarding to 
TSA. 
 
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Action Request 
-------------- 
¶9. (SBU) Action request: PS Ikiara asked the USG to confirm its 
acceptance of the proposed negotiating dates ASAP.  He also asked 
the USG to provide definitions of the concepts of "operational 
flexibility" and "change of gate," before the negotiations begin. 
He would also appreciate any explanation of how intermodal 
transportation could be practical in Kenya.  Post would appreciate 
TSA's reaction to Ikiara's suggestion that JKIA could qualify for 
 
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TSA-approval for direct flights to the U.S. simply by separating 
 
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incoming and outgoing passengers with shuttle buses.  KQ may not 
have the equipment and crew to service U.S. flights, but KQ is aware 
it could wet lease a U.S. aircraft and crew. 
 
Analysis and Comment 
-------------------- 
¶10. (SBU) Delta's proposed flight has focused Kenyan attention on 
the need for a bilateral air services agreement and to accelerate 
progress towards Category 1 status.  Ikiara's claim that an Open 
Skies Agreement is too technical to become a political issue is too 
optimistic.  Any issue can and will be politicized, but he is 
hedging his bets by seeking an initialed agreement and signed MOU in 
less than two months.  His question in para 8 about a means by which 
KQ could fly directly to the U.S. before achieving Category One 
suggests he anticipates objections about the apparent lack of 
reciprocity in the aviation relationship.  The political optic of 
having only a U.S. carrier fly the route until Kenya achieves 
Category One could make it difficult for the GOK to sign the 
Agreement.  The Ministry and the aviation sector are aware of the 
differences between Category 1, TSA approval such as the one in 
Dakar, and an Open Skies Agreement, but the public and politicians 
would not be interested and could protest.  This may be the basis 
for any Kenyan requests for transition periods within the Agreement. 
 The economic benefits to Kenya of direct U.S.-Kenya flights are 
generally understood by the GOK, exporters and the tourism industry. 
 If all aviation sector stakeholders agree they want an Open Skies 
Agreement, it is likely to go forward under either Kibaki or 
Odinga. 
 
RANNEBERGER