Identifier
Created
Classification
Origin
04ABUDHABI4187
2004-11-22 13:55:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Abu Dhabi
Cable title:  

BOEING CEO BRIEFS AMBASSADOR

Tags:  EAIR ETRD MCAP PTER TC 
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Diana T Fritz 02/05/2007 04:03:05 PM From DB/Inbox: Search Results

Cable 
Text: 
 
 
UNCLAS ABU DHABI 04187

SIPDIS
CXABU:
 ACTION: ECON
 INFO: USLO FCS DAO P/M AMB DCM POL

DISSEMINATION: ECON
CHARGE: PROG

APPROVED: AMB:MSISON
DRAFTED: ECON:OJOHN
CLEARED: DCM:RALBRIGHT, USLO:RSIMM, FCS:AKHOCHAFIAN

VZCZCADI588
RR RUEHC RUEHZM RUEHDE RHEHNSC RUCPDOC RUEKJCS
DE RUEHAD #4187 3271355
ZNR UUUUU ZZH
R 221355Z NOV 04
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 6864
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHDE/AMCONSUL DUBAI 4513
RHEHNSC/NSC WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEKJCS/SECDEF WASHDC
UNCLAS ABU DHABI 004187 

SIPDIS

SENSITIVE

STATE FOR NEA/ARP, NEA/RA, EB
STATE PASS USTR
USDOC FOR 3418A/TD/AS/CJAMES

E.O. 12958: DECL
TAGS: EAIR ETRD MCAP PTER TC
SUBJECT: BOEING CEO BRIEFS AMBASSADOR

This cable contains business proprietary information. Not
for internet distribution.

UNCLAS ABU DHABI 004187

SIPDIS

SENSITIVE

STATE FOR NEA/ARP, NEA/RA, EB
STATE PASS USTR
USDOC FOR 3418A/TD/AS/CJAMES

E.O. 12958: DECL
TAGS: EAIR ETRD MCAP PTER TC
SUBJECT: BOEING CEO BRIEFS AMBASSADOR

This cable contains business proprietary information. Not
for internet distribution.


1. (SBU) Summary: Boeing CEO Harry Stonecipher
(accompanied by his vice presidents for international
relations, commercial airline sales for the Middle East and
defense sales to the Middle East) briefed Ambassador on
November 20 on Boeing programs and priorities in the United
Arab Emirates. He confirmed that Etihad Airlines had
bought 5 Boeing 777-300 aircraft and that Boeing is still
trying to get the UAEG to sign a letter of acceptance for
the Harpoon missile. Finally, he noted that potential
liability issues were discouraging Boeing from bidding for
projects to integrate border and airport security systems.
End Summary.

Civil Aviation
--------------


2. (SBU) Stonecipher confirmed that Etihad Airlines had
signed a purchase order with Boeing to buy 5 Boeing 777-300
extended range aircraft, with delivery to start in October

2005. The scheduled delivery for the planes is: one in
October, two in November, and 1 in December. He said that
Etihad would likely announce the deal in a few days.
Stonecipher also told the Ambassador that Etihad was still
negotiating with Airbus over its announced purchase.
According to Boeing, Emirates Airlines has had problems
with its Airbus 340-500 aircraft on the Dubai - New York
flight. The aircraft have had seven engine changes and are
unable to make the flight from Dubai to New York with a
full payload. The bottom line is that Emirates Airlines is
discovering that operating the Airbus 340 on this flight is
more expensive than it realized (and he suggested, more
expensive than operating a comparable Boeing 777).


3. (SBU) In response to Ambassador's question, Stonecipher
stated that the discussions with Emirates about the 7E7
were "not going anywhere." He explained that Emirates had
said that even the "stretch" 7E7 was not big enough for its
current requirements. Finally, Stonecipher said that
Boeing would be assigning two civil aviation sales
representatives to Dubai.

Defense
--------------


4. (SBU) Stonecipher confirmed that Boeing was still trying
to get the UAE to sign the letter of acceptance on the
Harpoon Missile, before the offer expired at the end of
December.


5. (SBU) Stonecipher noted that he expected that Boeing
would deliver its 767 Tanker proposal to the UAE Air force
by the middle of December. Boeing is competing with Airbus
to supply the UAE Air force with two tankers.


6. (SBU) Stonecipher briefly discussed Boeing's two
helicopter programs in the UAE (the AH-64 Apache and the
CH-47 Chinook). He said that Boeing had met with the head
of land forces on the AH-64 Apache program and had been
told that if Boeing could get the Apache helicopters
operational again, the UAE would again look at upgrading
the helicopters to the AH-64D-model, Block 2. Boeing has a
direct commercial support contract under review at UAE GHQ
to rehabilitate the helicopters. USLO Chief told
Stonecipher that the UAE Special Operations Command had
just presented a letter of request for a training and
maintenance package for the CH-47 Chinook to USLO.


7. (SBU) Stonecipher also noted that Boeing was no longer
interested in work integrating border or airport security
systems, despite its expertise in this area. The problem,
he explained, was one of liability. The UAE would want
Boeing to assume unlimited liability if anything went wrong
(i.e., if a terrorist slipped through the system). The
Ambassador commented that this is a challenge facing a
number of U.S. companies in the security service field.
Stonecipher noted that it apparently does not affect the
European companies, which seem comfortable signing
contracts with potential liability clauses. (Note:
Stonecipher also said that Boeing faces similar problems in
the U.S.)
Sison