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DE RUEHBU #0241/01 0581440
ZNR UUUUU ZZH
R 271440Z FEB 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 0331
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC
RUEHC/DEPT OF LABOR WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RHMCSUU/FAA NATIONAL HQ WASHINGTON DC//AWH-10//
RHMCSUU/FAA MIAMI SO IFO23 MIAMI FL
RHMFIUU/FAA MIAMI ARTCC MIAMI FL
RUEHAC/AMEMBASSY ASUNCION 6820
RUEHMN/AMEMBASSY MONTEVIDEO 7021
RUEHBR/AMEMBASSY BRASILIA 6720
RUEHQT/AMEMBASSY QUITO 1055
RUEHSG/AMEMBASSY SANTIAGO 1042
RUEHPE/AMEMBASSY LIMA 2245
RUEHLP/AMEMBASSY LA PAZ FEB MADRID 2008
RUEHMT/AMCONSUL MONTREAL 0044

UNCLAS BUENOS AIRES 000241 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
STATE EEB FOR ROBL, REIFMAN, LIMAYE-DAVIS, GUSTAVSON, EMERY 
TRANSPORTATION FOR BRIAN HEDBERG 
FAA FOR CECILIA CAPESTANY, ANNA SABELLA 
FAA MIAMI FOR MAYTE ASHBY, JAY RODRIGUEZ 
FOR USMISSION TO ICAO 
 
E.O. 12958: N/A 
TAGS: EAIR ECON PGOV ELAB AR
SUBJECT: ARGENTINA CIVAIR: TRANSITION FROM MILITARY TO CIVILIAN 
CONTROL 
 
Reftel:  (A) Buenos Aires 64 
         (B) 07 Buenos Aires 2390 
         (C) 07 Buenos Aires 2032 
         (D) 07 Buenos Aires 1629 
         (E) 07 Buenos Aires 1070 
         (F) 07 Buenos Aires 1046 
         (G) 07 Buenos Aires 518 
 
¶1. (SBU) SUMMARY.  Almost a year after the creation of the National 
Civil Aviation Administration (ANAC), the agency that will assume 
responsibility for Argentina's civair once a transition from 
military to civilian control occurs, a Director has finally been 
named and some institutional reorganization begun.  Although these 
measures add political weight to the transition process, a true 
transition remains years away.  Fundamental issues, including the 
future status of the largely military workforce now controlling 
civair, remain to be substantively addressed.  In the meantime, 
day-to-day civil aviation remains in military control, and poor 
domestic service due to frequent slowdowns and strikes continue.  To 
its credit, the GOA appears to understand how complex this civair 
transition will be, and is not rushing headlong into the process. 
END SUMMARY. 
 
--------------------------------------------- ------ 
Where ANAC Fits into GOA's civil aviation structure 
--------------------------------------------- ------ 
 
¶2. (U) The newly created civilian National Civil Aviation 
Administration (ANAC) is to eventually replace the Ministry of 
Defense's Air Regions Command (the GOA's FAA equivalent) overseeing 
national aviation safety and air traffic control.  ANAC is also 
slated to replace the functions of the now-eliminated office of the 
Under Secretary of Commercial Air Transport (roughly equivalent to 
the DOT's Assistant Secretary for Aviation and International 
Affairs) to control licensing, competition, alliances and 
codeshares, charters, frequencies, international agreements and 
pricing.  The eliminated Undersecretariat's functions are now 
controlled, ad interim, by the Secretary of Transportation. 
 
¶3. (SBU) Although the elimination of the Undersecretary's office was 
ostensibly done because ANAC will eventually take over these 
functions, an open and long-running feud between Secretary of 
Transportation Ricardo Jaime and former Undersecretary (U/S) Ricardo 
Cirielli was reportedly a factor in the timing.  (GOA insiders claim 
that former aircraft mechanics union leader Cirielli never accepted 
Secretary Jaime's oversight.)  Local analysts presume that ANAC will 
 
SIPDIS 
fall under the Secretary of Transportation's control, and ANAC's 
small staff (inherited from the U/S) has reportedly begun to slowly 
wade into commercial aviation issues.  However, GOA and private 
sector contacts have indicated that they have "no idea" who is now 
actually making commercial aviation-related decisions once performed 
by the U/S. 
 
------------------------ 
Top ANAC Officials Named 
------------------------ 
 
¶4. (SBU) Political insider Rodolfo Gabrielli was sworn in on January 
29 as ANAC's first Director.  Gabrielli has a long list of political 
jobs under his belt: former Peronist Governor of Mendoza province 
(1991-1995), Mendoza minister of economy (1987-1991), national 
congressman (1995-1999), Interior Minister under former President 
Adolfo Rodgriguez Saa, and president of the state satellite company 
ArSat under President Nestor Kirchner.  Gabrielli was also one of 
several Directors of the national airports regulator, ORSNA 
(Gabrielli's only known aviation experience).  Observers concur that 
Gabrielli's political skills will come in handy as he takes over 
(and on) the diverse and conflictive world of Argentine civil 
 
aviation. 
 
¶5. (SBU) Ms. Alba Thomas Hatti, the Secretary of Transportation's 
National Director of Planning and Coordination, was named 
Gabrielli's deputy.  Thomas Hatti was previously Under Secretary of 
Commercial Air Transport, has had frequent contact with the Embassy 
and the FAA, and is considered a reliable interlocutor.  She 
accompanied Transport Secretary Ricardo Jaime on his Washington 
December 2006 visit to DOT and FAA. 
 
---------------------- 
Real Change Years Away 
---------------------- 
 
¶6. (SBU) The creation of ANAC and the naming of its Director add 
some political and legal weight to the process of establishing 
civilian control of Argentine civil aviation.  GOA officials 
indicate that some smaller agencies within the Air Regions Command 
could soon be transferred to ANAC, including some of its 
administrative offices and its Aviation Repair Agency.  But as one 
top GOA aviation official said, ANAC is like "an empty house" that 
needs to be filled over time.  He and other officials state that the 
process remains "years away," and there will be no immediate change 
to Argentina's current civil aviation operations.  Day-to-day 
control of safety, air traffic control, and navigation remain with 
the MOD, and commercial concerns stay with the Secretary of 
Transportation. 
 
--------------------------- 
Difficult Issues Unresolved 
--------------------------- 
 
¶7. (SBU) The key issues that need to be resolved before a true 
military-to-civilian control transition is accomplished are the same 
as when ANAC was created almost one year ago (Refs F, G).  One issue 
is the future status of some 6000 employees in the Air Regions 
Command, of which about 80% are military.  It is still unclear, once 
ANAC is fully functional, whether these CRA employees will be 
transferred to other military positions or work for ANAC.  If the 
latter, it is unclear if they would remain on active duty.  If so, 
they would be working side-by-side with civilians presumably making 
significantly more money, a potential friction.  The status of air 
traffic controllers is another unresolved issue: currently 
prohibited from striking while under military authority, will they 
be allowed to strike, in a nation and sector so prone to labor 
conflicts?  GOA officials and private sector analysts have privately 
expressed their concern that the hiring process not be unduly 
politicized, and that only qualified personnel, and not the 
politically-connected, be hired.  Beyond these sensitive issues, the 
GOA still needs to enact legislation, aviation regulations, and a 
formal budget to formalize ANAC's structure. 
 
¶8. (SBU) GOA officials indicate that they envision some form of 
continued International Civil Aviation Organization (ICAO) technical 
assistance with its transition.  Ref D noted that ICAO had provided 
the GOA with an options memo of how ANAC might be structured, and 
envisioning differing levels of autonomy and authority.  GOA 
contacts indicate that although they do not view ICAO's expertise 
and advice as particularly valuable, the GOA gains credibility by 
having ICAO's "official blessing" of any future transition plan. 
GOA officials have repeatedly said that ICAO's involvement in no way 
precludes the GOA from also later seeking FAA guidance in this 
transition. 
 
-------------------------------- 
Ongoing Civil Aviation Challenges 
-------------------------------- 
 
¶9. (SBU) Argentina's civil aviation-related woes continue unabated: 
slowdowns, strikes, stolen luggage, overbooking, and poor service 
are routine features of flying in Argentina (Refs F, B, A).  A 
recent report from the Argentine Tourism Association underscored the 
problem of delayed and cancelled flights and lost connections.  From 
March to September 2007, an average of only 22% of domestic flights 
arrived and departed on time, compared to about 70% for similar 
flights in the United States. 
 
------- 
Comment 
------- 
 
¶10. (SBU) Behind these auspicious-sounding GoA announcements, and 
almost one year since the ANAC's creation, Argentina today is no 
closer to any true military-to-civilian civair transition.  Many 
here see recent GOA actions as little more than political theater: 
amidst Argentina's chronic problems providing reliable domestic air 
transport to its citizens, the GOA wants to be seen taking action. 
Left unexplained, however, is just how and why civilian control of 
this sector will be any more effective than military control.  The 
fact that the new ANAC Director is a politician and not a 
technically competent aviation professional further underscores this 
point.  To be fair, GOA officials seem to have no illusions how 
complex and difficult this process is, and have repeatedly stated 
their desire that the transition be effected properly and 
methodically. 
KELLY