Emirates Cut Jobs as Coronavirus Continues to Affect Passenger Demand

Image: Emirates

Dubai based Emirates said it would begin laying off staff as the coronavirus pandemic continues to have an impact on the aviation industry.

"We unfortunately have to say goodbye to a few of the wonderful people that worked with us" Emirates said. "Where we are forced to take tough decisions, we will treat people with fairness and respect. Emirates also added that this move was necessary after a review of business operations of the group.

Staff on probation received letters on sunday infroming them that their contracts will be terminated in June. Emirates, which employs about 60000 people, have not stated the total number of jobs that will be cut.

Tim Clark, the president of Emirates, said that the carrier will have its fleet back in the air by the summer of 2020, including its fleet of Airbus A380s.

In the first quarter of 2020, Emirates raised an additional $1.1 billion through loans , while the government have promised to back the airline with financial support. Emirates said that it has expected COVID-19 to have a huge impact on the financial performance of the carrier.

The covid-19 crisis have affected the aviation industry and many other sectors linked to it. Many airlines have ben struggling to survive with enough funds by cutting expenditures, getting government funding, and relying more on its cargo business. Airlines have also been asking employees to take no pay leave and retrench them when manpower is not needed due to the fall in demand. This move of job cuts definitely will cut expenditure and operating costs. However, the question is whether it is enough for airlines to survive? Is it the best solution?