Emirates Able to Raise $1.1 Billion in Funding for Jets

It seems that Emirates has now been able to ease concerns over its financial position by announcing that it has raised $1.13 billion for the delivery of a A380 Superjumbo. This aircraft will form part of the 53 A380’s that Emirates has on order.

Emirates has been financed from Dubai’s $26 billion debt restructuring of Dubai World. This announcement comes as other prized Dubai assets, such as Emaar, distance themselves from the troubled conglomerate and its debt.

The chief executive of Emirates, Tim Clark, said that Emirates remains in a secure financial position despite the global financial crisis. He went on to say that they have never encountered difficulties in obtaining finance for their aircraft acquisition program. This is because both international and regional banks are comfortable with their financial stability.

Emirates said that funding for the six aircrafts was arranged with Citibank, and backed by a guarantee from the European Export Credit Agencies and a second with Doric Asset Finance. However, Emirates did not state when the money was raised. Tim Clark said that Emirates has always honored its financial commitments, and they will continue to progress and expend their network.

The airline is set to receive the first of six aircrafts early next week. The second aircraft will arrive in late December, and the remaining four are going to be delivered in 2010. Emirates is the largest customer for the A380, with 53 planes still on order worth $17.4 billion. It has already taken the delivery of five of them. This is good news for Airbus, which has been posting less than great numbers this year.