Emirates Airline to implement salary cuts
Presidents Sir Tim Clark and Gary Chapman will take a 100% cut
Amid drastically reduced demand and services, Emirates Airline has announced it will roll out a number of cost-cutting measures.
According to sister publication Aviation Business Middle East, the Dubai-based carrier will implement 25% to 50% salary cuts across the company, which includes approximately 100,000 employees. The airline urged it would not let staff go.
Other measures include a freeze on recruitment, asking staff to take temporary leave, negotiating prices with suppliers and enforcing a 100% pay cut on Emirates Airline president Sir Tim Clark and Emirates Group president group services and Dnata Gary Chapman.
Emirates Group CEO and chairman H.H. Sheikh Ahmed bin Saeed Al-Maktoum said: “As a global network airline, we find ourselves in a situation where we cannot viably operate passenger services until countries re-open their borders, and travel confidence returns.”
Despite the UAE government soon freezing all flights from the country, His Highness remained positive on the future of Emirates. He explained: “Emirates Group has a strong balance sheet, and substantial cash liquidity, and we can, and will, with appropriate and timely action, survive through a prolonged period of reduced flight schedules, so that we are adequately prepared for the return to normality.”
Airlines in the Middle East have so far lost more than $7 billion in revenue due to flight restrictions and travel bans according to the International Air Transport Association (IATA).