Dubai will grant financial aid to Emirates in order to shield its most valuable asset from the coronavirus fallout, which has forced airlines around the world to suspend operations.
The amount being provided by the state, which owns the world’s largest carrier by international travel, wasn’t provided in a tweet from Sheikh Hamdan bin Rashid Al Maktoum, the deputy ruler of the emirate. Emirates, which relies on long-distance flights joining far-flung points with its Gulf hub, has grounded virtually its entire passenger fleet after countries sealed off access to fight the virus.
Emirates is an emblem of Dubai’s meteoric rise in the last three decades from a desert outpost into a global business and tourism hub. The airline relies on a fleet of Airbus SE A380 double-deckers and Boeing Co. 777 wide-bodies to connect its giant airport with destinations around the world. But a depressed oil price has weighed on corporate travel, and tourism has been curtailed since the coronavirus outbreak in China late last year.
Airlines have been particularly hard hit by the abrupt collapse in air travel as countries lock down to slow a spread of the virus. The International Air Transport Association, which represents 290 airlines around the world, estimates the industry may suffer more than $250 billion in lost revenue this year. Carriers like Deutsche Lufthansa AG and EasyJet Plc have grounded their fleets, and many carriers have called on government aid to help them weather the crisis.
Emirates is the largest of the major Middle East carriers, which also include Qatar Airways QCSC and Etihad Airways PJSC. Qatar said last week that it has maintained about a third of its operating schedule, in part because the country’s flag carrier has a more diverse fleet that also includes narrow-body airliners. Emirates, by contrast, only flies the biggest category of jetliners, including a fleet of 115 A380s, which most carriers have mothballed for the time being.
