Emirates weighs share sale amid signs of recovery
Tuesday, 17 November 2009
DUBAI, Nov 16 (Bloomberg): Emirates Airline, the biggest Arab airline, said it may be ready to sell shares to the public in two to three years as the global air-travel market shows signs of recovery and Middle Eastern carriers expand their business.
"Because the market is going towards growth, within two to three years from now would be excellent," Chairman Sheikh Ahmed bin Saeed Al-Maktoum said in an interview at the Dubai air show, referring to a timing of an initial public offering. Any decision would rest with the government, led by Sheikh Mohammed bin Rashid Al-Maktoum, he said.
Sheikh Ahmed said at the last Dubai show in 2007 that the government would probably sell about 20 per cent to 30 per cent of the airline in an IPO, seeking to raise as much as $9 billion. Emirates has since been hit by the global slump in air travel. In the six months through September, the carrier's sales fell 13.5 per cent on lower passenger and cargo yields.
The airline managed to increase earnings only through cost cuts and lower jet-fuel prices.
Emirates has sufficient orders in place with Airbus SAS for A350 and A380 planes, and there is no need for additional agreements, the chairman said Monday. The airline has 58 A380 aircraft on order, more than any other, and has just received five of the world's largest passenger plane.
The airline also has orders for 70 A350s, a widebody plane that'll challenge Boeing Co.'s 787 and 777 planes.
"The market is very positive," Sheikh Ahmed said yesterday. "You can see it from our results, from the traffic growth of Dubai International Airport. For us it's very positive and better than expected."
"Because the market is going towards growth, within two to three years from now would be excellent," Chairman Sheikh Ahmed bin Saeed Al-Maktoum said in an interview at the Dubai air show, referring to a timing of an initial public offering. Any decision would rest with the government, led by Sheikh Mohammed bin Rashid Al-Maktoum, he said.
Sheikh Ahmed said at the last Dubai show in 2007 that the government would probably sell about 20 per cent to 30 per cent of the airline in an IPO, seeking to raise as much as $9 billion. Emirates has since been hit by the global slump in air travel. In the six months through September, the carrier's sales fell 13.5 per cent on lower passenger and cargo yields.
The airline managed to increase earnings only through cost cuts and lower jet-fuel prices.
Emirates has sufficient orders in place with Airbus SAS for A350 and A380 planes, and there is no need for additional agreements, the chairman said Monday. The airline has 58 A380 aircraft on order, more than any other, and has just received five of the world's largest passenger plane.
The airline also has orders for 70 A350s, a widebody plane that'll challenge Boeing Co.'s 787 and 777 planes.
"The market is very positive," Sheikh Ahmed said yesterday. "You can see it from our results, from the traffic growth of Dubai International Airport. For us it's very positive and better than expected."