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.
Emirates to spend USD10bn p/a to expand fleet
You may also be interested in the following articles...
Qantas' first 787 routes, Perth-London nonstop and Melbourne-LA, address urgent strategic needs
Qantas' first regular 787 services are a year away, but the airline is already announcing the initial routes so it can increase its proposition in deeply significant markets (and also begin preparations while avoiding possible media leaks). The well-flagged Perth-London nonstop service was announced first, but the first route to be flown will be Melbourne-Los Angeles from 15-Dec-2017.
Perth-London nonstop is less about the actual market between Perth and London (it is small) and more about Qantas connecting the rest of Australia with a one-stop proposition via an Australian port with an experience that Qantas can intimately control. Even with Qantas' successful restructuring and cost base reduction, it will still need to command a yield premium.
Nonstop to London, an unprofitable market not expected to turn to black in the short term, is also about the prestige and marketing value of being the only airline to operate Australia-Europe nonstop. Melbourne-LA was likely a late change, prompted by US rejection of its proposed JV with American Airlines. The JV would have resulted in American entering the Melbourne-LA market; Qantas' 787 will instead provide the necessary boost in presence of a market that has become more competitive.
Gulf airlines in 2017: Etihad cuts capacity 4% as Emirates and Qatar begin slowest growth in 5 years
For the first time in over a decade, a Gulf superconnector airline will reduce its annual capacity. Etihad is forecast to cut ASKs by 4% in 2017. Emirates and Qatar Airways will have their slowest growth expansion in a decade, but in terms of net capacity addition 2017's production increase is the slowest in about five years.
Etihad is contracting in all regions except Western Europe and Australia in 2017. The largest cuts will be in South America, North America and Southeast Asia, although this does not necessarily correlate to regional profitability. Despite the reduction Etihad's frequencies will be up 1% in 2017, mostly in Western Europe and South Asia.
Etihad has announced plans to reduce staff members, which it says will be largely through attrition. As it contracts instead of growing, its aircraft commitments – and in particular 787s – may be cancelled or deferred. Etihad's partnership with Lufthansa will result in its airberlin burden being reduced. Etihad may look to sell down European investment airlines, according to unconfirmed press reports.
Yet as Etihad recalibrates under a changed Abu Dhabi government, Qatar Airways continues to grow.