💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Qatar tells UK judge it wants Airbus A321 jets or damages

Published 02/25/2022, 02:45 PM
Updated 02/25/2022, 07:21 PM
© Reuters. FILE PHOTO: The Qatar Airways logo is pictured at the International Tourism Trade Fair ITB in Berlin, Germany, March 7, 2018./
BA
-

By Tim Hepher

PARIS (Reuters) -Qatar Airways has asked a UK court to reinstate an order for 50 Airbus A321neo passenger jets that the European planemaker revoked as part of a bitter dispute over the partial grounding of larger A350s, a court filing showed on Friday.

Failing that, the Gulf carrier is asking a UK judge to award the airline unquantified damages over the planemaker's decision to withdraw what it described as a "unique" plane as it prepares to receive the 220-seat A321neo from February next year.

Airbus declined comment on the filing.

The claim is the latest salvo in a months-old contractual and safety dispute that has brought relations between two of the industry's largest players to an all-time low.

The two sides are at loggerheads over erosion to the painted surface and gaps in lightning protection on A350 jets.

So far, the airline has said Qatar authorities have grounded 21 of its 53 A350s over safety concerns, prompting the airline to sue Airbus for more than $600 million as it prepares for an influx of visitors ahead of this year's FIFA World Cup.

In the new filing, Qatar Airways disclosed that a further A350 had been grounded on Feb. 13.

Airbus has acknowledged quality problems but accused the airline of mislabelling them as safety woes to get compensation. European regulators have said the problems do not amount to an airworthiness issue on the jet, which is not grounded elsewhere.

SEVERE DISRUPTION

As the A350 row heated up, Airbus last month cancelled the order for A321neos, saying Qatar had breached a clause linking the two deals. Days later, Qatar placed a provisional order for at least 25 competing Boeing (NYSE:BA) 737 MAX. [L1N2U029N]

Despite that, Friday's filing sang the praises of the Airbus model, saying it had no available equivalent in a section designed to support its request to have the deal reinstated.

Qatar also asked the division of London's High Court to order Airbus not to try resell the A321neos, which are in high demand. Airbus is sold out until 2028 on that model and Qatar would otherwise face "severe disruption," it said.

Details of the airline's claim emerged as Airbus was expected to issue a counter-claim in the A350 dispute.

A spokesperson confirmed Airbus had filed documents but declined to provide details ahead of their publication.

© Reuters. FILE PHOTO: The Qatar Airways logo is pictured at the International Tourism Trade Fair ITB in Berlin, Germany, March 7, 2018./

The planemaker has insisted in preliminary hearings that the A350 is safe to fly and suggested its own interests could be damaged if it were forced to go ahead and build the A321neos while waiting for the outcome of a potentially long spat.

Even so, Airbus has been ordered to preserve the status quo until a hearing due in April.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.