VZCZCXRO9757
RR RUEHMA RUEHPA
DE RUEHMV #0785/01 2990824
ZNR UUUUU ZZH
R 260824Z OCT 09
FM AMEMBASSY MONROVIA
TO RUEHC/SECSTATE WASHDC 1423
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHRO/AMEMBASSY ROME 0990
RUEHDS/AMEMBASSY ADDIS ABABA 1359

UNCLAS SECTION 01 OF 02 MONROVIA 000785 
 
 
SENSITIVE 
SIPDIS 
 
E.O.12958: N/A 
TAGS: ECON EAGR LI
SUBJECT: ETHIOPIAN AIRWAYS TO FLY TO MONROVIA 
 
REF: MONROVIA 612 
 
¶1. (SBU) SUMMARY: Ethiopian Airways (EA) will begin flights to 
Roberts International Airport (RIA) October 25, expanding its 
service in West Africa by linking Monrovia to Addis Ababa through 
Accra.  EA's entrance will meet the need for more avenues from 
Liberia into Africa, Europe and the United States, and testifies to 
international carriers' increased interest in the lucrative West 
African routes.  Lockheed Martin, acting as principal negotiator for 
the airport, believes it secured a favorable deal for RIA that will 
unlock new revenue streams. 
As security and safety challenges continue to delay direct flights 
to the U.S, other international airlines are establishing a presence 
in Liberia, and should increase competition for European and U.S. 
routes.  END SUMMARY. 
 
¶2.  (SBU) RIA signed a contract October 13 with Ethiopian Airways to 
offer daily flights six days a week to Addis Ababa.  EA will service 
Monrovia Sunday through Friday in either the mid-morning or early 
afternoon, stopping in either Accra or Conakry before arriving in 
Addis Ababa.  Lockheed Martin Country Manager Jim Ebanks told 
Econoffs October 14 that Lockheed principally negotiated the 
contract. 
 
¶3.  (SBU) The advent of EA flights will provide an additional route 
from Liberia to other African destinations, Europe and the United 
States.  In addition to the Brussels Airlines flight via Abidjan and 
Brussels, Kenya Air via Accra, or Royal Air Maroc via Casablanca, 
travelers departing Monrovia may now reach the continental U.S. via 
Addis Ababa and Rome.  Fares are likely to be comparable, while 
total flight time to the United States may actually decrease on 
flights through Accra.  Ebanks believes EA is interested in 
capturing more passenger traffic along the West African route and 
increasing transfers at its Addis Ababa hub.  Ebanks stated RIA and 
LCAA are currently in discussions with other carriers for flights to 
Monrovia, including Royal Jordanian, South African Airways and 
Emirates. 
 
¶4.  (SBU) The Ethiopian flight will also provide much-needed revenue 
to RIA.  The EA 757 servicing Monrovia will provide ample 
opportunity for revenue generation, including $1,000 per landing and 
additional aircraft and passenger fees.  Tension in Guinea may mean 
the aircraft, crew and passengers would overnight in Monrovia rather 
than Conakry, generating additional sources of revenue.  For years, 
RIA lacked the capacity to support overnight services, disqualifying 
it as a destination for many long-haul commercial carriers as well 
as U.S. military flights.  Under Lockheed management, Ebanks stated 
that RIA is now able to accommodate aircraft overnight, thanks to 
increased potable water service and fuel capacity. Ebanks does not 
view the lack of catering services as an issue because the 
over-nighting flight will fly to Accra first, where catering is 
available.  In addition to over-nighting, Ebanks said Lockheed 
Martin is exploring new revenue streams, such as charging passengers 
for use of the now-closed VIP lounge, parking at RIA, and cargo 
storage. 
 
¶5.  (SBU) Given RIA's tight budget, the revenue from the regular 
flights will provide fiscal space for new investments in 
infrastructure and customer service.  Ebanks detailed Lockheed 
Martin's plan to use the projected revenue to build a mezzanine 
level in the airport's existing cargo storage facility, part of a 
long-term plan to market RIA as a transshipment point.  Ebanks also 
plans to expand the parking lot to add paid parking spaces. 
 
¶6.  (SBU) Lockheed Martin believes it has vindicated its presence as 
de facto manager of the airport (reftel).  Ebanks claims 
international airlines appear more enthusiastic about venturing into 
Monrovia, thanks to improving safety and security measures and 
tighter fiscal controls at RIA.  He added that Lockheed Martin led 
negotiations with Ethiopian Airlines, and prevented RIA management 
from acceding to EA's request for a 20 percent discount on its 
contract.  The Liberian Civil Aviation Authority (LCAA) certified 
EA, but was not involved in contract negotiations. 
 
¶7.  (SBU) COMMENT: The addition of a second route to Europe and the 
United States is welcome, and could entice more international 
carriers to open up new routes into Africa and Asia.  With the added 
competition, Brussels Airlines may feel some pressure to compete on 
fares.  Ethiopian Airlines plans to arrive and depart during 
daylight hours, which may prove more convenient for travelers than 
with Brussels or RAM, which fly at night.  However, most travelers 
likely will continue to prefer the convenience of direct flights to 
Europe.  Ethiopian Airlines does not have a code-share agreement 
with a U.S. carrier, so official USG travelers would have to travel 
first to Accra in order to take a Delta or American Airlines 
code-share flight.  If Ethiopian Airlines opts to overnight in 
Monrovia rather than Conakry, RIA will have an opportunity to prove 
its ability to service and secure aircrafts for longer stays, and 
Liberia may showcase the nearby RLJ Kendeja Resort to crewmembers 
and passengers. 
 
MONROVIA 00000785  002 OF 002 
 
 
 
 
THOMAS-GREENFIELD