Emirates Signs Japanese Operating Lease

20 December 2004

Emirates Signs Japanese Operating Lease For New A340-500

Emirates Airline has signed a US$138 million Japanese Operating Lease
(JOL) for the acquisition of a new Airbus A340-500, the airline's eighth
from a total order of 10. This is the first time any airline has used this
attractive JOL structure on an A340-500 wide-body aircraft, signalling a
strong vote of confidence from the Japanese investors in Emirates.

The lease, structured as a 13-year JOL, is funded using a combination of Japanese equity and commercial debt.

The equity was arranged by ORIX Corporation and commercial debt was arranged and funded by Bank of Tokyo Mitsubishi, at an attractive margin of 0.80% over the six months USD London Interbank Offered Rate (LIBOR).

Emirates' latest A340-500, the world's longest-range aircraft, was delivered on December 17, 2004. Powered by Rolls-Royce Trent 500 series engines, it will be followed by another two for a total of 10 Airbus A340-500s ordered by Emirates.

Riyaz Peermohamed, Emirates' Senior Vice President, Corporate Treasury said: "This deal achieves attractive lease rentals for Emirates and we are grateful for the support of ORIX Corporation, which is one of the largest players in the world of aviation leasing. The entire funding of this aircraft was sourced from Japanese institutions which helps Emirates further diversify its funding resources."

Emirates, the award-winning Dubai-based international airline, now has 73 aircraft, including 29 Airbus A330-200s, 12 Boeing 777-300s, nine Boeing 777-200s, eight Airbus 340-500s, eight A340-300s, one Airbus A310 and six Boeing 747 freighters.

The world's fastest-growing intercontinental airline, Emirates flies to 77 cities in 54 countries with one of the youngest fleets in the skies. Emirates' new services introduced in 2004 include: Lagos, Accra, Budapest (cargo-only), Glasgow, Vienna, Christchurch, Shanghai and New York.

Emirates also recently announced that it will start passenger services to another four destinations in 2005, namely the Seychelles, Seoul, Hamburg (the airline's fourth gateway to Germany) and Geneva (the airline's second gateway to Switzerland). The new routes will expand the Emirates network to 81 destinations by the end of next year.

Its order book includes 45 Airbus A380-800s, 30 Boeing 777-300ERs plus nine options, two more ultra-long-range Airbus A340-500s, 3 A310-300s (freighters) and 20 Airbus A340-600 Higher Gross Weight aircraft, amounting to a total of US$30.3 billion. By 2012 Emirates expects to have twice as many jets in its fleet as it does today.

ENDS

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