US embassy cable - 05LIMA3366

UNCLAS LIMA 003366 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR WHA/AND, EB/TRA/AN 
FAA FOR MIAMI 
 
E.O. 12958: N/A 
TAGS: EAIR, ECON, ETRD, EINV, CASC, PE 
SUBJECT: DGAC GRANTS AEROCONTINENTE FLIGHT PERMISSIONS 
 
REF: A) LIMA 2796   B) LIMA 2053   C) LIMA 1987 
 
1.  (SBU) Summary.  The Directorate General of Civil 
Aviation (DGAC) in mid-June presented OFAC-listed Narcotics 
Kingpin Fernando Zevallos documentation granting flight 
permissions to Zevallos' new airline, AeroContinente EIRL. 
AeroContinente, which plans to use five planes - two Fokkers 
and 3 Airbuses - will service 13 domestic routes, including 
Cusco, Iquitos, and Arequipa, for passengers, cargo and 
mail.  According to DGAC insiders, the DGAC has yet to 
inspect, let alone certify, Zevallos' planes under 
airworthiness requirements.  AeroContinente EIRL's 
maintenance staff is fixing two additional Boeing jets, part 
of the former AeroContinente/NuevoContinente fleet, to sell 
them to Air Guinea Cargo.  End Summary. 
 
AeroContinente Reborn 
--------------------- 
 
2.  (SBU)  On June 13, Acting Director General of the DGAC 
Roberto Rodriguez officially granted flight permissions for 
passenger, cargo and mail services to OFAC-designated 
Narcotics Kingpin Fernando Zevallos' new company, 
AeroContinente EIRL.  In previous conversations with 
Rodriguez, he emphasized that there is no legal impediment 
to Zevallos reorganizing AeroContinente (ref B).  According 
to DGAC documents, the new AeroContinente fleet consists of 
five planes:  Fokker F28, Fokker F100, Airbus 310, Airbus 
320, and an Airbus 330.  AeroContinente EIRL plans on flying 
to 13 cities in Peru, including flights to Cusco, Arequipa, 
Iquitos and Pucallpa (all key tourist destinations.) 
 
3.  (SBU) Juan Crovetto Moreno, Director of Air Security at 
the DGAC, informed us that AeroContinente needs more than 
just flight permissions before becoming a viable airline. 
Zevallos has not yet requested airworthiness inspections for 
his planes.  In previous conversations, Crovetto explained 
that the two Fokkers need significant repairs, as they are 
listed as "Stage 3" for sound problems (ref A). 
 
4.  (SBU) DGAC documents identify Zevallos as the legal 
representative and manager of AeroContinente EIRL.  The 
corporate address is listed as Av. Jose Pardo 601. 16 floor, 
Miraflores, Lima; telephone 51-1-241-5200.  This address and 
telephone number are the same ones used by the former 
AeroContinente/NuevoContinente offices. 
 
More Planes to Guinea-Bissau? 
----------------------------- 
 
5.  (SBU) During a meeting on August 3, our DGAC contact 
informed us that AeroContinente maintenance staff is working 
diligently on repairing two Boeing planes that were once 
part of the NuevoContinente fleet.  The two planes have been 
repainted with the Air Guinea Cargo logo and have been 
refitted with spare parts from other AeroContinente planes. 
According to our contact, Zevallos plans to sell these 
planes to Air Guinea, which purchased two Boeing jets from 
Zevallos in January (ref A).  Our contact believes that the 
DGAC is likely to approve the sale of these planes within 
the next two months 
 
Comment 
------- 
 
6.  (SBU)  Although flight permissions do not ensure that 
AeroContinente EIRL will be airborne in the near future, 
Zevallos is one step closer to his goal.  During the 
Embassy's July 4 party, Acting Director Rodriguez told 
Econoff that it will take a lot of repairs and capital spent 
before the DGAC will grant airworthiness certificates for 
any of Zevallos' planes.  The company, which listed a mere 
$21,538 of initial capital on its permit requests, will need 
to scrape together more money to pay for any repairs and 
maintenance.  We suspect the money is coming from Zevallos' 
deep pockets.  The DGAC continues to reassure us that all of 
Zevallos' planes must meet strict standards before they are 
allowed to leave the ground. 
 
STRUBLE