Identifier
Created
Classification
Origin
06ANTANANARIVO1413
2006-12-19 12:01:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Antananarivo
Cable title:
AIRBUS WOOS AIR MAD, BUT BOEING PITCH REQUESTED
how-toVZCZCXRO8721 OO RUEHJO DE RUEHAN #1413 3531201 ZNR UUUUU ZZH O 191201Z DEC 06 FM AMEMBASSY ANTANANARIVO TO RUEHC/SECSTATE WASHDC IMMEDIATE 4051 INFO RUEHFR/AMEMBASSY PARIS 0767 RUEHPL/AMEMBASSY PORT LOUIS 0274 RUEHJO/AMCONSUL JOHANNESBURG 0081 RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS ANTANANARIVO 001413
SIPDIS
SENSITIVE
SIPDIS
PARIS FOR D'ELIA
DEPT FOR AF/E MBEYZEROV
DEPT FOR INR/I, EB/TRA AND EB/CBA
JOHANNESBURG FOR FCS
E.O. 12958: N/A
TAGS: EAIR BEXP ECON EFIN PREL MA
SUBJECT: AIRBUS WOOS AIR MAD, BUT BOEING PITCH REQUESTED
Ref: A) STATE 171747
B) ANTANANARIVO 177
UNCLAS ANTANANARIVO 001413
SIPDIS
SENSITIVE
SIPDIS
PARIS FOR D'ELIA
DEPT FOR AF/E MBEYZEROV
DEPT FOR INR/I, EB/TRA AND EB/CBA
JOHANNESBURG FOR FCS
E.O. 12958: N/A
TAGS: EAIR BEXP ECON EFIN PREL MA
SUBJECT: AIRBUS WOOS AIR MAD, BUT BOEING PITCH REQUESTED
Ref: A) STATE 171747
B) ANTANANARIVO 177
1. (U) This cable contains an Action Request for the Department in
para 5.
2. (SBU) National carrier Air Madagascar, 80 percent owned by the
Government of Madagascar and privately managed by Lufthansa
Consulting, is considering a switch to Airbus equipment from Boeing
when it renews its fleet. Air Mad Director General Ulrich Link told
PolEcon Chief December 18 he was being aggressively wooed by Airbus
with everything from weekend vacations to financing and assistance
with technology migration costs. Air Mad, which had followed Air
France's lead to use Boeing equipment in the past, will make a
procurement decision by March 2007.
3. (SBU) DG Link said Air Mad's four long haul carriers for its
Paris and Bangkok routes are all due to be replaced in the coming
two years. Currently Air Mad operates four aircraft under leases
from GE's finance arm: two 767s to be replaced in March 2008 and
June 2009 as well as two 737s both due to be replaced in December
2008. Given a 50 percent price increase quoted by the lessor GE, DG
Link and Air Mad Finance Director Arthur Randrianambinintsoa decided
to explore acquisition opportunities. In addition to Air Mad's long
haul fleet, DG Link is considering bundling the purchase with
acquisitions of smaller aircraft to replace some ATRs and Twin
Otters which are workhorses for the airline's many domestic routes.
4. (SBU) DG Link was a bit puzzled by the aggressive sale put on
by Airbus, guessing perhaps the relatively small Air Mad deal might
be part of some regional strategy. A long-time employee of
Lufthansa, DG Link expressed pure indifference between Airbus and
Boeing based on performance and quality: his decision would be
based on price. He emphasized that Airbus had already made
attractive financing offers for the new fleet acquisition and
offered to cover some of the migration costs and new training
required to change equipment. Since his arrival at Air Madagascar
six months ago, DG Link said he has had no contact from Boeing.
5. (SBU) ACTION REQUESTED: Post requests the Department pass
along this information to Boeing and, if desired, facilitate a sales
representative mission to Madagascar as early as possible in 2007.
The Ambassador would personally participate in Boeing's visit if the
company wishes to make an offer for Air Madagascar's fleet renewal.
MCGEE
SIPDIS
SENSITIVE
SIPDIS
PARIS FOR D'ELIA
DEPT FOR AF/E MBEYZEROV
DEPT FOR INR/I, EB/TRA AND EB/CBA
JOHANNESBURG FOR FCS
E.O. 12958: N/A
TAGS: EAIR BEXP ECON EFIN PREL MA
SUBJECT: AIRBUS WOOS AIR MAD, BUT BOEING PITCH REQUESTED
Ref: A) STATE 171747
B) ANTANANARIVO 177
1. (U) This cable contains an Action Request for the Department in
para 5.
2. (SBU) National carrier Air Madagascar, 80 percent owned by the
Government of Madagascar and privately managed by Lufthansa
Consulting, is considering a switch to Airbus equipment from Boeing
when it renews its fleet. Air Mad Director General Ulrich Link told
PolEcon Chief December 18 he was being aggressively wooed by Airbus
with everything from weekend vacations to financing and assistance
with technology migration costs. Air Mad, which had followed Air
France's lead to use Boeing equipment in the past, will make a
procurement decision by March 2007.
3. (SBU) DG Link said Air Mad's four long haul carriers for its
Paris and Bangkok routes are all due to be replaced in the coming
two years. Currently Air Mad operates four aircraft under leases
from GE's finance arm: two 767s to be replaced in March 2008 and
June 2009 as well as two 737s both due to be replaced in December
2008. Given a 50 percent price increase quoted by the lessor GE, DG
Link and Air Mad Finance Director Arthur Randrianambinintsoa decided
to explore acquisition opportunities. In addition to Air Mad's long
haul fleet, DG Link is considering bundling the purchase with
acquisitions of smaller aircraft to replace some ATRs and Twin
Otters which are workhorses for the airline's many domestic routes.
4. (SBU) DG Link was a bit puzzled by the aggressive sale put on
by Airbus, guessing perhaps the relatively small Air Mad deal might
be part of some regional strategy. A long-time employee of
Lufthansa, DG Link expressed pure indifference between Airbus and
Boeing based on performance and quality: his decision would be
based on price. He emphasized that Airbus had already made
attractive financing offers for the new fleet acquisition and
offered to cover some of the migration costs and new training
required to change equipment. Since his arrival at Air Madagascar
six months ago, DG Link said he has had no contact from Boeing.
5. (SBU) ACTION REQUESTED: Post requests the Department pass
along this information to Boeing and, if desired, facilitate a sales
representative mission to Madagascar as early as possible in 2007.
The Ambassador would personally participate in Boeing's visit if the
company wishes to make an offer for Air Madagascar's fleet renewal.
MCGEE