German taxpayers to bear unpaid Airbus loan to develop A380 superjumbo jet: report

Germany loaned Airbus €942 million in 2002 in connection with the A380’s development, of which only a third has been repaid. (AFP)
Updated 04 March 2019

German taxpayers to bear unpaid Airbus loan to develop A380 superjumbo jet: report

  • Airbus last month said it would scrap the A380, producing and delivering only 17 more by 2021
  • Emirates — the largest A380 customer — reduced its orders for the superjumbo after an engine dispute and a broader fleet review

FRANKFURT: German taxpayers could be left more than $680 million (€600 million) out of pocket in outstanding credit to Airbus for developing the A380 superjumbo, the Funke Mediengruppe will report on Monday citing an economy ministry statement, excerpts approved for release showed.
Berlin loaned Airbus €942 million in 2002 in connection with the A380’s development, of which only a third has been repaid, the media group cited the statement as saying.
The ministry issued the statement in reply to a parliamentary question from the opposition liberal party (FDP), it said.
Airbus last month said it would scrap the A380, producing and delivering only 17 more by 2021, because customers preferred smaller and nimbler jets.
This came after Emirates — the largest A380 customer — was forced to reduce its orders for the superjumbo after an engine dispute and a broader fleet review.
Repayments are due successively once planes are delivered, meaning the premature end of the production pipeline will leave some parts of the loan unpaid, the media group reported.
Deputy economy minister Ulrich Nussbaum was quoted as saying the handling of the loan issues was still being analyzed and would then be discussed with the company.


S&P downgrades trio of Dubai developers as pandemic hits property and retail

Updated 50 min 50 sec ago

S&P downgrades trio of Dubai developers as pandemic hits property and retail

  • Gulf states are being hit hard by the coronavirus pandemic that has come at a time of weak oil prices

RIYADH: The credit ratings of three Dubai property companies were downgraded by S&P as the coronavirus pandemic hits confidence in the retail and real estate sectors.
S&P Global Ratings reduced the credit ratings for the real estate developer Emaar Properties as well as Emaar Malls to +BB from -BBB with a negative forward outlook, adding that it sees a “weakening across all its business segments” in 2020. S&P also cut its rating for DIFC Investments to +BB from -BBB, while keeping a stable outlook.
Gulf states are being hit hard by the coronavirus pandemic that has come at a time of weak oil prices, heaping pressure on governments, companies and employees.
The ratings agency expects the emirate’s economy to shrink by 11 percent this year
“The supply-demand imbalance in the realty sector appears to have been exacerbated by the pandemic. We now expect to see international demand for Dubai’s property to be subdued, and the fall in residential prices to be steeper than we had expected, lingering well into 2021” S&P reported.
Despite easing restrictions and the opening of the economy, S&P said that overall macroeconomic conditions remained challenging.
Global travel restrictions and social distancing constraints “significantly weigh on Dubai’s tourism and hospitality sectors” the rating agency reported.
Still, Dubai’s tourism chief was upbeat on the emirate’s prospects when international tourism resumes.
“Once we do get to the other side, as we start to talk about next year and later on, we see very much a quick uptick. Because once things normalize, people will go back to travel again,” Helal Al-Marri, director general of Dubai’s Department of Tourism and Commerce Marketing told AFP in an interview.