Airbus nears compromise deal after Emirates jet order row. On Thursday, following a public spat between Emirates and engine supplier Rolls-Royce (RR.L.) over a bigger model, which marred the conclusion of the Dubai Airshow, Airbus (AIR.PA) and Emirates came closer to a consolation agreement for a double-digit number of A350-900 planes. The dispute occurred after the Dubai Airshow.
According to insiders in the industry, the two parties were attempting to reach a compromise solution that would involve a switch away from the A350-1000, which is Airbus’ largest twin-engined plane and has come under scrutiny due to the amount of maintenance that is required in Gulf conditions.
The participating businesses have declined to comment on the matter. Two different sources warned that it was impossible to ensure that a final signature would be obtained in time for the conclusion of the exhibition from November 13–17.
After significant investments in the world’s largest airline, Emirates is preparing the fleet required to keep its Dubai super-hub at the center of the aviation map until the 2030s. Emirates is the largest Airbus A380 superjumbo user after spending substantially on the aircraft.
This week, the airline started the air show by ordering 90 additional Boeing 777X aircraft for $52 billion. The airline also stated that the U.S. planemaker looked to be getting a handle on regulatory and other issues surrounding the aircraft’s arrival after five years of delays.
However, the president of Emirates Airlines, Tim Clark, decided not to place a significant order for Airbus’ substantially comparable A350-1000 and openly criticized Rolls-Royce, the manufacturer of the A350-1000’s engines, since he believed that additional maintenance would be required to deal with hot and sandy conditions.
Rolls-Royce admitted that their engine for the A350-1000 will require more maintenance than Emirates would like, but the company refuted Clark’s assertion that the engine was “defective.”
According to the delegates, a compromise order for less than 20 A350-900s, which may still go off course in final discussions, would be considered a consolation prize for Airbus after Boeing secured the bulk of orders. This would be the case even though Boeing could still blow off course in final negotiations.
Despite this, they noted that there would still be uncertainty over the aircraft’s capacity to compete with Boeing’s 777X in the crowded wide-body market in the Gulf.