US embassy cable - 05ROME372

UNCLAS  ROME 000372 
 
SIPDIS 
 
 
SENSITIVE 
 
EB/TRA FOR LJONES 
DOT FOR OST 
 
E.O. 12958: N/A 
TAGS: EAIR, KTIA, IT, AVIATION 
SUBJECT: GOI OPEN TO U.S. SUGGESTIONS ON MILAN/LINATE 
AIRPORT 
 
REF: A. 04 ROME 3990 
B. 04 ROME 3262 
C. 04 ROME 1846 
 
Sensitive But Unclassified -- Not For Internet Publication 
 
Summary 
------- 
 
1.  (SBU) On January 20, the MFA hosted an inter-ministerial 
meeting to coordinate U.S.-Italy consultations on the Linate 
code-sharing issue.  Italy has proposed February 15-16 
consultations in Washington. The GOI delegation is interested 
in USG views, yet remains convinced after the MFA meeting 
that the GOI has adequately responded to the American 
Airlines/United Airlines complaint by withdrawing Alitalia 
code-sharing rights at Linate, so that neither U.S. carriers 
nor Alitalia have such rights.  End Summary. 
 
Italy,s Goals: Restrict Access to Linate; No Alitalia 
Penalties 
--------------------------------------------- --------- 
 
2.  (SBU) On January 11, Dr. Aldo Sansone, Italy,s lead 
civil aviation negotiator at the Transport Ministry, told 
Embassy Officers that his objective is to restrict traffic 
into Linate, a view post also has heard from the Italian 
National Civil Aviation Agency (ENAC).  According to Sansone, 
restricted Linate access benefits Alitalia by encouraging it 
to develop its many Malpensa-U.S. routes.  Sansone and ENAC 
officials have repeatedly expressed the view that Alitalia,s 
efforts to increase its transatlantic market share with 
Linate-U.S. flights only cannibalize passengers from 
Alitalia,s own Malpensa-U.S. flights.  Separately, MFA,s 
North America Director, Francesco Tafuri, told us that 
cash-strapped Alitalia is very concerned about penalties with 
financial implications related to Linate.  According to 
Tafuri, one or two ENAC officials, a representative from 
Alitalia, a representative from the Italian Embassy, and 
perhaps Sansone would take part in the Washington talks. 
Post will provide the final delegation list septel. 
 
Sansone: Linate Resolved 
------------------------ 
 
3.  (SBU) Sansone had no new ideas on how to address the 
Linate code sharing issue.  He said that from his point of 
view the Linate code-share issue was largely resolved 
already, since Alitalia has been prohibited from advertising 
flights between Linate and the United States.  The airline 
has made a technical fix to ensure that travel agents and 
passengers will not view a direct flight option when 
attempting a reservation between Linate and the United States 
on Alitalia.  According to Sansone, even with this fix, any 
other airline could theoretically still route a passenger 
from Linate to another European destination, even for a 
legitimate rest stop, then ticket the passenger to an onward 
inter-continental destination.  Therefore, the issue does not 
appear to be completely resolved.  Sansone is optimistic, 
however, that the talks will convince the USG and U.S. 
carriers that the complaint should be dropped.  In that 
regard, Sansone expressed interest in an informal meeting 
with U.S. negotiators in advance of the formal Washington 
bilaterals to clarify the goals of the talks. 
 
European Commission Role in Upcoming Consultations 
--------------------------------------------- ----- 
 
4.  (SBU) Sansone confided that expanded Commission 
competency in civil aviation ties Italy,s hands somewhat. 
He explained that as a result of the European Court of 
Justice decision in 2002, the GOI must notify the Commission 
thirty days prior to engaging in aviation negotiations with 
non-EU member states.  Italy,s EU Mission in Brussels 
advised Sansone that the Commission need not be notified in 
this case, since the proposed Linate talks were 
consultations, not formal negotiations.  (Tafuri in the MFA 
also assured post that the Commission cannot derail the 
planned Washington discussions.) 
 
Comment 
------- 
 
 
5.  (SBU) GOI lead negotiator Sansone takes a somewhat narrow 
view of the Linate code-share issue and he does not seem to 
believe that his solution has deleterious effects on U.S. and 
national carriers.  In Washington, and beyond, the GOI will 
continue to fight for restricted Linate access (especially as 
new EU Member States seek entry into the Linate club).  If 
Washington agencies seek a systemic solution for U.S. 
carriers' access to Linate, Sansone (and his delegation) must 
be disabused of the view that his Ministry,s one-off 
prohibition on Alitalia,s advertising and code-share listing 
resolves the issue.  End Comment. 
 
SEMBLER 
 
 
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2005ROME00372 - Classification: UNCLASSIFIED