Dubai Airports waives MAGs as part of Covid-19 assistance programme

By Andrew Pentol |

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Dubai Airports is waiving 100% of minimum guarantees or equivalent fees for partners.

Dubai Airports is working closely with aviation and commercial partners and preparing for a gradual remobilisation. This will take place once travel restrictions relating to the coronavirus (Covid-19) pandemic are lifted.

Aviation partners, tenants and concessionaires have received details of an assistance programme agreed by the company, under a business stabilisation framework.

“Dubai Airports has responded decisively to the Covid-19 crisis and is among the first airport operators to propose meaningful assistance to airline and commercial partners”, the company said.

The assistance programme is applicable for the impacted period 1 March 2020 to 31 May 2020. The programme includes waiving 100% of minimum guarantees or equivalent fees for partners, which have been required to cease trading due to the suspension of airport operations as a result of the pandemic.

Measures such as rescheduling and other financial adjustments are in place to address the reduction in aviation activity for those partners which have maintained partial operations.

‘FLEXIBILITY MORE IMPORTANT THAN EVER’

Eugene Barry, Executive Vice President, Commercial, Dubai Airports said: “Flexibility is more important now than ever. It is of paramount importance that we protect and retain our aviation and business partnerships, which have been carefully built over a number of years and ensure that our revenue and service drivers will be in a position to remobilise, in line with approvals from federal authorities.

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Aviation partners, tenants and concessionaires have received details of an assistance programme agreed by Dubai Airports for the impacted period 1 March to 31 May 2020.

We have taken a number of unprecedented measures to mitigate the impact of Covid-19 to our own business, as well as those of our partners. By providing clarity and meaningful assistance to our business partners at this moment, we are confident that we will re-emerge to continue delivering the highest levels of assurance and service in a new commercial landscape, in which Dubai International Airport and Dubai World Central will play leading parts.

“Our futures are intertwined and dependent on our ability to maintain core relationships, but also on adapting to unprecedented conditions and new behaviours.”

Passenger operations at Dubai International Airport and Dubai World Central were effectively suspended by UAE authorities (with the exception of repatriation flights) on 24 March 2020. The suspension remains in place until further notice.

Cargo operations are excluded from the ban and have experienced a surge in activity at Dubai Airport. This is because 12 airlines, including Emirates SkyCargo and flydubai, have been granted permission to operate an average of 110 weekly flights. This is in response to heightened demand for pharmaceuticals, food and other essentials.

In terms of passenger flights, Emirates plans to offer a limited service for the week ahead to destinations such as Frankfurt (25, 27, 29 April), Jakarta (26 April), Johannesburg (25 April), Lagos (26 April), London Heathrow (23, 24, 26, 28, 30 April), Madrid (29 April), Manila (24, 28, 30 April) and Tunis (30 April).

Click the respective links for our last interview with Eugene Barry, Executive Vice President, Commercial, Dubai Airports at the end of 2019 and for this week’s Adapt & Survive Skype video interview with Colm McLoughlin, Executive Vice Chairman and CEO, Dubai Duty Free.

 

 

 

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