Identifier
Created
Classification
Origin
07ASHGABAT1127
2007-10-18 09:07:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:  

TURKMENISTAN: BOEING REPORTS NEW ORDERS FOR

Tags:  PGOV PINR EAIR ENRG ETRD TX 
pdf how-to read a cable
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PP RUEHAG RUEHBI RUEHCI RUEHDBU RUEHLH RUEHPW RUEHROV
DE RUEHAH #1127/01 2910907
ZNY CCCCC ZZH
P 180907Z OCT 07
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 9563
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 2889
RUEHBJ/AMEMBASSY BEIJING 0710
RUEHKO/AMEMBASSY TOKYO 0586
RUEHIT/AMCONSUL ISTANBUL 1162
RUEATRS/DEPT OF TREASURY WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMFISS/CDR USCENTCOM MACDILL AFB FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHINGTON DC
C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001127 

SIPDIS

SIPDIS

STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN

E.O. 12958: DECL: 07/20/2017
TAGS: PGOV PINR EAIR ENRG ETRD TX
SUBJECT: TURKMENISTAN: BOEING REPORTS NEW ORDERS FOR
PLANES, PARTS, AND TRAINING

REF: ASHGABAT 0925

Classified By: Charge Richard E. Hoagland for reasons 1.4 (B) and (D)

C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001127

SIPDIS

SIPDIS

STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN

E.O. 12958: DECL: 07/20/2017
TAGS: PGOV PINR EAIR ENRG ETRD TX
SUBJECT: TURKMENISTAN: BOEING REPORTS NEW ORDERS FOR
PLANES, PARTS, AND TRAINING

REF: ASHGABAT 0925

Classified By: Charge Richard E. Hoagland for reasons 1.4 (B) and (D)


1. (SBU) SUMMARY: Turkmenistan Airlines' long-anticipated
aircraft order is becoming reality. In addition to three
airplanes -- two for the airline, and one for the president
-- they are contracting for additional maintenance training
and tools. The government anticipates a financial savings
from performing a higher level of maintenance on home turf.
Further discussions with an Amcit contractor reveals that
inflexible planning typical of a command economy cannot meet
changing market demands. END SUMMARY.

PLANES, TRAINING, AND TOOLS ON ORDER...BUT NO CONTRACT YET


2. (C) Television news reports on October 13 showed Boeing's
sales representative assigned to Turkmenistan meeting with
President Berdimuhamedov. According to Boeing's Amcit Field
Service Representative in Turkmenistan, Turkmenistan Airlines
is ordering new aircraft and tools, and contracting service
training. He encouraged Turkmenistan Airlines to buy
737-900's because they have a larger capacity than the
737-800's currently in the fleet. Hence, the airlines is
buying two 737-900's for delivery sometime during 2012-2014.
Also, it is purchasing one new 777 for the president. After
Boeing makes delivery in 2010, a different (unspecified)
company will take another year to complete interior refitting
and decoration. According to our Boeing source,
Berdimuhamedov likes the prestige of owning a new 787 but
does not want to wait until the proposed delivery date of

2014. This is a substantial order for a marketplace like
Turkmenistan. The lawyers are still hammering out contract
details.

PLANS TO SAVE MONEY THROUGH MAINTAINING THEIR OWN PLANES


3. (C) Boeing's Amcit Field Service Representative in
Turkmenistan explained that the brain drain of the last 16
years hurt the airline industry. Talented maintenance

professionals and pilots left the country long ago, and much
work awaits if Turkmenistan Airlines is serious about
achieving this level of maintenance self-sufficiency. He
also stated that government officials in control of the purse
strings want to save money by maintaing the planes in
Turkmenistan -- not Turkey or France, as is now done. As
another supposed cost saving measure, Turkmenistan Airlines
is contracting for "C check" maintenance training and tools.
(NOTE: "C check" maintenance involves thorough checks,
performed approximately every 12-18 months, during which
time, the aircraft is put out of service. END NOTE.)
(COMMENT: It is unclear if performing "C checks" in country
is really more economical for Turkmenistan, since it requires
a significant outlay of resources. END COMMENT.)

OPPORTUNITY TO AQUIRE PARTS AND MAKE UPGRADES


4. (C) Another Amcit involved in the aviation business said
earlier in October that the Director of Airfield Operations
at Ashgabat airport is pleased about the purchase of the
aircraft, because it will give him the opportunity to
purchase ancillary items needed for daily airfield
operations. These items range from small parts to vehicles,
but are difficult to acquire because of the lack of an annual
budget, and must be bundled with major purchases.

SOME NEWS ON FUEL


5. (C) Problems with fuel shortages at the airport also
reveal a recurrent theme of inflexible planning that cannot
meet changing market demands, ostensibly due to fear of theft
of government resources. This same Amcit businessman also
looked into Turkmenistan's recent notification that no U.S.

ASHGABAT 00001127 002 OF 002


military planes could refuel for nearly three weeks due to a
lack of jet fuel. Projected fuel deliveries from the
refinery in Turkmenbashy were wrong, but officials are
reluctant to report shortcomings because they instigate a
painful audit process. Our source said any difference
between the projection, the output, and sale of fuel product
leads to a witchhunt for siphoners. Soon work on a new
state-of-the-art fuel tank farm will commence, and other
small purchases will be bundled with this contract.


6. (SBU) COMMENT: From an economic point of view, news of
the intention to upgrade Turkmenistan's domestic maintenance
capability because of a desire to economize provides further
proof that the government of Turkmenistan is serious about
understanding where all of the money is going (and fighting
corruption),vis-a-vis the work of the Supreme Auditing
Chamber and the reorganized National Statistics Committee and
Institute of Strategic Planning and Economic Development
(announced October 15). However, the miserly tendency may
also result in compromised safety. One possible lesson from
all of this is Turkmenistan needs help with planning and
resourcing of logistical support. END COMMENT.
HOAGLAND