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25th Feb 2010, 08:59
Dubai Emirates Air Never Offered To Abu Dhabi -Chmn
Wednesday, Feb 24, 2010
By Stefania Bianchi and Andrew Critchlow of ZAWYA DOW JONES
DUBAI (Zawya Dow Jones)--Emirates Airline, Dubai's flagship carrier, was never used as a bargaining chip when the emirate was in talks with Abu Dhabi over funding, the airline's chairman told Zawya Dow Jones Wednesday.
"We never really talked in any way about any of our strategic companies with Abu Dhabi," Sheik Ahmed bin Saeed Al Maktoum, who also heads Dubai's Supreme Fiscal Committee, said in an interview at his office at Dubai International Airport. "I know it's always been the rumor."
Dubai last year roiled international markets when it requested a standstill on $26 billion of debt owed by one of its largest government-owned groups, Dubai World. Abu Dhabi has stepped in with $15 billion of financial assistance to help Dubai through the financial crisis. At the time, many people questioned what Dubai would offer Abu Dhabi in return for the cash, with prized assets like Emirates Airline thought to be part of negotiations.
"When you think about what Emirates has achieved I think anyone would want to have equity in it," Sheik Ahmed said. "It's a very successful business for Dubai."
CORE BUSINESS
Emirates Group is one of Dubai's most prized assets and one of the fastest growing airlines globally. The carrier indirectly contributes in the region of 40 billion U.A.E. dirhams ($10.89 billion) to Dubai's economy each year and is key to the emirate's success story.
"If it wasn't for Emirates, this market wouldn't have been able to grow as it has. It's a huge contribution," Sheik Ahmed said, highlighting the economic benefits to the emirate of a group that employs over 32,000 in Dubai.
The carrier currently operates a fleet of close to 150 wide-body aircraft, including eight A380s. It has a further $55 billion of orders with Airbus, a unit of European Aeronautics Defence & Space Co. (EAD.FR), or EADS, and Boeing Co. (BA) and plans to increase this order.
"We're in talks with Boeing and Airbus," Sheik Ahmed said. "We're looking at buying more aircraft maybe as much as ten - either 777 or A330s."
Emirates, the largest customer for the giant Airbus A380, also expects to receive a further seven superjumbos by March 2011, he said.
Sheik Ahmed, who is also a close relative of Dubai's ruler Sheik Mohammed bin Rashid al Maktoum, said that despite the global financial crisis, Emirates hasn't had any problem securing aircraft deals. He also didn't rule out the possibility of the state-owned company selling shares in an initial public offering to help finance aircraft, and said that any offering would be well received.
"I think maybe one day," he said. "If Emirates decided to IPO I'm sure it will be good, especially if it's placed within the U.A.E. stock markets."
-By Stefania Bianchi, Dow Jones Newswires; +971 4 4461685; [email protected]
Copyright (c) 2010 Dow Jones & Company, Inc.
Dow Jones Newswires
24-02-10 1025GMT
Wednesday, Feb 24, 2010
By Stefania Bianchi and Andrew Critchlow of ZAWYA DOW JONES
DUBAI (Zawya Dow Jones)--Emirates Airline, Dubai's flagship carrier, was never used as a bargaining chip when the emirate was in talks with Abu Dhabi over funding, the airline's chairman told Zawya Dow Jones Wednesday.
"We never really talked in any way about any of our strategic companies with Abu Dhabi," Sheik Ahmed bin Saeed Al Maktoum, who also heads Dubai's Supreme Fiscal Committee, said in an interview at his office at Dubai International Airport. "I know it's always been the rumor."
Dubai last year roiled international markets when it requested a standstill on $26 billion of debt owed by one of its largest government-owned groups, Dubai World. Abu Dhabi has stepped in with $15 billion of financial assistance to help Dubai through the financial crisis. At the time, many people questioned what Dubai would offer Abu Dhabi in return for the cash, with prized assets like Emirates Airline thought to be part of negotiations.
"When you think about what Emirates has achieved I think anyone would want to have equity in it," Sheik Ahmed said. "It's a very successful business for Dubai."
CORE BUSINESS
Emirates Group is one of Dubai's most prized assets and one of the fastest growing airlines globally. The carrier indirectly contributes in the region of 40 billion U.A.E. dirhams ($10.89 billion) to Dubai's economy each year and is key to the emirate's success story.
"If it wasn't for Emirates, this market wouldn't have been able to grow as it has. It's a huge contribution," Sheik Ahmed said, highlighting the economic benefits to the emirate of a group that employs over 32,000 in Dubai.
The carrier currently operates a fleet of close to 150 wide-body aircraft, including eight A380s. It has a further $55 billion of orders with Airbus, a unit of European Aeronautics Defence & Space Co. (EAD.FR), or EADS, and Boeing Co. (BA) and plans to increase this order.
"We're in talks with Boeing and Airbus," Sheik Ahmed said. "We're looking at buying more aircraft maybe as much as ten - either 777 or A330s."
Emirates, the largest customer for the giant Airbus A380, also expects to receive a further seven superjumbos by March 2011, he said.
Sheik Ahmed, who is also a close relative of Dubai's ruler Sheik Mohammed bin Rashid al Maktoum, said that despite the global financial crisis, Emirates hasn't had any problem securing aircraft deals. He also didn't rule out the possibility of the state-owned company selling shares in an initial public offering to help finance aircraft, and said that any offering would be well received.
"I think maybe one day," he said. "If Emirates decided to IPO I'm sure it will be good, especially if it's placed within the U.A.E. stock markets."
-By Stefania Bianchi, Dow Jones Newswires; +971 4 4461685; [email protected]
Copyright (c) 2010 Dow Jones & Company, Inc.
Dow Jones Newswires
24-02-10 1025GMT