US embassy cable - 02AMMAN6444

UNCLAS AMMAN 006444 
 
SIPDIS 
 
SENSITIVE 
 
ROME FOR CASLO 
USDOC/4520/ITA/MAC/ONE/COBERG 
 
E.O. 12958: N/A 
TAGS: EAIR, AMGT, JO 
SUBJECT: DELTA DISCUSSES CODESHARING WITH ROYAL JORDANIAN 
 
 
SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT BUSINESS 
INFORMATION.  NOT FOR INTERNET. 
 
1.  (SBU)  Summary.  A Delta sales executive left Amman this 
week saying that he was prepared to make a positive 
presentation to Delta President Fred Reid on codesharing for 
Royal Jordanian's new non-stop Amman-New York service.  He 
asked RJ to provide detailed projections of passenger and 
cargo loads to support such a case, which would include 
projections of potential USG travel.  Delta is also working 
with Air France to improve the quality of service on their 
current codeshare between Paris and Amman, which is heavily 
used by U.S. government travelers and has been plagued by 
problems with lost and delayed luggage.  End Summary. 
 
2.  (SBU)  Jimmy Eichelgruen, Delta Airline's London-based 
GSA sales manager for Europe, the Middle East and Africa, was 
in Amman on October 29 for meetings with Royal Jordanian 
Airlines (RJ).  The main subject was RJ's requests for a 
codeshare arrangement with Delta.  Eichelgruen came with the 
message that given the financial difficulties the U.S. 
airline is currently facing, Delta saw this as a time for 
consolidation, not new ventures.  He added that Delta was 
willing to look at improvements in its existing interline 
agreement with Royal Jordanian, short of a full-fledge 
codeshare agreement. 
 
3.  (SBU)  Eichelgruen's meeting with RJ CEO Samer al-Majali 
seemed, however, to make progress toward a codeshare 
arrangement.  Majali described the advantages that would 
accrue to Delta of RJ's plans to expand its role as an 
aviation hub for the Levant countries, using a new fleet of 
long and short range jets.  In addition, Majali argued that 
RJ's new non-stop Amman-New York service, for which Delta 
currently provides ground services at its JFK terminal, would 
be a natural feeder for domestic Delta flights in the United 
States.  He highlighted what he called the poor quality of 
current service to Amman by European carriers. 
 
4.  (SBU)  Eichelgruen told Majali that the fact that Delta 
currently codeshares with Air France between Paris and Amman 
would not be inconsistent with a possible codeshare with RJ 
to the United States.  He asked Majali and his staff to 
provide more detailed information on projected passenger and 
cargo traffic that he could use to make what he said would be 
a presentation with a positive recommendation to Delta 
President Fred Reid.  Eichelgruen said that projected 
revenues from U.S. government travel to Jordan and to the 
region should be part of that presentation.  He asked for the 
Embassy's help in estimating the amount of such travel. 
 
5.  (SBU)  Eichelgrun also met with Ambassador Gnehm and 
embassy staff.  We reviewed the embassy's unhappiness with 
the level of service on the current Air France/Delta 
codeshare flight to Amman, in particular chronic problems 
with lost and delayed luggage.  Eichelgrun said that Delta 
was unhappy with this aspect of its relationship with Air 
France and had let Air France know it.  He said transfer 
problems at Charles de Gaulle airport were hurting all of 
Delta's business in the Middle East region.  Delta and Air 
France were currently working to address the multiple causes 
for the problems at CDG. 
 
6.  (SBU)  The Ambassador also highlighted our interest in 
seeing RJ find a codeshare arrangement with a U.S. airline 
for the non-stop Amman-New York service.  This would be a 
vehicle for the growing business travel and air cargo traffic 
under the various bilateral trade initiatives, as well as a 
concrete symbol of closeness of the bilateral relationship. 
GNEHM