Wow, that is an amazing capacity cut.
EK/Dubai's resilience will be tested.
And their financiers and lessors too. Local employees, foreign contractors and related industries. DNATA globally. Strain on law and order?
It was reported that EK were mulling parking their entire fleet of 115 x A380s. I guess it will happen.
How does that effect their finances? AFAIR, most of their A380s are leased?? Do the leasing companies give them a break??
Customers have been, and are, beating a path to the doors of their financiers and lessors. Most are providing daily updates.
When one customer, or even a regional grouping has a financial issue, the industry has the capacity, resilience and long term perspective to assist, usually with changes to margins, interest and / or payment holidays, advances, partial or complete forgiveness of an end of lease payment falling due currently...............
But this is so widespread financiers and lessors are in discussions with their own financiers, shareholders and Governments, so the ability to assist is constrained.
Many ME3 funding participants are locals, so if leases are impaired in any way, that can impact the wealth and morale of many significant individuals and families in the nation, almost a doubling of the effect.