Dubai’s Crown Prince Sheikh Hamdan bin Mohammed has tweeted that the government is planning to inject equity into the carrier to see it through the current coronavirus pandemic.
The government of the United Arab Emirates joins a number of others that are offering state aid to assist airlines in traversing this period of low demand in order to help economies recover once this crisis is over.
The exact nature of the bailout is yet to be revealed.
Today, 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. pic.twitter.com/3cabmUDOVD
— Hamdan bin Mohammed (@HamdanMohammed) March 31, 2020
Emirates has now grounded its fleet for over a week, since the UAE put measures in place to ban all passenger flights in the region.
It’s not surprising that this bailout will be occurring as the airline is a major part of the economy of the UAE, turning Dubai into a transit hub that has brought additional economic opportunities to the Emirate. The airline is also owned by the government of the UAE.
.@Emirates, our national carrier, positioned Dubai as an 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. pic.twitter.com/wdcrn2trO9
— Hamdan bin Mohammed (@HamdanMohammed) March 31, 2020
A statement issued from the UAE government through Gulf News states, “As a shareholder of Emirates airlines, the government will inject equity considering its strategic importance to the Dubai and UAE economy and the airline’s key role in positioning Dubai as a major international aviation hub.”
Other airline announcements around the world in the past 24 hours are as follows:
- American Airlines is expecting to receive around $12 billion as part of the US government aid package for the aviation industry, and will use some of the money to offer staff members paid leave as per government stipulations. They will also be retiring 105 planes early.
- Icelandair has signed an agreement with the Icelandic government to keep vital air routes between Europe and North America open. The agreement signed yesterday Monday, 30 March, will see the Icelandic national flag carrier operate flights to Boston in the US and either Stockholm or London in Europe.
- Malaysia Airlines said it will be reinstating some suspended routes throughout April and May. It is doing so to bring home people who have been stranded in other parts of the world due to COVID-19 travel restrictions. Flights will once more take off from Kuala Lumpur to Auckland, Melbourne, Sydney, Perth, Jakarta and Guangzhou.
- British Airways is consolidating its London operations to Heathrow’s Terminal 5.
- Tigerair Australia’s entire force of 220 pilots will be sacked by the end of this week according to the pilots’ union. Tigerair’s parent company, Virgin Australia, hasn’t publicly swung the axe yet, saying it is “working through various options.” But the Australian Federation of Air Pilots said it has been advised the pilots will be laid off at the end of this week.
- Low-cost US carrier Spirit Airlines has become the first mainline carrier to cease flights to New York, New Jersey, and Connecticut.
