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Airbus revokes more plane orders in Qatar dispute -Breaking

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© Reuters. FILE PHOTO – A logo for Airbus can be seen near Toulouse in France at its Blagnac factory, on July 2, 2020. REUTERS/Benoit Tessier

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PARIS (Reuters – A $600 million contract and safety dispute between Airbus & Qatar Airways grew on Tuesday, when Qatar Airways rescinded two orders for A350-1000 aircraft from Airbus. This was just days after it had cancelled an order for 50 A321neos from Airbus.

Qatar Airways sued Airbus over $600 Million. The airline is refusing delivery of any additional A350s until the regulator has completed a formal assessment of damage to 21 jets’ painted surfaces and lightning protection.

Airbus said that it had two A350s completed and ready for Qatar Airways.

Last month, the planemaker declared Qatar Airways in default over two A350-equipped jets it had built and was ready to deliver in a UK court file.

The company also cancelled an order for 50 A321neo planes. This was because the clause that allowed it to cancel the A321neo order, which is highly in demand, had been activated by the A321neo default.

Qatar Airways ordered last week 25 Boeing (NYSE) 737 MAX competitors, with options for an additional 25, and 34 new 777X cargoers. This was during a Washington visit of the ruling emir.

Airbus has denied it broke its contract, arguing in court that they refused to transport two A350s while the plane waited on Toulouse’s runway. Airbus also claims that it isn’t entitled to claim “cross default”, which would allow them to cancel their A321neo contract.

A spokesperson for Airbus stated that the company “terminated two A350 delivery positions for Qatar Airways in complete compliance with our Rights” on Tuesday.

Qatar Airways had no immediate comment.

Airbus included in its January monthly summary cancellations for 50 A321neos (and two A350-1500s) pushing it into negative territory. It received 36 more orders, but minus 16 total orders.

In January, the planemaker shipped 30 aircraft.

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