AirbusCanada From Canada, joined Nov 2004, 354 posts, RR: 0 Posted (9 years 9 months 2 weeks 6 days 9 hours ago) and read 2823 times:
There have been too many accusations against Emirates for receiving subsidies without any farm evidence. I have found an article on their Financing of $1.1 Billion dollar Airbus 340-500 orders. Surprisingly, they did not received any government subsidies. Please read the article and stop these accusations unless someone have some specific evidence.
Dubai : Emirates has signed a leasing agreement with two UAE banks, National Bank of Dubai (NBD) and Emirates Bank Group (EBG), for a new Airbus A340-500 aircraft. The US$119.5 million financing is for the last of the 10 Airbus A340-500s Emirates has on firm order.
The financing, structured as an operating lease over a 12-year term, carries a weighted average cost of funds 0.9 per cent over six-month Libor (London Inter Bank Offered Rate).
Riyaz Peermohamed, Emirates' Senior Vice President Corporate Treasury, said: "This completes the financing of the A340-500 programme, which raised US$1.1 billion for Emirates over the last two years. The attractive financing came from well diversified sources with 29 per cent from European banks with export credit support, 10 per cent from Islamic sources, 24 per cent from commercial banks within the GCC and 37 per cent from commercial banks outside the GCC - a substantial portion of which came from banks in Japan and China ."
Quoting AirbusCanada (Thread starter): There have been too many accusations against Emirates for receiving subsidies without any farm evidence. I have found an article on their Financing of $1.1 Billion dollar Airbus 340-500 orders.
Aren't you a Columbus!
Not that I believe that EK are getting pocket money but on what basis did you conclude that this is the case? From a PR article issued by the Corporate Comms of the airline itself?
Fly2CHC From , joined Dec 1969, posts, RR:
Reply 2, posted (9 years 9 months 2 weeks 6 days 4 hours ago) and read 2747 times:
Quoting AirbusCanada (Thread starter): There have been too many accusations against Emirates for receiving subsidies without any farm evidence
I tend to agree with you. Emirates have said on many occassions that their books are open to anyone who wants to look through them. Where they have excelled financially:
* Low fuel costs for more than half their flights (ex Gulf)
* They may have some access to funds with a lower cost of capital, but to me this is merely the benefit of operating out of the Gulf.
* In theory they pick creme de le creme of staffing, because they have interest from all over the world and have no restrictions on ex-pats. Similarly, this means that most the labour-intense work can be provided to sub-continent workers at extremely low cost.
* They do not operate any domestic routes, and do not have to. Therefore, wherever they choose to fly to they do so because it is likely to be profitable in some sense.
* They appear to have very good strategic management, and so far have illustrated that they can turn their dream of becoming the world's premier sixth freedom carrier into reality. As I have mentioned in a previous thread, an illustration of this is their extremely high load factors (admittedly a lot of this may be low-yield, but they are getting bums on seats). Almost all EK flights I have been on this year have been chocka.
* Dubai is essentially open skies (to anyone), so restrictions on EK routes are limited to those imposed by other countries.
EKGOLD From Australia, joined May 2005, 207 posts, RR: 6
Reply 3, posted (9 years 9 months 2 weeks 6 days 2 hours ago) and read 2714 times:
Well done AirbusCanada. You are quite right about the ill informed bashing that goes on. but expect the usual posts on this subject with no substantive backing...
Quoting Fly2CHC (Reply 2): Not that I believe that EK are getting pocket money but on what basis did you conclude that this is the case? From a PR article issued by the Corporate Comms of the airline itself?
How about reading the audited financial statements available on their website
Quoting Fly2CHC (Reply 2): Low fuel costs for more than half their flights (ex Gulf)
Not so true... Dubai is not the cheapest place on earth for Jet A1
Fly2CHC From , joined Dec 1969, posts, RR:
Reply 6, posted (9 years 9 months 2 weeks 5 days 12 hours ago) and read 2512 times:
I'm interested to hear other people's view on this. I concur with Toptravel 100% - this is what happens when you become too successful.
QF are experts of sour grapes - I am convinced that it was their constant whinging to the Australian Government that ultimately led to SQ being blocked from increasing their stake in NZ/AN - what an amazing alliance that would have been, and it would have finally provided QF with real competition.
However, I digress. Any other thoughts on the topic?
Planesailing From United Kingdom, joined Jul 2005, 817 posts, RR: 0
Reply 7, posted (9 years 9 months 2 weeks 5 days 12 hours ago) and read 2502 times:
There is an article in Air International this month about Emirates.
In its entire history, the Government has only given Emirates $10m (£5.5m) of funding.
Reasons for its sucess as stated are:
- It lies as a natural hub for world wide operations.
- Emirates enjoys the minimalistic tax regime of Dubai.
- When Emirates started, there was very little competition which allowed them to position themselves in a profitable strong hold.
- Their fleet renewal program is similar to that of Singapore Airlines, where by they fund aircraft on short term leases to allow them to take advantage of low maintenance and operating costs.
- They carry a large amount of premium paying customers (because of the clever schedules and product they offer) which gives them the best profit margins.
Same reason Ryanair and Southwest pull in such high profit levels, they offer the right product at the right time to the right place at the right price. They have shrewd management and good economic and management sense. Their sucess is only the jealously of the other carriers because they cannot match it.