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FINANCIAL NEWS
Emirates to spend USD10bn a year
29 Apr 2011
(MENAFN) Dnata, Emirates Group’s airline services arm’s president, Gary Chapman, said that the airline would expand its fleet by buying thirty aircrafts a year for the next three years, as a result, it would spend USD10 billion each year as purchase cost, reported Arab News.
Chapman added that after the political upheaval in the Middle East that made rates more expensive, the company canceled plans it had for a bond to finance its aircraft expansion.
He also said that as a result of its plans to expand, sooner or later, Emirates, the Dubai government owned carrier, would tap debt markets to finance its expenditure although it has enough cash at the time being.
It is worth noting that Dnata, which provides ground handling, cargo, travel and flight catering, launched a branding campaign aimed at enhancing its profile abroad. The unit is seeking acquisitions in Asia and the Gulf Arab region following its purchase of the flight catering unit of Italy’s Autogrill SpA in 2010.
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