Dubai, March 3: The state-owned Emirates Airline, counted among top carriers of the world, asked its employees to take a month-long unpaid leave as the flight services are severely restricted. The decision was taken by the airline's management after repeated flight cancellations due to coronavirus outbreak. The Emirates has nearly snapped its aerial services to China, whereas, all flights to Iran and Bahrain were called off.
The cost-cutting measure was necessitated as the airline has more manpower resources at its disposal than required, said Chief Operating Officer Adel al-Redha in a statement on Tuesday. The employees, he said, have been asked to either apply for paid leaves if they are eligible or opt for voluntary unpaid leave for a month's period. Is Coronavirus an Epidemic or a Pandemic? Know The Meaning and Difference Between These Terms.
According to a Reuters report, the austerity move by Emirates Group, a state-owned holding company, is fueled by the slowdown in its business operations. The airline aims at restructuring its expenses and address the financial challenges in an effective manner amid the coronavirus outbreak. In the days to come, the Emirates may further slash down its services in South East Asia region.
Emirates Airline, as per the declaration made in March 2019, had more than 100,000 employees. Among them, 21,000 are part of the cabin crew and 4,000 are pilots. The entire workforce is expected to be impacted due to the company's decision to send their workforce of unpaid leaves.
The International Air Transport Association, the body of global carriers, appealed governments in the Middle East to provide support to airlines facing financial hardships with the breakout of coronavirus. Incentives, sops and tax concessions were mooted as measures to contain the impact of COVID-19 on the airlines.
(The above story first appeared on LatestLY on Mar 03, 2020 03:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).