Report: The economic downturn continues in Dubai and Emirates Airlines is...

The “Emirates Airlines” company has contributed to the historical transformation and economic progress of the emirate of Dubai, but the new Corona virus pandemic has led to a reduction in the size of the state-owned company, in light of the continuing economic contraction in the emirate, according to a newspaper.Wall Street Journal“.

The company canceled work contracts for 100,000 people after the global epidemic stopped travel for several months, in a surprising move, especially as it came ahead of competitors in the United States and Europe, in terms of the rights of the crew and passengers.

The newspaper reported an exodus of expatriates residing in Dubai who are associated with the airline, which led to a reduction in spending in restaurants, bars, and even private schools.

In turn, the head of “Emirates Airlines”, Tim Clark, told the same newspaper, that “the number of arrivals to Dubai has decreased dramatically, which has caused losses in various sectors, most notably restaurants and hotels.”

He pointed out that “the increase in the number of cases globally means that Emirates Airlines is now carrying 12 percent of the passengers it carried this time last year.”

The company is obligated to cover the medical expenses of passengers if they are diagnosed with “Covid-19” disease, in order to encourage travel.

And the reality of the company was reflected in other sectors, including the “Rock Bottom” cafe, near a building where the company’s employees lived, which was full of parties until the early morning hours, but had to receive about 50 people on the weekend, in addition to reducing the group that belongs to it Its number of employees is less than 100, according to Mitendra Sharma, General Manager of the Rami Group.

Sharma said, “Emirates Airlines has been the driving force for tourists, and it is working to reduce jobs and reduce destinations,” stressing that “all sectors are affected by this.”

Dubai reopened its doors to arrivals for tourism, on July 7, after a three-month closure, but the travel and tourism sector continues to shrink, which has negatively affected the emirate’s economy. S&P Global Ratings expected, on Saturday, a contraction Dubai is about 11 percent by the end of 2020.

The Dubai government established Emirates Airlines in 1985 with $ 10 million and two chartered planes from Pakistan International Airlines. It quickly became one of the largest airlines in the world, using a fleet of wide-body aircraft to carry passengers through its hub in Dubai.