In the midst of A350 dispute, Airbus cancels deal to sell 50 A321s to Qatar Airways

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Airbus has rescinded an agreement with Qatar Airways for the purchase of 50 new A321neo aircraft, in an abrupt move after the two aviation giants became embroiled in a heated legal dispute. The A321neo deal was valued at $6.35 billion and deliveries would begin in 2023.

As reported by Bloomberg, the market believes Airbus’ decision to terminate the deal is in response to the lawsuit that Qatar Airways has filed in London’s High Court against the manufacturer. The Arab company is claiming $618 million in damages from Airbus over a paint defect on some of its A350 aircraft.

Airbus says it plans to «vigorously defend» itself against Qatar’s claim and argues that there is no justification for the airline’s decision to refuse delivery of two A350 aircraft that are ready. In the new legal filing, Airbus says «there is no reasonable or rational basis for Qatar’s aviation regulator to have ordered the grounding of 21 Qatar Airways A350 aircraft.»

The initial hearing is scheduled for April 26, while Airbus has been urged to file its defense by the end of February. Airbus says it will «totally deny» the Gulf carrier’s accusation, but Qatar Airways wants the matter resolved in time for the FIFA World Cup, which begins in November.

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