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The head of Dubai's Emirates, Tim Clark, has called on Rolls-Royce to prioritize the performance of its engines and return to basics. This comes shortly after the British firm revealed plans to quadruple profits, causing shares in the company to rise.
However, according to Reuters, Clark remains unimpressed by the strategy, which relies on significantly increasing civil engine profit margins to 15-17%.
Pricing and Performance Challenges at Dubai Airshow
Share Investor reported that during the Dubai Airshow, Clark criticized Rolls-Royce over pricing and the performance of its largest engine. He emphasized the importance of engines meeting the expectations of clients, as non-performance leads to increased costs and a decrease in the ability to extract value from clients. Clark's comments highlight the challenges faced by engine makers due to service contracts per flight hour.
Durability Concerns Impacting Airbus A350-1000 Deal
At the air show, Clark ruled out an immediate deal to purchase Airbus A350-1000 jets due to durability concerns with Rolls-Royce engines. Disputes over engine performance and higher servicing prices contributed to this decision. However, Clark mentioned that the door remains open to reviving the Boeing 777-8 as both a passenger variant and a freighter.
Rolls-Royce acknowledged that the downtime on the XWB-97 engine used in the A350-1000 is greater than expected. However, they denied Clark's claims that the performance level was "defective." Rolls-Royce aims to improve the durability of its engines in challenging climates and is working closely with Airbus to achieve this.
Balancing Fuel Efficiency and Engine Durability
The dispute between Emirates and Rolls-Royce emphasizes the balance between fuel efficiency and engine durability. This trade-off often occurs during the design phase, especially in hot climates. Rolls-Royce plans to introduce modifications inherited from its Ultrafan engine technology research in late 2025 or 2026 to address durability concerns.
Although Clark ruled out an immediate deal, he stated that ordering the A350-1000 is "not off the table" and depends on progress regarding downtime. If Rolls-Royce successfully improves the engine and resolves durability issues, Emirates may reconsider its decision.
Photo: Emirates Media Centre
