Severe setback for the Gulf airline: Airbus may cancel an order for 50 A321 Neo. And Qatar Airways is facing a fleet problem.
It was a step that hardly anyone had expected: Airbus canceled an order from Qatar Airways for 50 Airbus A321 Neo in January. It was a further escalation in a dispute that had dragged on for months and that began with discussions regarding paint problems on the Airbus A350.
Qatar Airways did not simply accept the cancellation and complained to a London court. Airbus was not allowed to otherwise allocate the slots for the 50 jets until the verdict was announced. But that’s over now. The court dismissed Qatar Airways’ complaint.
Airbus is allowed to sell jets elsewhere
Airbus can now market the aircraft elsewhere – and the demand is there. The fleet planning of many airlines has changed as a result of the coronavirus pandemic. Smaller aircraft with a long range – like the A321 Neo – are in demand. From Boeing, the comparable product in terms of seating would be the Boeing 737 Max 10. However, it has not yet been certified and it might be some time before it is. And: It has a shorter range than the A321 Neo.
Qatar Airways argued the same way in the complaint. According to the airline, there is no equivalent replacement for the jets. With the aircraft, the airline wanted to offer destinations such as Belgrade, Sofia, Istanbul, Colombo, Tbilisi or Medina, where large jets cannot always be filled.
Court: Need can be covered by leasing
A judge at the London High Court saw things differently. He rejected the application on Tuesday (April 26) on the grounds that Qatar Airways was perfectly able to procure alternative aircraft. A first delivery of A321 Neo was expected in the fourth quarter of 2023.
According to the judge, there are ways of covering the need through leasing. Airbus had previously promised that additional costs that would arise for Qatar in the case of leasing might be compensated for by compensation payments. The court also added that if the airline wins the larger case dealing with the Airbus A350 problems in court, Airbus should be able to get Qatar Airways back on the production schedule.
A lawsuit…
The dispute over the A321 Neo order was just a digression from the larger process before the London High Court Qatar Airways vs Airbus in December sued and wants damages of almost one billion euros because their Airbus A350s have been grounded for months. Airbus also points this out in a statement. One is pleased “with the court’s decision, which recognizes Airbus’ position that transparent and trusting cooperation is essential in our industry,” said a spokesman following the current A321 Neo decision.
However, the A350 litigation is “regarding the misrepresentation of the safety and airworthiness of the A350, which we will continue to defend, as well as the reputation of the operators and the regulations for flight safety in the face of unjustified claims.”
…and another lawsuit
Qatar Airways initially had the Fuselage coating of the Airbus A350 as defective criticized. After initially only mentioning problems with the paintwork, at some point lightning protection also became an issue. In the meantime, Qatar Airways even spoke of a fire hazard in the tank. Qatar’s aviation authority grounded 21 of the national airline’s A350s. However, their counterparts in Europe, the USA and the rest of the world have no qualms and continue to fly the jet.
Airbus defended itself once morest the allegations from the start. Problems with the paint have also arisen with other airlines such as Finnair and Lufthansa. But that has no impact on security. In the meantime, the aircraft manufacturer has also sued. In the USA Airbus sued Qatar Airways for $220 million Compensation for two A350s that Qatar Airways failed to collect. In addition, the manufacturer wants back loans that he granted to the golf airline.
Qatar Airways has to pay court costs
Compared to the huge sums the companies are charging each other, $331,000 is actually peanuts. But Qatar Airways should still be annoyed that they now have to transfer this amount to Airbus within 14 days. Because the airline has to bear the court costs.
