US embassy cable - 04MANAMA1469

C O N F I D E N T I A L MANAMA 001469 
 
SIPDIS 
 
DEPARTMENT FOR EB/CBA DWINSTEAD, EB/TRA/AN LJONES 
 
E.O. 12958: DECL: 09/25/2014 
TAGS: BA, BEXP, EAIR, ECON, PREL 
SUBJECT: BAHRAIN: AMBASSADOR MEETS WITH TRANSPORTATION 
MINISTER, GULF AIR A PRIORITY 
 
Classified By: Ambassador William T. Monroe, Reasons 1.4 (b) and (d) 
 
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Bahraini Support for Military Transit Invaluable 
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1. (SBU) The Ambassador met with Minister of Transportation 
Sheikh Ali Bin Khalifa Al Khalifa on September 8 to discuss 
efforts to expand and manage Bahrain,s transportation 
infrastructure.  Al Khalifa,s portfolio also includes civil 
aviation as well as telecommunications, postal services and 
public transportation.  The Ambassador opened the meeting by 
thanking the Minister for the support Bahrain provides to 
transiting U.S. military planes and ships, which the Embassy 
estimates average 450-600 requests for flights (both transit 
of airspace and permission to land) and 50 ship passages per 
month.  The Minister replied that military air traffic 
represented 20 percent of Manama airport,s workload.  He 
added that the relationship works well and that Bahrain sees 
this as an important part of the good relationship the GOB 
has enjoyed with the U.S. military for over sixty years. 
 
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Upgrading Gulf Air 
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2.  (U) The Minister characterized airport facilities in 
Manama as first-rate. Bahrain had seen an increase in cargo 
going though the airport but not by American companies.  He 
specifically raised the limited presence of both Federal 
Express and UPS in Bahrain and urged the Ambassador to work 
with American companies to ensure that DHL did not totally 
corner the market. 
 
3.  (C) The Minister reviewed the financial problems faced by 
Gulf Air last year.  At the time, Bahrain had offered to buy 
out its partners in Oman and the UAE, but in the end all 
three had injected cash into the company.  Acknowledging that 
Abu Dhabi's vigorous promotion of Etihad Airways added a new 
complication for Gulf Air, the Minister said that Bahrain had 
a national interest in shoring up Gulf Air in order to ensure 
job security for the 3,000 Bahrainis that work for it.  He 
admitted that Bahrain could do a better job of managing the 
airline on its own, and said Bahrain remains interested in 
making the airline its national carrier.  If it went that 
way, sorting out regional routes would be a major challenge. 
 
 
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Boeing 
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4.  (SBU) The Ambassador raised Boeing,s interest in helping 
Gulf Air replace its fleet.  The Minister said that he 
preferred to work with Boeing and pointed out that Manama 
airport was host to the region,s only Boeing certified 
mechanics.  When replacing the King,s personal aircraft, he 
decided to purchase a VIP-configured Boeing 737.  The 
Minister said that Boeing should consider investing in a 
serious presence in Bahrain, including regional offices or 
the installation of a flight simulator at the Manama Airport. 
 The Ambassador said that Boeing,s regional representative 
had informed him that he planned to travel to Bahrain in the 
coming weeks. 
MONROE