Ethiopian orders 11 Airbus A350 jets as engine tensions ease

Emirates Airline President Tim Clark warned Airbus and Rolls-Royce on Tuesday that increased engine downtime in harsh Gulf conditions, as well as higher prices for servicing, stood in the way of an order for between 35 and 50 A350-1000 jets. Rolls-Royce met Emirates on Wednesday in an effort to unblock the deal, which reflects an increasing trend towards airlines buying planes at the same time as negotiating the complex engine maintenance deals that sit more uncomfortably with quick-fire air show announcements than plane orders.

Ethiopian Airlines signed a provisional deal for 11 Airbus A350-900 jets on Wednesday in a sign of reduced tensions over pricing between airlines and British engine maker Rolls-Royce. The deal came as delegates said Dubai's Emirates was within reach of a potential agreement to buy dozens of larger Airbus A350-1000 jets after a clash with Rolls-Royce over performance and costs earlier in the week.

Emirates and its suppliers had no immediate comment. It remained unclear whether any Emirates A350 deal would be announced at the show, still reeling from a public spat between the Dubai carrier and Rolls-Royce on Tuesday.

Previous hiccups in air show negotiations over deals such as a purchase of Airbus A380 superjumbos in 2017 needed months of further detailed talks. Emirates Airline President Tim Clark warned Airbus and Rolls-Royce on Tuesday that increased engine downtime in harsh Gulf conditions, as well as higher prices for servicing, stood in the way of an order for between 35 and 50 A350-1000 jets.

Rolls-Royce met Emirates on Wednesday in an effort to unblock the deal, which reflects an increasing trend towards airlines buying planes at the same time as negotiating the complex engine maintenance deals that sit more uncomfortably with quick-fire air show announcements than plane orders. ENGINE GUARANTEES

Engines have become a key topic at one of the Middle East's premier business events as airlines juggle heavy fuel savings from the industry's latest engines against the rising cost of keeping them maintained and flying over 20 years of service. Rolls-Royce said it was taking steps to improve durability of Trent XWB-97 jet engines that power the A350-1000, but rejected Clark's suggestion that the engines were "defective".

A major Emirates order would help rebalance the show after Boeing and engine maker GE dominated the opening with a $50 billion order including 90 777X jets on Monday. The A350-900 uses a different variant of engine from the A350-1000, and sources said discussions on that model were less about durability. But a common factor between those talks and the high-profile Emirates deal was tough negotiations on prices.

UAE President Sheikh Mohamed bin Zayed Al Nahyan on Wednesday visited the show, where he was seen briefly meeting executives from Lockheed Martin and Saab. Dubai Crown Prince Sheikh Hamdan bin Mohammed Al Maktoum and Emirates airline Chairman Sheikh Ahmed bin Saeed Al Maktoum were also seen at the show. Sheikh Hamdan on Monday attended a press conference where Sheikh Ahmed announced Emirates was placing a $52 billion order for more wide-body Boeing planes.

Speaking to Middle East reporters this week, Sheikh Ahmed hinted at the path to an agreement with Rolls-Royce that could in turn lift the barrier to an A350-1000 order. "When we feel that we have a good deal, we will sign," he said, Abu Dhabi-based newspaper The National reported.

"I need guarantees on when, at what price and the maintenance cost per hour. That would solve it," he added.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)