Emirates has announced that it has closed a US$239 million financing agreement with the Export-Import Bank - the federal export credit agency of the United States - for 22 GE90 General Electric (GE) and Rolls Royce (RR) engines. This was the first ever financing of engines by Emirates and also the first time it has used support from the Ex-Im Bank.
The financing for the engines was fully arranged and funded by Royal Bank of Scotland and comprises US $129 million for seven GE90 spare engines using Ex-Im Bank support, and US $110 million for 15 RR engines using commercial debt.
The first of the GE90 engines was delivered in December 2004, with delivery of the remaining six due to be completed by 2007. The RR engines have been delivered already. Financing terms for the GE90 spare engines is five years, and eight years for the RR engines.
At a commemorative event held at the Ex-Im Bank's headquarters in Washington, D.C. Ex-Im Bank Vice Chairman April Foley said: "We are pleased to assist in financing General Electric's sale to Emirates. With this transaction, we launch a new business relationship with Emirates on behalf of U.S. aerospace companies, and we look forward to doing more business with this growing airline."
Speaking for Emirates, Dermot Mannion, President Group Support Services commented: "We are counting on the reliability of the GE90 engines that will power the 30 new Boeings 777-300 Extended Range that we will start receiving at the end of this month. These aircraft will play a key role in supporting the additional long-haul reach and capacity for passengers and cargo that we need."
He added: "This financing will result in further diversification of funding for Emirates. We are not only using Ex-Im Bank's support for the first time, but also expanding our sources of financing."
Emirates, the award-winning Dubai-based international airline, now has 73 aircraft, including 29 Airbus A330-200s, 12 Boeing 777-300s, nine Boeing 777-200s, eight Airbus 340-500s, eight A340-300s, one Airbus A310 and six Boeing 747 freighters.
Emirates flies to 78 cities in 55 countries with one of the youngest fleets in the skies. Emirates' new services introduced in 2004 and beginning of 2005 include: Lagos, Accra, Budapest (cargo-only), Glasgow, Vienna, Christchurch, Shanghai, New York and Seychelles.
Emirates also announced that it will start passenger services to another three destinations in 2005, namely Seoul, Hamburg (the airline's fourth gateway to Germany) and Geneva (the airline's second gateway to Switzerland), as well as to Beijing (its fourth destination in China.) The new routes will expand the airline's network to 82 destinations by then.
Its current order book of 100 aircraft includes 45 Airbus A380-800s (two of them freighters), 30 Boeing 777-300ERs plus nine options, two more ultra-long-range Airbus A340-500s, three A310-300s freighters and 20 Airbus A340-600HGWs, amounting to a total of USD $30.3 billion. By 2012 Emirates expects to have twice as many jets in its fleet as it does today.
