UAE-based carrier Air Arabia has laid off 57 employees as the ongoing pandemic is disrupting travel demand on a global scale, media reports said. Air Arabia comprises 2,000 employees and it has suspended operations to comply with government rules to curb the spread of coronavirus.
A spokesperson told the media, “It is unfortunate that we had to take the decision to lay off a small number of our staff this week. This is the first time in our history that we were forced to do so taking into consideration the current market realities.”
Since the outbreak of the epidemic, the airline has been taking strict measures to curb the spread. Last month, it was reported that Air Arabia is calling for state support and plans to postpone the launch of a new low-cost carrier. The airline has urged the UAE government to provide financial assistance.
The new low-cost carrier Air Arabia Abu Dhabi is a joint venture with Etihad Airways. Previously, Air Arabia Abu Dhabi was scheduled to start flying by the end of June. However, the launch has been delayed in light of the current circumstances. Air Arabia Abu Dhabi has already received an operating certificate. It will operate as a low-budget passenger airline from the Abu Dhabi International Airport.
With the launch, Air Arabia Abu Dhabi will become the UAE’s fifth carrier, media reports said. In a statement, the airline said the launch of Air Arabia Abu Dhabi “remains in motion and will progress as the market situation improves.”