UAE AVIATION UPDATES

UNCLAS SECTION 01 OF 02 ABU DHABI 000813

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SUBJECT: UAE AVIATION UPDATES


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1. (SBU) Summary. The UAE,s aviation sector is rapidly
growing in both the private and public sectors. During a
recently held aviation conference in Abu Dhabi, the Directors
General of Arab Civil Aviation Authorities formed an aviation
security panel. In addition, commercial aviation services in
the Emirates of Abu Dhabi and Ras Al Khaimah are expanding.
Etihad Airways, located in Abu Dhabi, is in the process of
doubling its staff and will begin flying to 24 new
destinations, including the U.S., within the next 6 months.
The Emirate of Ras Al Khaimah recently announced the launch
of its new airline, RAK Airways, the UAE,s fourth national
carrier which will begin operating by the end of 2006. End
summary.
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Civil Aviation Security Conference
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2. (U) From February 7-9, the Arab Civil Aviation Commission
(ACAC) held its first international security forum in Abu
Dhabi, UAE. The UAE,s General Civil Aviation Authority and
the International Civil Aviation Organization (ICAO)
co-hosted the event. The conference ended with a binding
agreement to form an Arab aviation security panel of experts
with provisions to fund future panel meetings.


3. (U) During the conference, then Minister of Communication,
Sultan bin Saeed Al Mansouri(this Ministry has since been
abolished) said at least AED 20 billion( USD$5.4 billion)
will be pumped into the UAE aviation sector, with a sizeable
portion for security and for the expansion of airports. The
number of carriers flying through the UAE exceeded 100 last
year, with more than 360,000 flights. &With such growth, we
are keen to provide high security through high investments in
this sector.8 He said that two months before, ICAO had
inspected the security systems and procedures at all UAE
airports. &The security systems were found to be leak-proof
and even above world standards, which is a matter of great
satisfaction,8 Al Mansouri said. He also called on Arab
countries to jointly face new challenges in the region,s
civil aviation sector. &Such challenges and risks require
further technological developments that are beyond the
capacity of some countries, so joint efforts and cooperation
are needed,8 the Minister said. (Note: The UAE is
considered a leader in Arab civil aviation safety and
security practices. During the conference, the UAE signed an
MOU with the European Aviation Safety Agency to cooperate on
aviation regulations and safety oversight. End note.)


4. (U) Cresencio Arcos, Assistant Secretary of International
Affairs for DHS, also spoke at the conference and urged Arab
countries to emulate other regions in launching aviation
security initiatives. &It is through regional initiatives
that areas of weakness are best addressed where States can
come together and offer mutual assistance, share best
practices and devise collective approaches to ensure that
security levels are broadly and effectively raised.8 A/S
Arcos also noted the desire of the U.S. to work with Arab
states once an effective and viable working group is
established in the region. (Note. The UAE, Jordanian, and
Saudi Arabian delegates privately urged both TSA and FAA
representatives to consider placing a TSA representative in
the region to better coordinate information sharing and
harmonize aviation security practices. End note.)


5. (SBU) Several Arab civil aviation officials admitted in
sidebar discussions with TSA delegates that the chief
hindrance to forming an Arab regional group was mismanagement
and malaise at ACAC headquarters in Rabat, Morocco. The
Director General of the UAE,s GCAA, Mohammed Al Gaith, told
a U.S. delegate, &he had washed his hands8 of the ACAC
security committee once he realized its members were &more
interested in trips to Europe and collecting per diem8 than
in accomplishing the goals set forth in the ACAC charter. Al
Gaith said the success of the new regional grouping will
depend on the outcome of the ACAC,s general assembly meeting
in the spring when Member States will choose a new executive
council. The structure of the ACAC includes a General
Assembly, an Executive Council, a Director General, and
committees on Air Transport Safety, Aviation Security, Air
Navigation, and Financial Control.


6. (SBU) Comment: While the conference concluded with broad
agreement over the need to form a regional panel of experts,
U.S. delegates agreed that the litmus test will be the
outcome of upcoming ACAC general assembly and executive
committee meetings. Infighting among the ACAC members was
already evident at the conference when participants were
unable to reach a decision on the date and location of the

ABU DHABI 00000813 002 OF 002


security panel,s first meeting. The fact that the Directors
General agreed to form an aviation security committee for the
first time in ACAC,s history, was the real achievement of
the meeting. Several delegates said they agreed with the
U.S., European and Asia-Pacific views that the Arab region
was lagging behind the rest of the world in cooperative
regional aviation security efforts.

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Etihad Airways rapidly expanding its operations
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7. (U) On January 22, Econoff and FAA Representative, met
with Mr. Helmut Weixler, Head of Flight Operations for Etihad
Airways to discuss the Airline's expansion plans. Etihad is
planning to double its current workforce of 2000 by the end
of 2006. Etihad is also in the process of expanding its
reach in the Middle East and globally with its assumption of
the Abu Dhabi based Gulf Air flights. Etihad will gain 145
flights from Gulf Air departing Abu Dhabi to 24 destinations
within the next 6 months. Within the next three months, the
airline will begin flying to 13 new destinations, including
Doha, Casablanca, Kuwait, Jakarta, Manila and several cities
in Pakistan. Etihad,s planned flight to Newark will begin
in summer 2006, using Airbus A340-500 aircraft.


8. (SBU) Etihad ordered five Boeing 777,s to handle the
increased flights and originally expected to receive all the
aircraft between January and April 2006. The first 777
arrived in Abu Dhabi on February 2. Weixler said that
although the aircraft are ready, the delivery date is delayed
because the seat manufacturer has failed to meet its
deadline. Etihad will fly their current A340-500 on the
Newark route and use the 777,s on their new routes, although
they are requesting permission from the FAA to fly both the
777 and the 340-500 into the U.S. Captain Weixler said that
Etihad is concerned with getting the necessary clearances
from the FAA and the TSA. Weixler also worries that the
airline is growing too fast. He said &it is a pride issue;
Etihad has to be the best.8 By the time Etihad finishes its
fleet, it will have approximately 40 planes.


9. (SBU) Another one of Captain Weixler,s concerns was the
issuance of U.S. visas for Etihad,s crew. Weixler
repeatedly stated, &he knew certain nationalities would be
black-balled from receiving visas.8 Econoff assured Weixler
that the Embassy does not &black ball8 any person based on
their nationality or for any other reason. The FAA
representative called the CG and he agreed to meet with
Weixler and other Etihad officials regarding the visa issue.


10. (SBU) Comment: Etihad officials indicated the airline
may be interested in codesharing with Continental Airlines on
the Newark flight. However, Etihad asked that this
information be kept confidential.

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RAK Airways--Fourth National Airline formed in Ras Al Khaimah
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11. (U) On February 14, The Emirate of Ras Al Khaimah
re-announced the creation of its airline, RAK Airways.(An
announcement was previously made in November 2004.)H.H.
Sheikh Saqr bin Muhammad Al Qasimi,Supreme Council Member and
Ruler of Ras Al Khaimah, issued Emiri decree number 3/2006
which creates the new airline. Press reports state that the
new airline will be a private joint stock company
incorporated in the RAK Free Trade Zone with an authorized
capital of AED 1.5 billion. The new airline proposes to raise
an initial capital of AED 850 million(USD $231.4
million)through private investment. The RAK government will
be the largest stakeholder in the carrier.


12. (U) The government of Ras Al Khaimah views the new
airline as part of its developmental strategy focused on
tourism and industrial investments. The airline will
initially operate a fleet of 8 aircraft and the carrier is
currently in negotiations with Boeing and Airbus to purchase
the planes. RAK Airways plans to fly to India, Bangladesh,
Philippines, Sri Lanka, Pakistan, Iran, Egypt, Lebanon and
GCC countries.
SISON