UAE carriers review workforce due to overcapacity issues
Emirates and Etihad say are considering cutbacks...
UAE super carriers Emirates and Etihad Airways are reviewing their workforce needs as overcapacity and a stronger dollar put pressure on earnings.
Emirates has offered redundancies to staff working in accounting, finance, IT and other departments at its Dubai head office, according to Reuters, although the airline has not responded to requests for comments.
However, addressing journalists in Berlin last month, Emirates president Tim Clark conceded that “trading conditions across the planet are very difficult”.
Etihad said on Sunday it was cutting jobs, mostly through "natural attrition." It did not say how many jobs would be affected.
"We may see a slowdown in the pace of growth by Gulf carriers or rational capacity or route reductions as indicated already by Emirates," John Strickland, aviation expert and director of Londonbased JLS Consulting, told Arabian Business.
Last week, IATA said: “Threats are emerging to the success story of the Gulf carriers.”
The airline estimated Middle East carriers will make $300 million in profit in 2017 compared to the $900 million forecast for 2016. Click here for full story
Emirates is one airline considering cutbacks