Dubai carrier Emirates issued over $517 million in refunds in past two months

Dubai’s Emirates has resumed passenger services to more than 50 destinations this July. (AFP file photo)
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Updated 02 July 2020

Dubai carrier Emirates issued over $517 million in refunds in past two months

  • Dubai-based carrier is operating a limited numbers of flights on a reduced network after the coronavirus pandemic

DUBAI: Emirates, one of the world’s biggest long-haul airlines, has processed close to 650,000 refunds over the past two months, refunding over $517 million, it said on Thursday.
The Dubai-based carrier is operating a limited numbers of flights on a reduced network after the coronavirus pandemic brought global aviation to a near halt this year.
Emirates expects to process more than 500,000 refunds in the next two months, Chief Commercial Officer Adnan Kazim said in a statement.


Turkey on brink of recession as economy collapses

Updated 13 August 2020

Turkey on brink of recession as economy collapses

  • Consumer debt has increased by 25 percent to more than $100 billion in the past three months

JEDDAH: President Recep Tayyip Erdogan’s popularity is plunging in lockstep with Turkey’s collapsing economy and the country is on the verge of a potentially devastating recession, financial experts have told Arab News.
The value of the Turkish lira has fallen to 7.30 against the US dollar and the central bank has spent $65 billion to prop up the currency, according to the US investment bank Goldman Sachs.
Consumer debt has increased by 25 percent to more than $100 billion in the past three months as the government moved to help families during the coronavirus pandemic, but the result has been a surge in inflation to 12 percent.
With the falling lira and increased price of imported goods, the living standards of many Turks who earn in lira but have dollar debts have fallen sharply.
The economy is expected to shrink by about 4 percent this year. The official unemployment rate remains at 12.8 percent because layoffs are banned, although many experts say the real figures are far higher.
To complete the perfect storm, tourism revenues and exports have been decimated by the pandemic, and foreign capital has fled amid fears over economic trends and the independence of the central bank.
Wolfango Piccoli, of Teneo Intelligence in London, said logic dictated an increase in interest rates but “this is unlikely to happen.”
Piccoli said central bank officials would strive to avoid an outright rate hike at their monetary policy meeting on Aug. 20. “A mix of controlled devaluation and backdoor policies, such as limiting Turkish lira’s liquidity, remains their preferred approach,” he said.
There is speculation of snap elections, and Erdogan’s view is that higher interest rates cause inflation, despite considerable economic evidence to the contrary.