MIDDLE EAST: Emirates says finances ok despite Dubai problems

State-owned Emirates Airlines said it will not be forced to cancel any aircraft orders following the debt crisis afflicting the Gulf emirate of Dubai. “We are all a bit shocked by what’s happened and the global fall out,” after state holding company Dubai World sought a six month debt moratorium, Emirates president Tim Clark told […]


State-owned Emirates Airlines said it will not be forced to cancel any aircraft orders following the debt crisis afflicting the Gulf emirate of Dubai. “We are all a bit shocked by what’s happened and the global fall out,” after state holding company Dubai World sought a six month debt moratorium, Emirates president Tim Clark told London’s Sunday Telegraph newspaper.

“I am confident the airline will not be affected by this,” he added saying the carrier does not plan to scrap any orders for new planes and that its finances will not be impacted by the crisis.

“We have independent sukuks [Islamic bonds] and bonds which are maturing in 2010 and 2011,” Clark said. “I know people expect us to repay or finance them on schedule and we will, most absolutely.” Emirates has one of the world’s biggest order books, including 58 Airbus A380s, more than any other airline, 70 A350s and 12 Boeing 777s worth an estimated US$35 billion at list prices.