Emirates Signs Us$265 Million Financing Agreement

Media Release
22 December 2005

EMIRATES SIGNS US$265 MILLION FINANCING AGREEMENT
WITH EX-IM FOR TWO B777-300ER AIRCRAFT

Emirates, the Dubai-based international airline, has signed a US$265 million financing agreement with the Export-Import Bank of the United States for two Boeing 777-300ER aircraft, scheduled for delivery in February and March 2006.

This is the first time that Emirates has used support from the US Ex-Im Bank, and creates a new source of aircraft financing for the airline's rapidly-expanding fleet.

The financing for the two B777-300ER aircraft is fully arranged and funded by Royal Bank of Scotland (RBS). The innovative 12-year financing, which combines an Ex-Im supported loan with commercial funding, carries a weighted average cost of funds of 0.67 per cent over three-month Libor (London Inter Bank Offered Rate).

Emirates, which flies four daily return services from New Zealand, is one of the world's fastest growing international airlines, and the second most profitable. Independent and financially self-sustained, Emirates operates an all wide-bodied fleet of 87 aircraft comprising: 29 Airbus A330-200s, 12 Boeing 777-300s, 10 Boeing 777-300ERs, nine Boeing 777-200s, 10 Airbus A340-500s, eight A340-300s, one Airbus A310, two Airbus A310F and six Boeing 747 freighters.

Its order book currently includes 45 Airbus A380-800s, 44 Boeing 777-300ERs, 10 Boeing 777-200LR Worldliners, eight Boeing 777 Freighters, one A310-300F and 20 Airbus A340-600HGW aircraft. By 2012 Emirates expects to have nearly twice as many jets in its fleet as it does today.

The second Airbus A310-300F this week entered Emirates SkyCargo's freighter fleet, earning its stripes almost immediately with services to four destinations in the Indian subcontinent and one in Africa.

Hiran Perera, Emirates' Vice President Cargo ? Freighters, said: "As the fleet expands, the current mix of A310Fs and Boeing 747Fs are providing much needed flexibility and quicker response times. We will now be able to satisfy our regional customers' demand for freighter charter services, help pump up volumes and capacity on short notice, and move speedily during times of crises, such as the spate of recent natural disasters faced by the region."

The second A310F, with its gross payload of 39 tonnes, joins Emirates SkyCargo's fleet of seven freighters ? six wet-leased Boeing 747s and one A310F. With orders for three more Airbus freighters ? one A310F and two A380Fs ? and eight Boeing 777Fs, Emirates SkyCargo is looking to expand its total freighter fleet to around 20 freighters by 2012.

Emirates flies to over 75 cities in 54 countries in Europe, North America, the Middle East, Africa, Indian subcontinent and Asia-Pacific. Since January 2005 the airline has launched services to a number of new destinations, including the Seychelles, Seoul and Alexandria.

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