VZCZCXRO6511
PP RUEHRG
DE RUEHBR #2309/01 3540945
ZNR UUUUU ZZH
P 200945Z DEC 07
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC PRIORITY 0691
INFO RUEHRI/AMCONSUL RIO DE JANEIRO 5593
RUEHRG/AMCONSUL RECIFE 7512
RUEHSO/AMCONSUL SAO PAULO 1356
RUEHAC/AMEMBASSY ASUNCION 6455
RUEHBU/AMEMBASSY BUENOS AIRES 5173
RUEHCV/AMEMBASSY CARACAS 3897
RUEHME/AMEMBASSY MEXICO 2105
RUEHMN/AMEMBASSY MONTEVIDEO 7131
RUEHLP/AMEMBASSY LA PAZ 5817
RUEHSG/AMEMBASSY SANTIAGO 0043
RHEHNSC/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
RHMFISS/CDR USSOUTHCOM MIAMI FL
RUEAIIA/CIA WASHDC
RHMFIUU/FAA NATIONAL HQ WASHINGTON DC
RUEAYVF/FAA MIAMI ARTCC MIAMI FL
RULSDMK/DEPT OF TRANSPORTATION WASHDC
RUWDQAB/NTSB WASHINGTON DC
RUEHC/DEPT OF LABOR WASHDC

UNCLAS SECTION 01 OF 02 BRASILIA 002309 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/EPSC AND EEB/TRA 
STATE PASS USTR FOR KATE DUCKWORTH 
FAA FOR CCAPESTANY, GBURDICK, KBERQUIST 
DEPT OF TRANSPORTATION FOR BHEDBERG, MSTREET 
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 
STATE FOR USAID FOR LAC/AA 
 
E.O. 12958: N/A 
TAGS: EAIR ECON EIND PGOV PREL EINV BEXP BR
SUBJECT: BRAZIL CIVAIR: POSSIBLE INCREASED FREQUENCIES, ROUTES FOR 
U.S. CARRIERS AND FUTURE DISCUSSION TOPICS 
 
REF: BRASILIA 2124 
 
SENSITIVE BUT UNCLASSIFIED--PLEASE PROTECT ACCORDINGLY 
 
¶1. (SBU)  Ambassador Sobel spoke again on December 19 with recently 
confirmed new National Civil Aviation Agency (ANAC) 
Director-President Solange Vieira, who will now be responsible for 
air services negotiations with the United States.  The Ambassador 
also met separately on the same day with Minister of Defense Nelson 
Jobim to discuss possible new frequencies and routes to several 
cities, as well as other aviation issues.  Brazil and U.S. 
negotiators signed a Memorandum of Consultations at the conclusion 
of December 5-6 civil aviation talks in Rio that expressed intent to 
meet again before the end of 2008 (septel).  The Rio session, the 
first in more than 10 years, was an important first step in 
establishing negotiations with Brazil on civil aviation issues.  The 
Ambassador's discussions were intended to maintain that momentum 
toward achieving the ability to implement new routes as soon as 
possible as well as other important US objectives in the 
negotiations. 
 
¶2.  (SBU)  Following are the talking points that the Ambassador left 
behind as a nonpaper: 
 
[Begin Text.] 
 
Continued Bilateral Aviation Discussion with Brazil 
 
We are pleased to hear the Brazilians are interested in continuing 
our conversations. 
 
Our carriers would like maximum flexibility to institute service to 
and from areas in Brazil where demand appears likely to indicate 
profitability, and therefore, there is no guarantee that the 
availability of additional frequencies would translate into direct 
flights. 
 
Additionally, operating constraints, high fuel costs and other 
factors can prevent carriers from implementing plans for new 
service. 
 
With different levels of specificity and limited commitment to 
implement services, U.S. carriers have expressed interest in 
additional frequencies and designations that would allow for new 
services to cities such as Belem, Belo Horizonte, Brasilia, 
Fortaleza, Manaus, Porto Alegre, Recife, Rio de Janeiro, and 
Salvador before 2010. 
 
On the road to broader liberalization, we are interested in 
concluding a commercially significant interim agreement that would 
include certain core elements: 
 
In the short term, we are prepared to focus on a set number of 
additional frequencies to be used to Brazilian cities, without an 
increase in rights to operate to Sao Paulo. 
 
 
BRASILIA 00002309  002 OF 002 
 
 
While completely open routing is not offered except in the context 
of Open Skies, we will consider a reasonable liberalization of 
routing of benefit to Brazilian carriers. 
 
We would like an agreement to liberalize the all-cargo relationship, 
which supports our growing bilateral trade relationship. 
 
Finally, we must have some commercially useable third country code 
share rights; we are willing to talk about phase-in and limitations. 
 
 
[End Text.] 
 
¶3.  (SBU)  The reactions of Vieira and Jobim were positive to the 
idea of increased frequencies and routes.  Next steps will be to 
engage bilaterally on the other topics listed. 
 
SOBEL