DUBAI - The Dubai government will inject fresh equity into Emirates as the airline struggles with the impact of the coronavirus (Covid-19), said Crown Prince Sheikh Hamdan bin Mohammed.
The airline has suspended all passenger flights in the light of the pandemic while maintaining cargo operations, as has its Abu Dhabi-based rival Etihad Airways. In addition, Emirates has also cut the salaries of its workforce by up to 50%, including President Tim Clark and CEO Sheikh Ahmed bin Saeed Al Maktoum.
“The Government of Dubai is committed to fully support @Emirates at this critical time & will inject equity into the company,” Crown Prince Hamdan tweeted on Tuesday (31/3).
“@Emirates, our national carrier, positioned Dubai as an[sic] 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.”
As previously reported by IDNFinancials.com, the International Air Transport Association (IATA) predicts that the airline industry will suffer a US$39 billion net loss in the second quarter of 2020 due to travel restrictions imposed by governments to curb the spread of Covid-19.
Government assistance, according to IATA CEO Alexandre de Juniac, is required to preserve cargo operations and long-term connectivity “that travellers and economies will depend on in the recovery phase”. (MS)