Reuters: Dubai's Istithmar To Buy Stake In Djibouti Airline

[Liibaan]

The New Airline Will Be Re-Branded And Named The National Flag Carrier Of The Djibouti

 

Reuters: Dubai's Istithmar To Buy Stake In Djibouti Airline

 

Tue 13 Nov 2007, 15:27 GMT

 

Dubai-government investment agency Istithmar said on Tuesday it has agreed to invest in Djibouti's Daallo Airlines to help the company expand in east Africa.

 

Istithmar, a sister company of Dubai's DP World -- which manages a port terminal in Djibouti -- joined with the founders of Daallo and the Djibouti government to buy the airline and make it the national carrier of the east African state, it said in a statement.

 

Istithmar did not say how much it would invest.

 

"With our combined efforts and the resources being allocated, Djibouti will emerge as a valued destination for tourism and Daallo will spread its wings to become the leading air carrier in the Horn of Africa," Sultan bin Sulaymen, chairman of Dubai World, is quoted as saying in the statement. Dubai World owns Istithmar.

 

Daallo Airlines operates 10 aircraft and flies to destinations in Africa, the Middle East, Europe and Asia, Istithmar said.

 

 

[Liibaan]

Al Bawaba: Dubai World Subsidiary Buys Daallo Airlines In Joint Venture With Founders, Djibouti Government

 

dubai world subsidiary buys daallo airlines in joint venture with founders, djibouti govt

 

New airline to be re-branded as national flag carrier of Djibouti

 

 

Dubai World company Istithmar World Aviation (IWA) Holdings has announced that it is joining with founders of Daallo Airlines and the Government of Djibouti to create a new holding company which will acquire all the shares of Daallo Airlines.

 

The deal will see the New Daallo re-branded and named as the exclusive National Flag Carrier of Djibouti, enjoying all routes and traffic rights held by Djibouti.

 

IWA Holdings is an Istithmar World company formed by the consolidation and enlargement of Dubai World's aviation investments.

 

Daallo currently has a fleet of 10 aircraft including Boeing 757 and Boeing 737 aircraft, and has interline agreements with leading world carriers like Emirates, Qatar Airways, Saudia, Delta Airlines, Srilankan, Alitalia and Ethiopian Airlines.

 

The airline has 16 years of experience operating scheduled passenger flights, cargo and charter flights to major destinations in Africa, Middle East, Asia and Europe. It has been flying to the UAE since 1992, to Paris since 2001 and London since 2002.

 

Mr. Sultan Ahmed Bin Sulayem, Chairman Dubai World said:

“Africa’s aviation industry can play a major role in the socio-economic development of the countries. In an environment where most air routes are dominated by foreign carriers, we see great potential in a home-grown airline like Daallo, which can provide safe and reliable air transport services, and facilitate the growth of trade and tourism.”

 

“Dubai World has been a major partner in the development of Djibouti’s infrastructure, where we already operate and manage a number of leisure and business projects. Daallo’s strong base in the Horn of Africa gives us the required leverage to make this region a top-notch travel and business destination.”

 

“We are very pleased to enter into this venture with the founders of Daallo Airlines and the Government of Djibouti. With our combined efforts and the resources being allocated, Djibouti will emerge as a valued destination for tourism and Daallo will spread its wings to become the leading air carrier in the Horn of Africa.”

 

Tom Ronell, CEO Istithmar World Aviation Holdings said:

“The acquisition of Daallo Airlines, is a reinforcement of Dubai World’s commitment to Djibouti, and reflects the importance of the country and the region in our business strategy. With the combined efforts of all parties, the airline is well positioned to serve the business and tourism needs of the Horn of Africa and beyond, providing safe, reliable and affordable air transport services on Africa’s lucrative intercontinental routes.”

 

Mohammed Ibrahim Yassin, Founder and CEO of Daallo Airlines said:

“We are gratified at the confidence placed in Daallo Airlines by our Government and by Istithmar World. With this backing and the expertise being added, we will take the New Company to a higher level, flying to more destinations and supporting the economic development of Djibouti and our neighbouring countries in the Horn of Africa, where we are the Number One airline already.”

 

“Teaming up with Dubai World will enable us to pursue our ambition to provide a world-class air transportation service to the continent of Africa”.

 

© 2007 Al Bawaba (www.albawaba.com)

[xiinfaniin]

good move! Congrats to Mohammed Ibrahim Yassin!

[Suldaanka]

^ I second that.

 

 

Istithmar paid 50 million dollars for 3.5% share of SpiceJet. That means the Indian startup Airliner was valued nearly $1.5 billion dollars.

 

I hope Mr. Olaad hit the jackpot on this sale.

[N.O.R.F]

Been watching the airshow all week. Saw a huge airbus doing 'twirls' in the sky the other day and a bunch of red arrows flew over head yesterday.

 

Now for the motorshow this wknd :cool:

 

On the topic, it looks like a good deal which will put tourism in Djib on the map and who knows further towards the south east :cool:

[N.O.R.F]

Been watching the airshow all week. Saw a huge airbus doing 'twirls' in the sky the other day and a bunch of red arrows flew over head yesterday.

 

Now for the motorshow this wknd :cool:

 

On the topic, it looks like a good deal which will put tourism in Djib on the map and who knows further towards the south east :cool:

[Peacenow]

Hopefull now the management at the airline can in someways, leverage the greater balance sheet of Dubai World and negogiate for better planes with the makers. The credit line has definently notched up a few grades for them. Good deal.