Emirates airline is looking to raise billions of dollars in loans to supplement a state equity injection from Dubai’s government, according to a Bloomberg report.
Emirates is approaching local and international banks after Dubai approved an undisclosed amount of financial aid, according to people familiar with the matter.
They said that although no decisions about the borrowing have been made, one of the options available is bilateral loans, which can be agreed quickly and done in smaller tranches.
A spokesperson for Emirates declined to comment when approached.
Emirates is the world’s largest long-haul airline and has the chief connector of Europe and Asia, the airline business has been hit particularly hard by Covid-19.
As one of a number of state-owned carriers in the region, Emirates is in a better position to secure bailout packages than privately-owned airlines.
Airlines in the Middle East could lose as much as $19 billion in revenues this year, according to the International Air Transport Association (IATA), with the UAE expected to lose over $5 billion in sales.
The global industry is expected to lose more than $250 billion in revenues this year.