'Expansionist' Emirates has 'wings clipped' by Boeing 777X jet delays

Airline is closely watching developments at US plane maker after end of workers' strikes and a $21 billion capital injection, chief Tim Clark says

Sir Tim Clark, president of Emirates, shows Abdulla bin Touq, Minister of Economy, around the new Emirates A350. Photo: Emirates

Emirates, the world's biggest long-haul airline, said its growth has been curtailed by late aircraft deliveries and other supply chain constraints, as it closely monitors troubled plane maker Boeing's turnaround efforts.

The airline should have received 85 of the Boeing 777X wide-body aircraft as of today, if the plane maker had delivered them on time, but the long-delayed programme has led to missed expansion opportunities, Emirates president Sir Tim Clark said at an event to unveil its first Airbus A350-900 plane.

"We are expansionist, as you know, and we've had our wings clipped because of Covid and supply chains," he said. "We are a frustrated entity because we need aeroplanes and we need them now. We're champing at the bit to try to activate our network and grow it considerably more than it is today. These aircraft coming into us are vital."

The airline is not reconsidering its 777X order but it is closely monitoring Boeing after the troubled plane maker overcame two major challenges by ending a more than seven-week workers' strike and raising $21.1 billion in capital.

"We just have to bide our time," Mr Clark said. "They have to sort out the current situation they're in. I'm hoping that with the $21 billion they've just had injected into the company and the end of the strike, that they're now working over the next few months to sort out what they're going to do. We watch that very closely."

Asked if there is more confidence that Boeing's new chief executive Kelly Ortberg has the situation under control, Mr Clark said "time will tell".

Mr Ortberg said last month that Boeing had told airline customers it expects first delivery of its 777X in 2026, due to challenges in certification, a pause in flight testing and the workers' strike.

The Emirates boss said he has "no idea" when Boeing will deliver the airline's 787 Dreamliners on order and that he has not yet met Mr Ortberg but may do so next year.

"He's only just in place, he's had a few things to deal with … we'll see, maybe in the new year," Mr Clark said.

A Boeing 777X aircraft performs a demonstration flight at the 2021 Dubai Airshow. AFP

Attendees stand by the ramp leading to the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP

The "777" logo on the empennage (tail fin) of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP

The folding wingtips of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP

A man walks beneath the underbelly of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP

The folding wingtips and the fuselage of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP

The folding wingtips of the Boeing 777X demonstration aircraft at the 2021 Dubai Airshow. AFP

A Boeing 777X aircraft performs a demonstration flight at the 2021 Dubai Airshow. AFP

A crowd watches a Boeing 777X fly at the Dubai Airshow. AP Photo

Meanwhile, the Emirates president also said its 65 A350s on order are expected to accelerate growth and open up new destinations that were previously not considered viable.

"When we've got 65 of them, possibly even more, they'll be everywhere," Mr Clark said. "It's a very versatile aircraft, great legs, great payload capability and I think we've done the right thing with the product. Cargo space is huge and 20 per cent of our income is cargo, so you can imagine how this space under the floor is vital to us."

The A350 is the "first step" in fleet modernisation for Emirates, given the multi-year delays to its Boeing 777-9 jets, said John Strickland, an aviation consultant with JLS Consulting.

"The aircraft brings substantial fuel efficiency so lowering unit seat costs and importantly with its more moderate seat capacity, it will progressively allow Emirates to build frequency on existing routes and add new network points to thinner markets at lower risk,” Mr Strickland said.

Inside Emirates' new Airbus A350

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Meanwhile, Mr Clark also said on Wednesday that he does not expect US president-elect Donald Trump to impose another travel ban on Muslim countries in his second term. "Those are some of the missteps of his first administration. I can't see that happening again. It caused absolute mayhem," he said.

When Mr Trump's administration first introduced travel restrictions in 2017, Emirates had to cut flights to the US after demand fell following visa restrictions on citizens from some Muslim-majority countries and a ban on carrying laptops on board from some countries.

Mr Clark said he remains hopeful the airline can resume service to Beirut "sooner rather than later", after a ceasefire deal was announced early on Wednesday between Israel and Hezbollah.