Cablegate: Alitalia Reply to Ocpa Issues Air Carrier

This record is a partial extract of the original cable. The full text of the original cable is not available.




E.O. 12958: N/A


1. On July 8, 2003, Alitalia CEO Francesco Mengozzi sent
the Ambassador a copy of a letter to L. Paul Bremer (OCPA).
The letter has been faxed to EB/TRA/AN. Post has confirmed
with Mr. Mengozzi's office that the same text was sent via
email July 8 to

Begin text:

To: Ambassador L. Paul Bremer
Office of the Coalition Provisional Authority
Baghdad - Iraq

Subject: Baghdad Commercial Air Service

Dear Sir,

We are pleased to write you with reference to the notice
issued by your office, OCPA, on July 2nd, inviting airlines
interested in providing scheduled passenger commercial air
transport to and from Baghdad.

Alitalia, Linee Aeree Italiane S.p.A., hereby submits its
application to perform scheduled air services between Italy
and Baghdad, reinstating an air link which in the past has
proven to be very important for the development of economic
and cultural ties between Iraq and the Republic of Italy.

Alitalia-Linee Aeree Italiane S.p.A., is a company organized
and existing under the laws of the Italian Republic, having
its Head Office at Viale Alessandro Marchetti 111-00148 Rome
and has a fleet of 170 aircraft, ranging from regional,
short-medium haul to long haul equipment.

Furthermore, Alitalia has developed over the years a
widespread system of bilateral and multilateral partnerships,
which enable us to offer seamless service to a broad range of
destinations: the core of this strategy is the membership in
the SkyTeam Alliance, whose other members are Delta Airlines,
Air France, Korean Air, Aeromexico, Czech Airlines.

Alitalia is the Italian designated airline under the
Italy-Iraq Air Services Agreement, as signed in 1963 and
amended in 1976. Pursuant to such ASA, Alitalia has been
performing scheduled air services operating two wide body
frequencies per week from Italy to Baghdad till the early

Alitalia is a signatory of the IATA Intercarrier Agreement on
Passenger Liability and of the IATA Agreement on Measures to
Implement the IATA Intercarrier Agreement. Alitalia also
meets US FAA International Aviation Safety requirements and
regulations, operating out of an FAA Category 1 country and
holds the insurance coverage required by the Italian and
International laws and regulations.

In light of the foreseen reopening of Baghdad International
Airport, Alitalia, wishing to effectively support the
reconstruction and development of the civil aviation in Iraq,
is requesting to reinstate its operations, in the course of
the upcoming IATA Winter Season 2003/2004; as we expect a
meaningful growth of air services demand due to the global
effort, we plan to reach, within approximately two IATA
seasons from start up, a daily service pattern, possibly in
code-sharing cooperation with our Sky Team Alliance partners.

Depending on the operational and logistical capabilities of
Baghdad International Airport, the starting operational
pattern shall be performing on a three weekly services basis,
on Mondays, Thursdays and Saturdays, deploying either B767 or
A320 equipment.

The routing being considered, based on the information
currently available and taking into account the goodwill and
flexibility of neighbouring nations, provides for a direct or
via intermediate point service from Rome/Milan to Baghdad;
the operational as well as infrastructural capabilities of
Baghdad International Airport will also play a key role when
firming timings and scheduling details. In any case, flight
schedules will aim to adequately satisfy the demand of
traffic flows originating and terminating in Iraq or in
Italy, as well as traffic flows connecting through Italy to
destinations worldwide.

We take the liberty to underline that Italy appears, for the

above mentioned historical and economic reasons, on top of a
fortunate geographic location, as the most suitable gateway
between Iraq and the western world.

Fare structures currently being considered, take into account
the social and economical environment and reflect standard
Alitalia practice within the region.

Alitalia, in light of the need to provide an efficient, safe
and reliable air tranportation service, will need to verify
in place, with a specific team, all issues regarding
logistical, crews and aircraft assistance requirements, in
close cooperation with your office and local authorities.

Thanking you in advance for the attention and support you
will give to Alitalia's application, Alitalia would like to
reiterate its willingness in assisting and actively
participating in the ongoing effort to reconstruct and
develop the economy of Iraq.

Yours Sincerely,
Francesco Mengozzi
Managing Director and CEO
2003ROME03109 - Classification: UNCLASSIFIED

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