MIRA INFORM REPORT

 

 

 

Report Date :

27.08.2008

 

IDENTIFICATION DETAILS

 

Name :

ETIHAD AIRWAYS

 

 

Registered Office :

 Etihad Airways Building, New Airport Road, PO Box  35566, Abu Dhabi

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

09.08.2003

 

 

Com. Reg. No.:

54319, Abu Dhabi

 

 

Legal Form :

Public Joint Stock Company

 

 

Line of Business :

National Airline of the United Arab Emirates

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

 

Maximum Credit Limit :

US$ 10,000,000

 

 

Status :

Very Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

SUMMARY

 

Company Name                                     : ETIHAD AIRWAYS

Country of Origin                                    : Abu Dhabi, United Arab Emirates

Legal Form                                            : Public Joint Stock Company

Registration Date                                   : 9th August 2003

Commercial Registration Number            : 54319, Abu Dhabi

Trade Licence Number                            : 79212

Chamber Membership Number                : 99059

Issued Capital                                        : UAE Dh 500,000,000

Paid up Capital                                      : UAE Dh 500,000,000

Total Workforce                         : 3,400

Activities                                               : National airline of the United Arab Emirates

Financial Condition                                 : Undetermined

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

Recommended Credit Limit                     : US$ 10,000,000

 

 

 

 

 

COMPANY NAME

 

ETIHAD AIRWAYS

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Etihad Airways Building

Street               : New Airport Road

PO Box             : 35566

Town                 : Abu Dhabi

Country : United Arab Emirates

Telephone         : (971-2) 5058000

Facsimile          : (971-2) 5058111

 

Premises

 

Subject operates from a large suite of offices that are owned and located near Abu Dhabi International Airport.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Dr Sheikh Ahmed Bin Saif Al Nahyan                                                  Chairman

 

·       HE Sheikh Sultan Bin Tahnoon Al Nahyan                                           Director

 

·       HE Ahmed Ali Al Sayegh                                                                   Director

 

·       HE Dr Joaan Salim Al Dhahery                                                           Director

 

·       HE Hamad Abdullah Al Shamsi                                                          Director

 

·       Khalifa Sultan Al Swaidi                                                                     Director

 

·       Mohamed Hareb Al Yousef                                                                 Director

 

·       James Hogan                                                                                    Chief Executive Officer

 

·       James Rigney                                                                                   Finance Manager

 

·       Peter Baumgartner                                                                            Marketing Manager

 

·       Richard Hill                                                                                       Operations Manager

 

·       Geert Boven                                                                                      Sales & Service Manager

 

·       Peter Carrie Wilson                                                                           Human Resources Manager

 

·       Richard Dawson                                                                                IT Manager

 

·       Werner Rothenbaecher                                                                      Technical Manager

 

·       Des Vertannes                                                                         Cargo Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 9th August 2003 (Commercial operations began on 12th November 2003)

 

Legal Form                  : Public Joint Stock Company

 

Commercial Reg. No.  : 54319, Abu Dhabi

 

Trade Licence No.       : 79212 (Valid until 13/08/2009)

 

Chamber Member No. : 99059

 

Economic Dept. No.     : 1002106

 

Issued Capital              : UAE Dh 500,000,000

 

Paid up Capital            : UAE Dh 500,000,000

 

Name of Shareholder (s)

 

·       Government of United Arab Emirates

 

·       Private investors & members of the general public

 

 

OPERATIONS

 

Activities: Subject is the the national airline of the United Arab Emirates.

 

Subject operates services to a network of 30 destinations across Europe, Asia and the Middle East, adding more than one new destination every month.

 

In 2004, Etihad Airways created airline history by placing, in its very first year of operations, orders worth US$8 billion for new aircraft. At the Farnborough Air show in July 2004, Etihad placed a US$7-billion order for 24 Airbus aircraft, including four of the double-deck A380. In September 2004, the airline signed a US$1-billion deal with Boeing for five 777-300ER aircraft.

 

On 17th Jan 2006 it was announced that Etihad Airways, the national airline of the UAE, had concluded financing arrangements worth USD450 million with leading UAE banks and HSBC Bank Middle East Limited for five new Boeing 777-300ER aircraft. The Etihad agreement, which covers an operating lease for a 12-year term was made with National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, First Gulf Bank and HSBC Bank Middle East as the mandated lead arrangers, and with Abu Dhabi Investment Company as lead arranger.

 

Etihad took delivery of a further 10 aircraft during 2007 bringing its fleet size to 31 by the end of the year to meet the growth of its network which will see increases in the number of flights to existing destinations and the introduction of new services later this year to Kochi (Cochin) and Thiruvananthapuram (Trivandrum) in India, Dublin in Ireland and Milan in Italy.

 

Etihad’s cargo division, Crystal Cargo, continued to expand rapidly during 2007 with the number of cargo shipments handled up more than 43 per cent compared to 2006. In the 12 month period, the amount of cargo tonnes transported increased more than 32 per cent to 175,000 tonnes. The division also increased main deck cargo capacity, adding an MD11 freighter aircraft to its fleet during the year.

 

Import Countries: Europe and the United States of America.

 

Subject has a workforce of approximately 3,400 employees.

 

 

FINANCIAL DATA

 

Companies registered in Abu Dhabi, United Arab Emirates are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

·       HSBC Bank Middle East

PO Box : 242

Abu Dhabi

Tel : (971-2) 8004440 / 6147259

Fax : (971-2) 331564

 

·       National Bank of Abu Dhabi

Sheikh Khalifa Street

PO Box : 4

Abu Dhabi

Tel : (971-2) 6345777 / 6327113 / 6335262

Fax : (971-2) 6336078

 

·       Abu Dhabi Commercial Bank

Abu Dhabi Commercial Bank Building

Al Salam Street

PO Box : 939

Abu Dhabi

Tel : (971-2) 6962222 / 6962222

Fax : (971-2) 6776499 / 6776499

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Etihad Airways is the newly created national airline carrier for the United Arab Emirates and began operations during 2003.

 

The company is investing heavily in purchasing new planes and hopes to have a fleet of at least 50 planes by 2010. It is backed by the federal government of the United Arab Emirates, but particularly by the government of the Emirate of Abu Dhabi.

 

Etihad Airways carried more than 4.6 million passengers during 2007 compared to 2.8 million in 2006 - a 67 percent rise. During the 12 month period, the airline achieved seat factors averaging 69 per cent across its network of 45 destinations

 

The airline boosted its fleet by 13 aircraft to a total of 37, launched nine new destinations and expanded its flying programme with additional frequencies added to a number of its key routes.

 

Etihad Airways has enjoyed a record-breaking first quarter in 2008 and remains on track to achieve its 2008 target of carrying six million passengers by the end of the year. It carried 1.4 million passengers during the first three months of 2008, compared to one million for the same period in 2007, an increase of 40%.

 

It has also been voted the World’s Leading New Airline three years in a row, in 2004, 2005 and 2006.

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. The company is believed to be a fair trade risk and we are of the opinion it would not enter into financial trade commitments it could not see its way clear to fulfil.

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.43.73

UK Pound

1

Rs.80.57

Euro

1

Rs.64.29

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions