Money
Survival of the richest: Dubai Govt pumps more money into Emirates
Emirates has received an additional $1.1 billion from the Dubai government
After recording a massive loss of $5.5 billion on Tuesday, the latest injection Emirates has received has risen to $3.1 billion, including $2 billion disclosed last year.
The airliner which made a $288 million profit the previous year saw saw revenue plunge 66% to $8.4 billion.
The international airline operates a fleet of 113 Airbus A380’s and 146 Boeing 777’s.
Emirates doesn’t fly or operate local/domestic routes and has been heavily impacted by international border closures in many countries such as Australia, which remains closed.
Emirates Chairman Sheikh Ahmed bin Saeed Al Maktoum says the recovery from the pandemic would be ‘patchy’, cautioning that no one could predict when the industry’s worst crisis would end.
The airliner stated that it had filled just 44.3% of seats on flights in the past year, down from an average of 78.4% a year earlier.
EK carried 6.6 million passengers, its lowest in two decades.
The airline cut capacity by 82.6% compared with the previous year as it centred operations around its 146 Boeing 777s.
Emirates reverted 19 of its Boeing 777 aircraft, stripping the seats to carry more cargo.
Most of the airline’s Airbus A380s have been grounded. Four more have been removed from operation and are unlikely to return before their scheduled retirement, it said.
The biggest loss in 30 years
It was the airline’s biggest annual loss, and only its third-ever following losses in 1987-88 and 1985-86, its first year in operation.
Emirates stated that the government who is its sole shareholder, would continue to support the airline.
Emirates has transformed Dubai into a major international travel hub over the past three decades, bringing billions of dollars from tourists into the country.
Both Emirates and Qatar Airways have no domestic markets to cushion against border restrictions and closures.
Qatar and Etihad results
Fellow Gulf carrier Qatar Airways, which is due to report results for its fiscal year ending March 31, has also received $3 billion from its state owner.
Abu Dhabi government-owned Etihad, which posted a core operating loss of $1.7 billion in 2010, has also slashed jobs and retired aircraft such as the superjumbo A380.
The pandemic has seen passenger revenue continue to slump.
In 2019, revenue fell 74% to $1.2 billion from $4.8 billion in 2019, as passenger numbers dropped 76% to 4.2 million, down from 17.5 million in 2019.
Etihad has recorded losses for the past five years.
Money
Australian business insolvencies surge 50% due to rising costs
Business insolvencies rise 50% amid cost pressures, with projections reaching 16,000 this financial year; hospitality sector hit hard.
Business insolvencies rise 50% amid cost pressures, with projections reaching 16,000 this financial year.
Business failures in Australia have surged by 50% this financial year due to high operating expenses, cost of living pressures, and increased tax office debt collection efforts.
Expected insolvency appointments could reach 16,000, surpassing last year’s high of 11,053.
The Australian Securities & Investments Commission reports 7,483 appointments in just six months, a 47.1% rise from the previous year.
Small businesses face a challenging climate, with the current year’s insolvencies 84% higher than pre-Covid levels.
The troubled casino group Star Entertainment risks becoming Australia’s largest corporate collapse since Virgin Australia, facing significant financial uncertainty.
Anthony Albanese, Australia’s Prime Minister.
Victoria saw a 71% increase in insolvency appointments, while Queensland and NSW experienced rises of 51.4% and 30%, respectively.
Hospitality businesses in particular have struggled with rising costs for wages, energy, and food, resulting in a 70.2% increase in sector insolvencies.
The Australian Taxation Office’s strict approach to tax debts has significantly contributed to the rise in insolvencies, with the agency showing no signs of reducing enforcement actions.
This financial year has also seen high-profile insolvencies, including airline Rex’s move into voluntary administration.
Money
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