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Qatar dispute reaches $1 billion, Airbus cancels third A350

Airbus has cancelled Qatar Airways’ contract for a third A350 after the Gulf carrier rejected delivery in an ongoing dispute about damage to the long-haul jets’ surface.

 

According to them, the airline has grounded 23 A350s in the dispute over exposed and damaged lightning protection, bringing the total compensation demanded by the carrier to little more than $1 billion.

 

There was no immediate response from either company.

 

The two sides have been at odds for more than a year over accelerated surface degradation, which the airline claims raises concerns about the planes’ safety, with Qatar’s regulator halting planes when the issue arises.

 

Airbus, backed by its own regulator, has rejected any safety issues and replied to Qatar’s refusal to take any further A350s until the issue is fixed by withdrawing one-by-one contracts for undelivered A350s and cancelling a separate contract for A321neos.

 

Qatar will urge a UK judge on Thursday to prolong a provisional injunction that prevents the cancellation of the A321neo purchase pending the outcome of the A350 lawsuit, which is due later this year.

 

The combined impact of the Ukraine war and the Qatar disagreement, according to Bloomberg News, has forced Airbus to postpone a planned expansion in A350 production.

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