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### Viewing cable 06BRASILIA139, BRAZIL: U.S. CARRIERS EXPLORE NEW ENTRY POINTS DESPITE

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06BRASILIA139 | 2006-01-23 11:33 | 2011-07-11 00:00 | UNCLASSIFIED | Embassy Brasilia

`

    VZCZCXRO8697
    PP RUEHRG
    DE RUEHBR #0139/01 0231133
    ZNR UUUUU ZZH
    P 231133Z JAN 06
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC PRIORITY 4245
    INFO RUEHSO/AMCONSUL SAO PAULO 6151
    RUEHRG/AMCONSUL RECIFE 4200
    RUEHRI/AMCONSUL RIO DE JANEIRO 1368
    RUEHBU/AMEMBASSY BUENOS AIRES 3721
    RUEHMN/AMEMBASSY MONTEVIDEO 5988
    RUEHAC/AMEMBASSY ASUNCION 5160
    RUEANHA/FAA NATIONAL HQS WASHINGTON DC

` `

    UNCLAS SECTION 01 OF 02 BRASILIA 000139

    SIPDIS

    SENSITIVE - NOFORN
    SIPDIS

    E.O. 12958: N/A
    TAGS: EAIR CVIS CMGT BR
    SUBJECT: BRAZIL: U.S. CARRIERS EXPLORE NEW ENTRY POINTS DESPITE
    FREQUENCY LIMITATIONS

    ¶1. (U) This cable contains business-proprietary information.  It has
    been coordinated with AmConsulate General Sao Paulo.

    ¶2. (SBU-NOFORN) Summary.  During a recent trip to Sao Paulo, Charge
    met with local United and American Airlines representatives to gauge
    their interest in offering air connections to the U.S. to the
    currently neglected North and Northeast regions of Brazil.  (At
    present, the vast majority of flights to/from the U.S.
    originate/terminate in either Sao Paulo or Rio de Janeiro, with only
    the Brazilian carrier TAM providing once-weekly service between the
    Northeastern city of Recife and the U.S.)  Officials from both
    United and American told us that they were considering adding
    flights to serve underrepresented cities such as Salvador,
    Fortaleza, Recife and Brasilia, but a key factor in their decision
    making would be the ability of the USG to provide non-immigrant visa
    services in the North and Northeast, thereby expanding the pool of
    potential travelers.  With respect to the Brazilian government's
    visa policy, our American Airlines (AA) contact stated that both the
    Minister of Tourism and tourism officials were pushing a bill in the
    Brazilian Congress which would lift visa requirements on U.S.
    citizens visiting Brazil.  Meanwhile, it appears that the Brazilian
    government has quietly ceased photographing/fingerprinting Americans
    arriving via air in Brazil.  End Summary.

    ¶2. (SBU-NO FORN) In a January 17 conversation with Charge, Sao Paulo
    CG, FCS Chief and EconCouns, AA Brazil Director Erli Rodrigues told
    us that his airline was currently debating whether to initiate
    regularly scheduled service from Salvador, Recife and/or Fortaleza
    to the U.S.  The two principal factors critical to the decision
    were: 1) the availability of the appropriate 757 aircraft, and 2)
    the ability of the USG to provide additional non-immigrant visa
    services in the Northeast (thereby expanding the potential pool of
    travelers).  Currently, Brazilian visa seekers from the North and
    Northeast must travel a considerable distance and incur substantial
    expense to appear for the requisite interview.  Rodrigues stated
    that even though U.S. carriers had exhausted all their frequencies
    under the Brazil-U.S. civair bilateral, he felt confident that given
    its desire to promote the development of the North and Northeast,
    the GOB would approve a waiver to allow these flights.  Such a
    precedent already exists, he observed, as civair authorities had
    approved a similar waiver to permit TAP to fly from Northeast Brazil
    to Portugal.  In view of the poor financial health at Varig and the
    resultant market uncertainties for Brazilian carriers, Rodrigues was
    not sanguine about the prospect of the GOB seeking to liberalize the
    current bilateral anytime soon.

    ¶3. (SBU-NOFORN) The next day, Charge, accompanied by the same roster
    of Embassy/Consulate officials, met with United Airlines Brazil
    Chief Josue Meza and his Sao Paulo sales chief Luiz Henrique
    Camillo.  The United pair noted that their airline was looking at
    initiating a daily Rio-Brasilia-Washington flight.  The key question
    to be resolved, Meza said was whether there will be sufficient
    Brasilia traffic to sustain the route.  United could consider as
    well adding a Sao Paulo - Manaus - Miami flight, but whether this
    would be profitable would depend upon the availability of adequate
    NIV services in the Northeast, the degree to which the route would
    attract business travelers, and the willingness of the GOB to
    facilitate visas to Amcits traveling to Brazil.  Meza noted that it
    would be helpful if the GOB were to expand its visa processing
    capacity, lower its visa fees or do away with the visa requirement
    altogether. (AA's Rodrigues made a similar investigation).

    ¶4. (SBU) Charge pointed out that there was currently a bill
    circulating in the Brazilian Congress which, if passed, would
    eliminate visa requirements for Americans.  It would be helpful, he
    continued, if concerned tourist industry officials could work with
    the bill's legislative sponsor, the Minister of Tourism, and the
    Embassy to push this measure forward.  The Brazilian Foreign
    Ministry, everyone felt, might be the bill's most forceful opponent,
    given its traditional insistence on strict reciprocity.  Meanwhile,
    our interlocutors told us it appears that three months ago the GOB
    quietly dropped its requirement that American visitors arriving in
    Sao Paulo be fingerprinted and photographed.  This requirement had
    already been lifted in Rio, at the behest of the tourist industry.
    Consul General noted that the USG was doing its part to facilitate
    two-way travel as waiting times for visa interviews in Sao Paulo had
    dropped under 50 days, with the Consular Section interviewing 1000
    people a day.

    ¶5. (SBU-NOFORN)  Finally, our United contacts stated that should its
    Brazilian codeshare partner Varig go bust, the Minister of Tourism
    had already stated that U.S. airlines will be temporarily allowed to
    increase their frequencies to fill the void created by the demise of
    Brazil's principal international carrier.  (Whether United would

    BRASILIA 00000139  002 OF 002

    have sufficient aircraft available to take advantage of this
    opportunity was another story, Meza admitted, noting that the
    company's current focus was its highly profitable Pacific routes.)
    Once TAM was ready to assume Varig's transcontinental routes and
    Gol, Varig's South American routes, then frequency numbers would
    revert to normal (except for any approved exceptions).  However,
    Meza stated that his gut feeling was that Varig would eventually
    survive, though perhaps owned or managed by TAP as that seemed to be
    the GOB's preferred solution.  Comment. With the recent sale of
    Varig's cargo and logistical arms to outside investors and the
    payment of leasing company creditors with the proceeds from these
    transactions, Varig has gained at least a few more months of life.
    End Comment.

    CHICOLA

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