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Dubai, Jun 9: Dubai's Emirates airline has begun laying off employees to reduce cost and save cash as the carrier looks to rightsize its workforce.

"We at Emirates have been doing everything possible to retain the talented people that make up our workforce for as long as we can. However, given the significant impact that the pandemic has had on our business, we simply cannot sustain excess resources and have to rightsize our workforce in line with our reduced operations. After reviewing all scenarios and options, we deeply regret that we have to let some of our people go," the spokesperson said in the statement.

Citing sources, Reuters and Bloomberg earlier reported that a majority of those being made redundant are cabin crew workers as well as a minority of its engineers and pilots, including those flew the Airbus A380.

"This was a very difficult decision and not one that we took lightly. The company is doing everything possible to protect the workforce wherever we can. Where we are forced to take tough decisions we will treat people with fairness and respect. We will work with impacted employees to provide them with all possible support," said the statement.

The spokesperson, however, didn't disclose how many employees are being made redundant in this latest round of rightsizing the workforce.

Emirates on Sunday confirmed that it extended the period of reduced pay for its staff for another three months till September. It had previously reduced basic wages by 25 to 50 per cent for three months from April, with junior employees exempted.

The airline had employed around 60,000 people at the end of its 2019-20 financial year.

Saj Ahmad, chief analyst at StrategicAero Research, said the announced job cuts at Emirates will likely not be the last given the unprecedented damage that Covid-19 has had not just on air travel, but on the entire aviation industry as a whole.

"Emirates' massive international network means that job reductions were always a last resort option as the company staves off cash burn and expenses at a time when revenues are dried up. While Emirates SkyCargo is enjoying a resurgence in activities, the reality is that this income will never offset the lost money from passenger operations," he added.

"Whilst some salary reduction schemes have prevented bigger job cuts for now, the absence of a cure or medicinal suppressant of Covid-19 means that air travel is unlikely to even reach pre-9/11 levels within 3-5 years, let alone pre-Covid-19 levels in that same time period. For that reason, Emirates' reduction in headcount is necessary to stay competitive, agile and be ready for when air travel can resume with a degree of normalcy that we have been accustomed to for decades," said Ahmad.

Mar 28: Just hours after Prime Minister Narendra Modi spoke to the Abu Dhabi crown prince on the Coronavirus Pandemic, India “thanked the UAE authorities for accommodating the 19 Indian nationals who were stuck at Dubai airport for past several days”.

The Indian mission in Dubai tweeted, “They got stranded due to various restrictions to deal with Covid-19 pandemic. Hotel rooms have been given to them inside the airport. Our Consulate had been in constant touch with the Indian nationals and UAE and Indian authorities. We had also provided some financial help to enable our stranded passengers to buy food. The situation was tough due to the pandemic situation.”

During their conversation last evening, Abu Dhabi crown prince Sheikh Mohammed Bin Zayed Al Nahyan had “assured Prime Minister Narendra Modi about the welfare of the over two million Indians living in UAE and contributing to its economy”. PM Modi “thanked the Crown Prince for his personal attention to the health and safety of Indian expatriates in the present situation”.    

A statement issued late on Thursday night by the MEA said, “The two leaders exchanged information and views on the ongoing COVID-19 pandemic, the situation in their respective countries, as well as the steps being taken by their Governments. They agreed that the next few weeks would be crucial to control the spread of the virus, and required concerted and coordinated efforts by all countries. In this context, they appreciated the organisation of a Virtual Summit among G20 Leaders earlier in the day, to discuss the pandemic.

Both leaders emphasised the importance they attach to the strength and richness of the bilateral relationship. They agreed to maintain regular consultations between their officials in the present situation, particularly to ensure continuity of logistical supply lines.”