From today’s Birmingham Post
Emirates seeks IPO to expand
May 4 2005
By Steve Pain, Deputy Business Editor
Dubai’s Emirates airline – due to launch its second daily service from Birmingham on June 1 and already hinting at the possibility of a third flight – is considering an initial public offering to help its rapid expansion.
But the government of fast growing Dubai has yet to make a decision, the company’s chairman said yesterday.
“We have one new aircraft coming every month for the next five to six years and that takes a lot of financing,” said Sheikh Ahmed bin Saeed al-Maktoum, chairman of state-owned Emirates Group.
“Whether we do an IPO is a decision for the government of Dubai. We are always thinking about it, but we haven’t taken a firm decision.
“It’s something we have looked at, but I am waiting for the owner to make any final decision,” Sheikh Ahmed added.
Meanwhile, Tim Clark, Emirates’ president, has strongly hinted the carrier would be interested in launching a third service from Birmingham International – but warned that the airport would first need to improve its terminal facilities.
Mr Clark, who lives in Barnt Green, has already hammered home his message to executives at BIA, telling them that in addition to a longer runway, Emirates would like to to see terminal facilities capable of handling aircraft able to carry more than 400 passengers.
Currently the airline operates Boeing 777-200 airliners out of Birmingham. But if the demand is there, Mr Clark said it could consider flying the larger Boeing 777-300 Extended Range version of the airliner, able to carry 423 passengers in a business/economy configuration.
“We hope that the airport will be developed and would like to see a longer runway – but I can certainly understand the sensitivities surrounding that,” he said.
However, he believes Birmingham Airport’s terminal facilities are now “creaking at at the seams” with departure lounges designed to house just 100 people – far too small for today’s requirements.
“We really do need to see something bigger,” added Mr Clark.
“Because I can see a third daily service out of Birmingham and I think others could well do the same. If it is a potent argument for us, it will be potent for other people.”
If it is able to expand, BIA could take advantage of “enormous opportunities” at the expense of Heathrow, he said.
“Passengers from Plymouth, Exeter and South Wales say it is much easier to fly from Birmingham.
“And it is fact that Taunton to Birmingham is 20 minutes less than to Heathrow,” he said.
Emirates last week reported a 48.7 per cent rise in net profits to £335.2 million for the year to the end of March, while total revenue increased 36 per cent to £3 billion.
It is owned by the government of Dubai, a regional tourism and trade hub which is part of the oil-rich United Arab Emirates, and is taking 45 of the new Airbus A380 superjumbo aircraft.
Well this certainly is interesting considering the second daily flight hasn’t even started yet!
What exactly is an initial public offering? is it some sort of grant? :confused:
I would appreciate any comments 🙂
By: Future Pilot - 6th May 2005 at 17:14
I believe they’re going to use A330’s on the twice daily and switch back to 777’s for AUG only.
True.
2x A330 on double daily till August.
Where the service reverts back to a single daily B777
Then back to double daily A330 start of September but…..
From October 31st however the service goes to 1x daily B777 and 1x daily A330
Not exactly an even plan 😀
I’ve also seen the EK advert and think it is great 😀 😎 😉 , thanks for clearing that up Bhoy and duvec! 😎
By: greekdude1 - 5th May 2005 at 16:44
How about they start non-stop DXB-ATH service. Currently, they stop in LCA enroute to ATH from DXB. Any of you guys see their world showcase and the three palm trees in the ocean?
By: skylad - 5th May 2005 at 16:34
2nd BHX service was advertised on local TV last night – double daily from June (except for August), it said.
Andy
I believe they’re going to use A330’s on the twice daily and switch back to 777’s for AUG only.
By: Skymonster - 5th May 2005 at 14:52
2nd BHX service was advertised on local TV last night – double daily from June (except for August), it said.
Andy
By: duvec - 5th May 2005 at 13:41
I think what they’re trying to say is, they may look to float partially on the stock exchange, so as to earn extra income as shares initially get sold off (ie extra funds for “We have one new aircraft coming every month for the next five to six years and that takes a lot of financing,”)
Although, as it says, that’ll be up to the current owners (the government of Dubai)
Yes, Bhoy is correct. An IPO is the intitial float of a company on a Stock Exchange. The IPO is usually a partial float of a company but can be a up to a 100 per cent float. In this case they are testing the water for a partial float with a view to using the funds generated to assist in EK’s expansion. In other cases a float may be used to enrich the “floatees” rather than improve the position of the company. With a combined shopping list of nearly 100 aircraft A380s and 777-300ERs, not to mention aircraft on option, even the UAE oil revenues would be stretched. A float is something to seriously consider for this fast expanding company.
Chris
By: Bhoy - 5th May 2005 at 10:50
From today’s Birmingham Post
What exactly is an initial public offering? is it some sort of grant?
I think what they’re trying to say is, they may look to float partially on the stock exchange, so as to earn extra income as shares initially get sold off (ie extra funds for “We have one new aircraft coming every month for the next five to six years and that takes a lot of financing,”)
Although, as it says, that’ll be up to the current owners (the government of Dubai)
By: Bhoy - 5th May 2005 at 10:50
From today’s Birmingham Post
What exactly is an initial public offering? is it some sort of grant?
I think what they’re trying to say is, they may look to float partially on the stock exchange, so as to earn extra income as shares initially get sold off (ie extra funds for “We have one new aircraft coming every month for the next five to six years and that takes a lot of financing,”)
Although, as it says, that’ll be up to the current owners (the government of Dubai)
By: David2386 - 5th May 2005 at 10:43
Sounds good Shamrock lol, I don’t live in either DUB or BHX but DUB would be handier for spotting them 😀
By: David2386 - 5th May 2005 at 10:43
Sounds good Shamrock lol, I don’t live in either DUB or BHX but DUB would be handier for spotting them 😀
By: SHAMROCK321 - 5th May 2005 at 10:25
I think they should just forget about BHX and add 3 daily DUB flights. How do you like that reply Tom???
By: SHAMROCK321 - 5th May 2005 at 10:25
I think they should just forget about BHX and add 3 daily DUB flights. How do you like that reply Tom???
By: Future Pilot - 5th May 2005 at 09:42
I agree, astonishing profits!
I believe an initial public offering would be a grant to help any extension with Birmingham Airport?
By: Future Pilot - 5th May 2005 at 09:42
I agree, astonishing profits!
I believe an initial public offering would be a grant to help any extension with Birmingham Airport?
By: RIPConcorde - 4th May 2005 at 23:13
Emirates last week reported a 48.7 per cent rise in net profits to £335.2 million for the year to the end of March, while total revenue increased 36 per cent to £3 billion.
Needless to say, that’s quite crazy! 😮
By: RIPConcorde - 4th May 2005 at 23:13
Emirates last week reported a 48.7 per cent rise in net profits to £335.2 million for the year to the end of March, while total revenue increased 36 per cent to £3 billion.
Needless to say, that’s quite crazy! 😮
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May 4, 2005 at 10:53 pm