Nowadays, the situation for airlines is quite clear: the need to raise and conserve cash, ground aircraft and plea for state aid. However, the future is quite hazy, as nobody knows how and when travelers will be comfortable to travel once again, putting airlines’ revenues in jeopardy. What is clear is that air travel will not return the same, at least judged by the actions of airline executives around the world.
Emirates, reportedly, is no exception. The wide-body long-haul airline became famous for its luxurious product onboard, flying the flag of Dubai around the world and attracting visitors. Dubai International Airport (DXB) became an international hub for travel between Europe and Asia, the Middle East and Africa.
Now, the airline plans to greet the post-coronacrisis with a significantly reduced fleet and job force, reports have revealed. The airline plans to permanently retire 46 Airbus A380 aircraft, of the total 115. Furthermore, 30,000 job cuts are coming, stated the reports, as Emirates looks to trim its 105,000-strong workforce.
On May 10, 2020, Emirates indicated that it undertook cost-saving measures and reduced capital expenditure, including obtaining support from the Dubai government, which the latter affirmed publicly that it would lend a helping hand for the airline. The Dubai government is the sole shareholder of Emirates.
The carrier already increased its liquidity by $1.2 billion (AED4.4 billion) by using term loans, revolving credit and short-term trade facilities. Emirates plans to enter further discussions with banks to gain further liquidity and to “provide a cushion for the impact of COVID-19” to the airline’s cash flows in the short-term.