Dubai supports state-owned carrier Emirates with $2bn financial aid

The UAE’s Dubai Government has supported state-owned carrier Emirates with AED7.3bn ($2bn) in financial aid to help deal with the impact of the coronavirus (Covid-19) pandemic.

The injection information was seen by Reuters in a prospectus for potential bond issuance by the Dubai government.

The commitment to fully support and inject equity into the national carrier was announced by crown prince Sheikh Hamdan bin Mohammed Al Maktoum in March.

By 25 March, the company had temporarily suspended most passenger operations and retained its cargo operations.

Emirates announced that it resumed some regular passenger flights on 21 May.

The pandemic has severely hit the airline and travel industry with several airlines implementing job cuts and other drastic cost reduction measures.

In July, the carrier reportedly revealed plans to eliminate 9,000 jobs due to the Covid-19 pandemic.

In a separate development, Emirates Airlines and flydubai have resumed their partnership as passenger flights to various global destinations gradually resumes.

The partnership enables Emirates customers to travel on codeshare flights to more than 30 destinations with flydubai.

Emirates chief commercial officer Adnan Kazim said: “We are delighted to announce that our customers can once again take advantage of the complementary strengths of Emirates and flydubai to access an enhanced network of cities on a single ticket and integrated loyalty programme, enjoy a safe, smooth and stress-free transfer experience through Dubai and have their baggage checked through to their final destination.

“The partnership has crossed a number of successful milestones since its inception in 2017 and over the coming months, Emirates and flydubai will be working together to re-open even more of the world for our customers.”