Economics and nature square off in Dubai Airshow jet engine rift

DUBAI, Nov 17 (Reuters) - A debate over engine performance has exposed a dilemma facing aerospace firms at this week's Dubai Airshow - the hottest part of the jet market is also the hottest part of the world.

Airlines want to save on fuel and have the lowest possible maintenance costs. But those forces are pulling against each other in sandy or dusty environments like the Gulf and India.

"Therein lies the problem for Rolls-Royce (RR.L) and Airbus (AIR.PA), because this is the region that is buying these airplanes and will buy them in big numbers if the engine issue is resolved," Emirates Airline President Tim Clark told reporters this week.

The head of the world's largest international carrier was speaking in the midst of negotiations to buy dozens of Airbus A350-1000 jets powered by Rolls-Royce's XWB-97 engine, which have foundered for now over maintenance and pricing issues.

Emirates and Rolls papered over differences with a last-minute deal for a smaller quantity of the shorter A350-900, whose engine maintenance is seen as easier to predict.

The rare public dispute comes as engine makers want to be rewarded more for investments in new technology given the fuel savings they are offering to airlines on every mile of flight.

GE Aerospace (GE.N) set the tone under CEO Larry Culp. "We'll still look to find opportunities to be paid fairly for the value that we create," he told Reuters after half-yearly earnings in July.

Rolls-Royce CEO Tufan Erginbilgic, who took over in January this year, has indicated the company will no longer write unprofitable...
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