Airbus Cancels Deal With Qatar Airways for Fourth A350 -Sources

As per source Airbus of Europe has raised the stakes in a dispute with Qatar Airways over damage to the painted surface of long-haul A350 jets by cancelling the contract for a fourth plane, according to three people familiar with the situation. The Gulf carrier claims there are unresolved airworthiness issues and is refusing to accept deliveries, while Airbus maintains that the aircraft are safe despite surface scars. The two firms are engaged in a dispute over this issue.

In May, a British judge rejected a bid by Qatar Airways to force Airbus to stop formally trying to deliver more A350s to the carrier, the aircraft’s largest customer.

As more aeroplanes are manufactured, Airbus may freely attempt to trigger payment clauses as a result of the procedural ruling. It may even try to market A350s that Qatar has refused to airlines like Air India, which industry insiders claim might act as a buyer.

By the end of July, a fifth aircraft should have reached the same position in the pipeline. A sixth aircraft will follow later this year.

Qatar Airways claims Airbus is incorrectly offering new planes for delivery, while Airbus claims the airline has broken its contract by refusing to take more A350s and is cancelling orders for undelivered planes one by one as they are built.

The two sides are scheduled to meet in a London court on Thursday for the latest in a series of procedural hearings ahead of a full trial, which is tentatively scheduled for June next year unless an out-of-court settlement is reached, which sources say appears unlikely so far.