M
memo123
Member
feast your eyes. This is for all the people who are saying dont panic
this article is in he ZAWYA, MIDDLE EAST BUSINESS INFORMATON
Email Print Text Size Be the first to comment on this article
"Control of Dubai's prestigious national airline, EmiratesEmirates, has been named by Abu Dhabi in return for a massive cash bailout of the kingdom
By DOMINIC RUSHE and IAIN DEY
ABU DHABI has demanded control of EmiratesEmirates, Dubai's flagship airline, as the price of a multi-billion pound cash injection for the Gulf kingdom.
The fast-growing airline, long the envy of neighbouring Arab states, has emerged in recent days as the centrepiece of negotiations over a financial bailout for cash-strapped Dubai.
The emirate, which is ruled by the Al Maktoum family, has been hit hard by the credit crunch. Its property market, in which many of the big players are state-owned or backed, has enjoyed explosive growth over the last decade but prices are now tumbling, leaving heavily indebted developers badly exposed.
Government sources in Dubai confirmed last week that talks had begun with Abu Dhabi, which has huge oil and gas reserves, about funding. Rather than ploughing cash into the Dubai state, Abu Dhabi has offered to invest in its neighbour's strategic assets.
The Sunday Times has learnt that Abu Dhabi is eyeing a stake in EmiratesEmirates, along with investments in other industries, such as the state water company.
The airline alone is estimated to be worth about pounds 10billion and selling a stake in it could generate enough cash to prop up much of Dubai's economy.
The proposal is controversial, however, as the airline is regarded as the embodiment of Dubai's rapid rise to international prominence and an important symbol of the emirate's identity. It is owned by the Dubai government, which is reluctant to relinquish control.
Although other Gulf states are thought to be monitoring the situation, Abu Dhabi is believed to be keen to offer Dubai a deal that keeps the airline within the United Arab EmiratesEmirates.
Transport bankers say Abu Dhabi may plan to pursue EmiratesEmirates' nascent plans for a float on the Dubai Stock Exchange. The airline's management, and Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of EmiratesEmirates Group, recently hinted the government would consider a listing, with 25 per cent-30 per cent of the airline's equity sold. Last year the group had net profits of pounds 690m.
Airlines have long been a contentious issue in the United Arab EmiratesEmirates, a confederation of Gulf states that includes Abu Dhabi and Dubai. In the 1970s the two states, along with Oman and Bahrain, took strategic stakes in Gulf Air, intending to turn it into a national carrier for the region.
By 1985, however, Dubai had decided to set up a rival and created EmiratesEmirates, backing a largely expatriate management led by Briton Maurice Flanagan.
EmiratesEmirates has been a success story of international aviation, turning Dubai into one of the largest hubs, and in the process helping the government fulfil its ambition of growing tourism and financial services. Abu Dhabi followed Dubai's example, setting up its own national carrier, Etihad, in July 2003.
COPYRIGHT - THE SUNDAY TIMES, LONDON "
So please when other people write their opinion dont just mock them
Regards
this article is in he ZAWYA, MIDDLE EAST BUSINESS INFORMATON
Email Print Text Size Be the first to comment on this article
"Control of Dubai's prestigious national airline, EmiratesEmirates, has been named by Abu Dhabi in return for a massive cash bailout of the kingdom
By DOMINIC RUSHE and IAIN DEY
ABU DHABI has demanded control of EmiratesEmirates, Dubai's flagship airline, as the price of a multi-billion pound cash injection for the Gulf kingdom.
The fast-growing airline, long the envy of neighbouring Arab states, has emerged in recent days as the centrepiece of negotiations over a financial bailout for cash-strapped Dubai.
The emirate, which is ruled by the Al Maktoum family, has been hit hard by the credit crunch. Its property market, in which many of the big players are state-owned or backed, has enjoyed explosive growth over the last decade but prices are now tumbling, leaving heavily indebted developers badly exposed.
Government sources in Dubai confirmed last week that talks had begun with Abu Dhabi, which has huge oil and gas reserves, about funding. Rather than ploughing cash into the Dubai state, Abu Dhabi has offered to invest in its neighbour's strategic assets.
The Sunday Times has learnt that Abu Dhabi is eyeing a stake in EmiratesEmirates, along with investments in other industries, such as the state water company.
The airline alone is estimated to be worth about pounds 10billion and selling a stake in it could generate enough cash to prop up much of Dubai's economy.
The proposal is controversial, however, as the airline is regarded as the embodiment of Dubai's rapid rise to international prominence and an important symbol of the emirate's identity. It is owned by the Dubai government, which is reluctant to relinquish control.
Although other Gulf states are thought to be monitoring the situation, Abu Dhabi is believed to be keen to offer Dubai a deal that keeps the airline within the United Arab EmiratesEmirates.
Transport bankers say Abu Dhabi may plan to pursue EmiratesEmirates' nascent plans for a float on the Dubai Stock Exchange. The airline's management, and Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of EmiratesEmirates Group, recently hinted the government would consider a listing, with 25 per cent-30 per cent of the airline's equity sold. Last year the group had net profits of pounds 690m.
Airlines have long been a contentious issue in the United Arab EmiratesEmirates, a confederation of Gulf states that includes Abu Dhabi and Dubai. In the 1970s the two states, along with Oman and Bahrain, took strategic stakes in Gulf Air, intending to turn it into a national carrier for the region.
By 1985, however, Dubai had decided to set up a rival and created EmiratesEmirates, backing a largely expatriate management led by Briton Maurice Flanagan.
EmiratesEmirates has been a success story of international aviation, turning Dubai into one of the largest hubs, and in the process helping the government fulfil its ambition of growing tourism and financial services. Abu Dhabi followed Dubai's example, setting up its own national carrier, Etihad, in July 2003.
COPYRIGHT - THE SUNDAY TIMES, LONDON "
So please when other people write their opinion dont just mock them
Regards
