Emirates Invests $4 Billion in Fleet Refurbishment Amid Delays

Emirates is ramping up its investment in fleet refurbishment programs to a staggering USD 4 billion to mitigate ongoing aircraft delivery delays, as stated by Vice President and Chief Operating Officer Adel Al Redha at the recent Aviation Future Week event in Dubai. The airline plans to increase the number of Boeing 777 and Airbus A380-800 aircraft slated for refurbishment to over 200, having already completed 22 refurbishments since launching the program in 2022, reported ch-aviation.com.

Al Redha’s announcement comes as Boeing confirmed that the first deliveries of its Boeing 777X series will be postponed until 2026. Emirates has a substantial order for thirty-five 777-8s and 170 777-9s, and Al Redha revealed that the airline has sought compensation from Boeing due to these significant delays.

Emirates President Tim Clark expressed skepticism about Boeing’s ability to provide reliable delivery forecasts, citing persistent issues with the 777X program. In an interview with The Air Current, he indicated concerns over Boeing’s financial stability, suggesting that without securing additional capital through a rights issue, the company may face an imminent investment downgrade and the threat of Chapter 11 bankruptcy. Boeing has recently secured USD 10 billion in credit from lenders and announced plans to raise up to USD 25 billion in shares or debt over the next three years to address its ongoing operational challenges.

Despite its frustrations with Boeing, Emirates is reportedly the undisclosed buyer of additional 777-200 freighters to enhance its existing fleet of 12. This order is part of a broader addition of 11 freighters to Boeing’s backlog, signed prior to the announcement of the latest 777X delivery delays.

On a positive note, Al Redha confirmed that the first of sixty-five A350-900s is now expected to arrive in November. Initially slated for service in August and later postponed to September, the aircraft will be deployed on the Dubai-Edinburgh route. Al Redha assured that the aircraft is in the final stages of testing and is on track for its entry into service, with plans to expand its operations to additional destinations in India and the Gulf region as more aircraft are received.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com