US embassy cable - 03AMMAN7989

UNCLAS AMMAN 007989 
 
SIPDIS 
 
SENSITIVE 
 
USDOC 4520/ITA/MAC/ONE/PTHANOS 
 
E.O. 12958: N/A 
TAGS: EAIR, EINV, JO, IZ 
SUBJECT: RJ FINALIZES CODESHARE WITH AMERICA WEST, BUT 
STILL LOOKING FOR BETTER DEAL 
 
REF: A. SECSTATE 162145 
 
     B. AMMAN 7647 
 
Sensitive but Unclassified 
 
1. (SBU) On December 6, Royal Jordanian Airlines (RJ) 
finalized a memorandum of understanding with America West 
Airlines (AW) providing for a codeshare arrangement between 
RJ flights originating/ending in New York (Kennedy) and 
Chicago (O'Hare) and connecting AW flights going to Phoenix 
and Las Vegas airports. U.S. and Jordanian civil aviation 
authorities will still need to give their approvals to this 
document before both sides can sign, and RJ has been told by 
the Jordan Civil Aviation Authority to expect a 90-day wait 
prior to its decision. RJ Deputy President for Commercial 
Services Ghassan Ali estimates that the agreement is three to 
six months from full implementation, as the two airlines' 
computer systems and their flight scheduling will have to be 
reconciled following the signing of the codeshare. 
 
2. (SBU) COMMENT: The finalization of this codesharing 
agreement is the most significant and concrete step so far in 
a long and frustrating struggle by RJ to find an American 
airline to partner with for a codeshare.  The arrangement 
would allow the growing stream of American government 
personnel that has been entering Jordan since March to travel 
on RJ flights between Amman and the U.S. without violating 
the Fly America Act.  RJ has made approaches over the past 
two years to American Northwest, Continental, Delta, and 
United Airlines, all without success (Reftel A).  This has 
been partially because these airlines and their existing 
codeshare partners have worried about cannibalization of 
their routes by RJ.  While a codeshare with a minor airline 
like AW, which has very limited service to U.S. cities served 
by RJ, avoids this obstacle, it is far from an optimal 
solution for RJ, which wants to hook into a large US route 
network. 
 
3. (SBU) RJ is therefore continuing to pursue an agreement 
with Northwest Airlines, which RJ believes would make a 
better partner based on the strength of Northwest's Detroit 
hub, to which RJ has flights.  RJ has made contact with the 
Detroit Airport Authority which has shown interest in backing 
RJ's position as Detroit positions itself as an entrepot to 
the Arab world.  RJ also strongly hopes that it will become a 
more attractive partner if/when it is able to finalize a 
codeshare deal with a new Iraqi flag carrier (Reftel B). END 
COMMENT. 
HALE