Emirates 'will never be sold' by Dubai - top exec - Transport

Thursday, 13 May 2010 7:04 AM

NO SALE: One of Emirates Airline's A380 superjumbos. (Getty Images)

A top Emirates Airline executive has said that any public flotation on the Dubai stock market “would be a very successful one” but that it is up to Dubai government to decide when it would be implemented.

“It would never be sold to anyone else,” Maurice Flanagan, the executive vice chairman of Emirates Airline, told Arabian Business in an interview when asked if the Dubai government would consider selling the national carrier in order to finance its debts.

“There might be an IPO (initial public offering) as time goes on but that is a decision for the government but I think it would be a very successful one,” Flanagan added.

This sentiment was echoed by Sheikh Ahmed bin Saeed Al-Maktoum, chairman and CEO of the Emirates Group, who on Wednesday announced that the airline had reported revenue up 0.4 percent to $11.8bn and net profit up 416 percent to $964m.

“This is a government decision. For us we are ready but it is up to the government, the owners of emirates, to decide,” Sheikh Ahmed said.

Rumours of an impending IPO have surrounded Emirates for a number of years.

“We have not begun any steps so far, but the intention is there," Sheikh Ahmed told Al Arabiya television in late 2007 when asked about IPO plans.

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Posted by: george thomas Monday, 17 May 2010 1:02 AM[UAE] - UAE

Never occurred to me that it would be - until I read this comment. The soccer equivalent of what any soccer manager never wants to hear from his boardroom: "We are standing by our manager. He has our full confidence".

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Posted by: Andrew Friday, 14 May 2010 6:15 PM[UAE]

This look to me like carefully choreographed 'spin' aimed at softly laying the foundations for an IPO, particularly coming on the back of a good set of earnings. I would suspect we will see more of these covert messages over the coming weeks and months and then an IPO within 12-18 months. From an investment POV however I think it would be something worth backing when you consider the size and, more importantly, the potential of the company. With it's current and projected fleet it will soon be able to serve pretty much any destination in the world from DXB thereby eliminating the traditional 'hub and spoke' model for airlines.

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Posted by: Alain Friday, 14 May 2010 1:26 PM[UAE] - UAE

The advantage of an IPO is obviously one where new influx of cash can come to the subject company. The flip side however becomes its vulnerability to market fluctuations which always happen but also the possibility of loosing control of the company via a Hostile Take-over from a "Majority" share holder... Some people have very deep pockets and that is a definite possibility. Bottom line... If Dubai government wants to keep control of Emirates, they probably should not venture in IPO and keep status quo. IMHO.

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Posted by: ik Thursday, 13 May 2010 12:37 PM[UAE] - UAE

Dubai should've learnt by now that there is nothing like ever or never - Remember whoever themed "WHAT NEXT" was thinking F O R E V E R.....

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Emirates 'will never be sold' by Dubai - top exec

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