Emirates adopts pay cut as COVID-19 grounds operations

In response to the COVID-19 pandemic which has led to suspension of flights across many countries globally, Emirates Airlines Groups has embarked on several cost-cutting measures.

The airline said while it will not cut jobs as a result of the crisis, it would implement basic salary reduction for majority of employees for three months.

The salary reduction ranges from 25 to 50 per cent, while the Presidents of Emirates and dnata, a subsidiary of the Emirates Group providing ground handling, cargo, among others, Sir Tim Clark and Gary Chapman will take a 100% basic salary cut for three months.

A statement issued by the aviation group indicated that Emirates and dnata had been adapting operations in line with regulatory directives as well as travel demand since the COVID-19 broke out.

“Having received requests from governments and customers to support the repatriation of travellers, Emirates said it would continue to operate passenger and cargo flights to the following countries until further notice, as long as borders remain open, and there is demand.

The countries are the UK, Switzerland, Hong Kong, Thailand, Malaysia, Philippines, Japan, Singapore, South Korea, Australia, South Africa, USA, and Canada”, the group added.

Other measures taken by it include postponing or cancelling discretionary expenditure; a freeze on all nonessential recruitment and consultancy work; working with suppliers to find cost savings and efficiency; encouraging employees to take paid or unpaid leave in light of reduced flying capacity.

It said employees will continue to be paid their other allowances during this time while junior level employees will be exempt from basic salary reduction.

Chairman and Chief Executive of Emirates Group, HH Sheikh Ahmed bin Saeed Al Maktoum, said: “The world has literally gone into quarantine due to the COVID-19 outbreak.

“As a global network airline, we find ourselves in a situation where we cannot viably operate passenger services until countries re-open their borders, and travel confidence returns. By Wednesday 25 March, although we will still operate cargo flights which remain busy, Emirates will have temporarily suspended most of its passenger operations.”