As Emirates plans to cut 30,000 jobs to manage the paralysis resulting from Covid-19, the conclusion is that cuts are not just due to low current demand but rather projected dislocation in global aviation. Now that firms know that doing business on Zoom is legitimate over flying across cities, Chief Financial Officers in companies will work their models to accommodate this redesign. Simply, aviation will recover but not immediate to carry and hold unnecessary liabilities and expenses.
Dubai-based Emirates Airlines is reviewing its costs, which could lead to 30,000 job cuts and the fast-tracked retirement of its superjumbo A380 fleet. Sources tell Bloomberg that Emirates, the fourth-largest airline in terms of passengers, may slash 30% of its workforce. Emirates has not made an official announcement, but carriers worldwide have cut jobs after the near-total shutdown of travel during the pandemic.
Arik Air has spoken: 90% of staff are going on compulsory leave without pay while those remaining will see 80% pay cut. We are yet to read from Air Peace, the industry leader in Nigeria. But we do know that it is using this downtime to scale “up technical maintenance and cabin refresh of our aircraft to keep them safe for the skies again” Nigeria must not allow its aviation sector to collapse.
Arik Air, one of Nigeria’s major airline companies has ordered 90% of its staff to go on leave until further notice. This is as a result of lockdown that has paralyzed commercial activities in many states in Nigeria, and put aviation transportation to a halt.
The aviation company has also implemented an 80% pay cut for its personnel while the rest of its workforce has been sent on leave without pay.
Meanwhile, Uber plans to eat GrubHub, a meal delivery service competitor to Uber Eats, breaking apart the construct of antitrust. I expect the regulators to bless it as this time is not normal.
Uber and GrubHub are continuing their takeover discussions, with GrubHub signaling over the weekend that the ride-share giant’s offer “is too low,” reports The Wall Street Journal, citing anonymous sources. Uber, which operates Uber Eats, approached its rival after the pandemic started, according to The New York Times. Uber has relied on its meal-delivery service to make up for severe losses in its main business amid the current crisis — the company reported losses of nearly $3 billion in the first quarter. A merged Uber Eats and Grubhub would account for 55% of the U.S. food delivery market, says the Times. DoorDash, which accounts for 35% of the market, would be its largest rival.
Though grounded at the moment, we've scaled up technical maintenance and cabin refresh of our aircraft to keep them safe for the skies again. Looking forward to flying you soon… Happy New Month and Happy Workers’ Day??? #BetterDealWithAirPeace #MayDay2020 #WorkersDay2020 pic.twitter.com/2NoL6KFX24
— Air Peace (@flyairpeace) May 1, 2020
Click to join Tekedia Capital Syndicate and build Next Africa with a minimum of $10,000 co-investment in startups.