Dubai-based Emirates Airline has currently grounded all of its passenger aircraft and is only flying its Emirates SkyCargo fleet to various destinations around the world. The United Arab Emirates has virtually shut its borders, forcing all Emirati airlines to ground their fleets amid the Coronavirus pandemic. Thus it comes as no shock that the Middle Eastern airlines will need bailouts from their governments to survive this pandemic.
The government of Dubai announced that it will be injecting equity into state-owned Emirates if the situation demands. Emirates has played a major role in the transformation of Dubai into the city we know today as well as the shift of Dubai from only oil exports to a tourist mega-hub and therefore the government is committed to the airline. The amount of funding into the airline is not clear yet, but will be announced in the coming weeks, said Sheikh Al Maktoum.
"Dubai is fully committed to supporting Emirates airlines in the current critical period," said, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai.
"As a shareholder of Emirates airlines, the Government of Dubai will inject equity into the company, considering its strategic importance to the Dubai and UAE economy and the airline’s key role in positioning Dubai as a major international aviation hub."
Emirates is the biggest Middle Eastern airline and has the largest fleet of Airbus A380s and Boeing 777s and has played a key role in making Dubai International Airport (DXB/OMDB) the world’s busiest international hub. It is a major asset to the Dubai Government and employs over 100,000 people. The coronavirus or COVID-19 pandemic has left the airline industry in disarray with entire airlines grounded and many airlines retiring old aircraft ahead of schedule as demand drops drastically. The International Air Transport Association (IATA) predicts airlines will lose over $250 Billion in 2020 owing to the Coronavirus pandemic.