Etihad Airways is likely to need US$13.3 billion (Dh48.85bn) in financing as it prepares to almost triple its fleet of aircraft in the next decade.
That financing will account for most of the $15.8bn Etihad plans to spend on aircraft and spare engines until 2020, the Abu Dhabi carrier says.
"Over next year and the year after, in fact over the next 10 years, there are large financing and treasury opportunities," said James Rigney, the carrier's chief financial officer.
Mr Rigney was speaking at a recent bankers' investor roadshow in London. The airline will hold the next in a series of such events in New York this week as it seeks to attract financing to help pay for 106 aircraft in the next decade.
The events are taking place amid a row between international airlines about rules controlling export credit assurance, an important source of funding for the purchase of aircraft.
The Etihad chief executive James Hogan said he expected export credit guarantees to remain a funding source for the airline, despite calls by some European and North American airlines to curb the amount of export credit foreign airlines can use. "There are some issues they [export credit agencies] need to determine in regards to terms moving forward but I would expect us to still take advantage of that source if we consider the terms acceptable," said Mr Hogan.
Etihad has increased its focus on export credit since last year, and it is expected to account for 14 per cent of the airline's financing mix before the end of this year.
The carrier is seeking to further diversify and deepen its range of financing to ensure its business model remains on a sustainable footing as its expands.
Commercial bank lending is its biggest single source of finance for aircraft at the moment. It will represent 29 per cent of its aviation finance by the end of the year, with operating leases and equity also playing an important part.
As the airline seeks to widen its funding sources, Islamic financing is also expected to play an increasing role in the next two to three years, says Etihad. It now accounts for 8 per cent of its finance.
The airline may also seek a credit rating to help improve its ability to access funding once it reaches full profitability, said Mr Hogan.
That may not be too far into the future, with the airline aiming for a full break-even next year and profitability from 2012 on.
But any decision on issuing a bond would be taken by the airline's board, Mr Hogan said.
Etihad's financing needs stem from 2008 when it announced the largest aircraft order in commercial history at Farnborough International Air Show. Its current fleet is 54 aircraft.
Etihad's financing needs next year are $780 million, with the arrival of three A330-300s, two B777-300ERs, one B777-300 freighter and one A320-200.
Three spare engines are also on order. In 2012, Etihad is scheduled to take delivery of anotherfour aircraft, with a financing requirement of $600m.
[ tarnold@thenational.ae ]
Three trading apps to try
Sharad Nair recommends three investment apps for UAE residents:
- For beginners or people who want to start investing with limited capital, Mr Nair suggests eToro. “The low fees and low minimum balance requirements make the platform more accessible,” he says. “The user interface is straightforward to understand and operate, while its social element may help ease beginners into the idea of investing money by looking to a virtual community.”
- If you’re an experienced investor, and have $10,000 or more to invest, consider Saxo Bank. “Saxo Bank offers a more comprehensive trading platform with advanced features and insight for more experienced users. It offers a more personalised approach to opening and operating an account on their platform,” he says.
- Finally, StashAway could work for those who want a hands-off approach to their investing. “It removes one of the biggest challenges for novice traders: picking the securities in their portfolio,” Mr Nair says. “A goal-based approach or view towards investing can help motivate residents who may usually shy away from investment platforms.”
Takreem Awards winners 2021
Corporate Leadership: Carl Bistany (Lebanon)
Cultural Excellence: Hoor Al Qasimi (UAE)
Environmental Development and Sustainability: Bkerzay (Lebanon)
Environmental Development and Sustainability: Raya Ani (Iraq)
Humanitarian and Civic Services: Women’s Programs Association (Lebanon)
Humanitarian and Civic Services: Osamah Al Thini (Libya)
Excellence in Education: World Innovation Summit for Education (WISE) (Qatar)
Outstanding Arab Woman: Balghis Badri (Sudan)
Scientific and Technological Achievement: Mohamed Slim Alouini (KSA)
Young Entrepreneur: Omar Itani (Lebanon)
Lifetime Achievement: Suad Al Amiry (Palestine)
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2
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Ye’s wealth plunged after business partners, including Adidas, severed ties with him on the back of anti-Semitic remarks earlier this year.
West’s present net worth derives from cash, his music, real estate and a stake in former wife Kim Kardashian’s shapewear firm, Skims.
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Name: WallyGPT
Started: 2014
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Investment stage: Pre-seed round
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Born: October 20, 1989, Sharjah
Education: Bachelor of Science and Football, Liverpool John Moores University
2010: Accrington Stanley FC, internship
2010-2012: Crystal Palace, performance analyst with U-18 academy
2012-2015: Barnet FC, first-team performance analyst/head of recruitment
2015-2017: Nottingham Forest, head of recruitment
2018-present: Crystal Palace, player recruitment manager
The five new places of worship
Church of South Indian Parish
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St John's Baptist Church, Ruwais
Church of the Virgin Mary and St Paul the Apostle, Ruwais
Company name: Farmin
Date started: March 2019
Founder: Dr Ali Al Hammadi
Based: Abu Dhabi
Sector: AgriTech
Initial investment: None to date
Partners/Incubators: UAE Space Agency/Krypto Labs
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50-man Royal Rumble - names entered so far include Braun Strowman, Daniel Bryan, Kurt Angle, Big Show, Kane, Chris Jericho, The New Day and Elias
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Casket match The Undertaker v Rusev
Singles match John Cena v Triple H
Cruiserweight Championship Cedric Alexander v Kalisto
Neymar's bio
Total club appearances 411
Total goals scored 241
Appearances for Barca 186
Goals scored for Barca 105
Formula 4 Italian Championship 2023 calendar
April 21-23: Imola
May 5-7: Misano
May 26-28: SPA-Francorchamps
June 23-25: Monza
July 21-23: Paul Ricard
Sept 29-Oct 1: Mugello
Oct 13-15: Vallelunga
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Director: James Cameron
Stars: Sam Worthington, Zoe Saldana, Sigourney Weaver
Rating: 3/5
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More from Neighbourhood Watch:
End of free parking
- paid-for parking will be rolled across Abu Dhabi island on August 18
- drivers will have three working weeks leeway before fines are issued
- areas that are currently free to park - around Sheikh Zayed Bridge, Maqta Bridge, Mussaffah Bridge and the Corniche - will now require a ticket
- villa residents will need a permit to park outside their home. One vehicle is Dh800 and a second is Dh1,200.
- The penalty for failing to pay for a ticket after 10 minutes will be Dh200
- Parking on a patch of sand will incur a fine of Dh300
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Company name: Namara
Started: June 2022
Founder: Mohammed Alnamara
Based: Dubai
Sector: Microfinance
Current number of staff: 16
Investment stage: Series A
Investors: Family offices