Tips and rumours

Sep 1, 2009

Royal bailout for Emirates?

Crikey's readers are sending in tips from around the traps today: Has the Royal Family of Dubai bailed out Emirates? ... Cloudstreet loses TV backing? ... disgruntled University of Melbourne employee fights back.

Has the Royal Family of Dubai bailed out Emirates? In the recently released annual report of Emirates, page 105 (106 of the PDF) has got folk in the aviation business gossiping and mentioning the word, “bailout”. In note 34 (vi) in the accounts, “Related party transactions”, under the subhead of “Provision of letters of credit: Parent Company” it is costed as 5,887,819,000 AED — roughly $US1.6 billion.

There’s no explanation anywhere else in the annual report or accounts. But some in the aircraft leasing and financing business reckons it’s the Royal Family of Dubai effectively helping Emirates over a rough patch by providing off balance sheet financing for air craft purchases, leasing and fuel buying.

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