Emirates says aircraft retrofit programme pushing $5 billion

Emirates President Tim Clark said the company is spending close to $5 billion in cash to retrofit existing aircraft like the Airbus SE A380 jumbo or the Boeing Co.’s 777 to bridge delays with new models on order, particularly from the US manufacturer. 

“We’ve had to take control of our own destiny,” Clark told journalists at a meeting in Berlin on Wednesday. “I could see the problems on the horizon, so we took the decision then, and thank God we did.”

Emirates “certainly” won’t receive Boeing’s 777X model this year as the latest iteration of the popular widebody plane still awaits final certification, Clark said. 

The airline would also consider the Airbus A350-1000 model, which is similar in size to the Boeing 777, though Clark said engine supplier Rolls-Royce Holdings Plc would need to show that its engine is sufficiently reliable before he places an order. Emirates ordered a small number of the shorter A350-900 and has started operating that plane.

The carrier is retrofitting aircraft at its engineering facilities in Dubai, fitting them out with new cabin interiors and other upgrades to extend the life span of models like the out-of-production A380. Emirates is by far the biggest operator of the double-decker plane, which struggled to attract buyers because of its size and complexity to operate and was discontinued after a short run.

Clark said that Boeing executives were due to meet with his team in Dubai a few weeks ago, but then didn’t show up because they had too much to deal with back at home. He said another meeting with Boeing Chief Executive Officer Kelly Ortberg may happen soon. 

“They known they’ve got a job to do,” Clark said. “All they’ve got to do is to take them back to where they were in the early 90s, that’s their main thrust at the moment.”the rate

Clark said that the global economy is in “uncharted territory” with regards to the impact from tariffs, which he said might put consumers’ discretionary income under pressure, in turn affecting their willingness to travel. 

“My own view is that sense will prevail,” Clark said of the negotiations over levies. “The great minds will get together and try to reset and get some kind of balance in the way trade is moved. In the end, it’s a global community, and it’s the citizens that suffer.”