The impact of the CoVid19 pandemic on airlines has been massive, but super-connectors such as Emirates have been overly affected. Emirates and Etihad recently had to stop operating flights given that all UAE airports have stopped operating for commercial flights at the moment.
In the last update on CoVid19 response from the Emirates CCO, the following steps were enlisted by Emirates.
- Postponing or cancelling discretionary expenditure
- A freeze on all non-essential recruitment and consultancy work
- Working with suppliers to find cost savings and efficiency
- Encouraging employees to take paid or unpaid leave in light of reduced flying capacity
- A temporary reduction of basic salary for the majority of Emirates Group employees for three months, ranging from 25% to 50%. Employees will continue to be paid their other allowances during this time. Junior-level employees will be exempt from basic salary reduction
- Presidents of Emirates and dnata – Sir Tim Clark and Gary Chapman – will take a 100% basic salary cut for three months
Dubai’s Crown Prince Sheikh Hamdan bin Mohammed has today mentioned that Dubai’s government is committed to supporting the Emirates airline, and the government will inject fresh equity into the company to help it overcome the coronavirus crisis.
Today, we renew our commitment to support a success story that started in the mid-1980s to reach its goal of sitting on the throne of global aviation. The Government of Dubai is committed to fully supporting @Emirates at this critical time & will inject equity into the company. pic.twitter.com/3cabmUDOVD
— Hamdan bin Mohammed (@HamdanMohammed) March 31, 2020
In a series of tweets, the Crown Prince explained, ” Emirates, our national carrier, positioned Dubai as a global travel hub and has great strategic value as one of the main pillars of Dubai’s economy, as well as the wider economy of the UAE. We will announce further details about the equity injection and more measures soon.”
.@Emirates, our national carrier, positioned Dubai as an global travel hub and has great strategic value as one of the main pillars of Dubai's economy, as well as the wider economy of the UAE. We will announce further details about the equity injection and more measures soon. pic.twitter.com/wdcrn2trO9
— Hamdan bin Mohammed (@HamdanMohammed) March 31, 2020
Last year, as of October 2019 half-year, Emirates had posted a profit of about USD 235 million.
It seems all sorts of airlines around the world will need to go to their governments to get a bailout. If the mighty such as Emirates need it, then many weaker carriers definitely will need it.
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Good time to merge EK and EY.
Ajay,
HbM’s tweet says it will be a bailout by the Govt of Dubai and not UAE Govt.
@Venkatesh, thanks for pointing it out. Fixed!