"Dubai's Emirates Airline will place a large plane order at the Farnborough Air Show in July, the emirate's ruler has said.
Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, in an interview with CNN, said Dubai Airport's continued expansion, in addition to a large growth in passenger numbers and tourism, prompted the national airline to invest in more airplanes to keep pace with developments.
In response to a question about the secret behind the Emirates Group's $15 billion business deals following the events of 9/11, as well as the recent $11.5 billion A380 Airbus purchase during the global financial crisis, Sheikh Mohammed said that opportunities arise out of crises."
more here: Emirates plans large order at Farnborough (Trade Arabia)
These comments were made during a CNN interview with Sheikh Mohammed that is going to air soon and looks so far to be pretty interesting.
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5 comments:
Placing a monster order for jumbo jets on deferred credit is not the way to deal with a challenge. Paying 100% cash for your order, now that is what I'd call taking on a challenge right on its face.
But the biggest challenge of it all would be to regain mass-consumer confidence. I'd tip my hat to Sheikh Mo (even lobby for an Economics Nobel) if he could convince me and the masses here to loosen up our wallets because that's where the real power/challenge peaks at its best!
They don't teach this at Harvard or Yale amongst others. That's an Old School thought, period.
kyle: I don't think they're worried about consumer confidence. I've read reports regarding hotel occupancy here and it's still amazingly high, and profit per room rate is higher than most places.
The jumbo jet purchase is similar to a purchase of planes they did immediately following 9/11. The price plummeted because of 9/11 and I think Dubai ended up reselling some of their orders for enormous profit.
Sam:
I don't deny all that you say but the hotel occupancy example hardly embodies a country's growth.
You talk about the jumbo jet purchases following 9/11. But don't forget, at that time, the bubble was inflating with extraordinary transactions. Financial lending with none or meager amount of questions asked was the norm of the day. Hell, anybody could make a killing back then at someone else' expense when lending was at its peak. All because of the high (superficial) financial confidence level. All these were being done without keeping an eye on the bubble's pressure withholding capacity.
And what happened eventually? It burst beyond repair. I'm talking about the friggin' mess the whole world is in right now.
Try applying for a (rich) loan from any reputed financial institution nowadays and you'll be bombarded with a foot long questionnaire followed by a face to face. The outcome depends to what extent an applicant is able to charm his interviewer.
All above said & done, I don't deny that Dubai won't rise from the ashes. It will. It has to or everybody can just pack their bags and go home. But it won't happen tomorrow but rather at a snail's pace and even then, it won't match what was!
From my side, I wish the best of luck to all those involved in this rejuvenation project.
And you have a great weekend :)
To kyle:
It's the number one airline in the world.They, as any other business, expand with loans, credit and cash.
The company is still being run by the same people that started it so I zm pretty sure they are better aware of how to run the business then you
you should focus your energy on the failing european airlines that are being screwed by the unions and still run on their ancient fleet of planes
Anonymous at 24 June, 2010 17:32
I don't know what prompted you to feel that I had written anything anti-Dubai. After all, I did conclude my second comment with the following:
All above said & done, I don't deny that Dubai won't rise from the ashes. It will. It has to or everybody can just pack their bags and go home. But it won't happen tomorrow but rather at a snail's pace and even then, it won't match what was!
From my side, I wish the best of luck to all those involved in this rejuvenation project.
Please don't compare me with others. What I commented were my own -- not borrowed thoughts -- and I stand by them, as I believe in a better tomorrow whose key we each hold in our individual hands.
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