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Old 16th Feb 2011, 10:26
  #10 (permalink)  
Oblaaspop
 
Join Date: Jul 2000
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1a,

Please can you provide PROOF of the cheap fuel, cheap landing fees, and the Government loans?

Oh wait, you cant can you? You like many others jump on the assumption band wagon without doing ANY research.

If you had, you would have noticed that the UAE doesn't refine Jet Fuel. Indeed it is imported from the Singaporean market and EK will pay BP/Shell etc market rate for the fuel. (Think about it, if EK got cheap/free fuel, would we not tanker outbound from DXB on EVERY sector?).

In 1985 the Dubai Government loaned EK $10m to start operations. Since then, EK has been profitable for all but 1 year of its existence and has paid the Dubai Government substantial dividends each year (up to $250m in recent years). So I am at a loss as to which 'Government' loans you refer. Yes EK operates in a tax free Environment which means it pays NO Corporation Tax, but then no western company does either if it makes no profit. The more profit BA makes, the more tax it pays to the UK government. The same can be said for EK, the higher the profit, the larger the dividend it pays to its Government. Proof will be the enormous sum it will likely pay this year (my guess is approaching $1bn to pay off some of Dubai's debt). If you mean the loans it gets for the purchase of new Aircraft, EK (like any other Airline) goes to the open finance market. A couple of months ago, it secured around $200m in loans from the US and Japanese banking sector. Again, with a little research, you could have found this out for yourself!

Each year the EK accounts are independently audited by Price Waterhouse Coopers (the worlds oldest, largest and most respected of financial auditors). This is done partly to silence ill informed EK critics (such as you), but mostly to demonstrate to the lending houses that EK's accounts and business are financially sound. If those financial institutions - that will be lending hundreds of millions of dollars- are satisfied as to their financial legitimacy, why shouldn't you (or anyone else for that matter) be? In those openly accessible audited account summaries, PWC openly state that EK pays 'market rate' for landing/parking fees and Airport charges.

I've provided my argument, now please provide yours slightly better this time
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