Fast growing Emirates sees record profits

Dubai's national airlines, Emirates, said that it expect to net record profits of over $75 million this year as the company proceeds with multi-billion dollar expansion plans.

Emirates, one of the fastest-growing companies in the world, is projected to boost profits to a record 280 million dirhams ($ 76.3 million) during the fiscal year ending on March 31, Emirates' Sheikh al-Maktum said.

The figure more than double the previous year's profits of around $32 million, he said.

"There has been a high growth rate in our operation over the past two years. We expect our total operating income to reach $1 billion this year," Sheikh Ahmed told reporters at an international air show in Dubai.

Sheikh Ahmed, a member of Dubai's ruling family, said Emirates was pursuing expansion plans to handle steady growth in its operations, including a projected surge in the number of passengers and destinations.

He said Emirates, set up in 1985, had not yet decided whether to order the remaining five Boeing 777's, which were part of an optional seven-aircraft order. Two of them will be delivered in 1998.

The order was part of a $2 billion package signed in 1994 for the supply of 14 Boeing 777's, including seven as a firm order.

We did not exercise fully our option regarding those planes. We will receive two, but we have not decided on the rest yet," Sheikh Ahmed said.

He said Emirates, owned by the government of Dubai, was pursuing plans to buy 16 Airbuses to replace its current fleet, most of which have been in service for nearly 10 years.

The $1 billion deal signed in 1996 provided for the supply of 16 wide-bodied Airbus A 330-200's between 1999 and 2003. The 16 existing Airbuses, mostly A 310-300's, will be sold to Airbus under the package, Sheikh Ahmed said.

"I knew the new Airbuses have a much bigger capacity. They will create a surplus capacity, but that is why we are buying them -- to prepare for the growth in our future operations," he said.

Emirates currently covers more than 40 destinations worldwide. It has recorded a steady increase in profits over the past year despite strong competition from regional and international airlines.