A British judge has rejected the Qatari airline’s plea for earlier contract with Airbus to remain effective.
Qatar Airways had requested a British court to order Airbus to continue producing A321neo planes, but the plea was rejected. This will be a blow for the airline in the midst of a larger aviation issue that has resulted in a significant legal battle in the United Kingdom.
As a result of the ruling, the main global airplane manufacturer is free to sell in-demand planes to other airlines. This is in addition to a separate disagreement between the two parties concerning security of bigger A350 planes.
Earlier this year, Airbus canceled A321neo contract in punishment for Qatar’s unwillingness to buy A350 airplanes. The fundamental disagreement arose as a result of Qatar’s policy, which involved damage to the bigger planes’ painted protective coating.
Qatar’s contention that it couldn’t get equivalent planes to cover for the shortage of A321neos was dismissed by the judge. A choice would be to resort to the leasing market or to operate the 737 MAX planes that it has formally bought from American Boeing.
The ruling doesn’t reject the possibility of deal being reinstated after a more thorough investigation. It does, however, imply that the expense of bridging any breach may only be subject to compensation by monetary fees.
Later today, a session in British High Court was set to focus on the scheduling of what comes to a high-profile corporate separation case. This is while some reports referred to a glimpse of optimism for a future resolution.
Some airlines were disturbed by the subsequent move to withdraw the A321neo contract. It’s a “worrying” trend in a portion of the economy where Airbus has the majority of new contracts, according to the chairman of the International Air Transport Association.
Qatar Airways and Airbus
Emirates’ CEO says that he is “not empathetic” to its primary Gulf rival over the A321neo debacle.
The two agreements, according to Airbus, have links by a “cross-default” agreement. When an airline fails to honor one of the deals, the provision authorizes it to cancel the other one.
Qatar Airways, the A350’s largest client, faces the accusation of raising false safety issues in order to avoid accepting planes at a time when market is exhausted. According to Airbus, the Qatari corporation intends to file a $1-billion claim for compensation.
Qatar claims it was correct to halt receiving A350 shipments due to real safety issues. Over 20 A350s had corrosion in a sub-layer of lightning protection left uncovered by cratered paint, according to Doha’s regulatory. The cross-default provision, according to Qatar Airways, doesn’t apply in this circumstance.
Officials from the airline industry bear concerns regarding the fact that the A321neo lawsuit would create a paradigm that will allow analogous arguments in the future. The pattern may exacerbate the condition for Airbus and Boeing’s future market trading. “People will look at this and take extra care to resist such cross-default clauses,” the chairman of a major airline emphasized.
Airbus, under EU authorities’ support, claims that the A350 has no safety issues. It has, however, admitted that paint flaking is a hallmark of newer carbon jets, necessitating more frequent re-painting.
The issue of fading paint, according to Qatar Airways, has roots in a design flaw in the aircraft line. Other companies were impacted, according to an investigation half a year ago. Except for Doha, no other party has pulled jets out of service for anything other than routine maintenance.
The row between Qatar Airways and Airbus may lead to a basic shift in aviation policies in the future.
