COVID-19: Dubai leads the way with Emirates funding, says IATA chief
Government needs to help out national airlines ride through the virus-induced crisis
Dubai: Dubai’s move to pump in new funds into Emirates airline has been given a vote of confidence by the head of International Air Transport Association (IATA), the aviation industry grouping.
“It is the right method to inject cash,” said IATA’s Director-General and CEO Alexandre de Juniac. “Dubai recognized the importance of the carrier [Emirates] to the wellbeing of the economy of the UAE.
“We think this is what governments should do as an approach [to help the airlines]. It is a key asset for any country to have a strong airline industry.”
On Tuesday, Shaikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai, affirmed in a Twitter post that the government renews its “commitment to support a success story that started in the mid-1980s to reach its goal of sitting on the throne of global aviation.
“The Government of Dubai is committed to fully supporting Emirates at this critical time and will inject equity into the company.”
Shaikh Hamdan said the details of the equity injection and other measures will be announced soon.
According to de Juniac, other governments might take shares in their national airlines to help them survive the pandemic and its economic impact.
“Airlines need $200 billion in liquidity support simply to make it through. Some governments have already stepped forward, but many more need to follow suit,” he added.