US embassy cable - 04ROME4915

UNCLAS ROME 004915 
 
SIPDIS 
 
 
C O R R E C T E D C O P Y (PARAS RENUMBERED) 
 
EB/TRA FOR LAURENCE JONES AND MEGAN WALKLET 
FAA PASS TO ROY BARNETT (NEW YORK FIELD OFFICE), MIKE E. 
DANIEL (AFS-50), AIA-1, AIA-300 
AMEMBASSY BRUSSELS PASS TO FAA REP. PAUL FELDMAN 
 
E.O. 12958: N/A 
TAGS: EAIR, IT, AVIATION, FAA 
SUBJECT: AIREUROPE SUBSIDIARY OF BANKRUPT VOLARE GROUP 
GRANTED PROVISIONAL OPERATING LICENSE 
 
Italy Shuts Down Volare Group Airlines. 
--------------------------------------- 
 
1.  On November 19, Italian authorities shut down the 
insolvent Volare Group Airlines, including the regional 
budget carrier VolareWeb and the charter carrier AirEurope. 
On December 27, the National Civil Aviation Authority (ENAC) 
granted AirEurope a provisional license to commence 
international flights immediately, valid through May 6, 2005. 
 The provisional license was granted upon completion of a 
satisfactory aircraft inspection and subsequent issuance of 
the Certificate of Airworthiness (COA) for the sole aircraft 
remaining in AirEurope's possession. 
 
Flights Authorized, But More Delays. 
------------------------------------ 
 
2.  AirEurope experienced delays in commencing flights, as 
Volare Group also had to negotiate a financial agreement with 
Sea, Malpensa Airport administrator and Volare Group 
creditor, before any Volare aircraft would be permitted to 
land at Malpensa.  (Volare Group has also made a similar 
arrangement with creditor and Rome Fiumicino airport 
administrator ADR.)  With the provisional license, AirEurope 
hopes to serve Mauritius, Zanzibar and Dominican Republic 
destinations from Milan Malpensa and Rome Fiumicino airports. 
 ENAC contacts report that for now, AirEurope has no intent 
to fly to the United States. 
 
USG Agencies Are Monitoring Safety/Security Certifications. 
--------------- 
 
3.  Post's Federal Aviation Administration (FAA) rep reports 
FAA is monitoring the situation and could revoke AirEurope's 
U.S. safety certifications if ENAC were to revoke the Air 
Europe aircraft certificates of airworthiness later. 
(Comment.  Post has no information that ENAC intends to 
revoke any certificate.)  The FAA decision has been pending 
while a workout plan for Volare Group is completed.  If ENAC 
retains all safety certifications for AirEurope aircraft, the 
FAA would likely maintain U.S. certifications.  As for the 
Transportation Security Administration (TSA), post's TSA rep 
reports that the Department of Homeland Security,s regional 
International Primary Safety and Security Inspector has 
decided to retain security certifications for the next six 
months to allow Volare Group time to restructure. 
 
4.  Post will continue to monitor Volare developments and 
will report more details septel as they become available. 
 
 
SEMBLER 
 
 
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	2004ROME04915 - Classification: UNCLASSIFIED