Originally Posted by
thbe
There are four reasons, why Trump is the main reason for EY's decision:
- the US economic will decrease on mid- and long-term. Less economic means less passengers.
- even if the UAE are not concerned by the ban (yet), it will effect the business.
- AA, UA and Delta want to stop the subsidies for EY. With Trump and "America first", they have better chances to get heard by the US government.
- the meaning of China as a reliable trading partner will increase, so there is a good alternative for investments (Africa is the second one).
Those are all potential future outcomes.
However, Etihad is currently grappling with - and responding to - immediate, ongoing and far more threatening problems in its current operations.
According to a spokesperson for the airline, it is embarking on a
restructuring exercise to cut costs and improve productivity “against a backdrop of weakened global economic conditions”. The airline hasn’t said how many jobs will go, but it has described it as “a measured reduction of headcount in some parts of the business.”
The most recent figures from the airline show a slight reduction in the number of destinations it flies to, from 116 at the end of last year to 112 in October this year. Growth in its fleet has almost stalled in 2016, with the number of planes rising by just one over the first ten months of the year to 122.
The announcement of job cuts comes in the wake of
falling passenger numbers at Eithad’s Abu Dhabi base. Other warning signs in recent weeks have included
huge losses announced by its Dubai-based rival Emirates.