Wednesday, 12 January 2011

David Akin's On the Hill :: Are the state-owned United Arab Emirates airlines subsidized?

"Categorically, unequivocally and emphatically, we have never been subsidized," says Tim Clark, the president of Emirates Airlines which, along with Etihad airlines, has been unsuccessful in winning Canadian government approval for new landing rights for its giant A380 superjumbosBoeing 777s at airports in Vancouver and Calgary.

Tim Clark: Subsidy debate has airline boss in a spin [Registration required]

Since the subsidy question will not go away, Mr Clark details the support that got Emirates flying. In 1985 Sheikh Mohammed gave Maurice Flanagan, the airline’s first managing director, $10m.

“He said, ‘Go and set up the airline.’ He gave us two 727s from the Dubai Royal Air Wing and built a training facility. In total it worked out at $50m,” Mr Clark says. “That’s all we have had. And he was absolutely clear: ‘You don’t come to me for money. You will buy your own aircraft.’ And we have done ever since.”

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