The National - News

Emirates to cut up to 9,000 jobs, but president says airline remains better off than others

- DEENA KAMEL

Emirates airline plans to cut up to 9,000 jobs as the company joins its global peers and reduces its workforce in the wake of the coronaviru­s pandemic to cut costs and preserve cash, but remains in a better state than others, its president said.

The Dubai airline will increase the job cuts to as much as 15 per cent of its workforce, after already letting go of 10 per cent of its staff, Emirates president Tim Clark told the BBC.

The airline, which was set to have one of its “best years ever” before the pandemic, is “not as badly off as others”, Mr Clark told the news service.

Last week, Emirates laid off employees in another round of redundanci­es.

“We can confirm that we are still in the process of implementi­ng the redundancy exercise across our group, as previously communicat­ed,” an Emirates spokeswoma­n told

Emirates restarted flights, bringing its network to 52 destinatio­ns this month, as some countries reopen their borders following months of restrictio­ns to curb the spread of the virus.

“While we have slowly restarted operations wherever it is safe and commercial­ly viable, our footprint today is significan­tly smaller than before and it will take a while for us to recover to pre-pandemic levels,” the spokeswoma­n said.

Emirates, which employed more than 60,000 people before the pandemic, did not disclose how many people were made redundant in last week’s round of job cuts or from which department­s.

“Like other airlines and travel companies, Covid-19 has hit us hard, and as a responsibl­e business, we simply must right-size our workforce in line with our reduced operationa­l requiremen­ts,” the spokeswoma­n said. “We continue to take every possible action to reduce costs, restore revenue streams, and preserve jobs.”

The latest redundanci­es follow Emirates’ confirmati­on in June of an initial round of job cuts to cope with the impact of the pandemic.

The aviation industry is among the worst hit from the pandemic, which brought the travel industry to a grinding halt as countries shut their borders. In a bid to conserve cash, airlines have laid off employees, deferred aircraft deliveries and sought government bailouts.

Countries around the world have extended $123 billion (Dh451bn) in total financial rescue packages for their airlines to survive the crisis.

The Dubai government has pledged to inject additional capital into the state-owned prize asset Emirates, which has helped to transform the city into a global travel hub. It did not disclose the amount of financial support.

The Internatio­nal Air Transport Associatio­n, an industry lobby group representi­ng about 290 airlines, forecasts global operators will lose $84.3bn in 2020 before cutting their losses to $15.8bn in 2021.

The outlook for air travel demand even after the pandemic is contained still seems grim.

Fewer people are willing to fly when the Covid-19 pandemic subsides than there were at the height of movement restrictio­ns in April, according to an Iata-commission­ed survey of travellers in 11 countries.

About 84 per cent of respondent­s said they were concerned about catching the virus while travelling, the poll conducted by consultanc­y Rockland Dutton Research on behalf of Iata showed. The survey said 45 per cent expected to travel within two months, compared with 61 per cent in April.

“This crisis could have a very long shadow,” said Alexandre de Juniac, Iata’s director general. “Passengers are telling us that it will take time before they return to their old travel habits.”

Airlines around the world expect air travel demand to rebound to 2019 pre-crisis levels by 2022-23.

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