Emirates receives $ 2 billion in aid from the Dubai government
Following the announcement by Emirates President Tim Clark of the reduction of thousands of jobs to make the airline's costs more efficient during the pandemic, the Dubai government is now demonstrating its financial commitment to the carrier.
As the company is currently facing a cash crisis, the government has provided Emirates with a new capital injection of $ 2 billion (AED 7,7 billion).
Although the Dubai government or the airline did not publicly announce the aid, details of the financial support were revealed in a prospectus for a potential bond issue, Reuters reported.
Emirates has already cut 9.000 jobs in an extensive crisis management process. However, it appears that the Gulf carrier plans to lay off up to 30 employees, making it one of the largest staff reductions in the aviation industry globally. The percentage of those fired will most likely increase to over 000%.
According to sources, on June 23, 2020, Emirates required seafarers to take voluntary unpaid leave for between one and three months due to reduced staffing needs.
As previously estimated by the airline's president, a return to the pre-crisis financial situation could last until 2024.