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Dubai Bankrupt?!?!

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Dubai Bankrupt?!?!

Old 20th Nov 2008, 14:40
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Dubai Bankrupt?!?!

I never realized the situation was as bad as it says in the Bloomberg report below.
Bloomberg.com: Worldwide
Thanks to the greedy CEOs & the like for really the world. I just can't believe these guys are still not in jail, but on the contrary they are all collecting their big fat bonuses.
It's all a conspiracy.
Mephistopheles is offline  
Old 20th Nov 2008, 16:47
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Here's a good one for the news papers

50% of Emirates Airline is up for sale to Abu Dhabi because Sheik Mo is broke as is Dubai.

True or not true but I heard it today!
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Old 20th Nov 2008, 17:38
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Small potatoes compared to the US of A, Abu Dhabi could cut a deal tomorrow and save any concerning debt. The US is seriously bankrupt. Looks like they are going to bail out the car markers, they make lousy cars plain and simple. Let them go chapter 11 and change the foundation and re-structure.
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Old 20th Nov 2008, 17:48
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Mephistopheles - You are right but without western knowledge they would be still sitting in the sand and even don t know that they have oil below them !

I never so soo greedy cultures in my live and i am proud to be not one of them !

I was in the sandpit but left already and laughing everyday !

Will come back when it is free of .......bs.

Sorrry for beeing emotional but they will up this region by themself.
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Old 20th Nov 2008, 17:54
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Any truth to the rumours that Abu Dhabi wants 50% in Emirates to bail Dubai out of the mess?

Maybe this is the logical point for an Emirates/Etihad merger. And thats likely to have consolidation. Between them they have a lot of aircraft and orders.

This playground was always too small for 2 big players so perhaps this is the solution in a much poorer world.

Lets hope any consolidation does not mean job losses.

Fly safe - Keep your head down and lets see what it all looks like when they sound the "all clear"
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Old 20th Nov 2008, 18:18
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I don't think the 'all clear' wil be happening any time soon. But a merger is logical. On an important note, I wonder what the effect would be if the US economy totally collapses. What would happen to the industry here? Will orders be cancelled? How will this affect our lives since most of the GCC currencies are pegged to the USD?
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Old 20th Nov 2008, 21:50
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Sal-e,

If the US Economy were to totally collapse, the fine points of what would happen to the industry here would be rather trivial. You and I might be back in our impoverished little countries, relearning the ancient and forgotten arts of subsidence fishing and farming, while keeping some weapons to defend our little plot of earth from marauding hordes (think of the Somali pirates on the global scale). Then again, some of us might join them.
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Old 20th Nov 2008, 22:27
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Many many rumours in the pipe !

EK was, not such a long time ago, interested in starting an IPO, and I guess they had to retract after evaluating the threat of big neighbour Abu Dhabi. They might get back to this option and let the fat assets father merge EK & EY. Time to swallow the pride maybe!

Dubai is a trade and merging financial city that wasn't afraid of taking huge risks during the last decade. As the Ruler says, it's always " full throttle ", it is maybe still time to learn de-rated thrust and cool down, particulary in banking/finance and real estate.
Now the oil is under 50$, will EK save Dubai?...

Regarding the UAE, no worries for now... Father Abu Dhabi holds probably the biggest sovereign funds on earth, some solid oil reserves and a few contacts in the region, but for sure, some "adjustements"/restructurations are on their way.

A warning to this system, not to collapse now, but we all know it will crash.
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Old 20th Nov 2008, 23:01
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Maybe this is the logical point for an Emirates/Etihad merger.
I believe I said this before and not a long time ago. The JXB would be the perfect home for an Emirati-Etihad Air(ways or lines). I don't feel threatened.
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Old 21st Nov 2008, 08:02
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I think that AD will want 51% or more of ek.Probably HQ move to auh,plus large 51% in dxb property companies/banks.
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Old 21st Nov 2008, 10:06
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The underlying premis seems to be that Abu Dhabi has all the leverage in this situation. I don't think it is that clear since Abu Dhabi has every reason to see Dubai continue to be viable - a collapse in Dubai, besides being an embarrasment, would bring cause huge difficulties in Abu Dhabi as well. In fact, it would shake the entire Arab world (oil or not).

So, my guess would be that both sides are treading carefully because ----its in both their interests to do so.
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Old 21st Nov 2008, 10:29
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Trader

Please enlighten us as to why Abu Dhabi needs Dubai.
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Old 21st Nov 2008, 14:11
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Because a loss of confidence in Dubai (Middle East in general) means a HUGE flight of capital from Abu Dhabi as well. The markets and economies here rely on foreign money now as much as any other country. The stock market declines here have been, in large part, due to the cashing out of foreign investors. They opened the markets to foreigners for that precise reason - they had moved to a point where there was no more growth without the foreign money.

It is just not in Abu Dhabi's interest to see Dubai collapse. Though, thats just my opinion.
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Old 22nd Nov 2008, 04:04
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Totally agree Trader. It's all about confidence. If it goes away, it would take a long time to restore it. This place got built on it and a mass exodus of it and money would be a very scary proposition for this region.
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Old 22nd Nov 2008, 08:54
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Emails doing the rounds in the Sandpit that it's a done deal - AUH had bought 40% of EK. However, it's not yet been confirmed and I must remind people to note the second last word in the title of this site.
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Old 22nd Nov 2008, 09:06
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Abu Dhabi does not need Dubai.Other way around. The auh government helps the other emirates out with cash. Not much outside investment in auh compared with dxb.Auh controls uae. Where are all the military tanks and airforce planes/helicopters based auh. The rest dxb included have only trainers at best all light equipment. The same with money auh was wise no debt.
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Old 22nd Nov 2008, 09:16
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Dubai is in trouble , rumours of the bulding industry stopping some of these "dream" projects. A general slow down as no one has spare capital to buy all these milllions of villas and apartments. Some developers are retrenching staff , Architects etc. If this continues on a big scale they will try to get much needed money from the Dubai public and not just Abu Dhabi , who knows VAT perhaps ?

Now you take this slow down , a world wide decrease in demand for air travell ( particularly on the high yield tickets) , a possible merger and I think times will be very interesting. Any thoughts on how it could affect EK/EY ?

Possible scenarios include a cancellation of aircraft orders ; retrenchments ( why do we need 2 heads of IFS , 2 heads of flight opps , 2 navigation and chart departments etc etc , 1 would suffice. I think the bubble could burst. Flight deck are not immune either. Based on this I think EK will resist a merger but may operate independantly of EY but just be partially owned by Abu Dhabi. I would hate to be one of the top echelon right now. If ever there was a chance for EK to drop the ball its now. If our illustrious leaders are spending all there energy on this then who is keeping there eye on the road ?

Then again the optomists will hit back hard at this ...... so INCOMING !!!!


ps , A pessimist is an optomist with experience.
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Old 22nd Nov 2008, 12:10
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Originally Posted by icarus sun View Post
The same with money auh was wise no debt.
I think you will find that the reason AD has no debt is more to do with having the 5th largest Oil reserves in the world rather being 'wise'.
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Old 22nd Nov 2008, 17:02
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I think you will find they also didnt waste billions turning the country into a giant theme park!
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Old 22nd Nov 2008, 19:45
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If Etihad and Emirates merge together...

If Etihad and Emirates merge together, what will they call themselves.

Etimate, Emihad, @anyrate, who can say but the real question will be about crew integration. Can anyone guess on the possible choices for seniority list merger?
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