Rohit Ramachandran, CEO of Jazeera Airways says that the airline is communicating to its lessors to try to delay or dismiss costs for as long as COVID -19 pandemic continues.
Jazeera Airways Co., Kuwait’s low-cost airline solution has laid off about 300 employees which amounts to a third of its total workforce. The drastic measure was taken in an attempt to slash costs as the coronavirus adversely affects the airline industry.
The airline has about $100 million in cash reserves and has not spoken to any banks about an investment or soliciting government funding.
Airlines all over the world are taking a hit from the COVID-19-induced breakdown in the travel market. Japan Airlines Co. posted its first quarterly operating loss in at least eight years and stayed its annual dividend. Germany’s government is soliciting a 25% stake in Deutsche Lufthansa AG in exchange for a financial bailout, according to people close with the matter.
In the region, Emirates and Etihad Airways who are both based in the United Arab Emirates, have warned that 85% of the world’s airlines would face bankruptcy by the end of the year without government interference.