Airbus and Qatar Airways faced each other in court again today, in a new episode of the conflict between the two companies that started when the Qatari airline claimed that the paint on the new A350s was peeling and exposing the material underneath.
The situation has escalated into a bid over confidential documents from the process and the sums at stake now exceed 1.5 billion dollars, Reuters reported.
Following the initial complaint about the condition of the aircraft, Qatar Airways grounded 21 Airbus A350s that the operator said could pose a risk to passengers. In addition, it suspended 23 deliveries that were still pending.
The manufacturer acknowledged quality defects, but always maintained that the aircraft were completely safe. The European Union Aviation Safety Agency (EASA), which regulates the airline industry in the European Union, backed Airbus’ position and said it had “found no evidence” that the A350’s shortcomings represented a safety problem.
In a new and surprising twist to the dispute, Airbus last August revoked all of Qatar Airways’ existing orders for A350 aircraft. The decision was confirmed in September, when spokesmen for the European aerospace company confirmed the withdrawal of the remaining 19 aircraft from the order book.
Handing over confidential documents
The two sides must now hand over thousands of pages of documents to each other and the dispute appears to be far from being resolved. Unless an agreement is reached, which is highly unlikely, the situation is heading towards a trial which could take place in London in the middle of next year.
In that context, the two companies stepped up the pressure today as a division of the United Kingdom High Court began hearing mutual claims for the delayed delivery of those files, as well as requests for the return of tens of millions dollars in deposits and contractual incentives.
In February this year, Airbus filed a claim for 220 million in damages. It also detailed 185 million it claimed was paid to three Qatari aviation development funds as part of the original A350 deal between 2007 and 2009, when the model was in the midst of its development process. The manufacturer said today it had asked Qatar Airways for details of how the money was used.
According to Reuters, industry players close to the case say the airline argues that the money was spent as intended and that it is not, in any case, obliged to provide further evidence.
Qatar Airways was initially supposed to have a fleet of up to 74 Airbus A350s. Of this total, 34 would be A350-900s and the remaining 40 would be the larger A350-1000. However, the remaining deliveries will not materialise in the end.
With the confirmation of the move, the airline will only maintain firm orders with Airbus’ biggest competitor, Boeing. Qatar Airways recently confirmed orders for the 737 MAX 10 and 777X.
