Now Airbus’ former flagship customer is becoming a risk
Airbus dispute with Qatar Airways becomes mega dangerous
With this video, Qatar Airways wants to prove that the paintwork damage on the A350 is not just superficial. The airline is therefore demanding around 600 million dollars in damages from Airbus.
The dispute between Airbus and Qatar Airways escalated: After the airline filed a multi-million-dollar claim for damages for damage to the paintwork, Airbus canceled an order worth billions. Now the airline is publicly following up – with a video.
Dhe conflict between Airbus and Qatar Airways went down in aviation history due to its dimensions and circumstances and is now becoming an open exchange of blows. The airline was once one of Airbus’ flagship customers and contributed to the rise of the aviation group with orders worth billions. In the meantime, the relationship has broken down – with unforeseeable consequences.
The starting point is a dispute instigated by Qatar about the significance of damage to the paintwork on the A350 wide-bodied aircraft. In return, Airbus recently canceled a multi-billion dollar order for 50 A321 Neo aircraft after a $600 million claim for damages and a refusal to accept additional models. Now Qatar follows up and publishes a video of A350 paintwork damage.
From the airline’s point of view, this proves that the damage is by no means just superficial, but serious. The fact that Airbus canceled the order for the A321 Neo models and thus widened the dispute was “very regrettable and frustrating,” according to a statement. In the case of the video with peeling paint and cracks, however, it remains unclear when it comes from and which models from the fleet it is.
Qatar Airways is considered a demanding customer
Between the state airline of the Emirate of Qatar and Airbus, a dispute is developing before the world public that would probably have been settled behind the scenes in the past.
The airline Qatar with its boss Akbar al-Baker has always been considered a demanding and difficult customer – for both Airbus and Boeing. For more than 24 years, al-Baker has been at the helm of the airline. Before the aviation crisis caused by the corona pandemic, he also expanded his network through investments in airlines in Europe – including a 25.1 percent stake in the airline group IAG, which includes British Airways and Iberia in Spain.
Industry experts speak of a risky game of poker between the airline in Doha with al-Baker at the helm and Airbus with CEO Guillaume Faury and his German sales manager Christian Scherer. “For the loser, the consequences are still unforeseeable,” says an insider who wishes to remain anonymous.
Bulging order book for the A321 Neo
On the one hand there is the accusation from Qatar that damage to the paintwork on A350 aircraft is relevant to safety because the lightning protection grid on the carbon fiber fuselage underneath the paintwork was destroyed. A flight ban for the model is therefore justified and no new models have to be accepted.
On the other hand, Airbus took the one-off step of canceling a firm order worth billions, for which significant advance payments are believed to have already been made. Airbus can probably afford this step because the group has a bulging order book for the A321 Neo model.
The mega row with Qatar Airways was brewing in 2021. In June, Qatar refused to accept further A350s because the airline did not want to accept problems with the surface coating. The airline obtained support in cooperation with the Qatar Air Traffic Safety Authority (QCAA).
From Airbus’ point of view, this is an individual opinion with regard to the safety relevance. Europe’s aircraft manufacturer admits that coatings on individual models were not perfect. However, this is not relevant to security.
The dispute is now pending before the London High Court. According to media reports, Qatar is demanding 618 million dollars in damages plus a further four million dollars a day because A350 aircraft can no longer be used. There will be a hearing in April. Qatar has meanwhile retired 21 out of 53 delivered A350s. Another 23 are on order. Airbus wants to have an independent expert clarify whether the paint damage is relevant to safety.
By February 17 at the latest, it will become clear how threatening Airbus considers the Qatar lawsuit to be. Then the aviation group presents its balance sheet and must also announce whether a provision for a possible payment of damages reduces the result.
Experts are discussing that Airbus must feel relatively safe, otherwise the order for 50 A321 Neo would not have been canceled. Qatar Airways already operates a mixed fleet of Airbus and Boeing aircraft, but switching from the A320 family to the Boeing 737Max would be costly. Boeing would also not have to grant large discounts if there is no competitor.
On the other hand, Airbus could trigger a negative domino effect in the dispute with Qatar boss al-Baker, who was born in 1962, because Qatar has a wide range of influence, not just in the airline group IAG. Qatar, for example, has also ordered Eurofighter fighter jets, in which Airbus also has a stake.
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