Long-haul airline Emirates (EK.AED) edged towards a consolation deal for fewer than 20 A350-900 jets on Thursday after a public row between the carrier and engine maker Rolls-Royce (RR.L) over a larger model dampened the end of the Dubai Airshow. Emirates President Tim Clark refused to place a large order for the A350-1000 and publicly criticized its Rolls Royce engines, which he said would require too much maintenance in harsh Gulf conditions. Rolls-Royce acknowledged that its engine for the A350-1000 needed more servicing than Emirates would like but denied his suggestion that it was “defective.”
The pair were still in talks over a new contract for the A350-900 model, the smaller variant of the widebody, sources said, though it could blow off course in final negotiations. They aimed to reach an agreement by the end of the show on Sunday, but it needed to be clarified when the final deal would be signed.
Emirates already has 50 A350-900s on order, but it had been eyeing a deal for up to 50 of the more powerful A350-1000, which features longer fuselage and more cabin space. That would put Emirates back at the top of the global airline order book, just ahead of Boeing (BA.N).
The two rivals have been locked in a bitter battle to win orders in the market’s largest segment, with both launching redesigned versions of their most famous planes in recent years. China’s Comac is also developing a larger aircraft designed to compete with the Airbus A320 Neo and the Boeing 737 Max, grounded worldwide after a deadly crash last year.
Airbus and Emirates both hoped to score a significant order from Emirates at the Dubai event, just after airlines bounced back from the lockdowns of the coronavirus pandemic. It also shows a resurgence in demand for travel, which has grown since the outbreak as global economies recover and travelers return to long-haul destinations.
However, the tensions between Israel and Hamas in the Middle East are disrupting some travel, with airlines canceling flights to Israel and many tourists postponing planned trips. Despite the political turmoil, the Airshow organizers were determined to stage the event to help support the industry’s recovery and chart its flight path for the future.
Among the most significant deals to be announced at the show was a $52 billion commitment by Ethiopian Airlines for 90 777X airplanes from Boeing Co., which dominated the show’s opening day. That order and a promise to buy another 30 737 Max jets from the U.S. company gave a hefty boost to the global planemaker’s share price. Its shares closed up 4.7 percent. They had fallen more than 10 percent after the Emirates row broke out. Organizers said 1,400 companies were expected to attend the event, which takes place on the runways and in the vast halls of Dubai’s airport complex. The emirate’s economy heavily depends on tourism, and the show is a significant economic generator.
