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By Tim Hepher
PARIS (Reuters) – Airbus has completely revoked its ongoing order from Qatar Airways for the A350 jet, halting all new aircraft activity with the Gulf carrier in a dramatic new twist to a dispute roiling arrangements for the World Cup, two resources said.
No immediate comment was obtained from Airbus or Qatar Airways.
The two aviation titans have been waging a rare public war for months over the poor condition of more than 20 long-haul aircraft that the airline says can pose a threat to passengers and which Airbus says are absolutely safe.
Qatar Airways, which was the first airline to introduce the intercontinental aircraft to the skies in 2015, is suing Airbus for at least $1. 4 billion after nearly a portion of its A350 fleet was grounded through Qatar’s regulator for untimely surface damage.
He refused to receive more A350s until he got a more detailed explanation of the broken or missing plates of the lightning protection net that were exposed through the peeling paint.
With the backing of European regulators, Airbus pointed to quality issues in the planes, but denied any defense risks such as gaps in the base layer of coverage, there is enough support.
So far, the dispute has been slowly in the e-book of orders for Europe’s largest twin-engine aircraft, Airbus and then in Qatar Airways, which ended with some individual aircraft.
Now, however, Airbus has told the airline it is the rest of the A350 deal on its books, the resources said, which asked not to be known as the discussions remain confidential.
By the end of June, the European planemaker had ongoing orders from Qatar Airways for 19 of the plane’s largest edition, the 350-1000 passenger A350-1000, for at least $7 billion at list prices or about $3 billion after industry standard. Discounts
WORLD CUP
The radical cancellation of the new A350 comes six months after Airbus also terminated the full contract for 50 A321neo small jets in retaliation for Qatar’s refusal to settle for A350 deliveries.
The outpouring into another style has been described as “worrying” by the head of an organization representing global airlines, the International Air Transport Association.
Most likely, the latest move will widen the gap between two of the flagship corporations of close allies, France and Qatar.
Unless there is an elusive settlement, the dispute is already settled for a rare trial in London next June.
This comes as the airline industry faces an asymmetric recovery from the COVID-19 pandemic and Qatar Airways is preparing to take over most of the estimated 1. 2 million visitors expected for the FIFA World Cup in November and December.
Airbus has argued that the airline is in contention to bolster its finances and reduce its fleet of beloved long-haul jets as its long-haul target market slowly recovers.
Qatar Airways, which posted its first annual profit since 2017 in June, says it wants more capacity for the World Cup, forcing it to lease planes and launch fewer A380s to fill the void left by A350s on the ground.
The line focuses on the A350’s challenges — adding what appears to be damaged in parts of the wings, tail and hull according to two jets noted through Reuters — due to an aesthetic challenge or, as the airline claims, a design flaw.
A Reuters investigation in November found that several other airlines had discovered surface damage since 2016, the A350’s first year of operation, prompting Airbus to push for studies of a choice mesh that also saves weight.
However, so far, none of the 3 dozen or so other A350 operators have joined Qatar in expressing protection considerations due to surface defects, as they continue to fly the aircraft.
(Reporting via Tim Hepher; editing via Jason Neely, Kirsten Donovan)