Rolls-Royce Holdings PLC (LSE:RR.) is facing a threat to a huge order for new Airbus jet engines after customer Emirates warned the quality needed to improve.
Speaking at the Dubai Air Show, Emirates president Tim Clark questioned the durability of Rolls-Royce engines, adding the airline wanted much more time between scheduled maintenance visits.
Just a day earlier, Emirates had placed a US$50 billion order for 90 Boeing 777X jets.
Clark said the airline would order between 35-50 A350-1000 if Rolls-Royce improved both engine durability and maintenance costs.
Rolls-Royce said: "Emirates is a valued customer and we look forward to supporting their future fleet growth plans.”
Airbus also defended its engine supplier.
Christian Scherer, chief commercial officer, told Reuters: “It's [Trent XWB-97] a perfectly fine engine operated by many customers around the world."
Emirates has ordered 50 of the smaller A350-900 version, which uses a different Rolls-Royce engine version, but has yet to take deliveries.
In what is proving a difficult week for both Airbus and Rolls-Royce, an expected order from Turkish Airlines has still yet to be ratified.
Shares in Rolls-Royce eased 1% to 238p, ending what had been a steady climb for the shares recently on the back of bullish broker comment ahead of this month’s capital markets day.