EMIRATES AND DPWORLD LEADERS OUTLINE AMBITIOUS PLANS TO

UNCLAS SECTION 01 OF 02 DUBAI 006054 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON EAIR EINV PREL AE SUBJECT: EMIRATES AND DPWORLD LEADERS OUTLINE AMBITIOUS PLANS TO COMMERCE A/S HERNANDEZ (1) (SBU) SUMMARY: US Department of Commerce Assistant Secretary Israel Hernandez discussed civil aviation plans with SIPDIS the Chairman of Dubai's Civil Aviation Authority/Emirates Airlines, the CEO of DPWorld (government-owned port and free zone operator) and Boeing representatives on September 17. Both outlined ambitious civil aviation and expansion plans, including additional Emirates flights to the US, a large joint investment (with the Emirate of Abu Dhabi) into aerospace infrastructure and manufacturing, and the planned new freight airport and logistics hub in the Jebel Ali Free zone. End Summary. (2) (U) As part of a September 17 swing through Dubai to promote US-UAE business engagement and US exports, Assistant Secretary for Trade Promotion and Director General of the U.S. & Foreign Commercial Service Hernandez met with Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Emirates Airline and President of Dubai Civil Aviation Authority and Jamal Majid Bin Thaniah, DPWorld Group CEO for Ports and Free Zones. He also addressed the local U.S. business community at a luncheon organized by the American Business Council of Dubai, and met with Boeing representatives. A/S Hernandez was accompanied by the Ambassador, the Consul General, SCO Reed and PCO Wall. Sheikh Ahmed on Emirates, Civil Aviation/Aerospace plans -------------- -------------- (3) (SBU) Sheikh Ahmed discussed Dubai civil aviation's multi-billion dollar expansion plans, including joint investment in aerospace manufacturing with the Emirate of Abu Dhabi's Mubadallah organization. This initiative will entail expanded flight training, aerospace related manufacturing (initially, we understand, lower-tech items such as cargo containers) as well as a new aircraft leasing scheme. He also noted that he Dubai airport will have the capacity to handle up to 70 million travelers annually when the second terminal (now under construction) is up and running. (4) (SBU) Sheikh Ahmed expressed a high level of satisfaction with the Boeing Company, which he described as a "partner," and with the performance of the company's 777 aircraft. A/S Hernandez thanked Sheikh Ahmed for Emirates' purchase of Boeing aircraft (82 aircraft ordered since 2005 totaling US$19.4 billion) and expressed his hope that the he would consider additional purchases of Boeing's new 787 "dreamliner". Emirates is considering purchase of as many as twenty additional aircraft to service their new and existing routes. (5) (SBU) Emirates will add a third daily flight to the US, and plans to expand the number of US destinations it services. It hopes to add, in the first instance, direct service to San Francisco and then possibly to Chicago and Houston. It is also seeking other western hemisphere destinations, including Buenos Aires. American Business Council Lunch -------------- (6) (U) Hosted by the American Business Council in Dubai, A/S Hernandez addressed key local US-affiliated U.S. business leaders. The businessmen were encouraged by the Assistant Secretary's visit, and urged him to promote additional economic SIPDIS engagement with Dubai and the Emirates, and touted Dubai as a continuing strong US export market. A lively question and answer trade session followed. DPWorld: Ambitious Plans for Jebel Ali -------------- (7) (SBU) DPWorld CEO for Ports and Free Zones Jamal Majid bin Thaniah told A/S Hernandez he had just requested permission from Dubai Ruler (and UAE Vice President and Prime Minister) Sheikh Mohammed bin Rashid Al Maktoum to expand Jebel Ali Port from a capacity of 17M TEUs (containers) per year to 55M TEUs, which would, according to bin Thaniah, make it significantly larger in capacity than the port of Hong Kong. Bin Thaniah said that DPWorld was pushing ahead with its plans for a new, larger freight airport at Jebel Ali associated with the port; the first runway (of a planned 5) will be completed in 2007. DPworld also plans an associated logistics hub, housing area, golf resort and other developments. If current plans are realized, Jebel Ali would be the largest dedicated cargo airport in the world. Boeing: Building on Success -------------- DUBAI 00006054 002 OF 002 (8) (SBU) Amb. John B. Craig, Boeing Vice President, Middle East Region, thanked A/S Hernandez, the Ambassador, Consul General and Commercial officers Reed and Wall for the past support and advocacy with Emirates, leading to the recent purchase of ten Boeing 747-8 Freighters for US$ 3.3 billion by Emirates. Hernandez pledged that the USG would continue its strong advocacy efforts for Boeing in the UAE, both with Emirates and Abu Dhabi-based Ettihad Airways. Craig discussed the advantages of the 787 Dreamliners versus the competing Airbus A350, including the Boeing's greater fuel efficiency, satellite connectivity and new composite materials construction, and noted he anticipated Emirates is likely to order both Boeing and Airbus aircraft in the 787/A350 class. SUTPHIN