An Airbus A350 (top) performs during the Dubai Airshow 2021 at Dubai World Central - Al Maktoum International Airport, in Dubai. EPA
An Airbus A350 (top) performs during the Dubai Airshow 2021 at Dubai World Central - Al Maktoum International Airport, in Dubai. EPA
An Airbus A350 (top) performs during the Dubai Airshow 2021 at Dubai World Central - Al Maktoum International Airport, in Dubai. EPA
An Airbus A350 (top) performs during the Dubai Airshow 2021 at Dubai World Central - Al Maktoum International Airport, in Dubai. EPA

Emirates to receive first Airbus A350 in early November following delays


Deena Kamel
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Emirates, the world's biggest long-haul airline, will take delivery of its first Airbus A350-900 in the first week of November, after it was pushed back from October due to delays.

The plane will fly to Edinburgh as its first destination, the airline said.

"The aircraft is in the final stages of testing and things are going in the right direction," Adel Al Redha, Emirates' deputy president and chief operations officer, told The National on Tuesday on the sidelines of Aviation Future Week in Dubai, said.

Adel Al Redha, Emirates' deputy president and chief operations officer, speaks at a panel during the Aviation Future Week at Museum of the Future in Dubai. Ahmed Ramzan / The National
Adel Al Redha, Emirates' deputy president and chief operations officer, speaks at a panel during the Aviation Future Week at Museum of the Future in Dubai. Ahmed Ramzan / The National

"You always expect a few glitches with the first type of aircraft. So there's lots of co-ordination with the suppliers, lots of first-time connection of different systems."

Emirates is resuming flights to Edinburgh starting from November 4 using a Boeing 777 and will deploy the A350 on the route in December for the new aircraft's first entry into service, the airline said.

"When the aircraft comes, it's going to take over the continuation of Edinburgh [flights] and then later on when we receive more of the aircraft we will do more destinations in India and some more in the Gulf," Mr Al Redha said.

The Airbus A350 jets are central to Emirates' long-term strategy. The airline aims to use them to serve ultra-long-haul destinations in the US, Latin America, Australia and New Zealand – each up to 15 hours of flying time from Dubai – after the initial launch of the wide-body jets on mainly regional routes.

Emirates has 65 Airbus A350-900 planes on order, the first deliveries of which were supposed to be made in August this year but were first delayed until October and are now expected next month.

Wouter Van Wersch, executive vice president of Airbus International, speaking at a panel during Aviation Future Week at Museum of the Future in Dubai. Ahmed Ramzan / The National
Wouter Van Wersch, executive vice president of Airbus International, speaking at a panel during Aviation Future Week at Museum of the Future in Dubai. Ahmed Ramzan / The National

Airbus deliveries fell 9 per cent in September to 50 jets compared with the same month in 2023, as suppliers struggle to meet demand.

"We are working very hard on it ... and it's going to be a very fantastic moment," Wouter Van Wersch, Airbus' executive vice president of international, told The National on the sidelines of the event. "We are all looking forward to this. For Emirates, they are very used to the A380 but they will see the A350 is an amazing aircraft and I'm sure that it will enable them to do a lot of great things. We're very excited about this."

Work on A350-1000 jet engines

Emirates was also interested in the larger variant of the plane, the A350-1000, but airline president Tim Clark expressed concerns about the durability and longevity of its Rolls-Royce engines. The UK engineering giant has defended its Trent XWB-97 engines and said it is taking steps to improve durability and boost their performance.

Asked about Emirates' assessment of the A350-1000 with the work Rolls-Royce is undertaking on the engines, Mr Al Redha said: "We are close to the development but none of us are ready yet at this stage to commit because the outcome of the development hasn't been seen yet and it's effectiveness has yet to be demonstrated. There is nothing concrete in there to have both parties sign [a deal]."

Mr Van Wersch said Rolls-Royce had done "tremendous work" on the engine and are "clearly conscious" about what is needed. "The engine has always been a little bit of a hot topic," he said. "There is very good progress and we hope that Emirates will be convinced also to go for it.

"We've got many customers [globally] that have the A350-900 and that are now also moving to the A350-1000. That means the confidence is there and I hope we will give the right confidence also to Emirates and Sir Tim to make it happen shortly ... we think there's a logic to have both modules in the fleet, especially with a great and a big airline like Emirates."

Delegates at the Aviation Future Week at Museum of the Future in Dubai. Ahmed Ramzan / The National
Delegates at the Aviation Future Week at Museum of the Future in Dubai. Ahmed Ramzan / The National

Emirates expands refurbishment programme

Emirates is also expanding a programme to retrofit its Boeing 777 and Airbus A380s to a total of 205 aircraft at a cost of $4 billion, up from 191 at a cost of $3 billion, Mr Al Redha said.

This comes as Boeing last week said it would delay the debut of its long-anticipated 777X aircraft until 2026, from an earlier delivery date in 2025. Emirates, a major buyer of the wide-body plane, on Monday said it would have a “serious conversation” about this with the US plane maker in the next two months.

"We have been predicting the delay and we have been introducing a different plan to extend the retrofit [programme] to more than the existing plan. The nature of the modification might change," he said, declining to reveal details.

Emirates has completed the retrofitting of 31 aircraft in total so far, after work on the programme began in 2022.

Half-year financial results

Airlines in the Middle East are grappling not only with supply chain problems, but also navigating their business through the two conflicts in Gaza and Lebanon where the war with Israel has intensified.

The wars have prompted airlines to suspend some flights or to avoid affected air space. "We have to identify alternate routes, which requires additional fuel because it takes longer," Mr Al Redha said. But the airline's costs have not risen significantly so far.

"It has not been a material impact [on earnings] because some of the flights we cancelled were only in the last two weeks," he said.

The airline typically announces its first-half year results in November. "The [financial] results will be pleasing because the revenue coming from passenger and cargo has been quite positive, so the results will be good," Mr Al Redha said.

Travel demand has held "strong" across Emirates' network, with load factors "in excess" of 80 per cent this month, which is "very good, considering it is non-travel season", he added.

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

The biog

Favourite film: Motorcycle Dairies, Monsieur Hulot’s Holiday, Kagemusha

Favourite book: One Hundred Years of Solitude

Holiday destination: Sri Lanka

First car: VW Golf

Proudest achievement: Building Robotics Labs at Khalifa University and King’s College London, Daughters

Driverless cars or drones: Driverless Cars

The biog

Prefers vegetables and fish to meat and would choose salad over pizza

Walks daily as part of regular exercise routine 

France is her favourite country to visit

Has written books and manuals on women’s education, first aid and health for the family

Family: Husband, three sons and a daughter

Fathiya Nadhari's instructions to her children was to give back to the country

The children worked as young volunteers in social, education and health campaigns

Her motto is to never stop working for the country

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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Power: 530bhp 

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Director: Chris Winterbauer

Stars: Lana Condor and Cole Sprouse 

Rating: 3/5

The specs: 2019 Infiniti QX50

Price, base: Dh138,000 (estimate)
Engine: 2.0L, turbocharged, in-line four-cylinder
Transmission: Continuously variable transmission
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Torque: 380Nm @ 4,400rpm
Fuel economy: 6.7L / 100km (estimate)

Updated: October 16, 2024, 6:12 AM