Emirates gains funding for 6 new A380s

Emirates airline yesterday revealed plans to receive a sixth Airbus A380 jet next week and another before the end of the year after raising over $1 billion in financing.

The funding deal takes places as other Dubai state-run companies are facing scrutiny over their willingness to pay back over $80 billion in debt.  Emirates, the world’s top buyer of the A380 is fully owned by the city-state.

President of the airline, Tim Clark, said the carrier remains financially secure in spite of concerns over the health of other Dubai state borrowers.

He added that Emirates had never experienced difficulties in obtaining finance for their aircraft acquisition program, with both international and regional banks comfortable with their financial stability.

Clark went on to point out the airline had always honoured its financial commitments and was pressing ahead with its ambitious growth plans.

The airline said it received $1.13 billion in financing for six A380 superjumbos from Citigroup and Doric Asset Finance, and the funds would b used to pay for the aircraft being delivered this year and next.

A recent price list for the French based aircraft manufacturer, Airbus, shows the A380 jet selling for an average of $327.4 million, though airlines usually negotiate discounts especially for bulk orders.

Emirates now own five A380 jets and have a further 53 on order, more than any other airline.  The rapidly growing carrier also operates more Boeing 777 jets than any other airline.

The airline plans to operate the new aircraft on routes to Paris and Seoul later this month.