COVID-19: Dubai to inject new equity into Emirates airline
Further details to be announced later, says Sheikh Hamdan
Dubai: Dubai's Crown Prince Sheikh Hamdan bin Mohammed said on Tuesday the government is committed to fully support Emirates airline and will inject fresh equity into the company to help it overcome the coronavirus crisis.
The Dubai Government will inject fresh equity into Emirates airline, according to a statement issued by the emirate.
The Government is "fully committed to supporting Emirates airline in the current critical period," the statement added. "As a shareholder of Emirates airlines, the Government will inject equity 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.
Unprecedented turmoil
Worldwide, airlines are in line to lose as much as $252 billion this year, according to IATA, the industry grouping. This was the third upward revision IATA had to make in recent weeks, as the true scale of the virus pandemic became apparent. Also becoming clearer by the day was that only governments could help out airlines out of their current predicament.
The US has shown the way by announcing $61 billion for its airline industry. Other countries are expected to come up with their own support systems.
Emirates has a "strategic importance to the Dubai and UAE economy and the airlines (have a) key role in positioning Dubai as a major international aviation hub", Sheikh Hamdan said in a Twitter post.
Further details in this regard will be announced at a later stage, said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai.