Identifier
Created
Classification
Origin
06DAMASCUS3186
2006-06-29 11:10:00
CONFIDENTIAL
Embassy Damascus
Cable title:  

SARG NEGOTIATES FOR RUSSIAN AIRCRAFT AS PART OF

Tags:  EAIR ECON EINV ETTC SY 
pdf how-to read a cable
VZCZCXRO4551
PP RUEHAG RUEHBC RUEHDE RUEHKUK
DE RUEHDM #3186 1801110
ZNY CCCCC ZZH
P 291110Z JUN 06
FM AMEMBASSY DAMASCUS
TO RUEHC/SECSTATE WASHDC PRIORITY 0048
INFO RUEHEE/ARAB LEAGUE COLLECTIVE PRIORITY
RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHMO/AMEMBASSY MOSCOW PRIORITY 0735
RUEHTV/AMEMBASSY TEL AVIV PRIORITY 1111
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHMFISS/HQ USCENTCOM MACDILL AFB FL PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RHEHAAA/WHITE HOUSE WASHDC PRIORITY
C O N F I D E N T I A L DAMASCUS 003186 

SIPDIS

SIPDIS

NEA/ELA
NSC FOR ABRAMS/DORAN/SINGH
TREASURY FOR GLASER/LEBENSON

E.O. 12958: DECL: 06/28/2016
TAGS: EAIR ECON EINV ETTC SY
SUBJECT: SARG NEGOTIATES FOR RUSSIAN AIRCRAFT AS PART OF
DUAL-TRACK EFFORT TO UPDATE FLEET

REF: DAMASCUS 1811

Classified By: CDA Stephen Seche for reasons 1.4 b/d

C O N F I D E N T I A L DAMASCUS 003186

SIPDIS

SIPDIS

NEA/ELA
NSC FOR ABRAMS/DORAN/SINGH
TREASURY FOR GLASER/LEBENSON

E.O. 12958: DECL: 06/28/2016
TAGS: EAIR ECON EINV ETTC SY
SUBJECT: SARG NEGOTIATES FOR RUSSIAN AIRCRAFT AS PART OF
DUAL-TRACK EFFORT TO UPDATE FLEET

REF: DAMASCUS 1811

Classified By: CDA Stephen Seche for reasons 1.4 b/d


1. (U) Syrian Minister of Transportation, Yarob Sulieman
Bader, was in Moscow this past week negotiating with
representatives from Ilyushin Finance and Voronezh Aircraft
Construction Company on the purchase of seven new planes to
update SyrianAir's fleet. Local, regional, and international
press reported widely on the discussions surrounding the
delivery of three Il-96 planes and four Tu-204 aircraft to
Syria, as well as on an MOU signed between the two parties to
build a regional technical maintenance hub in Syria to
service Russian commercial aircraft. While initial press
reports implied that negotiations on airplane procurement had
been finalized, susequent articles this week indicated that
TransMin Bader would continue to study the technical and
financial aspects of the airplane purchase, and would
potentially sign a contract with Ilyushin by the end of the
year.

2, (C) Sources have suggested that SyrianAir has allocated
approximately 500 million USD of funding to update its fleet.
However, TransMin Bader has been reticent to sign an
agreement with the Russians. According to Ali Za'tari,
resident UNDP Representative, this can be attributed to
TransMin Bader's desire to continue to pursue other options -
namely potential "wet" and "dry" lease possibilities for
Boeing and Airbus aircraft (reftel). Za'tari claims that the
International Civil Aviation Organization (ICAO) technical
team that visited Syria in April has sought support -
specifically for dry lease options for SyrianAir - from the
office of the U.S. ICAO Representative, and that the team is
pursuing meetings in the near future with the Department of
Commerce to discuss SyrianAir's prospects for obtaining
aircraft export licenses. Many Syrians, including our
contacts, have criticized the SARG's decision to purchase
low-quality Russian planes, which resulted in the Russian
Embassy in Damascus issuing a press statement on June 28 that
its planes are safe and in many ways more technologically
advanced that their Western counterparts (Note: Za'tari was
skeptical of the confidence of the Russians toward their own
planes, pointing out that the entire Russian fleet is
comprised of Airbus aircraft. End note).


3. (C) Comment: Despite the heavily touted negotiations with
Russia, it appears that the SARG continues to hedge its bets
that ICAO negotiations over dry lease options for Boeing or
Airbus aircraft will be successful. We have heard that
SyrianAir now has only nine operable planes, and contacts
have told us that by 2008 those nine will also likely be
grounded. Nonetheless, contacts contend that the SARG is
unwilling to forego the "national character" of its airline
by accepting the leasing conditions under a wet lease option.
However, as 2008 draws near, if SyrianAir hopes to continue
with its operations, it will be forced to weigh sacrificing
the airline's national identity for the sake of the safety of
its passengers.
SECHE