US embassy cable - 04ROME1846

UNCLAS ROME 001846 
 
SIPDIS 
 
 
SENSITIVE 
 
STATE FOR EUR/WE, EUR/ERA, EB/TRA/OTP; 
COMMERCE FOR DAVID DE FALCO 
 
E.O. 12958: N/A 
TAGS: EAIR, BEXP, IT, EUN, AVIATION 
SUBJECT: ALLEGATIONS OF ALITALIA CODE SHARING AT LINATE 
 
REF: STATE 55375 
 
     1. (SBU) SUMMARY: TRANSPORT MINISTRY DG FOR CIVIL AVIATION 
SANSONE TOLD ECONOFFS APRIL 28 THAT HE HAD INVESTIGATED THE 
ALLEGATIONS OF ALITALIA CODE-SHARING WITH OTHER EU CARRIERS 
OUT OF LINATE AIRPORT AND HAD FOUND NO EVIDENCE THAT THIS WAS 
TAKING PLACE.  SANSONE HAD SPELLED OUT THE RULES FOR LINATE 
TO SENIOR ALITALIA OFFICIALS, AND WARNED THAT HE WOULD NOT 
TOLERATE VIOLATIONS.  SANSONE RECALLED THE COMPLEX HISTORY OF 
THE LINATE/MALPENSA DIVISION OF TRAFFIC.  NOW, HE ADDED, 
OTHER EU MEMBER STATE GOVERNMENTS WERE PUSHING HARD TO 
ELIMINATE RESTRICTIONS ON LINATE, TO THE DETRIMENT OF 
MALPENSA AS A HUB, TO ALITALIA, AND TO U.S. CARRIERS FLYING 
TO MALPENSA.  END SUMMARY. 
 
2. (SBU) ALDO SANSONE, TRANSPORT MINISTRY DIRECTOR GENERAL 
FOR CIVIL AVIATION, TOLD EMBOFFS APRIL 28 THAT HE HAD 
INVESTIGATED THE ALLEGATIONS OF ALITALIA'S CODE-SHARING WITH 
OTHER EU CARRIERS OUT OF LINATE AND HAD FOUND NO EVIDENCE 
THAT THIS WAS TAKING PLACE.  SANSONE STATED THAT THE 
DOCUMENTS PROVIDED BY THE USG HAD, UPON INVESTIGATION, 
DEMONSTRATED ONLY THAT PASSENGERS COULD FIND CONNECTING 
FLIGHTS INTO AND OUT OF LINATE THROUGH OTHER EU CITIES.  IN 
ORDER TO BE AS THOROUGH AS POSSIBLE, HOWEVER, SANSONE HAD 
SPOKEN TO SENIOR OFFICIALS AT ALITALIA AND ASKED THEM POINT 
BLANK WHETHER ALITALIA WAS CODE SHARING AT LINATE.  AFTER 
ALITALIA DENIED CODE SHARING AT LINATE, SANSONE SAID HE THEN 
WARNED THAT HE WOULD NOT PERMIT IT IN THE FUTURE, AND WOULD 
SANCTION HARSHLY ANY VIOLATIONS. 
 
3. (SBU) SANSONE RECALLED THE HISTORY OF THE LINATE/MALPENSA 
TRAFFIC DIVISION.  BECAUSE OF OVERCROWDING AT LINATE, THE 
DECISION WAS MADE TO DIVIDE TRAFFIC BETWEEN THE CITY AIRPORT 
    OF LINATE AND THE LARGER AIRPORT AT MALPENSA.  INITIALLY, 
LINATE WAS TO HANDLE ONLY DOMESTIC ITALIAN TRAFFIC.  THE 
OTHER EU MEMBERS PROTESTED, AND SO AN EFFORT HAD BEEN MADE TO 
FIND A DIFFERENT SOLUTION.  CONSIDERATION WAS GIVEN TO 
ESTABLISHING A LIMIT ON FLIGHTS ACCORDING TO DISTANCE FROM 
LINATE, OR THE NUMBER OF PASSENGERS PER AIRLINE, AND SIMILAR 
FORMULATIONS.  NONE OF THESE SOLUTIONS HAD PROVEN ACCEPTABLE. 
 THE LOCAL AND REGIONAL AUTHORITIES HAD OPPOSED SOME; THE EU 
COMMISSION HAD OPPOSED OTHERS.  FINALLY, THE GUIDELINES IN 
THE DECREE OF JANUARY 5, 2001, HAD ENTERED INTO FORCE. 
SANSONE CONDEDED THAT THESE RULES WERE NOT PERFECT; IN FACT 
THEY WERE VERY TROUBLESOME.  HOWEVER, THEY WERE THE RULES IN 
PLACE AND REPRESENTED THE BEST SOLUTION THAT COULD BE FOUND. 
 
4. (SBU) OTHER EU MEMBER STATES, INCLUDING THE UK AND 
GERMANY, WERE WORKING WITHIN EU CHANNELS TO ELIMINATE THE 
RESTRICTIONS AT LINATE, INCLUDING THE PROHIBITION ON CODE 
SHARING, NOTED SANSONE.  SHOULD THESE EFFORTS BE SUCCESSFUL, 
IT WOULD MEAN SERIOUS PROBLEMS -- FAR TOO MUCH TRAFFIC AT 
LINATE FOR THAT AIRPORT TO SAFELY HANDLE, AND U.S. CARRIERS 
MORE OR LESS ISOLATED AT MALPENSA WITH ONLY A FEW OTHER 
TRANSCONTINENTAL CARRIERS. 
 
5. (SBU) COMMENT:  THIS IS THE LATEST IN A LONG HISTORY OF 
COMPLEX ISSUES INVOLVING THE LINATE/MALPENSA AIRPORTS IN 
MILAN.  AT PRESENT, THERE ARE CLEARLY COMPETING INTERESTS 
AMONG U.S. CARRIERS:  AMERICAN AND UNITED NO LONGER SERVE 
MILAN, BUT WOULD LIKE TO CODESHARE WITH EU CARRIERS THAT 
SERVE LINATE AIRPORT. SINCE THIS IS PROHIBITED, THEY WOULD 
LIKE TO SEE THE LIMITATIONS ON USE OF LINATE LIFTED FOR EU 
CARRIERS.  DELTA AND CONTINENTAL, IN CONTRAST, FLY TO/FROM 
    MALPENSA AND HAVE A STRONG INTEREST IN REINFORCING THIS 
AIRPORT AS A HUB, WHICH INCLUDES RETAINING LIMITATIONS ON USE 
OF LINATE BY EU CARRIERS.  END COMMENT. 
 
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 2004ROME01846 - Classification: UNCLASSIFIED