LONDON: British budget airline easyJet has grounded its fleet of 344 planes and has no clear idea when it might resume flights, it said on Monday, highlighting the strain on airlines trying to survive the coronavirus pandemic.
EasyJet said it would lay off its 4,000 UK-based cabin crew for two months, meaning they won’t work from April 1 but will get 80 percent of their average pay under a state job retention scheme.
The global health crisis has brought European air travel to a standstill, leaving airlines with no revenue and facing a struggle for survival. Small British airline Loganair, for example, said on Monday that it would seek state support.
Shares in easyJet lost as much as 10 percent in early trading, having halved in value over the last month. The airline now has a market capitalization of about £2.3 billion ($2.9 billion).
“We think the group has enough liquidity to manage a short suspension of European air travel but if the disruption proves prolonged, or the recovery is sluggish, easyJet could be in real trouble,” said Hargreaves Landsdown analyst William Ryder.
EasyJet was under additional pressure from its biggest shareholder, Stelios Hajji-Ioannou, who along with his family owns about a third of its shares.
In a letter to easyJet’s chairman, Hajji-Ioannou said it must cancel or renegotiate a £4.5 billion order for 107 Airbus planes because the extra aircraft would just destroy shareholder value.
EasyJet said it was trying to reduce payments, including those on aircraft, and would respond to the letter privately.
The airline said it was focused on short-term liquidity, including removing costs from the business and working with suppliers to defer and reduce payments where possible.
It said grounding its fleet removed significant costs and that it was continuing to talk to UK pilots union BALPA over a potential deal with pilots.
“We are working tirelessly to ensure that easyJet continues to be well positioned to overcome the challenges of coronavirus,” easyJet CEO Johan Lundgren said in a statement.
Hajji-Ioannou has told the airline to try to raise money from shareholders, and offered to participate himself.
Management could face disruption if it does not address his worries over the Airbus order, which is due to be paid between 2020 and 2023, as he has threatened a rolling general meetings to try to remove board members.
For easyJet cabin crew looking for something to do, Britain’s National Health Service has asked them to volunteer at hospitals being set up to cope with the thousands of coronavirus patients expected in the coming weeks. Crew have first aid training and security clearance, making them ideal candidates.
EasyJet said it was focused on using UK government measures already announced to help its finances during the coronavirus crisis and has no plans to ask for any bespoke support.
Some UK airlines had been hoping for a specific state aid package but the government said last week it would only consider stepping in once carriers had exhausted all other options, such as raising capital from existing investors.
On Monday, small regional British airline Loganair, which flies between remote Scottish islands and the mainland, said it was planning to ask the government for support, having already asked its owners for help.
“I do think that like the vast majority of UK airlines we will be going back to take up that invite for further conversation with the Treasury in the coming days because we have to,” said Loganair CEO Jonathan Hinkles.
Virgin Atlantic has already requested state aid, asking for a package of commercial loans and guarantees worth hundreds of millions of pounds, according to the Financial Times.
EasyJet grounds fleet as virus pushes airlines to the brink
https://arab.news/vcfuu
EasyJet grounds fleet as virus pushes airlines to the brink
- EasyJet was under additional pressure from its biggest shareholder, Stelios Hajji-Ioannou, who along with his family owns about a third of its shares
Saudi Arabia tops Gulf with lowest car prices, driven by multiple factors
RIYADH: The Saudi market is witnessing a decline in new car prices, reinforcing its position as the most competitive market in the Gulf region, not only in terms of demand volume but also in terms of pricing strategies and product availability, according to experts and specialists in the automotive sector who spoke to Al Eqtisadiah.
Multiple dealers and demand for Chinese cars reduce prices
Experts said that the presence of multiple dealers and distributors in Saudi Arabia is one of the main drivers of lower prices, offering a variety of offers and options to consumers, in addition to the significant role played by the entry of many Chinese brands, which enjoy high demand among young buyers.
They explained that the price advantage in the Saudi market appears in that car prices at dealers in the Kingdom are the lowest compared to dealers in Gulf countries.
This is mainly attributed to the large market size and high sales rates, which give dealers greater ability to compete and offer preferential prices.
Field survey records a 10–15% decrease
At the beginning of this year, a field survey by Al Eqtisadiah of car showrooms in the capital observed an actual decline in prices, driven by anticipation of new model arrivals, market saturation, and the wide variety of options available, especially with the large expansion of Chinese brands.
This decrease affected models with wide popularity, and major brands such as Toyota, Hyundai, and Honda, as well as Chinese companies, with rates ranging between 10 and 15 percent, reflecting a shift in market movement in favor of consumers and the availability of more competitive price options compared to previous years.
Saudi Arabia the cheapest in the Gulf for new cars
A recent research study, which covered 68 different models from 17 brands, conducted by Focal Point, a market research company, on new car prices in the GCC, revealed that Saudi Arabia stands out as the most affordable market for new cars with the lowest prices across all vehicle categories.
According to the price index in the report — with the Gulf average set at 100 — the UAE appears as the most expensive market for widely spread new cars at an index of 105.41, followed by Qatar at 104.42, and Kuwait at 103.25. Oman came next at 99.02, and Bahrain at 96.84.
In contrast, the cost index in Saudi Arabia was 91.05, the lowest among Gulf countries.
The study results showed a noticeable decrease in prices of popular models in the Kingdom, such as the Toyota RAV4, MG5, and Changan UNI-V.
For the sedan category, markets experienced slight fluctuations, but the data confirmed the same trend for the second consecutive year, with the UAE remaining the most expensive market in this segment, while the Kingdom continued to be the cheapest.
For SUVs and 4x4 vehicles, Qatar recorded the highest average prices in 2025, surpassing the UAE. This increase is attributed to higher prices of popular models such as the Toyota Fortuner and Kia Sportage in the Qatari market.
Kuwait highest for small transport, Qatar for SUVs
The study found that Saudi Arabia offers the most affordable market for small pickup trucks in the Gulf, while prices in Bahrain and the UAE remain close to the regional average.
It also highlighted that competition in the Kingdom is driven by the large number of brands, along with the rise of emerging names such as Haval, Great Wall, and Jetour, which have expanded their presence and dealership networks in major cities to challenge established players.
The Kuwaiti market recorded the highest average prices in the small pickup category in 2025, while Qatar recorded the highest average prices in the 4x4 segment.
The study’s data were collected in November 2025 from official dealer and company websites, with standardized criteria and exclusion of VAT to ensure accurate comparison across markets.
Prices decline following the global semiconductor crisis
Abdulrahman Al-Khaledi, automotive expert and CEO of Emadalden showroom, told Al Eqtisadiah that the car market in Saudi Arabia is highly diverse, catering to all price segments.
He noted that prices in Saudi Arabia are closely aligned with counterparts in the Gulf region, with price differences making the local market cheaper in some segments, even accounting for VAT.
“With the 15 percent VAT excluded, 60 percent of car prices in the Kingdom are the lowest in the Gulf, especially for major brands,” he said, noting that these competitive prices are mainly available at authorized dealers, not showrooms that may offer non-dealer cars at lower prices.
“When comparing the same car at dealers in Saudi Arabia versus dealers in Gulf countries, Saudi Arabia is unquestionably the cheapest without including VAT,” Al-Khaledi added, attributing lower dealer prices in the Kingdom to the large market size and high sales capacity.
He emphasized that multiple dealers for the same brand are a main driver of price reduction due to intense competition, as each dealer seeks to increase sales to prove its productivity to parent companies and demonstrate the ability to achieve high sales numbers.
Regarding recent developments, he confirmed a price drop in the past three months, with variation between companies.
He also traced market fluctuations, noting that the initial surge started in 2018, with a major spike during the COVID-19 pandemic and the subsequent global chip shortage, which reduced global production. He added that factories have returned to full capacity, reigniting competition.
Chinese cars reduce demand for second-hand vehicles
Al-Khaledi concluded that used car prices have not directly affected new car sales, as consumers are now leaning toward modern models, driven by the entry of Chinese cars offering competitive prices, making them an attractive alternative to used vehicles.
He cited that the used market has recently seen price declines, especially in luxury cars, with values falling up to 20 percent.
827k vehicles sold in Saudi Arabia in 1 year
According to Al Eqtisadiah’s financial analysis unit, based on Focus2Move data, car sales in Saudi Arabia reached 827,000 vehicles in 2024, up 13 percent year-on-year.
The top 10 automakers — led by Toyota, Hyundai, and Kia, alongside Nissan, Ford, Suzuki, Changan, Geely, Mazda, and MG — accounted for 80 percent of the market, selling a total of 659,000 vehicles.
Toyota dominated with a 28 percent share, followed by Hyundai at 16 percent, while the remaining brands each captured 7 percent or less.
According to the Cartea platform for automotive services in the Middle East and North Africa, total car sales in Saudi Arabia for the first half of last year reached 411,000 vehicles, including 48,000 Chinese cars with a 12 percent market share.
Samara Al-Ghamdi, an automotive specialist, told Al Eqtisadiah that the Saudi auto market has seen qualitative transformations in recent years, enhancing its position as one of the most competitive markets in the region.
In terms of prices, regional comparisons show that many global brands price their vehicles lower in Saudi Arabia than in neighboring markets, despite similar technical specifications and options, which she attributed to several factors, including market size, competition among dealers, supply chain efficiency, and flexible pricing policies adopted by companies.
Al-Ghamdi confirmed that the competitive advantage is not limited to purchase price but extends to vehicle availability and variety of options, with the Saudi market offering diverse categories and fast delivery compared to some regional markets that may face long waiting periods or limited models.
Diverse demand and competition support price declines
Speaking to Al Eqtisadiah, automotive specialist Ahmed Al-Harbi said that the Saudi market ranks among the most competitive in the region, supported by high purchasing power and large, diverse sales, stressing the need to differentiate between new and used car prices.
Regionally, he said, new car prices in the Kingdom are among the lowest, although VAT may affect the final consumer price.
He noted that price comparisons usually focus on dealer prices, while some showrooms may raise costs above actual value due to strong local demand, pointing out that market size and diversity represent a fundamental difference for the Kingdom, with demand growing across all categories from sedans to family SUVs.
He added that major projects and the presence of global companies in Saudi Arabia have created a different pattern of demand compared to neighboring markets.
Regarding price trends, he said that prices of many models began to decline due to the availability of supply after the chip shortage and supply chain disruptions during the pandemic, as factories returned to full production.
He also attributed the decline to fierce competition from many Chinese brands entering the market, in addition to interest rate increases at certain periods, which reduced financing and, consequently, tempered demand and prices.
Direct relationship between new and used car pricing
Al-Harbi pointed to the correlation between the new and used car markets, noting that a shortage of new vehicles drives up prices in the used segment.
He added that the used car market in Saudi Arabia could be among the most expensive in the region and advised consumers — especially those “not in urgent need” — against paying more than a car’s fair value, noting that “those in a hurry always pay more.”
