Dubai carrier Emirates doubts Boeing 777x aircraft delivery in 2020

Emirates, a launch customer of the world’s biggest twin engined jet, was to receive its first Boeing 777-9 in 2020 but the manufacturer has suspended load testing of the plane. (Boeing)
Updated 14 October 2019

Dubai carrier Emirates doubts Boeing 777x aircraft delivery in 2020

  • Emirates is a launch customer of the world’s biggest twin engined jet
  • The US planemaker suspended load testing of the plane when media reports said a cargo door failed a ground stress test

DUBAI: Emirates doubts it will receive any of the 115 Boeing 777-9s it has ordered next year, its president said on Monday, as the US planemaker grapples with challenges in building the jet.
Emirates, a launch customer of the world’s biggest twin engined jet, was to receive its first 777-9 in 2020 but the manufacturer has suspended load testing of the plane.
“... By the end of next year we were to have eight of them. Now it doesn’t look like we will have any,” Tim Clark said at a conference in Dubai.
Boeing suspended load testing of the new widebody in September when media reports said a cargo door failed a ground stress test. There have also been issues with General Electric Co’s new GE9X turbine engine that will power the jet.
Boeing has said it expects to hold the initial flight test in 2020 and is aiming for the 777X to enter commercial service in the same year.
Clark said he had told Boeing he insists on a 13- to 16-month test period for the new jet.
Emirates ordered 150 777X jets, including 777-8 variants, in 2013. It later placed a preliminary order for 40 Boeing 787 Dreamliner jets in 2017, which Clark said he still saw a place for in the airline’s fleet plans.
Boeing has also been unable to deliver any of its 737 MAX aircraft since the single-aisle plane was grounded worldwide in March after two fatal crashes in Indonesia and Ethiopia killed 346 people.
Clark said in September Emirates would not take new Airbus and Boeing planes unless they were truly ready, and said that engine makers Rolls Royce and GE must improve their reliability.
Aircraft manufacturers should not over promise on new aircraft capability, he said on Monday.
Emirates has also signed deals for 40 Airbus A330-900s and 30 A350-900s.


Bank jobs go as HSBC and Emirates NBD reduce costs

Updated 15 November 2019

Bank jobs go as HSBC and Emirates NBD reduce costs

  • Others have also reduced headcount amid economic downturn and property market weakness

DUBAI: HSBC Holdings has laid off about 40 bankers in the UAE and Emirates NBD is cutting around 100 jobs, as banks in the Arab world’s second-biggest economy reduce costs.

The cuts come amid weak economic growth, especially in Dubai, which is suffering from a property downturn.

HSBC’s redundancies came after the London-based bank reported a sharp fall in earnings and warned of a costly restructuring, as interim CEO Noel Quinn seeks to tackle its problems head-on.

HSBC has about 3,000 staff in the UAE, part of a nearly 10,000-strong workforce in the Middle East, North Africa and Turkey.

The cuts at Dubai’s largest lender Emirates NBD came in consumer sales and liabilities, one source said, while a second played down the significance of the move.

HSBC and Emirates NBD declined to comment.

“The cuts are part of cost cutting and rationalizing to drive efficiencies in a challenging market,” the second source said.

Other banks have also reduced staff this year. UAE central bank data shows local banks laid off 446 people in the 12 months until the end of September. Foreign banks added staff in the same period.

Staff at local banks account for over 80 percent of the 35,518 banking employees in the country.

The merger between Abu Dhabi Commercial Bank, Union Commercial Bank and Al Hilal Bank saw hundreds of redundancies.

Commercial Bank International (CBI) said it would offer voluntary retirement to employees in September, which sources said saw over 100 departures. Standard Chartered, too, cut over 100 jobs in the UAE in September.

Rating agency Fitch warned in September a weakening property market would put more pressure on the UAE’s banking sector.