London’s High Court on Tuesday denied Qatar Airways’ request, allowing Airbus to cancel the airline’s A321neo order.
The companies have been intertwined for months in a court dispute arising from A350 problems. This standoff escalated in January when Airbus terminated the contract for 50 A321neos that Qatar had purchased with the intention of opening new routes, with the airline immediately halting that cancellation via an injunction.
In its ruling, the court rejected the airline’s claim that there are no alternatives to the Airbus contract. Qatar argued that it is impossible for it to lease or use the 737 MAX aircraft ordered from Boeing. The decision puts an end to the A321neo issue, clearing the way for discussion of the main dispute, centered on the safety of the A350. The airline was also ordered to pay most of the costs of this portion of the case.
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Airbus emerges victorious having based its position on the argument that the two contracts are connected by a «cross-default» clause. According to the manufacturer, this allowed it to terminate one of the contracts when the airline refused to fulfill the other. Some airline executives fear that this sets a precedent that reinforces the control that Airbus and Boeing exert over the market.
The manufacturer, in a statement, noted that «it is positive that this matter is behind us. We can now focus on the main issue: the misrepresentation by Qatar in its opinion on the safety and airworthiness of the A350».
The airline, for its part, did not comment. A source inside Qatar, however, told Reuters that the dispute over the Airbus A321neo was «secondary» to safety concerns over the A350. The dispute has escalated to such an extent that the International Air Transport Association (IATA) described the issue as «worrying».
