US embassy cable - 05PARIS7216

UNCLAS SECTION 01 OF 03 PARIS 007216 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EAIR, ETRD, ASEC, CVIS, FR, EU 
SUBJECT:  AIR FRANCE CEO ON AVIATION SECURITY AND 
TRANSATLANTIC OPEN SKIES 
 
REF:  Paris 4921 
 
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SUMMARY 
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1. (SBU) During a wide-ranging discussion with the 
Ambassador over breakfast October 20, Air France CEO Jean- 
Claude Spinetta called for enhanced cooperation and greater 
efficiency in the operation of international aviation 
security programs, and highlighted Air France's strong 
interest in successful US-EU Transatlantic Aviation Area 
negotiations.  Spinetta reviewed his frustrations with the 
No Fly system, but offered Air France as a possible pilot 
program partner for overseas testing of the proposed Secure 
Flight advance name check system. 
 
2. (SBU) Spinetta sees as "extremely important" the 
successful conclusion in the next few months of 
transatlantic Open Skies talks, a vital element in his view 
of providing stability to the current international airline 
alliance system.  While Air France understands that the U.S. 
will offer little new on ownership and control issues, it is 
important that an agreement "go beyond the June 2004 text" 
in the areas of competition, state aids and security. 
 
AVIATION SECURITY 
----------------- 
 
3. (U) The Ambassador hosted Air France President Jean- 
Claude Spinetta for breakfast at the residence October 20. 
Joining Spinetta were Dominique Patry, AF Executive VP for 
International Affairs, and Guy Tardieu, Spinetta's Chief of 
Staff.  DCM and Econ M/C also attended. 
 
4. (SBU) Without referring specifically to recent 
correspondence with the Ambassador over a July 2005 No Fly 
case (reftel), Spinetta indicated that flight diversions and 
cancellations impose considerable costs on Air France, and 
can have a negative impact on Air France's reputation among 
the traveling public.  Spinetta expressed again particular 
concern that, in the July No Fly case, a DHS official made a 
public statement placing blame on Air France for the 
incident.  He hoped that we could avoid dealing with these 
issues in the press and focus on ensuring that the systems 
in place operate as efficiently as possible.  (Comment. 
While Air France claims that it was not at fault in the July 
case, it does accept fault for missing a No Fly passenger on 
a subsequent August flight. Its software failed to catch a 
one-letter difference in a passenger's surname.  End 
Comment.) 
 
5. (SBU) Spinetta stated that Air France is committed to 
making the No Fly system work.  Air France will be fully 
operational on APIS-plus (Automated Passenger Information 
System) passenger data by January 26, 2006, and he hoped 
that the USG could accommodate Air France's timetable for 
putting in place the necessary software and procedures. 
Notably, Spinetta volunteered to have Air France serve as an 
overseas pilot airline in testing the proposed new Secure 
Flight system, which would have airlines provide passenger 
data to Washington 60 minutes prior to departure time, with 
Washington, rather than the airlines, performing the No 
Fly/Selectee name checks.  The Ambassador welcomed Air 
France's interest, and emphasized the importance of making 
the No Fly system work efficiently. 
 
6. (U) Spinetta and Tardieu outlined continuing problems 
that Air France is having with its unions over U.S. visa 
requirements.  Air France has some 18,000 crew members 
(cabin and cockpit), the majority of whom need visas for 
possible service on U.S.-bound flights.  Unions argue that 
the minimum half-day required to appear at the Embassy 
should be compensated as time worked.  Air France has 
resisted, and has asked the Embassy whether off-site (i.e., 
airport) applications could be taken on a periodically 
scheduled basis.  Econ M/C reiterated earlier explanation 
that the personal appearance requirement (including to 
collect biometric fingerprint data) could not be waived.  As 
yet, no portable technology exists to collect such data off- 
site.  Both sides speculated that, in the future, mutual 
recognition of identity authentication might permit 
governments to recognize/accept secure biometric data 
collected by other governments, but that is unlikely to be a 
near-term solution. 
 
7. (SBU) In a side conversation with Econ M/C, Patry and 
Tardieu reiterated that Air France is ready to implement 
fully the Selectee List emergency amendment, but awaits GOF 
authorization to do so in France.  (Air France already uses 
the Selectee List actively for its U.S.-origin flights, but 
insists it can only do so for France-origin flights when 
authorized by the GOF.)  The GOF has hesitated in providing 
authorization, following questions over No Fly-related 
diversions of Air France flights this summer.  Econ M/C 
noted, as efforts to overcome this hesitation, the recent 
visit of a GOF delegation to Washington to consult with DHS 
on the No Fly/Selectee system, and the visit to Paris this 
week of Terrorism Screening Center Director Donna Bucella. 
 
TRANSATLANTIC AVIATION NEGOTIATIONS 
----------------------------------- 
8. (SBU) Spinetta emphasized the importance Air France 
attaches to successful conclusion of transatlantic aviation 
negotiations.  International airlines are coalescing around 
three great alliances:  Skyteam, OneWorld and Star.  A 
liberal aviation regime between the U.S. and Europe is 
fundamental to the long-term stability of this system.  In 
addition, Air France, recently merged with KLM, would like 
to extend its current cooperation with Delta Air Lines to 
KLM's partner Northwest Air Lines.  (Comment. Spinetta made 
no mention of DOJ recent negative opinion on Air France's 
antitrust immunity application, but implicit in his 
statements was recognition that transatlantic Open Skies was 
a precondition to such cooperation.  End Comment.) 
 
9. (SBU) British Air's stranglehold over Heathrow Airport 
remains the tough nut to crack.  In order to achieve this, 
Spinetta argued that a new agreement must include "more than 
the June 2004 package".  Dominique Patry noted that Air 
France understands that the USG presently can offer little 
on ownership and control, not even the offer included in the 
June 2004 package (up to 49% foreign ownership).  European 
carriers also are prepared to forego "symbolic" points, such 
as cabotage.  If EU Transport Ministers are to bring the 
British along, however, they will have to be able to point 
to specific progress in areas such as competition, state 
aids, and security.  A mere commitment to future talks on 
these issues will not in itself be sufficient.  There must 
be some agreement on basic concepts.  On competition, for 
example, there must be greater convergence between 
Washington and Brussels in anti-trust immunity cases, 
particularly on procedural timeframes and basic market 
concepts. 
 
10.  (SBU) Spinetta stated that Dutch authorities, with whom 
he meets regularly, are strong proponents of a new 
agreement, like KLM.  Germany will also be on board, 
although the present governmental situation renders the 
German voice quiet at the moment.  On the question of 
Heathrow slots, Spinetta indicated that alliance carriers 
could help one another, perhaps reducing the scale of needed 
slot divestiture by BA.  Air France, for example, could give 
a Heathrow-Paris slot to Delta for use on a transatlantic 
flight, substituting London-Paris Eurostar train service. 
The Heathrow situation will be helped considerably by the 
completion of BA's new Heathrow Terminal in 2008. 
 
U.S. AIRLINE HEALTH 
------------------- 
 
11. (SBU) Spinetta seemed relatively optimistic that U.S. 
airlines will be able to reorganize and emerge from the 
threat of bankruptcy.  He noted that USAir, which recently 
emerged from Chapter 11, is now a lower-cost carrier than 
even Southwest Airlines.  Spinetta met recently with 
Northwest's CEO, and came away impressed with that airline's 
cost-cutting plans.  He noted wistfully that in Europe 
managers of failing enterprises get fired; they don't get 
the chance to reorganize.  Also, unlike in the U.S., 
European judges cannot redefine worker/retiree entitlements, 
as is sometimes the case in Chapter 11 proceedings. 
 
 
COMMENT 
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12. (SBU) Spinetta continues to voice frustration with the 
burdens of the No Fly system, and the costs it often imposes 
on Air France.  However, Air France remains committed to 
making the system work, and the airline's willingness to be 
a testbed for Secure Flight procedures should be encouraged. 
13. (SBU) On aviation liberalization, Air France will be one 
of our best allies in Europe.  The nightmare scenario for 
Air France is a collapse of talks, and a successful 
Commission challenge next year to bilateral Open Skies 
agreements in the European Court of Justice.  With so much 
riding on the Skyteam alliance and its recent merger with 
KLM, a US/EU negotiation failure could end quickly what has 
been a succession of good years for Air France. 
STAPLETON