US embassy cable - 04THEHAGUE1920

C O N F I D E N T I A L THE HAGUE 001920 
 
SIPDIS 
 
STATE FOR EUR/UBI HOLLIDAY 
STATE ALSO FOR EB/TRA/WALKLET 
USEU FOR KESSLER 
 
E.O. 12958: DECL: 07/30/2014 
TAGS: EAIR, EU, NL 
SUBJECT: CIVAIR: KLM SEES NO ECONOMIC RATIOANLE FOR 
CABOTAGE DEMAND 
 
 
Classified By: Ambassador Clifford M. Sobel for reasons 1.5(b) and (d). 
 
1.  (U) On July 29 Ambassador Sobel and econoff (note taker) 
met with KLM 
President and CEO Leo van Wijk.  Ambassador Sobel asked van 
Wijk his thoughts 
on the failure to achieve a first-phase U.S.-EU air services 
agreement.  The 
Ambassador also steered the conversation to Commissioner 
DePalacio's calls for 
bi-lateral open skies agreement denunciations, as well as the 
fledgling Dutch 
air marshal program. 
 
First-Phase Agreement 
--------------------- 
2.  (C) Van Wijk regretted that the U.S. and EU could not 
reach a first-phase 
agreement.  He said KLM and the GONL favored an agreement. 
Van Wijk was 
baffled by some member states' demands for cabotage.  Van 
Wijk mused that 
Virgin Atlantic might have long term objectives vis a vis the 
U.S. market, and 
could want cabotage rights. For the rest of Europe's 
airlines, van Wijk stated, 
"there is no commercial sense behind cabotage." British 
Airways, (BA) strategy 
is to postpone an agreement as long as possible, as they have 
the most to lose, 
van Wijk said.  He opined that, together, BA and Virgin are 
influencing the 
UK's position.  Also, Director General for Transport Francois 
Lamoureux may 
have believed that a first-phase agreement now would leave 
the EU with no 
leverage for later negotiations. 
 
Denunciation 
------------ 
3.  (U) This month the European Commission threatened a 
lawsuit challenging the 
GONL's open skies agreement with the U.S.  Van Wijk, like 
post's working level 
Ministry of Transport contacts, did not seem overly 
concerned.  He (and they) 
pointed out that any court case could take a year to decide, 
and uniquely, the 
US-NL open skies pact has a two-year termination clause.  The 
Dutch would have 
to denounce the agreement in 2007 at the earliest.  Van Wijk 
did not understand 
why DePalacio had decided to resurrect agreement 
denunciation, saying "it is a 
no-win situation" and leaves her successor in a difficult 
position.  Van Wijk 
doubts the argument that the Commission's denunciation 
demands will cause 
recalcitrant member states to sign on to a first-phase 
agreement. 
 
4.  (C) Van Wijk said his Air France counterpart, Jean-Cyril 
Spinetta was also 
publicly displeased with DePalacio's denunciation letters. 
Dutch Minister of 
Transport Karla Peijs and Spinetta have consulted on open 
skies.  Spinetta was 
recently elected chairman of the International Air Transport 
Association. 
 
Air Marshals 
------------ 
5.  (C) After months of negotiations with the Dutch airlines 
and the pilots 
union, on July 1 the GONL began a six-month trial air 
marshals program. Van 
Wijk indicated the program was proceeding uneventfully. 
Dutch air marshals are 
Israeli trained.  In the case of a suspect flight (a la 
Paris-LA last 
December), the government determines whether to assign a 
marshal, but the 
airline must approve.  Otherwise, the airline could (and van 
Wijk insinuated, 
KLM would) simply cancel a suspect flight. 
SOBEL 
SOBEL