CPA Infrastructure Reconstruction doc 28

P0!1e96 . . . MEMORANDUM FOR AMBASSADOR KENNEDY Frvm: DaJTeD Trent Subject: Iraq Over flights We are recommending, subject to Ambassador Bremer• s Approval, that Iraq Over Flights begin August 16, 2003 which should product $40 million income per year to Iraq .. BaekgroUild: lATA has requested the re-opening of the . skies of Iraq to be completed as soon as possible. The primary north/south route wt11 reduce 40 minutes fi:om the previous circumnavigated routing. It is anticipated that ISO aircraft per day wtll fly this route initially and at a fuel consumption rate of approximateJy $100.00 USD per minute; will save these users approximately $600,000.00 USD per day. Civil Aviation Authority and the Combined Forees Air Component Commander (CF ACC) have proceduralized the resumption of Commercial Air Traffic Services over the country oflraq. The needed communication link between participating countries (Syria, Jordan, Turkey and Kuwait) is now physically in place, however the interface to the military communication equipment is still under development. CF ACC has reported enough ATC assets in place and they are ready to commence this operation at the direction of CPA. Fees aDd CoUection aad proeess: The IAT A contract has been reviewed and appro~ by the CPA Contractors office and is ready for signature pending the tinali?aion of fees and bank account information: • A bank account bas been established and control of this account bas been placed with the Ministry of Finance. • This action creates an undue burden on the aviation system. Typically these funds fall under an Aviation Trvst Fund and that fund is utilized and managed to maintain, repair and upgrade the Air Navigation System These funds will directly reduce the overall needed operating budget from external sources and typically most aviatiou system are self sustainable. • CAA bas developed comparable owr flight and landing fees based on a review of adjacent country fees. These fees will be based on mrcraft weight and length of flight. Additionally, we have scheduled a conference in Dubai on August 13, to validate our fees with lATA and users within the Mid East Region. Based on this meeting. CAA fees may then be adjusted to appropriately reflect the regional market rates as determined at this conference. I I I I I I I I i I I I I I Paqa97 • • • • Fees schedule Iraq Rate multiplied by Madanam Takeoft' Wefalat multipUed by Maximum Disbmce Plown .002842 USD per ton per km flown • Estimated revenue for 150 over flight per day is expected to be approximately $20M USD per year, 300 aircraft per day would equate to $40M USD per year (based on average aircraft weight for area). RAMCC procedures: Regional Air Movement Control Center (RAMCC) presently approves landing slots. RAMCC will monitor the over flight operation and assist CF ACCJCAA as needed in order to maintain a cohesive relationship between military assets and commercial aircraft CFACC Capabilities: CFACC is ready to commence operations 16 August. Initially, they wiD authorize over flights on the primary nortblsouth airway between Kuwait and Turkey. Initial estimates project 150 aircraft per day. If no problems are encountered, the remaining airways will be added one per day. Dlplomade Clearaaee Proeeclures: CAAIState Department will setup an cmml account for countries/users to request 7 days in advam:e a diplomatic county clearance to tnmsit Iraqi airspace. This is a standard with all surrounding nations. AIP!fERPS aod Obstruction Evaluation: CFACC has finalized the AlP and is awaiting CAA and FAA final approval. The air routes have been TERP'ed and an Obstruction Evaluation ofBasrah has been completed. The AlP is expected to be published on 16 August. Use ofFuuds Colleded: It could be mgued that these funds collected should be deposited into a bank account that would be earmarked to pay for the cost of new air traffic control equipment, its related repair expenses, upgrade requirements, and related aviation expenditures. Approve Disapprove Sec Me