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Clark...looking to pay off maturing debt

Emirates airline looks to raise debt next year

DUBAI, November 9, 2015

Dubai's flagship carrier Emirates plans to raise "a lot of" debt next year to help pay off maturing debt of about $1 billion and finance aircraft deliveries, its president Tim Clark said on Sunday.

"We have bonds coming up in spring of next year... All that has to be paid down and then we may renew it, extend it, put out another one, anything is possible," Clark told reporters during the Dubai airshow.

The carrier has total outstanding debt of $1.82 billion, of which $1.11 billion matures in 2016, according to Thomson Reuters data.

Emirates, the largest customer for the Airbus superjumbo A380, will next year alone take delivery of another 21 of the massive jets as well as 16 Boeing 777-300ERs, according to Clark.

These at list price have a combined value of $14.42 billion although big airline customers tend to negotiate huge discounts to catalogue prices. Emirates' total aircraft on order are close to 267 and worth about $106 billion.

"We don't have issues with funding, fortunately. Contrary to my friends in the US who think the government pays for everything," Clark said.

He was referring to three US rival airlines that have lobbied this year to their government to renegotiate bilateral air traffic rights with the Gulf airlines, who they allege benefit from unfair government subsidies.

Emirates may also look for financing again by US Export-Import Bank, which is currently facing a barrage of proposed amendments before the House Rules Committee.

EXIM's charter was allowed to lapse on June 30 as a result of a campaign by Republicans who say it promotes "crony capitalism" by helping large companies like Boeing and General Electric.

"EXIM... is absolutely a great financial instrument. We'll probably be looking at all sorts of things like that when we go down this path of securing debt for aircraft," he added. -Reuters




Tags: Emirates | debt | pay |

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