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Viewing cable 08NAIROBI2326, KENYA'S FLIGHT TOWARDS FAA "CATEGORY-1" STALLS

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Reference ID Created Released Classification Origin
08NAIROBI2326 2008-10-09 10:44 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Nairobi
VZCZCXYZ0000
RR RUEHWEB

DE RUEHNR #2326/01 2831044
ZNR UUUUU ZZH
R 091044Z OCT 08
FM AMEMBASSY NAIROBI
TO RUEHC/SECSTATE WASHDC 7247
INFO RUEHXR/RWANDA COLLECTIVE
RULSDMK/DOT WASHDC
RHMCSUU/FAA WASHDC
RUEAHLC/HOMELAND SECURITY CENTER WASHDC
UNCLAS NAIROBI 002326 
 
SENSITIVE 
 
DEPT FOR AF/E, AF/RSA, AND AF/EPS 
DEPT FOR EEB/TRA J EMERY 
DEPT ALSO PASS TO DOT FOR CORNELIA (CONNIE) HUNTER 
TSA FOR JILLENE MACCREERY, CARLOS DE LA TORRE, AND MIRIAM MOSES 
FAA FOR DONNA KRIMSKI 
FAA REPRESENTATIVE DAKAR 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: EAIR ECON ASEC PTER KCRM KE
SUBJECT: KENYA'S FLIGHT TOWARDS FAA "CATEGORY-1" STALLS 
 
REF: NAIROBI 2041 
 
1. (SBU) Summary:  A plan by Prime Minister Odinga to provide the 
Kenya Civil Aviation Authority (KCAA) with resources to quickly hire 
and retain inspectors to certify Kenya Airways' (KQ) fleet is 
languishing in Cabinet.  KCAA needs these inspectors onboard now to 
certify KQ's Boeing 737s, 767s, and 777s as the crucial next step 
towards FAA Category 1 and direct flights to the United States. 
Ministry of Transportation PermSec Ali remains confident in 
near-term Cabinet approval, but concedes the upgrade may still leave 
KCAA short of the resources needed to hire/retain the inspectors. 
Meanwhile, KQ's CEO indicates direct flights to the U.S. may not be 
in the airline's financial interest.  Nevertheless, we will continue 
to push for Kenya's achievement of Category 1 as safer skies help 
protect tens of thousands of Americans who fly in Kenya - and on KQ 
- each year.  End Summary. 
 
2.  (SBU) Reftel reports inter alia on an August 2008 plan by Prime 
Minister Odinga and Transportation Minister Mwakwere to quickly 
upgrade the para-statal status of the Kenya Civil Aviation Authority 
(KCAA).  According to Odinga and Mwakwere in August, once upgraded, 
KCAA would have the resources to hire the three inspectors (two 
covering flight ops, the other airworthiness) needed to certify 
Kenya Airways' (KQ) diverse fleet of aircraft, including Boeing 
737s, 767s, and 777s.  Kenya must hire/retain these inspectors as 
the crucial next step toward achieving FAA Category 1.  Category 1 
is a prerequisite for direct flights to the U.S., allowing Kenya to 
take full advantage of the June 2008 Open Skies agreement signed by 
Odinga in Washington.  Delta Airlines continues to plan for direct 
flights beginning in June 2009. 
 
3.  (SBU) During an October 6 meeting with a GAO civil aviation 
study team, the DCM, EconOffs, and the Managing Directors of KCAA 
and the Kenya Airports Authority, Ministry of Transportation PermSec 
Ali indicated that Cabinet approval of the para-statal upgrade is 
forthcoming.  He cautioned, however, that the upgrade "may not be 
enough" to provide KCAA with the resources it needs to hire/retain 
the necessary inspectors.  He said the Ministry was working on "a 
package" to resolve the compensation issue within the next few 
weeks; the package would need the support of the highest levels of 
government, he added. 
 
4.  (SBU) According to PermSec Ali, over the long-term the GOK plans 
to increase the supply of inspectors (and lower their price tags) 
through higher turnout at KCAA's East Africa School of Aviation.  In 
response to a question from the DCM regarding KQ's interest in 
flying direct to the U.S., Ali - noting his membership on KQ's Board 
- said it was "desirous."  Horticulture and tourism would directly 
benefit, he said.  The Managing Directors of KCAA and KAA agreed 
with the benefits of direct flights and expressed sincere 
appreciation for U.S. assistance under the "Safe Skies for Africa 
program." 
 
5.  (SBU) KQ CEO Titus Naikuni told us October 7 that he was "still 
thinking about" whether direct flights to the U.S. were in the 
airline's financial interest, assuming achievement of Category 1. 
He expressed some consternation that Delta planned to start direct 
U.S.-Kenya service in June 2009 without reciprocity for KQ.  The CEO 
said he supported KCAA's para-statal upgrade, noting that KQ had 
avoided poaching by Middle Eastern airlines by paying 
internationally competitive salaries. 
 
6.  (SBU) Comment:  Kenya is at a crossroads.  By signing the June 
2008 Open Skies agreement, Kenya signaled its desire to operate 
direct flights to the U.S.  But Kenya either underestimated or 
ignored the structural and policy changes that must implemented in 
order for it to take advantage of the agreement.  While the 
government is now aware of and pursuing the necessary structural and 
policy changes needed to achieve FAA Category 1 status (i.e., 
security upgrades to Jomo Kenyatta Airport and certification of all 
of Kenya Airways aircraft), the management - and some of the major 
shareholders  - of Kenya Airways are ambivalent about the U.S. 
market on commercial grounds.  Kenya Airways is the only Kenyan 
carrier capable of flying to the U.S. and its market plan is clearly 
focused on the Middle East, Asia and Europe.  The airline is 26 
percent owned by the Air France/KLM (and now NW and Delta) 
consortium.  The Government of Kenya/Ministry of Transportation has 
a minority (23 percent) share and it may well face an uphill battle 
persuading oher ministries and the airline's owners of the need to 
expend considerable financial resources to achieve Category 1 
status.  In the meantime, at least one American carrier - Delta - is 
gearing up to commence direct flights between the U.S. and Kenya. 
That said, our interests are clear and we will continue to push 
Kenya to achieve Category 1 status so that the security of the tens 
of thousands of Americans who fly to/from and in Kenya every year - 
largely on KQ - are protected by safer skies.  End Comment. 
 
SLUTZ