US embassy cable - 05ABUJA1609

UNCLAS SECTION 01 OF 02 ABUJA 001609 
 
SIPDIS 
 
SENSITIVE 
 
PASS DOT FOR OIA, ALSO FAA 
 
E.O. 12958: N/A 
TAGS: EAIR, NI 
SUBJECT: NIGERIAN AVIATION MINISTER ON OPEN SKIES 
 
REF:  STATE 139112 
 
1. (U) This cable contains an action request.  Please see 
paragraph 7. 
 
2. (SBU) Summary.  Embassy officers met on August 25 with 
Nigerian Minister of Aviation Babalola Borishade on two 
aviation disputes: the GON's failure to grant American 
Airlines the authorization to introduce codeshare service to 
Nigeria on flights operated by British Airways, and the 
GON's failure to grant Continental Airlines the necessary 
operating authority to begin direct service between the 
United States and Nigeria.  Borishade predicated the GON's 
approval of Continental's service to Nigeria with the USG's 
favorable consideration of U.S. landing rights for Virgin 
Nigeria, even though Virgin Nigeria has not yet formally 
applied for operating authority.  Borishade equated 
Nigeria's delay in approval of Continental's Lagos service 
to what he called the USG failure to respond in writing that 
the USG accepted the GON's designation of Virgin Nigeria 
under the Open Skies Agreement.  End summary. 
 
3. (SBU) Economic counselor, economic officer, and economic 
specialist met on August 25, 2005 with Imoro Kubor, the 
Nigerian Ministry of Aviation's director of air transport 
management, and then with Minister of Aviation Babalola 
Borishade.  The two sides discussed the GON's failure to 
grant American Airlines the authorization to introduce 
codeshare service in Nigeria on flights operated by British 
Airways, and the GON's failure to grant Continental Airlines 
the necessary operating authority to begin direct service 
between the United States and Nigeria.  Kubor expressed 
surprise that former Minister of Aviation Isa Yuguda had not 
granted codeshare approval to American for flights serving 
Nigeria.  Kubor noted that Northwest Airlines already had a 
codesharing arrangement with KLM Royal Dutch Airlines for 
such flights, and ventured that if American re-applied for 
codeshare approval, "I believe it will be accepted." 
 
4. (U) Embassy officers then met with Minister of Aviation 
Borishade, with Kubor in attendance.  The economic counselor 
delivered ref talking points on U.S.-Nigerian aviation 
disputes, which embassy had earlier sent to the Ministries 
of Foreign Affairs and Aviation.  Borishade acknowledged 
that U.S. had a right to be concerned if Nigeria failed to 
abide by the Open Skies Agreement. He then went on to say, 
however, an agreement should work both ways and said the 
GON's was concerned that while Continental had been poised 
to begin flights to Nigeria, Virgin Nigeria's efforts to 
begin direct service to the United States were only in the 
early stages.  Borishade termed these differences 
"lopsided." 
 
5. (SBU) Kubor said that the USG had not responded to the 
GON's diplomatic note designating Virgin Nigeria under the 
Open Skies Agreement (OSA), to begin direct flights to the 
United States.  He said Virgin Nigeria had applied formally 
"months ago" to the U.S. Department of Transportation 
(USDOT) to operate direct flights.  Economic Counselor noted 
the embassy was aware of Virgin Nigeria's discussions with 
the USDOT but said that the information we had from DOT was 
that Virgin Nigeria had not yet applied for economic 
authority (landing rights).  (Begin comment: The Department 
earlier informed Embassy Abuja that as of August 3, Virgin 
Nigeria had not applied for economic authority.  The 
Ministry of Aviation apparently is not distinguishing 
between the GON's and Virgin Nigeria's continued 
discussions, over several months, with the USDOT, and Virgin 
Nigeria's actually completing the application process. 
Ambassador John Campbell, in his talking points for his July 
29 meeting in Lagos with Virgin Nigeria's chief executive 
officer, confirmed that the USDOT had indeed received the 
GON's designation of Virgin Nigeria under the OSA.  End 
comment.) 
 
6. (SBU) Borishade requested a formal written USG acceptance 
of the GON's designation of Virgin Nigeria under the OSA, 
contending that if the USG "does not approve a designation, 
there is no use in applying."  Kubor linked Continental's 
difficulties to Virgin Nigeria's efforts for direct U.S. 
flights, saying, "It is this lack of a reply from the U.S. 
Government that is the problem."  They equated such 
acceptance with a pre-assurance that the USDOT would approve 
Virgin Nigeria's direct service to the United States.  The 
Economic Counselor said the U.S. had  received the GON's 
designation and told the Minister that the GON's designation 
meant that Virgin Nigeria was free to apply for operating 
authority, and that this was the necessary next step for any 
action regarding Virgin Nigeria.  She agreed, however, to 
contact Washington regarding providing written 
acknowledgment that the USG had received the GON's 
designation. The August 25 meeting with embassy officers was 
the first time GON aviation officials explicitly tied the 
approval of Continental's Lagos service to the new GON 
demand that the USG confirm receipt of Nigeria's diplomatic 
note designating Virgin Nigeria under the OSA. 
 
7. (U) Action request:  Embassy Abuja requests authorization 
to provide a diplomatic note to the Nigerian Ministry of 
Aviation confirming that the USG has received Virgin 
Nigeria's request for designation under the OSA. 
We suggest language along the lines of "Complimentary 
opening...  the U.S. government received of Diplomatic 
No.xxx of month, day, year in which the Government of 
Nigeria's designated Virgin Nigeria under the bilateral Open 
Skies Agreement. Virgin Nigeria may make formal application 
to the U.S. Department of Transportation for operating 
authority. Complimentary closing." 
 
8. (SBU) Begin comment:  Minister of Aviation Borishade 
started the meeting by saying he was unprepared for the 
meeting.  This was despite his having discussed these issues 
informally at length fewer than three weeks ago with the 
embassy's former political counselor, and also at that time 
receiving copies of reftel talking points.  Both Borishade 
and Air Transport Management Director Kubor made clear that 
Nigeria intended to treat the matter as a quid pro quo that 
predicated the GON's approval of Continental's service to 
Nigeria with the USG's favorable consideration of U.S. 
landing rights for Virgin Nigeria.  Though the insistence on 
linking the issues is in violation of the agreement and will 
remain a problem, it may be worthwhile to remove the excuse 
that the USG has not responded in writing to Nigeria's 
designation by sending the dip note, thus putting the action 
on both Continental's application and Virgin Nigeria's 
application firmly in the Nigerian court. End comment. 
CAMPBELL