Emirates to spend USD10bn p/a to expand fleet

Emirates stated it would invest USD10 billion p/a to fund its fleet expansion over three years but is not under pressure to access the bond market to fund the expansion (Gulf Times/Reuters/Arabian Supply Chain, 29-Apr-2011). Emirates Group President Group Services Gary Chapman stated the carrier expects to receive around 30 aircraft p/a over the next three years and has dropped plans for a bond to finance expansion after political unrest in the Middle East made rates more expensive. "Emirates has roughly 30 aircraft a year coming the next five years and a lot of them are A380s ... we will need about USD10bn a year," Mr Chapman said. He also said the company has considerable cash reserves, and is not under pressure to look for funding, but would eventually access debt markets to support its capital expenditure programme when the pricing is right. Mr Chapman stated the company would look at dirham and dollar-denominated bonds. "There is lot of liquidity out there today in dirhams ... banks are flushed with dirhams. We will continue to explore that and we are looking at dollar bonds," he said. The carrier stated it would release its financial results for 2H2010 on 10-May-2011.