Emirates tells Rolls-Royce: Go back to basics, get engines right

Emirates tells Rolls-Royce: Go back to basics, get engines right

PARIS - The head of Dubai's Emirates has urged Rolls-Royce to go "back to basics" and focus on the performance of its engines, a day after the British firm laid out plans to quadruple profits.

Shares in the British engineering firm rose after CEO Tufan Erginbilgic unveiled a strategy on Tuesday to revive the engine maker's fortunes including a sharp increase in profit margins and "value-driven pricing," suggesting higher servicing bills.

But Emirates Airline President Tim Clark, who criticised Rolls over engine pricing and the performance of its largest engine at this month's Dubai Airshow, appeared unswayed by the plans which rely heavily on higher engine profit margins.

"If you have an engine...not performing as it should do, your costs are going to rise. But your ability to extract value from the client is going to fall simply because the client won't accept non-performance," he told Reuters in an interview.

"It's a very clear kindergarten understanding of cause and effect. Get your product right, design it to what the client wants, give it that high level of reliability. And yes, paradoxically, you can extract more value for your money for your buck in terms of your investment."

At this month's