Will business conditions improve in Saudi?

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.

Riyadh, Jun 18: Minister of Tourism Ahmed Al-Khateeb said that Saudi Arabia will resume tourist activities at the end of Shawwal (June 21) after a hiatus of more than three months due to lockdown measures imposed following the outbreak of coronavirus pandemic.

The minister made the remarks during a television interview after chairing the emergency meeting of the Arab Ministerial Council for Tourism on Wednesday. He said that the current indications are positive and that the Kingdom is ready to launch the summer program, which will be a boost for domestic tourism.

“It was revealed in a research study carried out by the Tourism Authority that 80 percent of Saudi citizens want to take advantage of domestic tourism. We will launch the domestic tourism program for the public after having made necessary coordination with the Ministry of Health and the concerned higher authorities,” he said.

Several Arab tourism ministers and officials of the relevant organizations attended the meeting, which discussed the challenges that the region’s tourism sector is facing due to the pandemic. Al-Khateeb pointed out that the Arab Ministerial Council for Tourism, headed by Saudi Arabia, held the virtual session in exceptional circumstances to discuss ways to get out of this pandemic and revitalize the tourism sector.

“Saudi Arabia has initiated a package of financial stimulus activities with a total value of more than $61 billion to protect jobs and businesses and reduce the economic burden of the crisis. The domestic tourism sector has benefited from it as one of the important economic sectors, as it covered 60 percent of salaries of Saudi employees in the private sector for a period of three months,” he added.

Dubai, Apr 28: Riyadh municipality has announced 13 requirements to restore commercial activity in malls starting Wednesday (April 29), in accordance with the government’s coronavirus precautionary measures.

The requirements include: the continued closure of all entertainment and playing areas inside malls, and not allowing the entry of children under the age of 15.

The municipality requires all malls to ensure the availability of medical examination and sterilization teams to measure the temperature of all individuals entering the mall at all entrances throughout opening hours, prevent any person with a temperature exceeding 38 degrees Celsius from entering, remove all chairs and benches in the corridors, and provide masks and gloves for visitors at the entrances.

All malls are to have security personnel stationed at all entrances to ensure that visitors are wearing masks.

The municipality also requires all malls to sterilize the entire facility every 24 hours, allocate rooms for medical isolation when there is any suspicion of an individual being infected with COVID-19, ensure the presence of a sufficient number of security personnel, and carry out regular rounds to verify full compliance, and suspend the valet service.

It also called for malls to put up explanatory signs of the guidelines to ensure that everyone understands the precautionary measures.

Malls should rely on the use of escalators and stairs for movement between floors, and in the event they are not available, only two people are allowed to ride the elevator at a time.

Revised curfew

Saudi Arabia had revised on April 21 its coronavirus curfew timings for the holy month of Ramadan, allowing residents in all areas and cities not currently under a 24-horu lockdown to go out between 9 a.m. and 5 p.m.

However, areas under a complete lockdown will only be allowed to go out for essential needs, such as grocery shopping or medical visits, between the hours of 9 a.m. and 5 p.m. Residents in these areas must stay within their neighborhoods

A 24-hour lockdown was previously imposed on the cities of Riyadh, Tabuk, Dammam, Dhahran, and Hofuf and throughout the governorates of Jeddah, Taif, Qatif, and Khobar.

The government had imposed a full lockdown on the holy cities of Makkah and Madinah as well. Other cities and governorates had a curfew implemented from 3 p.m. to 6 a.m. daily.