VZCZCXRO4429
RR RUEHDE RUEHDIR
DE RUEHAM #1717/01 1611224
ZNR UUUUU ZZH
R 091224Z JUN 08
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 2818
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMCSUU/FAA NATIONAL HQ WASHINGTON DC
RUEHAK/AMEMBASSY ANKARA 0603
RUEHTH/AMEMBASSY ATHENS 0784
RUEHGB/AMEMBASSY BAGHDAD 6003
RUEHLB/AMEMBASSY BEIRUT 2862
RUEHDM/AMEMBASSY DAMASCUS 3902
RUEHMD/AMEMBASSY MADRID 0109
RUEHFR/AMEMBASSY PARIS 1519
RUEHTV/AMEMBASSY TEL AVIV 1210
RUEHJM/AMCONSUL JERUSALEM 5048
RHMFIUU/TSA HQ WASHDC

UNCLAS SECTION 01 OF 02 AMMAN 001717 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ELA AND EEB 
ATHENS FOR FURLONG 
 
E.O. 12958: N/A 
TAGS: EAIR ELTN ECON JO
SUBJECT: UPDATE ON TRANSPORTATION IN JORDAN: DELTA STARTS DIRECT 
FLIGHT FROM NY TO AMMAN; MINISTER HAS RAIL PLANS 
 
REF: A. 07 Amman 4227 
      ¶B. 07 Amman 4072 
      ¶C. 07 Amman 3286 
 
¶1. (SBU) SUMMARY: Delta Air Line's first flight from New York JFK to 
Amman arrived June 6.  The arrival of the first U.S. carrier in 
Amman is one of many changes underway at Queen Alia International 
Airport (QAIA) including the creation of a new government-owned 
company which will own QAIA and will own and operate Jordan's other 
airports.  This new company will be launched by the Civil Aviation 
Regulatory Commission (CARC) and will add to a complex system of 
airport management and security oversight.  The expected completion 
date for construction of new terminals at QAIA has been extended to 
¶2011.  The Ministry of Transportation has also expressed a desire 
for aid to support the construction of Jordanian rail service from 
Syria to Saudi Arabia with a line to Iraq.  End Summary. 
 
Delta Flies to Amman as Part of Its Middle East Expansion 
--------------------------------------------- --------- 
 
¶2. (SBU) Delta Air Lines began its first direct flight from New York 
JFK to Amman on June 6 (ref B).  Delta offers four flights per week 
on a Boeing 767.  CARC Chief Commissioner Suleiman Obeidat told 
visiting U.S. Transportation Security Administrator Kip Hawley that 
Delta's operations in Jordan are a "good sign" of the strong 
U.S.-Jordan bilateral relationship and American investment in 
Jordan.  Tony Charaf, President of Delta Technical Operations, 
explained that Delta was interested in Amman and the Middle East 
because of the high growth rates for air travel.  He told Econoff 
that if the Amman-New York route is successful, Delta will consider 
adding an Amman-Atlanta route which would have more connection 
possibilities.  He noted that the profitability of any route is a 
function of the number of business travelers.  Delta will compete 
with Royal Jordanian which offers non-stop service from Amman to New 
York, Chicago, Detroit, and Montreal. 
 
Too Many Organizations at the Airport 
------------------------------------- 
 
¶3. (SBU) During meetings with Administrator Hawley, Delta Air Lines 
officials discussed their operational and security plans and 
managing Jordan's complicated airport bureaucracy.  A large number 
of organizations have management and security responsibilities at 
QAIA airport including: Special Services Protection Unit (SSPU), the 
airport management company Airport International Group (AIG), CARC, 
military intelligence, General Intelligence Directorate, and the 
national carrier Royal Jordanian.  Several Jordanian contacts, 
inside and outside the government, have mentioned the tensions and 
turf battles caused by the complex system.  In addition, Delta has 
complained about the service it has received from RJ, which 
currently holds a monopoly for several airport services, including 
counter staff and baggage handling. 
 
¶4. (SBU) Adding to the complex structure, Obeidat said that in June, 
CARC will register and launch the government-owned Jordan Airport 
Company (JAC).  He explained that this step is a continuation of the 
government's efforts to separate CARC's regulatory role from an 
operational role (ref C).  In addition to owning QAIA, JAC will own 
and operate Marka (Amman's charter airport), the airport in Aqaba, 
as well as any future airports (ref A). According to local press 
reports, the government has allocated land in the Central Jordan 
Valley for a new airport for the export of agricultural produce and 
also has plans to convert a military airport in Mafraq to commercial 
use. 
 
Construction Delays at the QAIA Airport 
--------------------------------------- 
 
¶5. (SBU) While JAC may own QAIA airport, the French company AIG will 
continue to operate the airport under the 25-year concession awarded 
to the company on a build-operate-transfer basis last year. 
Francois Berisot, AIG's Chief Operations Officer, expressed 
confusion to Econoff over the future role that JAC would play, given 
AIG's role as airport management.  He also admitted that completion 
of AIG's project to renovate the existing two terminals at QAIA and 
 
AMMAN 00001717  002 OF 002 
 
 
construct two additional terminals may be delayed until 2011 (ref 
C).  Despite this delay, Berisot confirmed that significant 
improvements in the existing terminals will be in place by summer 
2009, the next high season.  He said by October 2008, all baggage 
screening will be moved behind the check-in counters for improved 
security. 
 
Minister of Transportation Talks Rail and Trucks 
--------------------------------------------- --- 
 
¶6. (SBU) During a farewell meeting with Ambassador Hale on June 3, 
Minister of Transportation Alaa Batayneh expressed a desire for USG 
funding of future transportation projects.  He described Jordan's 
proposed rail strategy which would run from the border with Syria to 
the border with Saudi Arabia and connect to Iraq.  Batayneh 
estimated the project would cost $3.8 billion for infrastructure and 
an additional $2.5 billion for train engines and cars.  Currently, 
Jordan has only a narrow gauge railway from the historical Hijaz 
Railway that was constructed to take passengers from Damascus to 
Medina.  The railway has deteriorated but sections are still 
operational including from Amman to Damascus and from Jordan's 
phosphate mines to Aqaba.  Batayneh explained that the most 
expensive stretch would be the tunneling required near Aqaba.  He 
elaborated that rail is an industry that requires government 
subsidies and emphasized that if Jordan does not put in this 
commercial rail line it would be by-passed by a route from Syria 
through Iraq. 
 
¶7. (SBU) Batayneh also noted the pressures on Jordan's 
transportation sector, especially with rising fuel prices.  He said 
37% of fuel in Jordan is used for transportation.  Batayneh also 
explained Jordan's public transportation and trucking companies 
systems must be 100% Jordanian by law.  He noted that 88% of public 
transportation in Jordan, such as buses and taxis, and 64% of 
commercial trucks are owned by single-vehicle companies.  He 
rationalized the nationality requirement by explaining that if 
trucking were opened up to foreign providers, it would be quickly 
dominated by large Turkish trucking companies.  He added this would 
in turn devastate the thousands of families currently supported by 
independent truckers. 
 
¶8. (U) Batayneh proudly mentioned the signing of the $334 million 
light rail project agreement with a Spanish-Kuwaiti consortium which 
will connect Amman to Zarka, Jordan's third-largest city.  Local 
press has reported that the 16-mile track will use the current Hijaz 
railway track and should reduce traffic congestion. 
 
¶9. (U) TSA Administrator Hawley did not have an opportunity to 
review this message before departing Jordan. 
 
Visit Amman's Classified Website at 
http://www.state.sgov.gov/p/nea/amman 
 
HALE