Emirates Airlines says it faces no problems in meeting upcoming loan and bond payments, reiterating that it has never had government backing for its debt.
Since its launch in 1986, the fast-growing Dubai-government owned airline has not relied on state support, said Tim Clark, Emirates president.
“Emirates has always charted its own course,” he told the Financial Times. “We don’t see any change; the airline is profitable and our flights are full.”
The airline has bonds of $1.7bn maturing by 2013, according to Standard & Poor’s. Financiers are worried that Dubai World’s call for a debt standstill could make it harder for other Dubai entities to raise finance.
Mr Clark said the airline uses a balance of bond and sukuk issuance, aircraft financing, export agency guarantee credit and leasing arrangements to fund its $50bn-$60bn order book for more than 150 aircraft.
“The government is supportive, but it doesn’t involve itself in our business,” he said. “The financing community knows we have the cash flows to meet repayment schedules.”
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Mr Clark said he expected the airline’s Dh752m ($205m) half-year profit at the end of September to increase in the second half of the fiscal year at the end of March.
He said Dubai would overcome its current debt woes and focus on its strengths, including aviation.
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