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Mon 18 Nov 2019 05:13 PM

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Sheikh Ahmed: Emirates has no plans for Aramco-style IPO

Airline chief says the Dubai airline is completely different to the Saudi oil giant

Sheikh Ahmed: Emirates has no plans for Aramco-style IPO

Sheikh Ahmed bin Saeed Al Maktoum, the chairman and CEO of Emirates.

Emirates airline has no plans to launch a Saudi Aramco-style listing of the airline any time soon, the carrier’s chairman and CEO told reports at the Dubai Airshow, adding that the aviation sector was “not as easy” as people think.

“Emirates is not Aramco. It is completely different,” Sheikh Ahmed bin Saeed Al Maktoum said in a roundtable on Monday, adding that the aviation sector was a lot more challenging than the oil and gas sector.

“When you think about the airline it is the toughest business… It’s not as easy as a lot of people may think, just have planes, pay them, fly them and just easy. It is not easy,” he said, adding a firm “no” if there would be any IPO for the airline on the horizon.

Saudi Aramco could be the world’s biggest initial public offering (IPO) when it is launched next month and this week the price range announced put the valuation of the company at around $1.71 trillion.

Saudi Aramco is planning to raise between $24 billion and $25.6 billion by selling a 1.5 percent stake, Bloomberg reported.

Aramco earned net income of $68.2 billion in the first nine months compared with $83.1 billion a year ago. Revenue slipped to $217 billion from $233 billion.

Earlier this month, Emirates announced a net profit of AED862 million ($235 million) for the half-year for its 2019-20 financial year, a surge of 282 percent compared to last year, while revenue was down 3 percent to AED47.3 billion during the same period.

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