Ewen Mcdonald, chief customer officer of civil aerospace at Rolls-Royce at the 2023 Dubai Air. Pawan Singh / The National
Ewen Mcdonald, chief customer officer of civil aerospace at Rolls-Royce at the 2023 Dubai Air. Pawan Singh / The National
Ewen Mcdonald, chief customer officer of civil aerospace at Rolls-Royce at the 2023 Dubai Air. Pawan Singh / The National
Ewen Mcdonald, chief customer officer of civil aerospace at Rolls-Royce at the 2023 Dubai Air. Pawan Singh / The National

Rolls-Royce to work with Emirates on jet engine performance issues, senior executive says


Deena Kamel
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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.”

Sheikh Ahmed bin Saeed, chairman and chief executive of Emirates Airline and Group, speaks at a media roundtable during the 2023 Dubai Airshow. Leslie Pableo/The National.
Sheikh Ahmed bin Saeed, chairman and chief executive of Emirates Airline and Group, speaks at a media roundtable during the 2023 Dubai Airshow. Leslie Pableo/The National.

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.

  • An Emirates plane accompanied by the UAE's Al Fursan aerobatic team during a flying display at the Dubai Airshow. Pawan Singh / The National
    An Emirates plane accompanied by the UAE's Al Fursan aerobatic team during a flying display at the Dubai Airshow. Pawan Singh / The National
  • UAE craft flying in formation during a flying display at the Dubai Airshow. Pawan Singh / The National
    UAE craft flying in formation during a flying display at the Dubai Airshow. Pawan Singh / The National
  • The Italian Air Force during a display at the Dubai Air show at DWC in Dubai. Pawan Singh / The National
    The Italian Air Force during a display at the Dubai Air show at DWC in Dubai. Pawan Singh / The National
  • A Bader 250 craft during the flying display at the Dubai Air show. Pawan Singh / The National
    A Bader 250 craft during the flying display at the Dubai Air show. Pawan Singh / The National
  • An F16-60 during a display at the Dubai Airshow. Pawan Singh / The National
    An F16-60 during a display at the Dubai Airshow. Pawan Singh / The National
  • Day one of the Dubai Airshow at Al Maktoum Airport. Antonie Robertson / The National
    Day one of the Dubai Airshow at Al Maktoum Airport. Antonie Robertson / The National
  • The Embraer stand. Antonie Robertson / The National
    The Embraer stand. Antonie Robertson / The National
  • The SANAD stand. Antonie Robertson / The National
    The SANAD stand. Antonie Robertson / The National
  • Exhibits on show on day one. Antonie Robertson / The National
    Exhibits on show on day one. Antonie Robertson / The National
  • The space agency stand at Dubai Airshow. Leslie Pableo for The National
    The space agency stand at Dubai Airshow. Leslie Pableo for The National
  • Military aircraft on show. Leslie Pableo for The National
    Military aircraft on show. Leslie Pableo for The National
  • Visitors at Dubai Airshow. Leslie Pableo for The National
    Visitors at Dubai Airshow. Leslie Pableo for The National
  • The engine of a plane on display at Dubai Airshow. Leslie Pableo for The National
    The engine of a plane on display at Dubai Airshow. Leslie Pableo for The National
  • The Dubai Police stand. Leslie Pableo for The National
    The Dubai Police stand. Leslie Pableo for The National
  • Visitors looking at missiles at Dubai Airshow. Leslie Pableo for The National
    Visitors looking at missiles at Dubai Airshow. Leslie Pableo for The National
  • An exhibit with a bird-themed paint scheme the Dubai Airshow at Dubai World Central. Pawan Singh / The National
    An exhibit with a bird-themed paint scheme the Dubai Airshow at Dubai World Central. Pawan Singh / The National
  • A drone on display at the stand of UAE military technology company EDGE, at Dubai Airshow. Pawan Singh / The National
    A drone on display at the stand of UAE military technology company EDGE, at Dubai Airshow. Pawan Singh / The National
  • Visitors at the Dubai Airshow. The event has attracted more than 1,400 exhibitors from 95 countries. Pawan Singh / The National
    Visitors at the Dubai Airshow. The event has attracted more than 1,400 exhibitors from 95 countries. Pawan Singh / The National
  • A helicopter on display at the Dubai Airshow. Pawan Singh / The National
    A helicopter on display at the Dubai Airshow. Pawan Singh / The National
  • An EDGE drone at Dubai Airshow. Pawan Singh / The National
    An EDGE drone at Dubai Airshow. Pawan Singh / The National
  • An Etihad Airways passenger jet on display at Dubai Airshow. Pawan Singh / The National
    An Etihad Airways passenger jet on display at Dubai Airshow. Pawan Singh / The National
  • UAE military aircraft at Dubai Airshow, Al Maktoum International Airport. Leslie Pableo for The National
    UAE military aircraft at Dubai Airshow, Al Maktoum International Airport. Leslie Pableo for The National
  • Emirates crew with an Emirates plane at the Dubai Airshow, Al Maktoum International Airport. Leslie Pableo for The National
    Emirates crew with an Emirates plane at the Dubai Airshow, Al Maktoum International Airport. Leslie Pableo for The National
  • UAE military aircraft at the Dubai Airshow. Leslie Pableo for The National
    UAE military aircraft at the Dubai Airshow. Leslie Pableo for The National
  • Abu Dhabi Police aircraft at the Dubai Airshow. Leslie Pableo for The National
    Abu Dhabi Police aircraft at the Dubai Airshow. Leslie Pableo for The National
  • A flydubai plane at the Dubai Airshow. Leslie Pableo for The National
    A flydubai plane at the Dubai Airshow. Leslie Pableo for The National
  • Crew preparing an aircraft for Dubai Airshow. Leslie Pableo for The National
    Crew preparing an aircraft for Dubai Airshow. Leslie Pableo for The National
  • Emirates chalet at the Dubai Airshow. Leslie Pableo for The National
    Emirates chalet at the Dubai Airshow. Leslie Pableo for The National
  • Emirates planes on display at the Dubai Airshow. Leslie Pableo for The National
    Emirates planes on display at the Dubai Airshow. Leslie Pableo for The National
  • Riyadh Air's chalet at Dubai Airshow, Al Maktoum International Airport. Leslie Pableo for The National
    Riyadh Air's chalet at Dubai Airshow, Al Maktoum International Airport. Leslie Pableo for The National
  • Visitors attend the Dubai Airshow. Leslie Pableo for The National
    Visitors attend the Dubai Airshow. Leslie Pableo for The National
  • A Boeing plane on display at the Dubai Airshow. Leslie Pableo for The National
    A Boeing plane on display at the Dubai Airshow. Leslie Pableo for The National
  • UAE military aircraft at the Dubai Airshow. Leslie Pableo for The National
    UAE military aircraft at the Dubai Airshow. Leslie Pableo for The National

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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Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

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.”

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The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

Tributes from the UAE's personal finance community

• Sebastien Aguilar, who heads SimplyFI.org, a non-profit community where people learn to invest Bogleheads’ style

“It is thanks to Jack Bogle’s work that this community exists and thanks to his work that many investors now get the full benefits of long term, buy and hold stock market investing.

Compared to the industry, investing using the common sense approach of a Boglehead saves a lot in costs and guarantees higher returns than the average actively managed fund over the long term. 

From a personal perspective, learning how to invest using Bogle’s approach was a turning point in my life. I quickly realised there was no point chasing returns and paying expensive advisers or platforms. Once money is taken care off, you can work on what truly matters, such as family, relationships or other projects. I owe Jack Bogle for that.”

• Sam Instone, director of financial advisory firm AES International

"Thought to have saved investors over a trillion dollars, Jack Bogle’s ideas truly changed the way the world invests. Shaped by his own personal experiences, his philosophy and basic rules for investors challenged the status quo of a self-interested global industry and eventually prevailed.  Loathed by many big companies and commission-driven salespeople, he has transformed the way well-informed investors and professional advisers make decisions."

• Demos Kyprianou, a board member of SimplyFI.org

"Jack Bogle for me was a rebel, a revolutionary who changed the industry and gave the little guy like me, a chance. He was also a mentor who inspired me to take the leap and take control of my own finances."

• Steve Cronin, founder of DeadSimpleSaving.com

"Obsessed with reducing fees, Jack Bogle structured Vanguard to be owned by its clients – that way the priority would be fee minimisation for clients rather than profit maximisation for the company.

His real gift to us has been the ability to invest in the stock market (buy and hold for the long term) rather than be forced to speculate (try to make profits in the shorter term) or even worse have others speculate on our behalf.

Bogle has given countless investors the ability to get on with their life while growing their wealth in the background as fast as possible. The Financial Independence movement would barely exist without this."

• Zach Holz, who blogs about financial independence at The Happiest Teacher

"Jack Bogle was one of the greatest forces for wealth democratisation the world has ever seen.  He allowed people a way to be free from the parasitical "financial advisers" whose only real concern are the fat fees they get from selling you over-complicated "products" that have caused millions of people all around the world real harm.”

• Tuan Phan, a board member of SimplyFI.org

"In an industry that’s synonymous with greed, Jack Bogle was a lone wolf, swimming against the tide. When others were incentivised to enrich themselves, he stood by the ‘fiduciary’ standard – something that is badly needed in the financial industry of the UAE."

Updated: November 16, 2023, 10:43 AM