Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has vowed that Dubai will inject funding into Emirates amid the ongoing coronavirus pandemic, it was announced on Tuesday.
According to the UAE’s state-run WAM news agency, the move to inject liquidity to the company is a reflection of “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”.
On Twitter, Sheikh Hamdan said that “the government of Dubai is committed to fully supporting Emirates at this crucial time and will inject liquidity into the company”.
“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.
Travel restrictions imposed as a result of the coronavirus pandemic, forced Emirates to suspend passenger operations earlier in March, as well as cut staff wages.
Further details of the government plan to inject funds into the airline will be announced “at a later stage”, WAM reported.
Around the world, a number of countries have announced plans to support airlines amid the losses caused by the coronavirus pandemic.
The United States, for example, has announced $58bn in assistance.
In a recent episode of the Arabian Business podcast, Saj Ahjmad, the chief analyst at London-based StrategicAero Research said that government assistance may not be enough to save many airlines around the globe.
“Assistance by various governments will help to a certain degree, but the reality is that it may not be enough,” he said. “Whatever IATA is talking about in terms of hundreds of billions of dollars, to be honest it may run into tens of trillions, because you’ve got to factor in the supply chains of hotels, leisure centres and associated supply chains with those that rely on aviation as a catalyst for their own industries.”
“It’s going to run into trillions, and I really don’t see that we’ve reached the bottom of this yet,” he added.
