Etihad Airways to raise $2bn for deliveries in 2014
Abu Dhabi, March 26, 2014
Etihad Airways, the national carrier of the UAE, plans to raise $2 billion to pay for aircraft deliveries this year, the Abu Dhabi-based airline said on Wednesday after road shows in New York and London.
Etihad will take delivery of 18 aircraft this year that include 10 Airbus aircraft and 8 Boeing planes, a statement from the airline said.
"The airline is looking to raise US$2 billion to finance its fleet deliveries in 2014 which will include its first A380 and Boeing 787 aircraft," Etihad said in a statement, without giving details of how the money will be raised.
“Etihad Airways continues to expand its relationships with financial institutions in markets around the world, which in turn play a crucial role in the expansion of the airline’s global network and fleet of aircraft,” said James Hogan, Etihad Airways’ president and chief executive officer.
“The financial institutions view Etihad Airways as a strong counterparty, that is financially stable with a strong track record in safety, and we are always eager to spend time with them to communicate our latest developments.”
Etihad made the largest aircraft order in its history in 2013, with orders, options and purchase rights for up to 199 Airbus and Boeing aircraft, valued at up to US$67 billion.
The airline will take delivery of 18 aircraft in 2014: 3 x A320; 3 x A321; 2 x A330-200; 1 x A330-200 freighter; 1 x A380; 2 x B787-9; 1 x B777-300ER; 5 x B777-200LR.
The airline has announced nine new destinations for 2014, Medina, Jaipur, Los Angeles, Zurich, Yerevan, Perth, Rome, Phuket, and Dallas-Fort Worth.
Unlisted Etihad which has stakes in Air Berlin and India's Jet Airways has raised more than $8 billion from 68 financial institutions in the last decade to finance aircraft and engines.
In the past, Etihad's financing strategy has typically been institutional credit from local and international banks, export credit agencies as well as lease and lease financing.
Senior executives of Etihad are on the roadshows that are held annually in major global financial centres.
Earlier this month, Etihad announced a net profit of $62 million for 2013, up 48 percent, its third year of profit. The airline also generated revenues of more than $6 billion last year. – TradeArabia News Service & Reuters