Emirates gets $2 billion injection from Dubai government
After the president of Emirates Tim Clark’s announcement about cutting thousands of jobs to diminish the airline’s costs previously in June 10, 2020, Dubai’s government is now demonstrating its financial commitment to the carrier. As the company currently faces a cash crunch, the government provided Emirates a fresh equity injection of $2 billion billion (AED7.3 billion).
While no such injection has been publicly announced by the government of Dubai or the airline itself, the details about financial support were disclosed in a prospectus for a potential bond issuance by the government, reported Reuters.
According to Emirates financial report of 2019-2020, the state-owned airline has already raised an additional liquidity of 1.2 billion (AED4.4 billion) in the first quarter and claimed it would aspire banks to raise the debt to fight the effects of the COVID-19 pandemic.
Emirates has already cut 9,000 thousands of jobs as it tries to manage the crisis. However, the Gulf carrier is reportedly considering increasing the cuts to about 30,000 jobs, which would make it one the deepest cuts in a global airline industry forced by the pandemic yet. As previously reported by AeroTime News, the percentage of fired workers will most likely rise to 15% over
According to sources, on June 23, 2020, the airline asked cabin crew to take between one and three months voluntarily unpaid leave due to its anticipated staffing needs.
As previously the president of the airline estimated, a return to the pre-crisis financial situation of the company may take up until 2024.
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