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Cablegate: Brazil Civair: Meetings with Ministry of Defense, Anac

VZCZCXRO9850
PP RUEHRG
DE RUEHBR #0222 0461757
ZNR UUUUU ZZH
P 151757Z FEB 08
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC PRIORITY 1006
INFO RULSDMK/DEPT OF TRANSPORTATION WASHDC
RUCPDOC/USDOC WASHDC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RUEKJCS/SECDEF WASHDC
RHMFIUU/FAA NATIONAL HQ WASHINGTON DC
RUEAYVF/FAA MIAMI ARTCC MIAMI FL
RUEWMFU/TSA HQ WASHINGTON DC
RUWDQAB/NTSB WASHINGTON DC
RUEHRI/AMCONSUL RIO DE JANEIRO 5780
RUEHSO/AMCONSUL SAO PAULO 1597
RUEHRG/AMCONSUL RECIFE 7681
RUEHBU/AMEMBASSY BUENOS AIRES 5302
RUEHSG/AMEMBASSY SANTIAGO 0148
RUEHMN/AMEMBASSY MONTEVIDEO 7211
RUEHAC/AMEMBASSY ASUNCION 6578
RUEHPE/AMEMBASSY LIMA 3686
RUEHBO/AMEMBASSY BOGOTA 4444
RUEHCV/AMEMBASSY CARACAS 3961
RUEHLP/AMEMBASSY LA PAZ 5953
RUEHQT/AMEMBASSY QUITO 2383
RUEHPO/AMEMBASSY PARAMARIBO 1441

UNCLAS BRASILIA 000222

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EEB/TRA: JBYERLY, JREIFMAN, TROBL
TSA FOR VREEDER, SHASMAN

SIPDIS
FAA FOR CCAPESTANY, KBERQUIST, BAHUMADA
DEPT OF TRANSPORTATION FOR BHEDBERG
DEPT OF COMMERCE FOR ITA/EALFORD

E.O. 12958: N/A
TAGS: EAIR OTRA ECON BR

SUBJECT: BRAZIL CIVAIR: MEETINGS WITH MINISTRY OF DEFENSE, ANAC
REGARDING PROPOSED GUARULHOS PARKING FEE INCREASE

REF: (A) BRASILIA 169; (B) BRASILIA 129; (C) STATE 3163

1. (SBU) On February 13, during a meeting with Brazilian Defense
Minister Nelson Jobim primarily to discuss Jobim's March visit to
Washington, the Ambassador raised the issue of the proposed aircraft
parking fee increase at Sao Paulo's Guarulhos airport. The measure
was announced in December by national civil aviation agency ANAC and
included a public comment period which elicited submissions from
relevant stakeholders, including all four U.S. carriers. The
proposed fee increase would raise the fee 5200% for those aircraft
parking at Guarulhos in excess of three hours. While the measure
would apply to all carriers, including Brazilian, it would create
the greatest hardship for carriers from the U.S., Japan, and other
nations who by necessity park the longest. It also appears to
violate Article 10 of our bilateral air services agreement in terms
of being a "reasonable" fee increase.

2. (SBU) Ambassador explained that this issue was extremely
important to U.S. companies, who are pressing for a resolution.
Jobim indicated he was sensitive to the request from U.S. companies
and said he was committed to resolving the issue. He indicated that
the GOB is looking at alternatives, and believed they would be ready
to present them by the end of March.

3. (SBU) In a separate meeting on February 14, ANAC Directors
Marcelo Pacheco dos Guaranys and Andre Gomes de Barros told Econoff
that it is not ANAC's intention to inhibit or decrease travel to and
from Sao Paulo. Initially the agency had thought airlines could
feasibly fly to Rio from Sao Paulo (without passengers) to park and
then fly back to Sao Paulo for their evening flights. As a result
of industry comments, they now understand the economic impact on the
airlines. While some fare increase is still on the table, the
Directors indicated that the Ministry of Defense has commissioned
studies from IATA regarding alternative solutions to Sao Paulo's
infrastructure challenges. Therefore, off the record, the Directors
conceded that the original fee proposal likely will not go into
effect March 16 as originally announced. The government will need
sufficient time to review the results of the IATA studies.

SOBEL

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