The hot topic of the event was the debate between fuel efficiency and engine durability. According to reports, differences between Emirates and engine maker Rolls Royce put pay to a lucrative deal for Airbus’ A350-1000 model. Emirates sought a guarantee from Rolls Royce on the maintenance cost of the engines and their performance in the harsh desert conditions that the UK manufacturer did not adhere to.

Jet engines are generally sold at a loss, but manufacturers make money on repairs and servicing over the engine’s lifetime. Rather than charge for repairs as and when, engine makers prefer to negotiate long-term deals based on flight hours, agreeing to absorb the cost of planned and unexpected outages. This approach works for both parties as airlines value the cost certainty, and engine makers benefit from a lump sum when the engine enters service.

Nevertheless, the challenging environment in the Middle East poses additional risks for engine performance; therefore, calculating a long-term servicing deal is complex.

The dispute shines a light on a wider industry issue. Airlines want to save on fuel but are also pushing for lower maintenance, and the two are in direct conflict. The situation is exacerbated by engine makers calling for greater compensation to balance their investments in new technology to provide fuel savings.

However, their appeal clashes with previous pledges of dramatic fuel savings and optimum performance. To achieve the promised 15-20% fuel cuts, engines must run hotter, which weighs more heavily on materials, increasing the risk of wear and tear. Both sides strongly believe in their side of the fuel efficiency vs lower maintenance costs debate. As a result, it is one that is likely to shape further discourse and negotiation in 2024.