‘The world has literally gone into quarantine’
Emirates has announced it will suspend the majority of its passenger flights as of Wednesday, March 25, but will maintain cargo services, amidst the global coronavirus outbreak.
The airline will continue to operate passenger and cargo flights to the following countries and territories until further notice, as long as borders remain open, and there is demand: the UK, Switzerland, Hong Kong, Thailand, Malaysia, Philippines, Japan, Singapore, Australia, South Africa, South Korea, USA and Canada.
The Dubai-based airline announced the news in a statement, also confirming a number of cost-cutting measures the company plans to take including a reduction in operations of its air services provider, dnata.
“The world has literally gone into quarantine due to the COVID-19 outbreak,” HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Group said in a statement. “This is an unprecedented crisis situation in terms of breadth and scale: geographically, as well as from a health, social, and economic standpoint.”
Sheikh Ahmed added that the airline “was doing well against [their] current financial year targets”, but the COVID-19 pandemic has “brought all that to a sudden and painful halt over the past six weeks”.
“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.
“We continue to watch the situation closely, and as soon as things allow, we will reinstate our services.
“Emirates Group has a strong balance sheet, and substantial cash liquidity, and we can, and will, with appropriate and timely action, survive through a prolonged period of reduced flight schedules, so that we are adequately prepared for the return to normality.”
Emirates announces cost cuts
Additionally, the airline also announced a number of cost-cutting measures that have been undertaken as the demand for travel “remains weak”.
This includes a three month temporary reduction on Emirates employees’ basic salaries ranging from 25 per cent to 50 per cent. Additionally, the President of Emirates, Sir Tim Clark, and the President of dnata, Gary Chapman, will take a 100 per cent basic salary cut for three months.
“Rather than ask employees to leave the business, we chose to implement a temporary basic salary cut as we want to protect our workforce and keep our talented and skilled people, as much as possible,” Sheikh Ahmed explained. “We want to avoid cutting jobs.
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“When demand picks up again, we also want to be able to quickly ramp up and resume services for our customers.
“The Emirates Group has strong liquidity, with a healthy cash position but it is prudent that it take steps to reduce costs at this time. Emirates remains committed to serving its markets and looks forward to resuming a normal flight schedule as soon as that is permitted by the relevant authorities.”
Need to ‘do the right thing’
On a final note, Sheikh Ahmed explained Emirates needed to “do the right thing” for all stakeholders involved in their business.
“These are unprecedented times for the airline and travel industry, but we will get through it,” he said. “Our business is taking a hit, but what matters in the long run is that we do the right thing for our customers, our employees, and the communities we serve.
“With the support and unity that we have seen from our employees, partners, customers, and other stakeholders, I’m confident that Emirates can tackle this challenge and come out stronger.”
More information on coronavirus:
- Tips on how to prevent the spreading of coronavirus
- Coronavirus in the UAE: Food and supplies to stock up on
- Coronavirus in the UAE: What the visa suspension means for you
Images: Instagram.
