DUBAI – Emirates Airline, the Middle East’s largest carrier, expects to post “solid” full year earnings and sees no problem refinancing upcoming debt, despite ongoing concerns over Dubai’s credit obligations, a senior company official said Tuesday.

“Given the way we’ve been trading, we expect solid results,” Gary Chapman, president of group services for the airline and Dnata told reporters.

Emirates reported an 80% slump in full year profit in 2008/2009 due to record fuel prices and falling passenger numbers amid the economic downturn.

Chapman said Tuesday that the airline hasn’t had any problem securing aircraft deals and doesn’t see any difficulty refinancing upcoming bonds and loans.

“Aircraft financing isn’t a problem. We’re getting very attractive opportunities with the export credit agencies,” said Chapman.

Emirates said in December that its debts aren’t guaranteed by the sheikdom’s government.

The carrier has borrowed heavily to build its fleet and challenge the world’s leading carriers. It has 10 loans and bonds maturing by 2013 worth almost $1.7 billion, including a $500 million bond next year, according to Standard & Poor’s Ratings Services.

Chapman said the airline “will look at the right opportunities to refinance” the $500 million bond when it matures next year, and said the company is “sitting on a considerable cash balance”.

Dubai-based airport services provider Dnata, which is part of the Emirates Group, officially took over baggage handling services at London’s Heathrow Airport this weekend after buying two U.K.-based ground handling operations for GBP15 million late last year, Chapman said.

Dnata is also looking at acquiring other ground handling companies within Europe and has “one or two opportunities on the go”, Chapman said.

Source: business.maktoob.com