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Emirates will find finance
16 February 2009
Emirates says it will find funding in the downturn, although some industry insiders believe the carrier has to be more realistic.
A billion here, a billion there – it all adds up. $48.5 billion is almost the amount of Bernard Madoff's alleged Ponzi scheme, and $17.5 billion more than the US Air Force's contract with Eads for 179 aerial tankers. It is also the amount of Emirates Airlines' order backlog with Airbus and Boeing, including 70 A350s, worth about $17.5 billion, and 55 A380s, worth another $18 billion. One of the crown jewels of Dubai, the carrier will require about $2 billion-worth of funding a year over the next five years.
Brian Jeffery, senior vice-president, corporate treasury, at Emirates, says that the airline has mandated financing up to August, with the exception of one June delivery that is awaiting confirmation. But in this new market of highly constricted liquidity, where is the airline to find funding for the rest?
In 2008 Emirates largely made use of sale/leasebacks and...
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