Caixin News Agency, July 23rd: Currently, Boeing has a large backlog of aircraft orders, and it is expected to take several years to complete shipments. The delay in aircraft delivery has had a significant impact on the expansion plans of the two major Middle Eastern airlines, Emirates and Dubai Airlines.
Emirates CEO Tim Clark predicts that Boeing's 777X aircraft will not enter commercial operation before 2026, and the Boeing 777X is the mainstay of the airline's planned future long haul flight fleet.
Years of delivery delays have forced Emirates to make some expensive design changes. Clark stated that he had to abandon the original interior design of the aircraft because the technology and overall appearance of the cabin were outdated, resulting in an additional cost of $1.5 billion.
Emirates' fleet mainly consists of two types of aircraft: Boeing 777 and Airbus A380. Due to the delayed delivery of the Boeing 777X and the cessation of production of the Airbus A380, Emirates was forced to undergo extensive modifications to extend the service life of its existing aircraft.
Of course, Emirates also ordered the Airbus A350, although Clark criticized the aircraft's engines as he believed they required excessive maintenance under the harsh weather conditions in which Emirates operates. Engine manufacturer Rolls Royce Holdings has pledged to invest in engines to improve their reliability.
We are pleased to see effective solutions that can bring us closer to our goals, "Clark said. He added that he will meet with Rolls Royce on Tuesday. We need to see action
Emirates Airlines is not the only company affected. Dubai Airlines had originally formulated a business growth plan in response to strong travel demand in the post pandemic era, but the uncertainty of Boeing's aircraft delivery time has put tremendous pressure on the company's plans.
Dubai Airlines' strategic growth plan heavily relies on the timely addition of new aircraft. The airline has ordered over 125 Boeing 737 MAX aircraft and plans to deliver them gradually over the next decade. But in the past three years, the number of aircraft delivered by Boeing has decreased each year. Since 2024, there have been multiple revisions to the aircraft delivery schedule, which means that Boeing will not deliver the originally scheduled 14 Boeing 737 MAX aircraft within the year. The aircraft delivered in the first half of this year came from a backlog of orders from previous years, with significant delays.
In order to alleviate aircraft delivery delays and meet the surge in shipping demand, Dubai Airlines had to sign a new ACMI (Aircraft, Crew, Maintenance, and Insurance) aircraft leasing agreement. The airline also renewed the lease of some aircraft, which resulted in further cost increases.
In addition, Dubai Airlines has carried out extensive modification plans for its next-generation Boeing 737-800 aircraft to ensure a more consistent onboard experience for passengers, and has made arrangements for routes and cabins in the absence of new aircraft joining the fleet for the rest of this year.
Dubai Airlines CEO Ghaith Al Ghaith said, "We urge Boeing to take immediate action and implement measures to stabilize its production and delivery processes to avoid further delays while maintaining the highest standards. We look forward to this issue being resolved quickly