REBECCA RAYKO / MIAMI
Latin American carriers suffering financially as classification forces expensive wet-lease alternatives on US routes
Latin American airlines in the 23 countries classified as Category 2in the US Federal Aviation Administration's International Aviation Safety Assessment (IASA) programme say they are suffering financially because of the agency's safety classification.
The programme came under fire at last week's AvNews International Airline CEO Conference for Latin American carriers in Miami. The Category 2 classification, given to countries deemed to have unsatisfactory safety standards by the FAA, restricts carriers within that country from changing the size and type of aircraft operated to the USA. This forces carriers in Category 2 countries to wet-lease aircraft from Category 1-compliant countries.
Argentina is currently Category 1, but the FAA has warned the country of a downgrade and is treating it as if it were in Category 2. The situation has forced Argentinian carrier Southern Winds, already leasing two Boeing 767-300ERs, into finding a more expensive wet-lease alternative because of the pending Category 2 downgrade.
Southern Winds chief executive Juan Maggio said he is leasing the 767s, which he will now be unable to operate in the USA, for $1 million each a month.
FAA administrator Jane Garvey acknowledged that the situation is perceived as unfair by many international carriers but that the agency relies strongly on recommendations by the International Civil Aviation Organisation when it comes to determining Category 2 downgrades.
"Our long-term goal is to have ICAO take over the safety oversight role for carriers, but the challenge is resources," Garvey said.
Joaquin Archilla, the FAA regional manager based in Miami, said that ICAO audit reports weigh heavily in the safety oversight processes, but that the FAA also has the responsibility to US Congress to verify the information it receives from ICAO. "We've also been very active in providing technical assistance in the region," he added.
Meanwhile, several Latin American airlines said the Category 2 classification promotes an anti-competitive operating environment, as US carriers often increase services to these countries. "It is affecting us tremendously when we compete with Delta, United, American and Continental," said Nelson Ramiz, chief executive of Aeropostal in Venezuela.
Source: Flight International
