Dubai government pumped $2 billion into Emirates airline, despite massive job cuts: report
Dubai government pumped $2 billion into Emirates airline, despite massive job cuts: report
The Dubai government has helped keep its star airline afloat during difficult economic times.
2 min read
Emirates has been hugely affected by the coronavirus epidemic [Getty]
Emirates has received a 7.3 billion dirhams ($2 billion) cash injection from the Dubai government, to help the UAE airline survive a difficult economic climate, Reuters has reported.
The Dubai government-owned airliner has been badly hit by the coronavirus crisis, which has seen the tourist-reliant emirate closed off to visitors and only a small number of flights operating.
The Dubai-based airline has responded with a massive lay-off of employees, as international travel grinds almost to a halt.
Despite this, a bonds prospectus seen by Reuters claims that Emirates has also received $2 billion from the government.
The Dubai government has not publicly revealed the cash injection and the department of finance did not respond to Reuters request for comment.
Yet more Emirates crew are expected to be laid off next month, while thousands remain on unpaid leave.
The UAE, particularly tourist-reliant Dubai, have been badly hit by the coronavirus epidemic, with many businesses not expected to survive the year.
The Dubai government-owned airliner has been badly hit by the coronavirus crisis, which has seen the tourist-reliant emirate closed off to visitors and only a small number of flights operating.
The Dubai-based airline has responded with a massive lay-off of employees, as international travel grinds almost to a halt.
Despite this, a bonds prospectus seen by Reuters claims that Emirates has also received $2 billion from the government.
The Dubai government has not publicly revealed the cash injection and the department of finance did not respond to Reuters request for comment.
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Yet more Emirates crew are expected to be laid off next month, while thousands remain on unpaid leave.
The UAE, particularly tourist-reliant Dubai, have been badly hit by the coronavirus epidemic, with many businesses not expected to survive the year.
Dubai again has loosened laws governing alcohol sales and possession of liquor to find new sources of revenue.
The outbreak of the virus exacerbated the already-gathering economic storm engulfing the emirate, which has seen mass layoffs thin the ranks of its foreign workforce and empty homes even amid slight signs of recovery.
Dubai's crucial real-estate market is on track to hit record lows not seen since the 2009 Great Recession.
Alcohol sales also serve as a major tax revenue source for Dubai's Al-Maktoum ruling family, according to AP.
Agencies contributed to this report
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