Rolls-Royce is working with Emirates to find a resolution for the performance issues on the engine that powers the Airbus A350-1000, as a potential order by the long-haul airline for A350 aircraft hangs in the balance.
The engine maker is addressing Emirates' concerns about the duration of the engine's time on the wing or the period between maintenance visits.
“I want an engine that stays on the wing for the right amount of time and Emirates wants an engine that stays on the wing for the right amount of time, so we're jointly aligned on this and we will continue to work through it,” Ewen McDonald, Rolls-Royce's chief customer officer of civil aerospace told The National at the Dubai Airshow.
“We are always open, honest and give Emirates updates, we believe in transparency, we believe in the strong relationship that comes through trust.”
Rolls-Royce's long-standing relationship with Emirates Airline and its president Tim Clark remains unaffected by the situation.
“Our relationship is unchanged through this, it's very positive and will continue to be very positive. We have lots of aircraft with Emirates and we will continue to work with him on what he wants to do with his fleet and we will support that,” Mr McDonald said.
Rolls-Royce is taking measures to enhance the durability of the Trent XWB-97 engines that power the A350-1000 craft and insists the engines are not defective.
That engine “is the most efficient engine … flying today, so it really is high-tech and something we're very proud of. That engine works great and perfectly in environments which are not harsh, we call them benign environments”, he said.
But the desert environment can prove to be harsh, he added.
“When you come to non-benign environments, sandy and hot conditions, it's really testing for engines because they run it at very high temperatures. Sand with high temperatures is a challenge, it's an industry challenge to all new generation engines as far as harsh conditions,” he said.
“It's not that the engines cannot perform a mission, they just do not stay on wing as long as they should.
“It's a durability issue, it's not a defect issue as has been mentioned.”
Earlier at the Dubai Airshow, Sheikh Ahmed bin Saeed, chairman and chief executive of Emirates Airline and Group, said the carrier would not buy the flagship A350-1000 from Airbus until issues with the Rolls-Royce engine had been addressed.
“When we feel that we have a good deal, we will sign,” he said on Tuesday.
The airline requires specific guarantees from the engine maker.
“I need guarantees on when, at what price and the maintenance cost per hour. That would solve it,” he said.
Emirates already has an existing order for 50 units of the smaller A350-900 model. It also placed an additional order for 15 more of the aircraft on Thursday. The first delivery is expected next summer.
Rolls-Royce is already developing technology to use on existing engines to improve durability, Mr McDonald said.
Wide-body jet market revival
Rolls-Royce is optimistic about the recovery of the overall wide-body aircraft market, which is trailing the narrow-body market in terms of orders following the Covid-19 pandemic.
"This year what we've seen is a strong return to international travel around the world, even China's international [travel market] is coming back strongly," Mr McDonald said.
"So what you're seeing is airlines focus on securing wide-body new generation aircraft because they've done a lot of the narrow-bodies and now they're looking at their international fleet."
Airlines are queuing up to secure positions for new aircraft as delivery slots become more scarce and plane makers' backlogs stretch into the 2030s.
"People are worried about availability of slots, I would say the market is hot, it's very lively, and people who want to secure these slots because there's only so many and if you don't get in then you might miss out," he said.
Airlines are also seeking more fuel-efficient aircraft as one way to meet their sustainability goals.
"One of the quickest ways you can make an impact is replacing older aircraft with more fuel-efficient aircraft," Mr McDonald said.
The combination of these factors means there will be more wide-body order announcements through to the end of the year.
"There is so much activity in the market at the moment. It is to be expected, once people start buying aircraft, other people start sitting up and thinking 'maybe I need to buy some'," the Rolls-Royce executive said.
"Outside the launch of a new aircraft, which always [attracts] lots of orders, I would say this year would be the biggest year ... for the wide-bodies market."
The Dubai Airshow kicked off on Monday with home airlines Emirates and flydubai ordering 125 wide-body jets worth $63 billion.
EgyptAir and Ethiopian Airlines also ordered Airbus A350 wide-bodies during the event.
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MATCH INFO
Southampton 0
Manchester City 1 (Sterling 16')
Man of the match: Kevin de Bruyne (Manchester City)
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
Zayed Sustainability Prize
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Five films to watch
Castle in the Sky (1986)
Grave of the Fireflies (1988)
Only Yesterday (1991)
Pom Poki (1994)
The Tale of Princess Kaguya (2013)
Mohammed bin Zayed Majlis
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Zayed Sustainability Prize
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
The biog
Marital status: Separated with two young daughters
Education: Master's degree from American Univeristy of Cairo
Favourite book: That Is How They Defeat Despair by Salwa Aladian
Favourite Motto: Their happiness is your happiness
Goal: For Nefsy to become his legacy long after he is gon
Secret Nation: The Hidden Armenians of Turkey
Avedis Hadjian, (IB Tauris)