Emirates airline's president said he is unsure if the world's biggest long-haul airline will receive its first Boeing 777x jetliner before 2024, casting doubts on the delivery timeline of the long-delayed jet scheduled to debut in 2023.
The aircraft is due to be delivered by 2023 but Emirates will not take any planes unless they fully meet contractual specifications, Tim Clark told aviation consultant John Strickland in an interview broadcast on Monday.
The aviation veteran said he still has not seen any data on the aircraft's engine performance capabilities to date, despite the plane undergoing test flights since last year and Boeing already building 11 of them.
"We will not accept a plane unless its performing 100 per cent to contract, in the same way they expect us to pay 100 per cent to contract at delivery," Mr Clark said during the session of the Arabian Travel Market online conference. "Unless it’s doing what they said it will do … we will not take that aeroplane."
Long-haul carrier Emirates is the biggest operator of Boeing 777s, with about 140 of the jets in its fleet, and plans to replace the retired aircraft with the new 777X version of the wide-body model. Boeing has said it will debut the revamped plane in 2023, three years later than it originally planned.
"There are issues on the airplane, I'm not clear as to when we're actually going to get them," Mr Clark said, pointing to the "stigma" around Boeing's 737 Max and how that could affect certification of their new aircraft.
Emirates, a launch customer of the 777X, ordered 126 of the planes from the Chicago-based manufacturer.
"We should have had the first one in June of last year, they have said the back-end of 2023, we always read that for 2024," Mr Clark said.
Mr Clark said it was time for Boeing to undertake a "deep-rooted soul-searching" about its business culture after production issues on the 737 Max, which was grounded globally for almost two years following two fatal crashes.
"Learn from it, don't make the same mistakes constantly as you seem to be doing in the last 10 or 15 years, I say to Boeing," Mr Clark added, pointing to production issues that have also affected Boeing's 787 Dreamliner.
In the broadcast interview, the industry veteran also said that Emirates and low-cost sister company Flydubai, which have deepened their ties in recent years, will work closer together but will not merge into a single entity.
"The brands will remain separate but going forward will operate far more closer than they have perhaps done in the past," he said.
Emirates is currently performing better, compared to a year ago when the Covid-19 pandemic first disrupted air travel.
"We are a lot further on and much better than we thought we would be at this time," he said.
Air travel demand will return at a "staggering rate" if the global vaccine campaign keeps progressing, he said.
"The ideal situation is that the vaccine programme beats the virus in its many mutations and that we're on top of that ... let's say by autumn of this year – October, November, December – you get some kind of relief from all of that, demand will come back at a staggering rate," he said. "International travel, on the basis of that scenario, will return in large numbers, I don't doubt that at all."
However, cheaper and faster PCR testing, governments better aligning travel protocols and equitable vaccine distribution will help unlock this pent-up demand.
"It's a question of seeing how we navigate the next six months and if we do it right – equitable rollout of vaccines to scale, testing regimes are simplified and made cheaper – all this lends to the theory that by the end of the year, we will be back in business at some scale," he said. "But we have to wait and see."
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
The finalists
Player of the Century, 2001-2020: Cristiano Ronaldo (Juventus), Lionel Messi (Barcelona), Mohamed Salah (Liverpool), Ronaldinho
Coach of the Century, 2001-2020: Pep Guardiola (Manchester City), Jose Mourinho (Tottenham Hotspur), Zinedine Zidane (Real Madrid), Sir Alex Ferguson
Club of the Century, 2001-2020: Al Ahly (Egypt), Bayern Munich (Germany), Barcelona (Spain), Real Madrid (Spain)
Player of the Year: Cristiano Ronaldo, Lionel Messi, Robert Lewandowski (Bayern Munich)
Club of the Year: Bayern Munich, Liverpool, Real Madrid
Coach of the Year: Gian Piero Gasperini (Atalanta), Hans-Dieter Flick (Bayern Munich), Jurgen Klopp (Liverpool)
Agent of the Century, 2001-2020: Giovanni Branchini, Jorge Mendes, Mino Raiola
How to play the stock market recovery in 2021?
If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.
Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.
Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.
Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).
Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.
Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.
By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.
As demand for energy fell, the oil and gas industry had a tough year, too.
Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.
He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”
This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”
Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.
Roll of honour 2019-2020
Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain
West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership
UAE Premiership
}Winners: Dubai Exiles
Runners up: Dubai Hurricanes
UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II
UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby
EMILY%20IN%20PARIS%3A%20SEASON%203
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MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
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THE SPECS
Engine: 1.5-litre
Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
On sale: now