Emirates President: Emirates Airline President, Tim Clark, is not swayed by Rolls-Royce’s recent plans to quadruple profits, urging the British firm to “go back to basics” and focus on the performance of its engines. Despite Rolls-Royce’s strategy to increase profit margins and introduce “value-driven pricing,” Clark insists that the primary focus should be on delivering reliable engines.
Clark’s critique is rooted in concerns over the performance of Rolls-Royce’s largest engine, the XWB-97, which is utilized on Airbus A350-1000 jets. At the recent Dubai Airshow, he ruled out an immediate deal to purchase Airbus A350-1000 jets due to a dispute with Rolls-Royce over the engine’s durability and the pressure for higher servicing prices.
In negotiations with Rolls-Royce, Clark emphasized the importance of designing engines that meet the expectations of clients, stating, “It’s a very clear kindergarten understanding of cause and effect. Get your product right, design it to what the client wants, give it that high level of reliability.” Rolls-Royce’s CEO, Tufan Erginbilgic, unveiled a strategy to increase civil engine profit margins to 15-17%, relying on higher servicing bills. However, Clark’s concerns center around the notion that delivering non-performing engines will result in increased costs for the engine maker.
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The dispute between Emirates and Rolls-Royce has brought attention to the broader challenge faced by engine makers—balancing fuel efficiency with the durability of engines. Clark stressed the need for a partnership between airlines and engine makers, acknowledging that the industry struggles with slim profit margins.
While Rolls-Royce is working to improve the XWB-97 engine, Clark emphasized that the decision to order A350-1000 jets depends on progress in reducing downtime. He urged Rolls-Royce to focus on getting engines right, stating, “I promise you: you come up with a good engine, and we will talk to you seriously about a sort of maintenance cost, which gives you the kind of returns that you seek without being over-greedy.”
In his broader message to the industry, Clark called for a shift in focus from financial metrics like buybacks and rates of return to building airplanes that meet the needs of airlines. Despite Rolls-Royce’s plans for profitability, Clark’s emphasis on the fundamental aspect of reliable engine performance highlights the importance of delivering value to airline clients in the aviation industry.