Emirates Airline to implement salary cuts

Presidents Sir Tim Clark and Gary Chapman will take a 100% cut

Emirates Airline has enforced a freeze on recruitment
Emirates Airline has enforced a freeze on recruitment

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).

For all the latest hospitality news from UAE, Gulf countries and around the world, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page.

Most Popular