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TO RUEHC/SECSTATE WASHDC PRIORITY 0415
INFO RUEHRI/AMCONSUL RIO DE JANEIRO 5406
RUEHRG/AMCONSUL RECIFE 7347
RUEHSO/AMCONSUL SAO PAULO 1149
RUEHAC/AMEMBASSY ASUNCION 6397
RUEHBU/AMEMBASSY BUENOS AIRES 5116
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RUEHME/AMEMBASSY MEXICO 2096
RUEHMN/AMEMBASSY MONTEVIDEO 7090
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RUEHSG/AMEMBASSY SANTIAGO 6527
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RUCPDOC/USDOC WASHDC
RHMFISS/CDR USSOUTHCOM MIAMI FL
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RUEANHA/FAA NATIONAL HQ WASHINGTON DC
RUEAYVF/FAA MIAMI ARTCC FL
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RUWDQAB/NTSB WASHINGTON DC
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UNCLAS SECTION 01 OF 05 BRASILIA 002124 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/EPSC AND EEB/TRA 
STATE PASS USTR FOR KATE DUCKWORTH 
STATE FOR USAID/LAC/AA 
FAA FOR CCAPESTANY, GBURDICK 
DEPT OF TRANSPORTATION FOR BHEDBERG 
BUENOS AIRES FOR TSA ATTACHE 
MEXICO CITY FOR TSA ATTACHE MGALVAN 
USDOC FOR 4332/ITA/MAC/WH/OLAC 
USDOC ALSO FOR 3134/USFCS/OIO 
NSC FOR TOMASULO 
TREASURY FOR JHOEK 
SOUTHCOM FOR POLAD 
NTSB FOR RMACINTOSH, BENGLISH 
 
E.O. 12958: N/A 
TAGS: EAIR ECON MARR EIND PGOV PREL EINV BEXP BR
SUBJECT: BRAZIL CIVAIR: ANAC PRESIDENT RESIGNS; THREE DIRECTORS 
CONFIRMED, TWO MORE IN THE WINGS; BILATS IN DEC. 
 
REF: (A)  Brasilia 600 
 (B) Brasilia 485 
 (C) Brasilia 290 
 (D)  Brasilia 06 2680 
 (E) Brasilia 06 2521 
 (F) Brasilia 06 2315 
 (G)  Initial letter from DAS JByerly to ANAC, 08/17/07 
 (H) Bilat invitation letter from ANAC to DAS JByerly,   09/04/07 
 (I) Confirmation letter from EEB/TRA TRobl to ANAC,    10/31/07 
 (J) GSarrano-JReifman e-mails: 08/14, 08/16, 08/17,    08/20, 
09/11, 09/14, 09/21, 09/24, 09/27/07 
 (K)  GSarrano-TRobl e-mails: 09/21, 09/24, 09/25,    09/26, 09/27, 
09/28, 10/11, 10/16, 10/22, 10/31,    11/01, 11/05/07 
 
SENSITIVE BUT UNCLASSIFIED--PLEASE PROTECT ACCORDINGLY 
 
¶1.  (SBU) SUMMARY.  Brazil's civil aviation agency (ANAC)'s 
Director-President Milton Sergio Silveira Zuanazzi formally 
submitted his resignation to President Lula the afternoon of October 
¶31.  The same day, the "Diario Oficial da Uniao," the GOB's Federal 
Register equivalent, announced the confirmation of two more new ANAC 
Director nominees.  This brought the total number of new ANAC 
Directors to three out of five and created the conditions necessary 
for Zuanazzi to step down, in accordance with the deal cut between 
him and new Minister of Defense, Nelson Jobim.  In August, EEB/TRA 
had proposed the idea of having bilateral aviation discussions with 
a view toward liberalization (Ref. G, J).  Following the advice of 
Jobim and his new Secretary for Civil Aviation Solange Vieira to 
wait for some new ANAC members to be in place (Ref. K), post 
transmitted letter (Ref. I) on October 31 accepting ANAC's September 
4 invitation (Ref. H) to host bilateral aviation consultations in 
Rio de Janeiro from December 5-7.  The Brazilian congress's 
confirmation of three new ANAC Directors in the last two weeks is a 
positive development in moving the US-Brazil civil aviation agenda 
forward.  See para 7 for biographical information on the three newly 
confirmed Directors as well as the two directors still pending 
confirmation.  END SUMMARY. 
 
¶2.  (U) In the two-and-a-half-hour press conference that he called 
late on Thurs. morning November 1, Zuanazzi confirmed he would be 
resigning, saying he had stayed quiet during all the time his agency 
was criticized so as to not create problems.  "I opted for silence, 
but I know that the minister (new Defense Minister and former 
Brazilian Supreme Court Chief Justice Nelson Jobim) doesn't 
understand anything about aviation," said Zuanazzi.  He went on to 
portray himself as a champion of the average traveling citizen, 
saying "evil forces" are acting to impede the expansion and 
popularization of air travel (to poorer people) in Brazil.  "They 
are afraid that flight sales will increase. . . there are people who 
don't want poor people to travel by air; they say that airports are 
looking like bus stations," he said.  Zuanazzi further said that the 
measures recently announced by Jobim--which included the possibility 
of eliminating reduced fares, as well as mandating fewer seats per 
plane to expand leg room--would result in higher fares. 
 
¶3.  (SBU) Contentious and undignified as it may have been, 
 
BRASILIA 00002124  002 OF 005 
 
 
Zuanazzi's exit and the installation of new leadership is expected 
to make US-Brazil civil aviation negotiations ultimately more 
productive.  Prior discussion by Ambassador Sobel and EconCouns with 
Jobim and his hand-picked new Secretary for Civil Aviation and 
proposed new ANAC Director-President, economist Solange Paiva 
Vieira, meant that the presence of at least one new Director and 
confirmation of other nominees would be the cue for Embassy Brasilia 
to transmit a letter responding to ANAC's offer for bilateral civil 
aviation talks in Rio December 5-7.  The acceptance letter was 
delivered on October 31 to the first and only new Director 
physically in his chair at ANAC, General (Reserves) Allemander 
Pereira Filho, who was confirmed by the Brazilian congress on 
October 19 and began work on October 29. 
 
¶4.  (SBU)  Civil aviation in Brazil over the past 16 months has been 
a roller-coaster ride (Reftels A-F).  The five-member Directorship 
of ANAC had been faced with a barrage of criticism since September 
29, 2006, the date Gol flight 1907 and a smaller Legacy jet flown by 
two American pilots collided over the Amazon.  Factors cited in 
press accounts of the investigation include possible errors or 
lapses in communication among air traffic controllers and between 
them and the two aircraft; possible transponder system shut-down in 
the Legacy jet; alleged inexperience by the Legacy jet pilots on 
this particular, brand-new/maiden voyage aircraft; and a possible 
language barrier between the Legacy pilots and controllers.  In 
addition to the military air traffic controllers coming under fire 
(Reftels A-F), ANAC's leadership has been perceived as ineffectual 
and even cavalier in addressing what the Brazilian media quickly 
labeled the "Aviation Crisis." 
 
¶5.  (SBU) A second tragedy, in addition to the frequent delayed or 
canceled flights, air traffic control center blackouts, and news 
footage of passenger resignation or wrath, was the last straw for 
the Brazilian government.  The July 17, 2007 fiery crash of a TAM 
flight at Sao Paulo's Congonhas Airport killed 199 persons in the 
plane and on the ground.  One of ANAC's Directors, Denise Abreu, was 
accused of using both her political influence and a false legal 
justification to persuade the Justice Department to circumvent 
normal airport safety procedures.  This allegedly allowed ANAC and 
by extension, the airport authority, INFRAERO, to open the newly 
extended runway where the crash occurred even though certain safety 
measures such as pavement "grooving" had not yet been implemented. 
(NOTE: reports of the investigation indicate a variety of potential 
contributing factors, including a short, although within legal 
limits, runway; a non-operating--again, legally so--reverse 
thruster; wet pavement; and the presence of a gas station in the 
direct path of the aircraft as it skidded and then veered off the 
end of the elevated runway.   Reports of the investigation also 
indicate that the overall cause of the crash may have been pilot 
error.  The deceased pilots are now alleged to have approached at 
too high a speed and to have not compensated for the locked-down 
thruster, thus overshooting the runway.  The resulting thruster 
imbalance, in turn, is thought to have caused the aircraft to veer 
off the runway and into the gas station, which exploded.  END 
NOTE). 
 
 
BRASILIA 00002124  003 OF 005 
 
 
¶6.  (SBU) The public perceptions that ANAC and INFRAERO had 
apparently valued profits and flight frequencies above safety were 
deemed unforgivable, and culminated in a public outcry for Abreu's 
ouster as the person who signed off on the opening of the runway. 
(Comment:  Abreu had already faced heavy criticism when photos were 
published of her posing in an evening gown and smoking a cigar at 
the wedding of fellow former ANAC Director Leur Lomanto's 
daughter--an event which just happened to take place during one of 
the worst episodes of flight delays and cancellations.  An estimated 
18,000 passengers were affected that weekend by ANAC's own 
estimates, and the event was soon dubbed the "Baile do Apagao," or 
"Blackout Ball," by the media.  End Comment.)  Abreu resigned and 
was investigated by a special tribunal of the Brazilian congress, or 
CPI.  The CPI's final report, released October 31, removed names of 
her alleged accomplices, such as ex-President of INFRAERO and 
current congressman Carlos Wilson (of President Lula's party in the 
state of Pernambuco), but maintained the call for criminal 
indictment of Abreu.  Three more ANAC Directors later also resigned, 
apparently in response to public and political pressure but citing 
"personal reasons."  Only Zuanazzi consistently held firm for 
months, refusing to resign, saying he would not be a scapegoat, and 
asserting that he had a mandate to complete.  Under Brazilian law, 
Defense Minister Jobim had no authority to fire Zuanazzi outright. 
Undeterred by this display of defiance, Jobim proceeded to nominate 
five people as replacement Directors, including one for Zuanazzi 
himself. 
 
----------------------------------- 
The New ANAC Leadership 
----------------------------------- 
 
¶7.  (SBU)  The following five people have been named by Defense 
Minister Jobim and approved by President Lula to take over the ANAC 
Directors' positions: 
 
a)  Solange Paiva Vieira, proposed Director-President-still pending 
Senate Committee and plenary approval.  Once approved, she would 
take over the position for the rest of its five-year mandate, until 
early 2011. 
-  38 years old, recently married (on honeymoon until November 12); 
a native of Valenca, a town in the interior of Rio de Janeiro 
State. 
- Academic Background:  Undergraduate degree in economics from the 
Federal University of Juiz de Fora (State of Minas Gerais); Master's 
in economics from Fundacao Getulio Vargas, Rio de Janeiro 
- Career:  Began as an officer with BNDES, the National Bank of 
Economic and Social Development.  In 1999, went to the Ministry of 
Social Security, where she created the "security factor," a formula 
that introduced life expectancy into Brazilian retirement 
calculations, and became Secretary of Complementary Security.  In 
this position, she audited the major pension fund plans, recommended 
interventions and defended the extension of retirement age before 
one could collect one's pension.  She was fired by the minister of 
social security in 2001, accused of being "harsh" with the 
complementary security agencies under her purview.  In 2003, she 
headed Telos, the pension fund of Brazilian telephone company 
 
BRASILIA 00002124  004 OF 005 
 
 
Embratel, ensuring that people who did not work did not receive a 
pension, and participating in the sale of Embratel.  In 2005, Vieira 
returned to BNDES in the credit area, where she remained until 
Minister Jobim called her to be his advisor.  On September 18, Jobim 
announced his intent to name her to replace Zuanazzi as head of 
ANAC.  On October 9, faced with a recalcitrant Zuanazzi, he named 
her to the newly created post of Secretary of Civil Aviation within 
the Ministry of Defense, pending Zuanazzi's departure. 
- Reputation: The newspaper Gazeta Mercantil said November 1 that 
Vieira is "attractive, 38, haughty/proud, possesses an immense 
potential to captivate admirers and create enemies, but does not go 
unnoticed in the jobs in which she as acted."  Vieira is widely seen 
as intelligent, shrewd, capable, and someone who does not shirk the 
hard duties.  The Folha de Sao Paulo speculated October 31 that she 
may have some difficulty attaining Senate confirmation due to her 
work reforming the social security administration, during which time 
she made some enemies and caused constituents to protest 
vociferously to their congressional representatives.  Other press 
sources have cited her lack of aviation experience.  However, a 
Brazilian senate staffer told Econoff recently that he did not 
anticipate a problem with her approval.  Embassy believes she will 
be a focused and pragmatic negotiator. 
 
b)  Allemander Pereira Filho (confirmed 19 October and published in 
Diario Oficial Mon. 22 October; in place at ANAC as of 29 October.) 
-  Career:  Currently General in the Reserves; 25 years of 
experience in ANAC's predecessor, the DAC (Departamento de Aviacao 
Civil).  From 2001 to 2005, he was head of the DAC's Subdepartment 
of Infrastructure.  Will fulfill the remainder of the appointment of 
Jorge Luiz Brito Velozo, who had a 5-year appointment until sometime 
in early 2011.  Unless the position title is changed, Pereira will 
be Director of Operational Security, Investigation and Prevention of 
Aviation Accidents. 
 
c)  Marcelo Pacheco dos Guaranys (confirmed Tues. 30 October and 
published in Diario Oficial Wed. 31 October; date formally in 
position TBD; not yet in his office space) 
-  Academic background:  Law degree with specialization in Economic 
and Business Law 
-  Career:  Economist; currently head of General Coordination of 
Transportation and Logistics of the Secretariat for Economic 
Monitoring at the Ministry of Finance.  He is taking the place of 
Leur Antonio Britto Lomanto, to complete a four-year term ending in 
early 2010.  Unless the position title or responsibilities change, 
Guaranys will be the ANAC Director charged with Airport 
Infrastructure. 
 
d)  Alexandre Gomes de Barros (confirmed Tues. 30 October and 
published in Diario Oficial Wed. 31 October; date formally in 
position TBD; not yet in his office space) 
-  Academic background:  Graduate in civil engineering from the 
State University of Campinas, Sao Paulo State, 1991; Master's in 
Operations Research from the Aeronautical Technical Institute (ITA), 
a higher education institution linked to the Brazilian Air Force and 
located in the General Command of Aerospace Command in Sao Jose dos 
Campos, Sao Paulo State; Doctorate in Transportation Engineering 
 
BRASILIA 00002124  005 OF 005 
 
 
from the University of Calgary, Canada. 
-  Career:  Currently assistant professor at the University of 
Calgary, Canada; Member of Council of Directors and head of the 
Scientific Committee of the Center of Planning and Transportation 
Engineering in Alberta, Canada; experience in transportation 
engineering, with emphasis in airports and air transportation; has 
acted principally in the segments of planning, including airport air 
transport systems and intelligent transportation projects.  Airports 
with which he has assisted planning include New York's JFK, 
Seattle/Tacoma, Boston Logan, Leeds (U.K.), Hong Kong, and Incheon 
(Seoul).  He is taking the place of Denise Abreu to complete a 
four-year term ending in early 2010.  Unless the position title or 
duties have changed, Barros will be in charge of Airline Services 
and User Relations. 
 
e)  Claudio Jorge Pinto Alves (nomination still awaiting 
confirmation) 
-  Academic background:  Postgraduate in aeronautical and airport 
infrastructure; Master's from the Polytechnic School of the 
University of Sao Paulo (USP); Doctorate, Aeronautical Technical 
Institute (ITA), a higher education institution linked to the 
Brazilian Air Force and located in the General Command of Aerospace 
Command in Sao Jose dos Campos, Sao Paulo State.  Post-doctoral 
studies at France's National School of Civil Aviation (ENAC) 
-  Career:  Currently professor at ITA; has been a consultant to 
ANAC's predecessor, the DAC, as well as Embraer, INFRAERO, and 
Petrobras.  Once confirmed, he will likely take the place of former 
ANAC Director Josef Barat, who was charged with International 
Relations, Studies and Research, to finish a term that will end in 
early 2009. 
 
---------- 
Next Steps 
---------- 
 
¶8.  (SBU)  While two Directors--including proposed 
Director-President Vieira--still await confirmation, on November 5 
post confirmed with the Ministry of External Relations (MRE) that 
our December 5-7 aviation bilateral discussions will go forward in 
Rio de Janeiro.  The MRE says the GOB delegation is primed and 
"ready to go," although our interlocutor could not yet define the 
precise makeup of the delegation.  Post will report further when all 
ANAC Directors are confirmed, in place, and occupying specific 
positions.  In the meantime, we will continue to follow up with 
ANAC's Rio office to try to obtain the GOB's delegation list as 
quickly as possible, as well as to assist with logistical 
arrangements for our delegation's planned arrival the first week of 
December. 
 
SOBEL