Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 09BRASILIA896, Brazil: Liberalization, Possibility of Expanded Frequencies

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09BRASILIA896.
Reference ID Created Released Classification Origin
09BRASILIA896 2009-07-17 19:16 2011-07-11 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Brasilia
VZCZCXRO0478
RR RUEHRG
DE RUEHBR #0896/01 1981916
ZNR UUUUU ZZH
R 171916Z JUL 09
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 4709
INFO RUEHRI/AMCONSUL RIO DE JANEIRO 8000
RUEHSO/AMCONSUL SAO PAULO 4318
RUEHRG/AMCONSUL RECIFE 9749
UNCLAS SECTION 01 OF 03 BRASILIA 000896 
 
SIPDIS 
SENSITIVE 
 
STATE FOR EEB/TRA, WHA/BSC, WHA/EPSC 
STATE PASS USTDA FOR NYOUNG 
STATE PASS USDOC FOR LFUSSELL 
STATE PASS USDOT FOR BHEDBERG 
STATE PASS FAA FOR BAHUMADA 
 
E.O. 12958: N/A 
TAGS: EAIR EINV ECON BR
SUBJECT: Brazil: Liberalization, Possibility of Expanded Frequencies 
and USTDA Cooperation in Civil Aviation 
 
SENSITIVE BUT UNCLASSIFIED 
 
REF: A) BRASILIA 0016, B) BRASILIA 0076, C) BRASILIA 0303 D) 
BRASILIA 0395 
 
1. (SBU) Summary: The president of Brazil's Agency for Civil 
Aviation Regulation (ANAC), Solange Paiva Vieira, provided a 
detailed update of Brazil's civil aviation sector during a July 8 
dinner hosted by Ambassador Sobel that was also attended by several 
of Brazil's leading investment bankers.  Vieira outlined new ANAC 
sponsored market liberalization initiatives aimed at increasing 
competition, provided updates on an airport concession model (reftel 
D) to be delivered to Brazil's President Lula in August, detailed 
the role management consulting firm McKinsey & Company has in 
developing organizational and operational strategies aimed at 
ensuring ANAC operates successfully in a more liberalized aviation 
market environment, and discussed areas of opportunity and 
engagement between Brazil and the U.S.  Vieira was receptive to 
Ambassador Sobel's request that ANAC consider authorizing additional 
frequencies beyond the numbers established in the current U.S. / 
Brazil civil aviation memorandum of understanding (MOU) and 
recommended that the USG initiate dialogue on this topic directly 
with ANAC. Vieira also agreed to meet with Nathan Young, USTDA's 
regional director for Latin America, during his next visit to Brazil 
to explore additional areas of cooperation in aviation related 
infrastructure projects. End Summary. 
 
ANAC's Legislative Initiatives 
------------------------------ 
 
2. (SBU) Vieira highlighted a July 8, 2009 decision by Brazil's 
Civil Aviation Council, whose membership consists of 10 Brazilian 
federal agencies including ANAC, to increase foreign ownership in 
Brazilian airlines from 20% to 49%, and to facilitate quicker entry 
of new airlines into the Brazilian market by no longer requiring 
that they sign a public concession contract with limited validity. 
Instead, ANAC would simply authorize, without an expiration date, 
the new entrant's aviation license once they meet the established 
financial, safety and operational requirements. Vieira noted that 
this new proposal, which has been presented to the President's 
office for approval and will then travel to the Congress for 
passage, will significantly increase the potential growth in the 
aviation sector while streamlining the market access process. 
Vieira explained that these new rules would simplify the often 
confusing and conflicting public service contracts that many 
airlines operate under today, and eliminate what the Brazilian 
Governmental Accounting Office described as irregular contractual 
situations.  Vieira revealed that during the final discussions, ANAC 
proposed that foreign ownership be unlimited for those companies 
from countries that have existing bi-lateral aviation agreements 
with Brazil.  Vieira mentioned that this concept could face some 
hurdles in the Congress, but that ANAC is in support of this clause. 
 Nonetheless, Vieira believes that there is sufficient support in 
Congress to pass this proposal by year's end. 
 
ANAC's Operational Initiatives 
------------------------------ 
 
3. (SBU) ANAC will be pursuing two operational initiatives aimed at 
increasing competition in Brazil's civil aviation sector. The first 
goal is to lift the operational restrictions at Pampulha airport in 
Brazil's third largest city, Belo Horizonte, in the the state of 
Minas Gerais.  This issue is identical to the lifting of operational 
restrictions that ANAC achieved at Rio's Santos Dumont airport 
(reftel C), which, as the smaller of the city's two airports, was 
subject to operational restrictions designed to promote the city's 
other larger, international airport.  The initiative faces stern 
opposition from Minas Gerais State Governor Aecio Neves, who is 
currently focused on expanding the airport infrastructure at Belo's 
larger Confins airport to increase its capacity to hub status. 
However, Vieira does not think that ANAC will face the same 
resistance from Neves as it did from Rio's state governor Sergio 
Cabral because Pampulha, once its restrictions are lifted, would 
still be operationally limited to 1 takeoff and 1 landing per hour 
given its small passenger terminal.  This would result in very few 
routes siphoned from Confins for Pampulha.  The second operational 
initiative involves the reallocation of slots at Sao Paulo's 
Congonhas airport, the only airport whose slots are completely 
saturated.  ANAC's proposal is to re-allocate, every 2 years, 20% of 
the airport's slots to those airlines whose operational performance 
warrants such rewards.  The performance criteria used by ANAC will 
be the airline's schedule regularity and punctuality, and adherence 
to established safety standards. According to Vieira, this would 
 
BRASILIA 00000896  002 OF 003 
 
 
enhance competition among the airlines and possibly lead to new 
entrants at Congonhas.  The initiative's two year window has been 
criticized by many airlines for being too short to properly evaluate 
an airline's performance, and specifically, by Brazilian airline 
GOL, whose purchase of Brazil's Varig airline in 2007 was partially 
driven by their desire to capture Varig's coveted slots at 
Congonhas. 
 
 
ANAC CONTRACTS CONSULTING FIRM 
------------------------------ 
 
4. (SBU) Vieira announced to the group, whose participants included 
Managing Director Roderick Greenless from Merrill Lynch Brazil, 
Director Daniel Sonder from Brazil's Credit Suisse Global 
Structuring Unit, and Citi's Managing Director in Brazil Jairo 
Loureiro, that the consulting firm of Mckinsey & Company has been 
contracted by ANAC to assist in the development of an organizational 
and operational structure suited to a more liberalized market. 
Antonnaldo Neves, McKinsey's lead in working with ANAC, advised that 
he has been working with Vieira for 2 months and is expected to 
submit organizational and operational strategy papers by October 
2009.  Neves also revealed that he has been consulting ANAC on the 
concession airport infrastructure model (reftel A, D) that is now 
scheduled to be presented to President Lula at the beginning of 
August 2009.  Vieira explained that the model will no longer 
recommend incorporating specific airports into the concession model, 
but instead provides general criteria that should be used in 
determining whether an airport should be included in the model.  The 
findings of the latest research, according to Vieira and Neves, 
recommend that any Brazilian airport with over one million annual 
passengers be considered suitable for the model.  This would 
encompass 20 airports and leave INFRAERO, the government-funded 
airport infrastructure and operations management company, with the 
responsibility of running the remaining 47 airports.  When pressed 
by Loureiro from Citi about the fate of INFRAERO, Vieira said that 
INFRAERO's operational capacities appear to fail at the one million 
passenger level and that its internal structure and business model 
were not compatible with a growing, more liberalized aviation 
market. Vieira also revealed that a separate evaluation of INFRAERO 
was being performed by an unnamed consulting firm.  Vieira informed 
the group that there would be no cap on the level of foreign 
investment in the proposed concession model.  Although the model is 
on schedule for delivery next month to President Lula, Vieira 
commented that the political decision of which airports to choose 
will be very time consuming given the elections in 2010 and the 
complicated web of stakeholders involved. 
 
AREAS FOR US/BRAZIL ENGAGEMENT 
------------------------------ 
 
5. (SBU) While conceding that an Open Skies (OS) agreement will most 
likely not occur during the Lula administration, Vieira recommended 
that both parties adhere to the agreed OS strategies (reftel D). 
Ambassador Sobel commented that demand for frequencies had already 
exceeded supply in each of the last 2 rounds of frequency 
allocations authorized by the DOT and that ANAC should be receptive 
to more frequencies, noting that several other US airlines were 
interested in starting or expanding service in Brazil.  Vieira 
suggested that the USG contact ANAC's Director of International 
Relations, Ronaldo Da Motta, and his assistant, Superintendent Bruno 
Dalcolmo to discuss increasing frequencies.  Vieira pointed out that 
Rio's Galeao airport and the entire group of airports located in the 
northeast are operationally capably of handling additional 
international frequencies, but in Sao Paulo, only Viracopos airport 
is viable given the operationally restrictions still in place on 
adding additional international frequencies to Guarulhos airport 
based on the MOU signed in 2008, and the fact that Congonhas is a 
domestic airport.  However, Viracopos' distance from Sao Paulo (62 
miles) makes it unattractive to US carriers.  Ambassador Sobel 
offered ideas of engagement involving USTDA funded studies in 
airport infrastructure expansion, citing the USD 573,000 USTDA grant 
signed earlier this year that will fund a study to determine and 
recommend various options available to Brazil as it invests $1.3 
billion in upgrading and expanding the Tancredo Neves International 
Airport in the Brazilian city of Belo Horizante.  Vieira agreed to 
meet with USTDA Regional Director Nathan Young on his next visit and 
also recommended reaching out to the state governments.   Vieira 
spoke proudly of ANAC's performances during recent safety audits by 
both ICAO and the FAA in May and referenced ANAC's collaboration 
with the TSA in scheduled TSA security visits in August and 
September 2009 as a testament to ANAC's cooperative spirit and 
capabilities. 
 
BRASILIA 00000896  003 OF 003 
 
 
 
 
6. (SBU) Comment:  ANAC continues to be committed to market 
liberalization in Brazil's civil aviation sector and given its 
recent successes in lifting operational restrictions at Rio's Santos 
Dumont airport, the successful implementation of international 
airfare deregulation, and impressive marks from the two safety 
audits in May, ANAC is an emboldened agency that is pressing its 
liberalization agenda with greater force and confidence.  Vieira 
commented on the late hours that she and her staff were working in 
achieving these successes, despite continued sectoral and political 
opposition.  However, with the 2010 election year approaching, 
ANAC's abilities to implement new market liberalization measures may 
be tested. End Comment. 
 
 
Kubiske