VZCZCXYZ0007
PP RUEHWEB

DE RUEHAM #0075 0081519
ZNR UUUUU ZZH
P 081519Z JAN 07
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC PRIORITY 6407
INFO RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS AMMAN 000075 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
PASS USTR 
 
E.O. 12958: N/A 
TAGS: EAIR ETRD BEXP JO
SUBJECT: ROYAL JORDANIAN SELECTS BOEING 787 DREAMLINER 
 
REF: 06 AMMAN 8295 AND PREVIOUS 
 
CONTAINS PROPRIETARY INFORMATION.  NOT FOR USE OUTSIDE OF USG. 
 
¶1. (SBU) SUMMARY:  Jordan's national airline Royal Jordanian 
(RJ) announced it has selected Boeing's 787 Dreamliner to 
replace its wide-body Airbus A340's.  As a first step, RJ 
will lease four or five of the aircraft starting in 2010. 
Boeing is optimistic that the leasing arrangements will lead 
to purchases of 787's, perhaps as early as 2011.  RJ's CEO 
agrees, provided that Boeing can help bring forward delivery 
dates.  The success on this deal comes after months of 
vigorous advocacy by the Embassy and continued persistence by 
the Boeing team.  END SUMMARY. 
 
¶2. (SBU) Royal Jordanian announced in December that it will 
replace its wide-body A340's with Boeing 787 Dreamliners 
beginning in 2010.  This decision comes after months of 
footdragging by RJ in which the airline ran the risk of 
losing leasing slots for the aircraft, and did in fact lose 
purchase slots.  RJ's leadership had regularly praised the 
Dreamliner over the past six months.  However, the delays and 
regular visits of Airbus teams to Jordan had caused Boeing to 
fear that it might never be able to close the deal. 
 
¶3. (SBU) There were several keys to Boeing's success.  The 
Boeing team made regular visits to Jordan to promote the 
Dreamliner, and arranged for RJ and Jordanian government 
officials to tour the Dreamliner mock-up in Seattle.  In 
addition, the Embassy vigorously advocated with both the 
government and RJ in support of Boeing at many levels, from 
King Abdullah on down.  Finally, the attractions of the 
Dreamliner itself helped to cement the deal, particularly its 
fuel efficiency and its advantages to passengers, including 
larger windows and a more comfortable cabin environment.  In 
addition, the fact that the competition did not have any 
viable options helped as well.  And lastly, the appointment 
of a new activist, pro-U.S. Chairman of the Board did no harm. 
 
¶4. (SBU) Boeing helped RJ in its negotiations with leasing 
companies.  According to RJ's CEO Samir Majali, RJ has agreed 
with the leasing company ILFC on the lease of two 787's to 
begin service in 2010, and plans to phase in two or three 
additional aircraft over subsequent years.   Majali described 
the leasing of 787's "as a given."  Boeing is currently in 
discussions with RJ on signing a formal contract which would 
cover such items as crew training, providing manuals and 
other technical details.  Boeing hopes that the formal 
contract will include commitments to purchase up to four 
additional 787's from the first currently-available slot in 
¶2013.  Boeing hopes to have this formal contract signed by 
late January/early February.  Boeing has indicated it will 
work with leasing companies to explore trading purchase 
slots. 
 
¶5. (SBU) Majali said that RJ's total requirement for 787's 
could be "eight to ten."  RJ would hope to purchase two to 
four directly from Boeing.  However, Majali stressed that 
this would be contingent upon Boeing's ability to bring 
forward purchase slots to a date earlier than 2013. 
Otherwise, RJ would be looking to lease additional 787's. 
 
¶6. (SBU) Majali was very complimentary about the merits of 
the 787, although he stressed that the fuel savings benefits 
remained to be demonstrated.  He did welcome the large 
windows and the other benefits accruing from the 
composite-based construction, including the ability to 
pressurize and humidify the air in the cabin to a lower 
comparable altitude. 
HALE