Qatar Airways cancels the purchase of 50 Airbus A350s due to manufacturing defects

Reuters reported that Airbus said it had canceled a contract with Qatar Airways for the purchase of 50 A321neo aircraft, which could jeopardize the success of another agreement between them to purchase the larger A350, valued at $ 600 million.

The move, according to Reuters, expands a dispute that has shifted to confrontation in courtroom Thursday, with a procedural hearing on Qatar’s claim for more than $ 600 million in compensation for defects found in the Airbus A350 aircraft.

“We confirm that we have already terminated the contract for 50 A321s with Qatar Airways in in line with our rights, “said an Airbus spokesperson after providing the provisional arguments, previously reported by Bloomberg.” We confirm that we have already terminated the 50 A321 aircraft contract with Qatar Airways, in in line with our rights, “a spokesperson for the company told Reuters.

Bloomberg, for its part, said Airbus is increasing the degree of equality in its dealings with one of its largest customers. Airbus accused Qatar Airways of instigating the local grounding of the A350 in order to seek compensation for alleged surface defects and to cancel a separate order for the A321neo.

According to documents prepared by Airbus for a hearing in court in London on Thursday, there was “no reasonable or rational basis” for Qatari regulators to land 21 of the state-owned carrier’s A350s. Qatar Airways has not made immediate comments on the A321neo contract, which has its roots in an order listed 10 years ago worth $ 4.6 billion, according to the agency. Qatar Airways said the A321s would help it launch flights to new markets, where there is currently insufficient demand for larger aircraft. The first delivery of the A321neo is scheduled for Qatar in February 2023, according to Reuters. Industry experts say the model aircraft can be easily resold, in contrast with the reduced demand for large aircraft such as the A350, which has been exacerbated by the pandemic.