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Report Date : |
08.08.2012 |
IDENTIFICATION DETAILS
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Name : |
EMIRATES AIRLINES (EMIRATES) |
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Registered Office : |
Emirates Group Headquarters Building, Dubai Airline Centre, Airport
Road, Dubai International Airport, PO Box 686, Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
26.06.1985 |
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Legal Form : |
Government Corporation |
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Line of Business : |
National airline carrier of the United Arab Emirates. |
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No. of Employees : |
33,634 |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
UAE |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Company Name :
EMIRATES AIRLINES (EMIRATES)
Country of Origin :
Dubai, United Arab Emirates
Legal Form :
Government Corporation
Registration Date :
26th June 1985
Issued Capital :
UAE Dh 801,214,000
Paid up Capital :
UAE Dh 801,214,000
Total Workforce :
33,634
Activities :
National airline carrier of the United Arab Emirates.
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
EMIRATES AIRLINES (EMIRATES)
Location : Emirates
Group Headquarters Building, Dubai Airline Centre
Street : Airport Road
Area : Dubai International
Airport
PO Box : 686
Town : Dubai
Country : United Arab
Emirates
Telephone : (971-4) 2951111
/ 2215544 / 2062745 / 2228151 / 2283848
Facsimile : (971-4)
2228151 / 2214560 / 2225159 / 2950399
Subject operates from a large suite of offices that are owned and
located in the Dubai International Airport.
Location Description
· Dubai Reservation
office
Tel: (971-4)
2215544
· Abu Dhabi Reservation
office
· Al Ain Reservation
office
Tel: (971-3)
641111
· Sharjah Reservation
office
· Fujairah Reservation
office
Tel: (971-9)
221543
· Umm Al Quwain Reservation
office
· Ras Al Khaimah Reservation
office
Tel: (971-7)
299413
Name Position
· H.H. Sheikh Ahmed
Bin Saeed Al Maktoum Chairman
· Maurice Flanagan Vice
Chairman
· Sultan Dhiyab
Saqer Al Nahyan Deputy
Managing Director
· Tim Clark President
· Ali Mubarak Al
Soori Vice
President
· Gary Chapman Support
& Development Director
· Dermot Mannion Finance,
IT & Services Director
· Ghaith Al Ghaith Commercial
Operations Director
· Adel Al Redha Engineering
Director
· G G K Nair Company
Secretary
· Capt. L Smith Projects
Manager
· Capt. G Jenkins Manager
– Flight Operations
· Don Foster Manager
– Inflight Services
· Iftikhar Mir Manager
– Engineering
· Ram Menen Manager
– Cargo
· Mohamed Mattar Manager
– Ground Services
Date of
Establishment : 26th
June 1985 (Operations began on 25th October 1985)
History : Emirates Airline (Emirates)
was established in 1985 and was formed mainly to improve the airline service in the UAE which was then
provided exclusively by the multinational carrier, Gulf Air. The Dubai Emirate
believed it could best fulfil the needs of Dubai through the development of its
own airline and so formed Emirates Airline (Emirates).
Legal Form : Government
Corporation
Issued Capital : UAE Dh
801,214,000
Paid up Capital : UAE Dh 801,214,000
· Government of the
UAE 100%
Subject is a member of the EK Group of Companies,
which includes the following concerns:
Name Stake
Held Country of
Incorporation
· Maritime &
Mercantile International L.L.C 68.7% United
Arab Emirates
· Maritime &
Mercantile International Holding L.L.C 100.0% United Arab Emirates
· Emirates Leisure
Retail Holding L.L.C. 100.0% United Arab Emirates
· Emirates Leisure
Retail L.L.C. 68.7% United
Arab Emirates
· Emirates Leisure
Retail L.L.C. (Oman)
70.0% Oman
· Emirates Leisure
Retail (Singapore) Pte Ltd 100.0% Singapore
· Emirates Leisure
Retail (Australia) Pty Ltd 100.0% Australia
· Emirates Hotel
L.L.C. 100.0% United Arab Emirates
· Emirates Hotel
(Australia) Pty Ltd. 100.0% Australia
· Emirates Flight
Catering Company L.L.C. 90.0% United
Arab Emirates
· Emirates-CAE
Flight Training L.L.C 50.0% United
Arab Emirates
· Premier Inn Hotels
LLC 51.0% United
Arab Emirates
· CAE Flight
Training (India) Private Ltd 50.0% India
Activities: Subject is the
national airline carrier of the United Arab Emirates, which operates services
to 101
destinations
located throughout Europe, Africa, Asia and the Far East.
During the year ending 31st March 2012, subject carried 33,981,000
passengers.
Aircraft In
operation On firm order On Option
A330-200 26 - -
A340-300 8 - -
A340-500 10 - -
A350-900 10 70 50
A380-800 21 69 -
B777-200 3 - -
B777-200ER 6 - -
B777-200LR 10 - -
B777-300 12 - -
B777-300ER 67 84 20
B777-200LRF 4 - -
B747-400ERF 2 -
B747-8F - 5
In 2011-2012, Emirates placed the
single largest aircraft order by dollar value in Boeing’s history for 50
B777-300ER aircraft worth US$ 18 billion at list price, with options to
purchase an additional 20 B777- 300ER’s valued at US$ 8 billion. This record
breaking order takes Emirates total order book size excluding options, to 223 aircraft at 31 March 2012.
During the financial year
Emirates took delivery of 22 aircraft; fourteen B777-300ER’s and two B777-
200LRF from Boeing and six A380’s from Airbus taking the fleet size to 169
aircraft. A significant milestone was achieved when Emirates took delivery of
its 100th B777 aircraft and was also the recipient of Boeing’s 1000th
B777 aircraft. Emirates continues to remain the world’s largest B777 operator
with 102 aircraft comprising all variants of the B777 family. The airline is
also the largest A380 operator with 21 twin deck units on its fleet.
Emirates operate one of the youngest fleet in the industry
with an average age of 77 months as compared with an industry average of 132
months.
Subject has a workforce of 33,634 employees.
Financial highlights provided by local sources are given below:
Currency: United Arab Emirates Dirham (UAE Dh 000,000’s)
Consolidated Income Statement
31/03/12 31/03/11
Revenue
61,508 52,945
Other Operating Income 779 1,286
Operating Costs (60,474) (48,788)
Operating Profit 1,813 5,443
Other gains and losses - (4)
Finance income
414 521
Finance costs
(657) (506)
Associated companies – share of results 103 91
Profit before Taxation
1,673 5,545
Income tax expense
(53) (78)
Profit for the Year
1,620 5,467
Minority Interest
118 92
Net Profit
1,502 5,375
Consolidated Balance Sheet
ASSETS
Non Current Assets
Property, plant & equipment 49,198 39,848
Intangible assets 902 901
Investments in associated companies 430 386
Advance lease rentals 370 384
Loans & Receivables 917 1,704
Derivative financial instruments 69 -
Deferred income tax asset 10 -
51,896 43,223
Current Assets
Inventories 1,469 1,290
Trade & other receivables 8,126 6,481
Derivative financial instruments 8 123
Short term bank deposits 8,055 3,777
Cash & bank balances 7,532 10,196
25,190 21,867
Totals Assets 77,086 65,090
EQUITY &
LIABILITIES
Capital & Reserves
Capital
801 801
Retained earnings 21,256 20,370
Other reserves
(833) (565)
Attributable to Emirates’ Owner
21,224 20,606
Minority Interest
242 207
Total Equity
21,466 20,813
Non-current liabilities
Borrowings and lease liabilities
26,843 20,502
Retirement benefit obligations 631 479
Deferred revenue 1,074 930
Deferred credits 350 401
Deferred income tax liability - 2
Trade & other payables - 31
Derivative financial instruments
957 642
29,855 22,987
Current liabilities
Trade & other payables
20,601 17,551
Income Tax liabilities
36 22
Borrowings & lease liabilities
4,037 2,728
Deferred revenue
915 792
Deferred credits 136 136
Derivative financial instruments
40 61
25,765 21,290
Total Liabilities 55,620 44,277
Total Equity &
Liabilities 77,086 65,090
Local sources consider subject’s financial condition to be Good.
·
Arab Bank Plc
Ittihad Street
PO Box: 11364
Dubai
Tel: (971-4)
2228845
Fax: (971-4)
2285974 / 2940847
·
Emirates National Bank of Dubai
Baniyas Street
PO Box:
777
Dubai
Tel:
(971-4) 2222241
Subject’s payment record is reported to be met in a generally prompt
manner.
Credit amount 137,660 15,000,000 15,000,000
Amount overdue 0 0 0
Payment terms 60
days 180 days 180 days
Payment Method Letters of Credit Letters of Credit Letters of Credit
Paying record Prompt No complaints No complaints
Currency Canadian
Dollars Canadian Dollars Canadian Dollars
Emirates is the fastest growing Middle East airline and since its
inception in 1985 has won over 190 awards for excellence. It operates services
to 101 destinations located throughout Europe, Africa, Asia and the Far East.
During the course of this investigation nothing detrimental was
uncovered regarding subject’s operating history or the manner in which payments
are fulfilled. As such the company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.49 |
|
UK Pound |
1 |
Rs.86.39 |
|
Euro |
1 |
Rs.68.69 |
INFORMATION DETAILS
|
Report Prepared
by : |
NLM |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.