London judge orders Airbus to delay cancellation of Qatar’s A321neo
Qatar Airways A321-200neo
A London High Court judge has ordered Airbus to delay any “practical effects” of its unilateral cancellation of Qatar Airways (QR, Doha Hamad Int’l) order for fifty A321-200neo pending further hearings scheduled for April 2022.
On January 18, the judge barred the manufacturer from taking any action that may jeopardise its ability to deliver the aircraft to Qatar Airways should the airline win the dispute. In effect, the ruling prevents Airbus from reallocating delivery slots for the fifty A321neo to any other carriers. The aircraft were due to start delivering to Qatar Airways in February 2023 and continue at a rate of six per year going forward.
A substantive hearing on Qatar Airways’ plea for an injunction to stop the cancellation is scheduled for April 4.
Qatar Airways argues that Airbus had no right to unilaterally terminate the order considering the airline had already made USD330 million in pre-delivery payments. Airbus, in turn, claims it was within its rights to use a cross-default clause related to the Qataris’ refusal to pay and take delivery of already built A350s. Last month, the Europeans terminated two A350-1000 due to the Gulf-based carrier.
“We had to make the decision to exercise our rights and terminate two A350-1000 delivery slots. These decisions followed many attempts to find mutually beneficial solutions, and we continue to hope for an amicable solution,” Airbus Chief Executive Guillaume Faury said during an earnings call.
Qatar Airways still has twenty-one A350-1000s on order from Airbus.
Last year, the Qatari Civil Aviation Authority (QCAA) grounded sixteen Qatar Airways A350-900s and five of its A350-1000s due to fuselage paint defects that exposed anti-lightning copper mesh. The airline then refused to take any further A350s until the issue was resolved. While Airbus acknowledged the defects, it repeatedly insisted they were not an airworthiness issue. Other airlines have experienced similar problems, but in no other instance were any aircraft grounded. In December 2021, Qatar Airways then filed a lawsuit against Airbus seeking at least USD618 million in damages and compensation. Shortly thereafter, Airbus, in an unprecedented move, cancelled Qatar’s order for forty A321-200Ns and ten A321-200NX(XLR)s.
The first hearing concerning Qatar Airways’ claim against Airbus for the A350 dispute is scheduled for April 26.