Emirates: "all bets are off" on Airbus A350, Boeing 777X and 787
Emirates will revisit all outstanding orders for new jets from Airbus and Boeing.
Gulf airline Emirates said it’s unable to commit to outstanding aircraft orders in light of the coronavirus crisis, casting doubt over a backlog worth tens of billions of dollars to Airbus and Boeing.
“All bets are off,” Tim Clark, the Dubai-based carrier’s president, said in a online forum Monday. “We are nowhere near confident enough that the economics, the cash flows, the bottom line will put us in a good position to be able to guess if we’ll buy a hundred of this or a hundred of that.”
Emirates ranks as the world’s largest long-haul carrier and had unfilled orders for more than 200 jets at the end of March, comprising Boeing 777s and 787s, Airbus A350s, and the last few A380 superjumbos.
Grounding existing aircraft is not always an option since they may be encumbered by leases and other debt, and the carrier’s focus is on getting those planes flying again, he said.
Aircraft manufacturers are aware that airlines have to “keep cash where it needs to be” and have understand that they may need to defer or even cancel orders, Clark said in an Arabian Travel Market webinar, answering questions from industry consultant John Strickland. “This is about surviving the present.”
Emirates is seeking to cancel five of its last eight A380 deliveries and is considering accelerating the retirement of its older superjumbos, although Clark says the A380 will still have a future with the carrier and will come into its own again in a few years.
As previously reported, Emirates will also push back the launch of its all-new premium economy class due to the ongoing impact of COVID-19, and says it has no plans to upgrade older jets with the 'better than economy, less than business' product.
The Gulf colossus previously planned to roll out its bespoke premium economy seat – using what Clark has described as a railway-style "sleeperette" design – in the second half of this year on one of the airline's factory-fresh Airbus A380s.
A spokesperson for the airline has confirmed to Executive Traveller that "this project is still on the cards, although the launch will be delayed" – it's now expected to take place in the second half of 2021, potentially making its debut on Emirates' first Boeing 777-9 jets.
Read more: Emirates delays premium economy launch, won't retrofit older jets
Additional reporting by David Flynn
This article is published under license from Bloomberg Media: the original article can be viewed here
Hi Guest, join in the discussion on Emirates: "all bets are off" on Airbus A350, Boeing 777X and 787
20 Oct 2017
Total posts 3
A commitment status ceases to exist with Emirates now and it is getting real as most airlines have done so far as possible. Expect Emirates to stop with its XWB order before the 787is affected.
24 Aug 2011
Total posts 1189
The biggest risk for cancellations and/or deferrals will be the 777-9s. EK no longer need the capacity (they have plenty of A380s) and early cancellation of existing A380 and 77W leases makes no sense. The A350s and 787s enable EK to develop long-haul capacity with lesser capacity and this will be what they need as they regrow their network over the next few years.
Malaysia Airlines - Enrich
01 Jun 2015
Total posts 30
I think they should just get rid off older Boeing 777-300er with older product. Uncompetitive with such an excellent airline. If they want to have a 2-2-2 Business Class seats configuration, there is Apex Suite waiting. Just dump the 2-3-2 angle seat business class.