The national carrier of Dubai, Emirates Airline, will receive government support to guide it through the current crisis. Affirmed by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, the government will give Emirates an equity injection.
Speaking on Twitter, Sheikh Hamdan explained: “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.”
His Highness added that the carrier is one of the main pillars of Dubai’s economy, along with the UAE economy as a whole. He concluded that more measures to help the airline will be announced soon.
Emirates Airline in March announced that it would be introducing a number of cost-cutting measures to counteract the financial ramifications of COVID-19. These include a 25% to 50% pay cut across the company, including a 100% pay cut for Emirates Airline president Sir Tim Clark and Emirates Group president group services and Dnata Gary Chapman.
Despite the UAE government temporarily freezing all flights from the country, Emirates Group CEO and chairman H.H. Sheikh Ahmed bin Saeed Al-Maktoum has remained optimistic on the future of Emirates. He explained: “Emirates Group has a strong balance sheet, and substantial cash liquidity, and we can, and will, with appropriate and timely action, survive through a prolonged period of reduced flight schedules, so that we are adequately prepared for the return to normality.”
International Air Transport Association (IATA) has estimated that passenger revenues in the aviation sector could fall by as much as US$252 billion this year.