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Viewing cable 06LAPAZ913, POLICE AND MILITARY CLEAR RUNWAYS, GUARANTEE

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Reference ID Created Released Classification Origin
06LAPAZ913 2006-03-31 17:37 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy La Paz
VZCZCXYZ0037
RR RUEHWEB

DE RUEHLP #0913 0901737
ZNR UUUUU ZZH
R 311737Z MAR 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 8696
INFO RUEHAC/AMEMBASSY ASUNCION 5752
RUEHBO/AMEMBASSY BOGOTA 3030
RUEHBR/AMEMBASSY BRASILIA 6902
RUEHBU/AMEMBASSY BUENOS AIRES 4139
RUEHCV/AMEMBASSY CARACAS 1452
RUEHPE/AMEMBASSY LIMA 1396
RUEHME/AMEMBASSY MEXICO 1683
RUEHMN/AMEMBASSY MONTEVIDEO 3706
RUEHQT/AMEMBASSY QUITO 4092
RUEHSG/AMEMBASSY SANTIAGO 8628
RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC
RUEANHA/FAA NATIONAL HQ WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
UNCLAS LA PAZ 000913 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EB/TRA JHORWITZ AND EB/TRA/OTP BMATTINGLEY 
STATE ALSO FOR WHA/AND LPETRONI 
STATE PASS TO FAA FOR LHART 
STATE PASS TO DOT FOR CCOLDREN 
COMMERCE FOR JANGLIN 
 
E.O. 12958: N/A 
TAGS: EAIR ECON PGOV BL
SUBJECT: POLICE AND MILITARY CLEAR RUNWAYS, GUARANTEE 
FLIGHTS 
 
REF: LA PAZ 902 (AND PREVIOUS) 
 
1. (U) Summary: Bolivian police and military cleared airport 
runways in La Paz, Cochabamba, and Santa Cruz late yesterday, 
March 30, and ended day-long protests organized by Lloyd Aero 
Boliviano employees demanding that the GOB resume the 
intervention it suspended March 24 (reftel).  The flight 
disruptions dealt yet another blow to Lloyd's reputation and 
operating capacity, further weakening its chances of 
survival.  With over 2,000 jobs at stake, company executives 
and GOB officials are reluctant to allow Lloyd's total 
collapse, but as of now, no clear solution is in sight.  End 
summary. 
 
2. (U) Bolivian police and military personnel cleared airport 
runways in La Paz, Cochabamba, and Santa Cruz late yesterday, 
March 30, and brought an end to day-long protests organized 
by Lloyd Aero Boliviano employees demanding that the GOB 
resume the intervention it suspended March 24 (reftel). 
Authorities removed two planes blocking the principal runway 
in Santa Cruz and stationed personnel at airport entrances 
and behind ticket counters, guaranteeing staff and passenger 
access to boarding gates and allowing American Airlines and 
other carriers to prepare for a return to normal operations. 
The American Airlines flight scheduled to depart March 30 
left today, March 31. 
 
3. (U) The protests reportedly disrupted 20 flights and 
delayed 1,500 passengers, dealing yet another blow to Lloyd's 
reputation and operating capacity and further weakening its 
chances of survival.  The superintendent of transportation 
had considered revoking Lloyd's operating license, in part 
because the carrier owes the superintendent an estimated 
$356,000 in unpaid regulatory fees, but ultimately decided to 
hold off to avoid added tension.  Outside observers have 
called for Lloyd's nationalization, but the GOB seems 
unwilling to assume responsibility for the airline's 
multi-million dollar debts and 2,200 employees.  Others have 
suggested the GOB put the carrier up for sale, but Lloyd's 
deep financial problems make finding buyers unlikely. 
 
4. (SBU) Comment: With over 2,000 jobs at stake, company 
executives and GOB officials are reluctant to allow the 
airline's definitive collapse, but as of now, no clear 
solution is in sight.  President Morales has rejected 
nationalization, saying it would be tantamount to 
"nationalizing corruption," and has said the GOB will not 
provide a capital injection.  He has offered to mediate 
between company workers and executives, but neither side 
seems disposed to make concessions.  For all concerned, from 
GOB officials to Lloyd employees at all levels, the outlook 
is grim.  End comment. 
GREENLEE