Dubai Government Injects $2 Billion Into Struggling Emirates Airlines

Dubai Government Injects $2 Billion Into Struggling Emirates Airlines

Dubai's flagship airline Emirates has received Dh7.3 billion ($2 billion) from the emirate's government as it faces a cash crunch caused by the Covid-19 pandemic, a bond prospectus seen by Reuters shows.

Industry insiders and aviation sources said the airline's business model received a severe setback due to the slump in travel demand in the wake of the coronavirus pandemic. The airline was left with no choice but to ground its fleet comprising Airbus A380s and Boeing 777s as its long-haul travel suffered a major hit and is expected to be the slowest to recover from the crisis.

The government provided Dh7.3 billion to the airline it owns after Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council in March promised equity