Emirates raises $1.1bn funding for A380s

Emirates raises $1.1bn funding for A380s

Emirates has helped ease concerns over its financial position by announcing that it has raised $1.13 billion for the delivery of Airbus A380 superjumbos.

The aircraft will form part of the 53 A380s that Emirates has on order, the company said in a statement.

Emirates has been ring-financed from Dubai’s $26 billion debt restructuring of Dubai World. The announcement comes as other prized Dubai assets, including developer Emaar, distance themselves from the troubled conglomerate and its associated toxic debt.

“Emirates remains in a secure financial position despite the global financial crisis,” Chief Executive Tim Clark said.

“We have never encountered difficulties in obtaining finance for our aircraft acquisition programme, with both international and regional banks comfortable with our financial stability.”

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The airline said the funding for the six aircraft was arranged with Citibank, backed by a guarantee from the European Export Credit Agencies and a second with Doric Asset Finance.
However it did not state when the money was raised.

“Emirates has always honoured its financial commitments and we continue to progress with our rigorous fleet and network expansion,” it said.

Emirates will receive the first of the six aircraft early next week with a second arriving in late December and the remaining four due for handover in 2010, the company said.

Emirates is the largest customer for the A380, with 53 still on order worth $17.4 billion at list prices. It has already taken delivery of five.