Etihad Airways and Emirates Airline have backed rivals by lobbying for European and American carriers to be eligible for government support, or export credits, on Boeing and Airbus purchases.
The two UAE carriers are among 10 international airlines that have formed a group called Aviation Alliance, the primary goal of which is to end the "Home Country" rule, which was agreed to through the Organisation for Economic Co-operation and Development (OECD).
That rule prevents airlines based in the countries that produce Airbus and Boeing planes from receiving government-backed loans at attractive rates.
That list of carriers includes some of the UAE airlines' largest rivals such as Air France-KLM, British Airways and Lufthansa.
The unusual bipartisan effort comes amid rising tensions between Gulf airlines and their European rivals, including criticisms that Gulf carriers have unfairly benefited from export credit assistance to support their ambitious fleet growth plans.
"This group has been formed to promote a wider perspective on export credit rules for aviation and to correct certain misconceptions that have been encouraged by ill-informed competitors," said Brian Jeffery, the senior vice president for corporate treasury at Emirates.
"We believe that it is an important source of financing and should be available to all carriers, regardless of their home base."
Aviation Alliance's other members are Oman Air, Pegasus Airlines of Turkey, Ryanair of Ireland, Virgin Blue of Australia, Korean Air, Norwegian, Wizz Air of Hungary and Cargolux of Luxembourg.
Etihad has said it relies on export credit guarantees for 14 per cent of aircraft purchases, while Emirates uses the financing tool for just over 20 per cent. The airlines also rely on Islamic financing, bonds and conventional loans.
Their use of export credit backing could increase as both airlines boost their fleets over the next decade.
Etihad will tap into credit markets for US$13 billion (Dh47.75bn) over the next decade, including $780 million this year and $600m next year.
Emirates, the world's biggest airline by international traffic, needs more than $28bn to expand its fleet of wide-body airliners by 2017, almost double the sum it has raised since 1996.
Export credits are brokered by national export promotion agencies such as the US Export-Import Bank, the UK export credit guarantee department and Coface of France.
They lower the risks to lenders by guaranteeing loans to airlines for aircraft purchases, resulting in more attractive financing terms.
The guarantees have not been available to airlines based in the five nations that produce Boeing and Airbus aircraft - the US, France, Germany, Britain and Spain.
Two dozen airlines based in these countries recently raised objections to being frozen out of the credits and have asked to limit the loans to 20 per cent of an airline's aircraft deliveries.
The freeze stems from a 1986 gentleman's agreement in the OECD, which was forged to prevent a trade war between the two aircraft makers.
Howard Millar, a spokesman for the alliance, said export credit financing was essential to the continued growth of the aviation industry.
"We have come together to call for the extension of export credits to all airlines in the US and Europe, irrespective of whether they are based in a country which manufactures aircraft," Mr Millar said.
The issue of export credits mirrors larger tensions between the sustained growth of Middle East airlines and carriers in Europe and North America.
This week, Abu Dhabi International Airport reported a 13.3 per cent rise in passenger traffic last month compared with October last year, while traffic at Dubai International Airport rose 14.8 per cent to more than 4 million.
Air Canada, Air France and Lufthansa have all recently lobbied their governments to prevent further market access from Gulf airlines, raising criticisms of protectionism.
[ igale@thenational.ae ]
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
Thor: Love and Thunder
Director: Taika Waititi
Stars: Chris Hemsworth, Natalie Portman, Christian Bale, Russell Crowe, Tessa Thompson, Taika Waititi
Rating: 4/5
SPECS
Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now
The biog
Name: Gul Raziq
From: Charsadda, Pakistan
Family: Wife and six children
Favourite holes at Al Ghazal: 15 and 8
Golf Handicap: 6
Childhood sport: cricket
The Lowdown
Us
Director: Jordan Peele
Starring: Lupita Nyong'o, Winston Duke, Shahadi Wright Joseqph, Evan Alex and Elisabeth Moss
Rating: 4/5
Dunbar
Edward St Aubyn
Hogarth
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Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends
COMPANY PROFILE
Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
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Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Super Saturday race card
4pm: Mahab Al Shimaal Group 3 | US$350,000 | (Dirt) | 1,200m
4.35pm: Al Bastakiya Listed | $300,000 | (D) | 1,900m
5.10pm: Nad Al Sheba Turf Group 3 | $350,000 | (Turf) | 1,200m
5.45pm: Burj Nahaar Group 3 | $350,000 | (D) | 1,600m
6.20pm: Dubai City of Gold Group 2 | $300,000 | (T) | 2,410m
6.55pm: Al Maktoum Challenge Round 3 Group 1 | $600,000 | (D) | 2,000m
7.30pm: Jebel Hatta Group 1 | $400,000 | (T) | 1,800m
A QUIET PLACE
Starring: Lupita Nyong'o, Joseph Quinn, Djimon Hounsou
Director: Michael Sarnoski
Rating: 4/5
Sri Lanka's T20I squad
Thisara Perera (captain), Dilshan Munaweera, Danushka Gunathilaka, Sadeera Samarawickrama, Ashan Priyanjan, Mahela Udawatte, Dasun Shanaka, Sachith Pathirana, Vikum Sanjaya, Lahiru Gamage, Seekkuge Prasanna, Vishwa Fernando, Isuru Udana, Jeffrey Vandersay and Chathuranga de Silva.
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1. Henri Schoeman (RSA) 57:03
2. Mario Mola (ESP) 57:09
3. Vincent Luis (FRA) 57:25
4. Leo Bergere (FRA)57:34
5. Jacob Birtwhistle (AUS) 57:40
6. Joao Silva (POR) 57:45
7. Jonathan Brownlee (GBR) 57:56
8. Adrien Briffod (SUI) 57:57
9. Gustav Iden (NOR) 57:58
10. Richard Murray (RSA) 57:59
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
Nick's journey in numbers
Countries so far: 85
Flights: 149
Steps: 3.78 million
Calories: 220,000
Floors climbed: 2,000
Donations: GPB37,300
Prostate checks: 5
Blisters: 15
Bumps on the head: 2
Dog bites: 1
The biog
Favourite food: Fish and seafood
Favourite hobby: Socialising with friends
Favourite quote: You only get out what you put in!
Favourite country to visit: Italy
Favourite film: Lock Stock and Two Smoking Barrels.
Family: We all have one!
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Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
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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