Will Emirates be effect by Dubai meltdown?

[Andrew P]

Dubai debt doubts come out of the blue (http://www.abc.net.au/news/stories/2009/11/27/2755781.htm?section=justin)

wonder if this will have an add-on effect onto Emirates, as its finances are very much intermingled with the Dubai Government

time will tell

[D Chan]

should have some effects. how much is another question!

for a start, explat leaving, credit rating dropping resulting in issues in financing aircraft purchases etc. will inevitably play a part. The future for Abu Dhabi looks brighter than ever!

[Brandon Giacomin]

Just saw on the news that EY might take over EK. So looks like there in trouble. Just a rumour though, nothing confirmed.

[Bernie P]

I wonder if it is the WHOLE Middle East??

Only reason I ask this is I had accepted a position in Qatar, and was waiting on my visa being issued any day! On Wednesday, I had a phone call saying that they are NO LONGER proceeding with the position! I had already invested a lot of time (and money woth solicitors winding up my late wife's estate quicker than I wanted...) in preparing, so I just wonder if there is more to come on this story!

[Mike W]

Apparenty Dubai Inc are $60b in debt and Emirates alone have $30b in pending orders There is talk of EK postponing orders. Airbus in particular have a bucketload of risk here. What is that about lots of eggs and limited baskets? :D

[NickN]

The writing has been on the wall for a while regarding Dubai's debt, and the exodus of foreign workers.

I do hope it won't affect EK too much.

[Mike W]

You'd better believe it!

http://www.flightglobal.com/articles/2009/11/30/335517/emirates-in-a380-delivery-hiatus-from-late-2010.html

Emirates in A380 delivery hiatus from late 2010

Details have emerged of Emirates' Airbus A380 delivery schedule over the next three years, which reveal that the airline has pushed back fleet expansion and will not receive any of the superjumbos for almost a year after the end of 2010.

Speaking at the Dubai air show, Jim Moravecek, outgoing president of the 50/50 General Electric/Pratt & Whitney joint venture Engine Alliance, said that Emirates, which is the lead GP7200-powered A380 customer, had delayed deliveries: "Emirates will take 15 A380s through next year, then defer for a little while."

An Engine Alliance chart showing fleet growth of the GP7200-powered A380 between the first delivery in 2008 and 2012 reveals that from mid-2010, when the Emirates fleet was due to reach 15 units, there are no deliveries for around 10 months. Since the chart was produced, Emirates has revealed that due to production hold-ups its A380 fleet will not reach 15 units until late 2010. The article goes on and has a nice graph for delivery schedules of the GP7200 powered 380s through 2008-2012

[Andrew P]

http://www.etravelblackboard.com/showarticle.asp?id=99976

As Dubai continues to struggle with its debt loads, reports have now arisen claiming that the emirate will have to put Dubai's flag carrier Emirates up as collateral for any new debt restructuring.

With 131 planes in its fleet flying to over 90 destinations, Emirates is one of the fastest growing carriers and is looking at potentially becoming the largest carrier in the world within ten years.

It's this potential which has seen some analysts come to the conclusion that it could potentially come into play in order to restructure the billions in debt that Dubai owes.

"It could be on the table," said Vivek Tawadey, BNP Paribas spokesperson, to The Guardian.

"It is one of Dubai's crown jewels, it has very strong market reputation." One way out could be a merger between Emirates and Etihad, despite both carriers vehemently denying the rumours in the past.

Dubai World, the investment vehicle which manages operations including the Palm Islands, The World Islands and Dubai Ports, is believed to be looking to delay payments on some US$64 billion.