Emirates airlines keeps cash reserves strong

Emirates airlines stands as one of the largest and the most profitable airlines in history.The popularity of
Emirates is because of its low staff costs, low fleet costs ,great location and multitude of routes. The
airline’s operation is dependent on international demand as it does not operate domestic flights. Due to
the Global recession the airlines was forced to do rearrangement of delivery of 777 aircraft they had
already ordered.

This move was taken to help the airlines cash position which had suffered 32% drop during the six
months ending in September. The airlines had already spent money in pre delivery payments, financing
a cabin refurbishment program and paying a dividend to Dubai government, its primary shareholder. It
also offered its staff unpaid leave in the process of cutting cost. Recruitment freeze ,non renewal of
temporary contracts and pay freeze had been widely implemented in this process.

While the other competitors in the airlines business were trying to curb its flights and growth, Emirates
airlines had a different vision. They thought ,whatever action is taken today will affect in the long-term.

The expansion plans carefully worked out at Emirates particularly exposure to the North American and
other less known destinations helped it to recover traffic relatively quickly unlike other airlines.
Hemorrhage did not make any redundancies and continued with it’s avowed strategy of expansion.