Emirates “confident” about Dubai debt crisis
30 / 11 / 2009
DUBAI’S Emirates Group has stated that it is not in any financial risk due to its home state’s debt crisis.Emirates’ president, Tim Clark (right), said: “We are all a bit shocked by what’s happened and the global fall out,” but, he added, “I am confident the airline will not be affected by this.“We have independent sukuks [Islamic bonds] and bonds which are maturing in 2010 and 2011. I know people expect us to repay or finance them on schedule and we will, most absolutely. If there is more turbulence, then we will moderate our growth to account for this but we’re not going to stop growing. This is a great business.”Needless to say this was not enough to stop the rumours flying, notably that Dubai will have to offer Emirates to Abu Dhabi, in return for financial help. Such a move has been likened to Air France taking over Lufthansa if Germany had bad enough debt problems: possible, but more than a little unlikely.