Emirates has signed a $261 million financing agreement with the Export-Import Bank (Ex-Im) of the United States for two B777-300ER aircraft, scheduled for delivery in August and October 2006. Arranged by Citigroup, the innovative 12-year financing for both aircraft combines an Ex-Im supported loan with commercial funding, and carries a weighted average cost of funds of .66 per cent over three-month Libor (London Inter Bank Offered Rate).
The Ex-Im supported loan was fully funded by Citigroup and the commercial loan was funded by Citigroup and Bayerische Landesbank.
Nigel Hopkins, Emirates’ Executive Vice President Service Departments said, “We are appreciative of the support of Citigroup, one of the leading financiers in the world. Including this financing, we have used U.S. Ex-Im Bank support on only four aircraft to date and there is further potential for U.S. Ex-Im Bank supported financing in helping us finance a number of Emirates’ future Boeing deliveries.”
Independent and financially self-sustained, Emirates is one of the world’s fastest growing international airlines. It currently operates an all wide-bodied fleet of 94 aircraft comprising: 37 Boeing 777s, 29 Airbus A330-200s, ten Airbus 340-500s, eight A340-300s, one Airbus A310, three Airbus A310F and six Boeing 747 freighters.
In addition, the airline has an order book of over 100 aircraft units worth $28 billion, including 38 more Boeing 777-300ERs.
Emirates will introduce a new service between New York and Dubai via Hamburg on October 29, 2006. This service increases Emirates’ flights to Dubai to three times a day, as well as increasing capacity on its recently launched Hamburg to Dubai service.
Emirates operates flights to 84 cities in 57 countries in Europe, North America, the Middle East, Africa, Indian subcontinent and Asia Pacific. Since January 2006, the airline has inaugurated services to a number of new destinations, including Thiruvananthapuram, Hamburg, Addis Ababa, Kolkata and Nagoya. In the next months, it intends to launch new services to Beijing and Bangalore.