NATIONAL CARRIER ROYAL JORDANIAN SIGNS UP FOR

UNCLAS AMMAN 001299 SIPDIS SIPDIS STATE FOR NEA/ELA, EB/CBA E.O. 12958: N/A TAGS: BEXP EAIR ETRD JO SUBJECT: NATIONAL CARRIER ROYAL JORDANIAN SIGNS UP FOR BOEING DREAMLINER REF: A. STATE 171747 ¶B. AMMAN 8241 ¶C. AMMAN 08295 CONTAINS PROPRIETARY INFORMATION. PLEASE PROTECT ACCORDINGLY ¶1. After an intense and long-term advocacy effort by Boeing and the USG, Boeing has struck a breakthrough deal with Royal Jordanian Airlines (RJ). RJ's Board of Directors decided on March 19 to commit to the purchase of four 787's, as well as lease an additional three 787's. RJ previously signed lease commitments for five 787's, bringing RJ's total to eight leased and four purchased 787's. This is the first Boeing sale to RJ since 1981, and the first 787 sale to any Middle East airline. This decision means that RJ will be shifting from a long-haul fleet of entirely Airbus aircraft, to a mixed (purchased and leased) fleet of entirely Boeing aircraft for at least the next decade. ¶2. In addition to vigorous, multi-agency advocacy at all Embassy levels and Washington-based USG communication, credit for the sale goes to a sustained and serious effort by Boeing to accommodate the airline's needs. Previous difficulties with delivery slots were been due largely to RJ's lengthy decision-making process, and resulted in the loss of production slots that would have shortened the time period that RJ had to maintain both Airbus and Boeing aircraft, as they made a complete shift from one aircraft manufacturer to another. The leased 787's will be delivered starting in 2010, and the purchased 787's will be delivered in late 2013 and 2014. The additional three leases will cover the gap in 2012-13, and will allow RJ to move to an entire Boeing fleet more quickly. ¶3. Next steps include the signing of a formal contract, currently being prepared by Boeing's regional representatives in Amman. After signing, RJ is required to deposit funds with Boeing no later than the end of March. Once those funds are received, the sale will be considered official. HALE