Emirates raises over Dh4.1bn for Airbus A380 deliveries

Emirates, the largest Arab carrier, said, it has raised $1.13 billion (Dh4.1 billion) for Airbus A380 deliveries, in what is perceived to be a very difficult credit condition where loans are hard to come by.

"Reflecting the airlines robust delivery schedule Emirates will receive the first of these aircraft early next week, with a second arriving in late December and the remaining four A380’s due for handover in 2010," the airline said in an e-mailed statement.

These six aircraft will form part of the 53 Airbus A380 aircraft that Emirates currently has on firm order.

Tim Clark, President Emirates Airline said: “Emirates remains in a secure financial position despite the global financial crisis. We have never encountered difficulties in obtaining finance for our aircraft acquisition programme, with both international and regional banks comfortable with our financial stability.

“As one of the world’s most profitable airlines, Emirates has always honoured its financial commitments and we continue to progress with our rigorous fleet and network expansion plans.”

The financing for these six aircraft was arranged and funded under two separate finance agreements. The first agreement, covering three A380 aircraft, has been undertaken with Citibank, backed by a guarantee from the European Export Credit Agencies (ECAs). A second financing agreement has been arranged through Doric Asset Finance and covers the remaining three A380 aircraft.

The delivery of the A380 aircraft early next week will bring Emirates’ A380 fleet to six with the aircraft due for deployment on the Seoul, Korea route from 14th December. Later this month Emirates will also receive its seventh A380, scheduled to service the Dubai – Paris route three times per week from 29th December, becoming daily from 17th January 2010.

Independent and financially self-sustained, Emirates is one of the world’s most successful international airlines. Emirates operates an all-wide bodied fleet of 141 aircraft to 101 destinations in 62 countries.

Although global credit conditions remain tight, the global aviation industry remains on growth mode.

The International Air Transport Association (IATA) reported international scheduled traffic results for October 2009 showing improving conditions.

"Passenger demand was up 0.5% compared to October 2008. Demand for international cargo rose to 0.5% below previous year levels. This is significantly better than the 5.4% decline recorded in September. Load factors for passenger and cargo continue at pre-recession levels of 78.0% and 54.1% respectively," it said in a recent report.

“The crisis has cost the industry two years of growth. Adjusting costs and capacity to meet that reality will be challenging,” said Giovanni Bisignani, IATA’s Director General and CEO, said in a statement.