Airbus cancels Qatar Airways order in feud

  • Date: 22-Jan-2022
  • Source: Kuwait Times
  • Sector:Tourism
  • Country:Qatar
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Airbus cancels Qatar Airways order in feud

PARIS: Airbus has taken the extraordinary step of cancelling a multibillion-dollar order of 50 planes from Qatar Airways, a major customer, in an escalating feud over the airline’s grounding of A350 aircraft. The Qatari company, one of the Gulf region’s “big three” carriers, has grounded nearly half of its 53-plane A350 fleet over degradation of exterior fuselage surfaces.

The airline has taken the dispute to the High Court in London and stopped accepting further deliveries of the wide-body aircraft from the European firm until the problem is resolved. An Airbus spokesman told AFP on Friday that the aircraft maker has “terminated” a contract with Qatar Airways for 50 single-aisle A321neo aircraft, “in accordance with our rights”.

It is usually airlines that cancel orders when they no longer need them or cannot afford them anymore. The order was worth more than $6 billion at catalogue prices, though airlines are usually charged less for large purchases. Qatar Airways said in a statement that it had been adhering to all of its contractual obligations with Airbus. “It is therefore a matter of considerable regret and frustration that Airbus has taken the apparent decision to expand and escalate this dispute,” the airline said.

The two companies had