Emirates Airlines

Dubai Considers Selling Share in Emirates Air

Filed under: Wings

As Dubai's debts continue to mount, the emirate is considering selling a piece of one of its prized assets. The emirate could put a share of Emirates Airlines up for sale. Dubai and its state-controlled companies are approximately $110 billion in debt even after a helping hand from Abu Dhabi last year. Much of the debt comes due over the next two years and so extreme capital-building measures may be necessary.

Sheikh Ahmed bin Saeed Al Maktoum, chairman of Emirates airlines said at a press conference that the emirate is "working on opening the capital of some of our leading companies to the public." The control of the airline would remain with Dubai.The airline has experienced rapid growth and recorded a profit nearly every year. The company had a record profit increase of 248 percent in the last fiscal year and has said it could hit $1 billion in profits this year.

The luxury airline isn't the only state-owned property that could be opened to the public, DP World, which operates ports around the world, may also be part of this program.

Tags: dubai, Emirates Airlines, united arab emirates

Dubai Could Scale Back Plane Orders

by Deidre Woollard (RSS feed) —

Filed under: Wings

Dubai-based Emirates Airlines may be buying jets like crazy but the state-controlled Dubai Aerospace Enterprise's (DAE) order for 200 aircraft may be at risk. The Wall Street Journal reports that the $29 billion order, split evenly between Airbus and Boeing could become a casualty of Dubai's struggle to contain its massive debt. The orders could end up going to Emirates Airlines or flyDubai although the WSJ quotes a flyDubai spokeswoman for flyDubai as saying that the airline has no plans to increase its order.

In 2007 before the global recession began, Dubai Aerospace Enterprise's leasing division, DAE Capital ordered the 200 planes planning to rent them out to airlines. So far 10 of the planes have been delivered. But Dubai's picture has changed dramatically in the last few years due to the economy and the change in Dubai's real estate wealth and now DAE is having trouble making the installment payments. These payments can total tens of millions of dollars per plane, and neither Airbus nor Boeing will start assembling an ordered plane if a customer is unable to pay. Shown at right are Airbus Chief Operating Officer John Leahy, Airbus President and Chief Executive Officer Tom Enders, Dubai Aerospace Enterprise Capital CEO Bob Genise and DAE acting CEO George Mushahwar posing with an Airbus model plane at Farnborough Airshow in 2008 after DAE Capital signed an order for 100 Airbus aircraft.

Earlier this year Emirates Airlines announced that it has ordered 32 A380s from Airbus for $11.5 billion in addition to the previously ordered 58 A380s creating the world's largest fleet of the doubledecker aircraft. In the past two years Emirates has put 10 A380s into operation to serve eight destinations.The company had a record profit increase of 248 percent in the last fiscal year and has said it could hit $1 billion in profits this year.

Tags: dubai, emirates, Emirates Airlines