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Old 23rd Nov 2008, 16:04
  #38 (permalink)  
Oblaaspop
 
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Why's that Broken?

Is EK not one of the most profitable airlines on the planet? I assume the only reason Abu Dhabi would be remotely interested in EK is due to this very fact!!

That is why EK will do just fine without help from the South......

Not only that guys just look at it in simple terms. TC intimated at the begining of the year (when the IPO possibility was being put about) that EK had a market value of around $20bn. Assuming Abu Dhabi wanted 50% of it, they would only be putting $10bn into the Dubai coffers. Sounds like a lot to you and I, but really its a drop in the ocean for the Dish Dash brigade around here and would make bugger all difference to the liquidity issues in Dubai.

Even if, AD wanted 50% of EK as a 'good will' gesture for bailing out Dubai, it would make naff all difference to the way EK is run as a business, simply due to the fact that AD would want the same (successful) business model to keep bringing in the cash in the future, and there is no way they would SPOIL that model by merging it with a completely unprofitable one (EY).
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