Emirates trims Boeing shopping list amid 777X delays

Boeing Commercial Airplanes president and CEO Stanley A. Deal, left, hands Sheikh Ahmed bin Saeed Al-Maktoum, the chairman and CEO of Emirates, a model of a Boeing 787 Dreamliner at the Dubai Airshow on Wednesday, Nov. 20, 2019. (AP)
Updated 20 November 2019

Emirates trims Boeing shopping list amid 777X delays

  • The Middle East’s largest airline in 2017 signed an initial agreement to buy 40 Boeing 787-10s in a deal worth $15.1 billion
  • But Emirates’s purchases overhaul reduces the order to 30 planes

DUBAI: Emirates Airline on Wednesday slimmed down its purchasing plans with Boeing amid delays in delivering an order of 156 of the new long-range 777X aircraft, substituting instead 30 of its 787-9 Dreamliners.
The Middle East’s largest airline in 2017 signed an initial agreement to buy 40 Boeing 787-10s in a deal worth $15.1 billion, but the overhaul reduces that to 30.
At the same time, Emirates is cutting its 156-strong order of the larger 777X to 126 planes.
The restructuring means that the carrier now has just 156 aircraft ordered from Boeing, compared to 196 previously in both firm orders and initial agreements, an airline spokeswoman confirmed to AFP.
“Emirates reduced its 777X order of 156 to 126 and substituted them with the Dreamliners,” Emirates president Tim Clark told a news conference at the Dubai Airshow.
Boeing said the airline will update its order book “by exercising substitution rights and converting 30 777 airplanes into 30 787-9s.”
Emirates said in a statement that for the 777X, it “will enter into discussions with Boeing over the next few weeks on the status of deliveries.”
Emirates in 2013 signed a $76-billion contract for 150 Boeing 777X twin-engine aircraft, powered by GE’s new GE9X engine, in what was the single largest order by value in the history of US commercial aviation.
The order was subsequently increased to 156 planes.
The 777X was originally scheduled to take off on its first test flight this summer, however its development has been slowed by issues with the engine and Boeing has pushed back the timeframe to early 2021.
The delays also hit as Boeing is in the process of completing changes required by regulators on the 737 MAX, which has been grounded worldwide after two crashes that resulted in 346 deaths.


EU leaders to clash over money as Brexit blows hole in budget

Updated 20 February 2020

EU leaders to clash over money as Brexit blows hole in budget

  • Britain’s exit leaves 75 billion euro hole in bloc’s finances
  • For next 7-year cycle, starting point for talks is 1.074% of GNI
BRUSSELS: European Union leaders will clash this week over the EU’s 2021-2027 budget as Britain’s exit leaves a 75 billion euro ($81 billion) hole in the bloc’s finances just as it faces costly challenges such as becoming carbon neutral by 2050.
The budget is the most tangible expression of key areas on which the EU members must focus over the next seven years and their willingness to stump up.
For the coming seven-year cycle, the starting point for talks is 1.074% of the bloc’s gross national income (GNI), or 1.09 trillion euros. By contrast, EU national budgets claw in 47% of annual output (GDP) on average.
Still, disputes over hundredths of percentage points have kept EU and government officials busy for the last two years and many diplomats remain skeptical that a deal will be reached on Thursday and Friday, when leaders meet in Brussels.
“Tomorrow’s summit is a complex and complicated summit because the proposal we have received does not meet our expectations,” said Italian Prime Minister Giuseppe Conte. Italy is one of the net contributors to the common EU pot.
The EU budget gets money from customs duties on goods entering its single market, a cut of sales tax, antitrust fines imposed by the EU on companies, and from national contributions.
It spends money on subsidies for EU farmers, on equalizing living standards across the bloc, border management, research, security and various non-EU aid programs.
Some net contributors — the “frugal four” of the Netherlands, Austria, Sweden and Denmark — want to limit the budget to 1.00% of GNI. Germany, the biggest contributor, is prepared to accept a bit more, but 1.07 is too high for Berlin.

Cohesion funds
The European Commission has proposed 1.1% and the European Parliament, which will vote on the budget, wants 1.3%. For net beneficiaries such as Poland, larger is better.
For many central and eastern European countries, EU “cohesion funds” are crucial. “The costs related to Brexit and other challenges should be more equitably distributed,” Polish Prime Minister Mateusz Morawiecki wrote in the Financial Times, adding this was not the case due to proposed deep cuts for cohesion policies and the Common Agricultural Policy (CAP).
But with less money coming in because of Brexit, some net contributors argue there is simply less to share around. Also, more money should be spent to modernize the EU economy rather than on preserving agriculture, they say.
EU leaders will discuss the idea of a tax on plastic waste that would go to EU coffers and sharing some profits from trading carbon emission permits.
The EU is also considering other taxes — on the digital economy, on flying, on financial transactions and on products made with high CO2 emissions imported into the EU.
Commission officials warn time is running out and the EU risks starting next year with no money to protect its borders, finance research and fund student exchanges, or equalize standards of living.