DUBAI, 23 November 2003 — Dubai’s government-owned airline Emirates yesterday signed a leasing contract for a new Airbus A340-500, the world’s longest range plane, at a cost of 12.1 billion Japanese yen ($111.4 million).
The financing is for the airline’s second A340-500, due to be delivered this week, with two more expected to arrive in Dubai by the end of the month. The new planes will be used on various longhaul routes from the start of December, including non-stop services between Dubai and Osaka, Japan.
The financing, structured as a Japanese yen operating lease over a 12-year term, was arranged and funded by HSBC, combining export credit and commercial debt provided by HSBC Group entities in London, Paris and Bahrain. “This innovative lease financing combines export credit with commercial debt and is extremely competitive. It allows us to take advantage of very low yen interest rates and will create a natural hedge to our inflows from Japan,” said Riyaz Peermohamed, Emirates’ senior vice president for corporate treasury.
Emirates reported a 51 percent increase in half yearly profits to $167 million, up from 110 million dollars for the same period in 2002. The company’s operating revenue reached $1.58 billion, a growth of 33 percent compared to $1.17 billion in 2002.