Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council has today affirmed that the Government of Dubai will do everything it can to support Emirates, the nation’s national airline carrier.
The Dubai Government, a shareholder in the airline, plans to inject equity into the company, given its strategic importance to the Dubai and UAE economy, and the airline’s key role in positioning the emirate as a major international aviation hub, according to a WAM report.
In a tweet, Sheikh Hamadan said: “Emirates, our national carrier, positioned Dubai as a 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.”
He added, “The government of Dubai is committed to fully supporting Emirates at this crucial time and will inject liquidity into the company,” and said that more details on the process and the amount would be announced at a later stage.
Emirates and many other airlines around the region and the world have been forced to suspend passenger flights as a result of travel restrictions being imposed due to the coronavirus epidemic.
Meanwhile, in a revised impact assessment, The International Air Transport Association (IATA) has warned that the outbreak has increased more than the one estimated by IATA earlier in March.
The impact assessment on airline passenger revenues and RPKs has been updated keeping in mind the travel restrictions imposed by countries around the world in response to the rising number of confirmed Covid-19 cases and deaths.
As per the revised IATA estimation, around 8,500 passenger aircraft have been grounded, which accounts to 1/3 of the total passenger fleet around the world. It also estimates a three-month-long ‘lockdown’ of the global air travel market, along with a gradual U-shaped demand recovery.
“Notwithstanding some recent signs of some upturn in the China domestic market, for the industry, as whole, we expect the recovery process will be slower than the six-to seven-month timeframe observed in past epidemics, said IATA in a statement.