US embassy cable - 04ROME3990

UNCLAS ROME 003990 
 
SIPDIS 
 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EAIR, KTIA, IT, AVIATION, FAA 
SUBJECT: CIVAIR: ITALY STAYS FIRM ON LINATE CODESHARE 
RESTRICTIONS 
 
REF: A. SECSTATE 213659 
     B. ROME 3262 
     C. ROME 1846 
 
Sensitive but Unclassified--Not for Internet Publication 
 
1. (U) Acting Ecmin, Econoff and Econ FSN met October 8 with 
Aldo Sansone, Director General for Civil Aviation in the 
Ministry of Transportation, to deliver Ref A follow-on 
demarche regarding Italian refusal to allow U.S. carriers to 
conduct third-country code-share operations between the U.S. 
and Milan's Linate Airport.  Despite the arguments laid out 
in the nonpaper (which we delivered to Sansone in advance of 
the meeting), Sansone stuck firmly to Italy's previous 
position (ref B). 
 
2. (U) Sansone maintained that a U.S. codeshare arrangement 
via a third European city would violate the ban on 
intercontinental traffic at Linate Airport.  He argued that 
this ban on codesharing in and out of Linate for one leg of 
an inter-continental flight does not conflict with the 
U.S.-Italy bilateral Open Skies agreement because, according 
to Sansone, the accord only guarantees access to individual 
"points" (cities) rather than specific airports.  However, he 
admitted that the wording in the bilateral agreement on this 
question is confusing and could be open for review. 
 
3. (U) A/Ecmin pointed out that Alitalia and Air France had 
advertised their codeshare arrangement from Linate via Paris 
as a trans-Atlantic service of exactly the kind Italy was 
denying to U.S. carriers.  Sansone said his office would once 
again examine how Alitalia and Air France were advertising 
these flights, but underscored that the Ministry considered 
the Alitalia-Air France arrangement to be simply a code-share 
on an intra-EU Milan-Paris flight. 
 
4. (U) Sansone had no substantive comment when A/Ecmin noted 
that the continued existence of a discriminatory regime at 
Linate could lead the U.S. to take countermeasures. We 
emphasized that the U.S. continued to hope that such a 
development could be avoided. 
 
5. (SBU) Comment:  We believe the GOI is sticking by its guns 
(despite the double standard on the Alitalia-Air France code 
share) because Italian authorities fear that more codesharing 
will further drain traffic from Milan's Malpensa airport, the 
designated airport for inter-continental traffic (and also 
much farther from Milan than Linate Airport). The GOI also 
has an interest in maintaining Alitalia's competitive 
advantage in Milan at a time when Italy's flag carrier is 
restructuring after a brush with bankruptcy last month. Given 
the GOI's currently intransigent position, Washington 
officials may wish to consider a face-to-face meeting with 
Sansone to attempt to reach an understanding on the issue. 
End comment. 
 
 
SEMBLER 
 
 
NNNN 
	2004ROME03990 - Classification: UNCLASSIFIED