When the Gulf airline decided to cancel a $6 billion jet purchase, the judge ordered the planemaker to stop any practical repercussions of the decision until the case could be resolved.
When it comes to the practical consequences of a decision to revoke a $6 billion jet order from Qatar Airways, a British judge has ordered Airbus to postpone any practical consequences for several weeks. The decision comes as two of aviation's most powerful players engage in an increasingly contentious legal battle.
The action essentially stops the manufacturer from distributing crucial early delivery slots for the in-demand A321neo jet to other airlines until a hearing scheduled for early April, at which Qatar Airways intends to seek an injunction to rescind the contract and reinstate the deal.
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They have been at odds for months about surface faults on A350 aircraft, which have been grounded by Qatar Airways due to safety concerns. Qatar Airways is suing Airbus for $600 million in connection with the grounding of several A350s.
However, Airbus claims that the airline has mislabeled quality issues as a safety concern in order to obtain compensation from the manufacturer.
As a result of Qatar's reluctance to accept the disputed A350s, Airbus withdrew from a contract with the country for 50 A321neos in January, claiming that this had triggered a provision tying the two jet transactions.
Qatar Airways expressed its displeasure with the decision at a hearing on Friday.
"They were willing to take the chance because they knew it would be utterly flaming." "We have already paid $330 million for this (A321neo) contract, and they were well aware that they were throwing a hand grenade into our bunker," Qatar Airways lawyer Philip Shepherd said.
With a hearing on Qatar's request for an injunction scheduled for the week of April 4, and a court date for the major A350 issue scheduled for April 26, the technical hearing provided insights into what seems to be a highly explosive legal battle in the aviation industry.
Airbus' plea for further time to prepare was denied by a UK court until the first of those sessions, and the firm was told not to do anything in the meantime that may jeopardize its ability to complete the A321neo contract if Qatar is successful in that portion of the lawsuit.
Its attorney, Rosalind Phelps, stated that the cancelled jets had been deleted from the company's industrial plans and warned of damage to the company's supply chain if its hands were held too tightly.
The first plane is scheduled to be delivered in February 2023, with a total of six planes expected to be delivered each year after that. Plane makers often place orders for parts up to a year in advance.
In a statement on Thursday, Airbus Chief Executive Guillaume Faury stated that the company was obliged to cancel the A321neo deal in order to "exercise our rights."
During an interview with BFM TV on Friday, he emphasized that Airbus was ready for a cooperative solution, but noted that "it takes time." According to sources close to both sides, there are no signs of a truce at this time.
A report published by the Reuters news agency on Thursday stated that Qatar Airways was poised to seek a court judgement in order to keep the A321neo agreement alive.
In the meantime, Airbus is planning counterclaims in the A350 lawsuit. For the time being, it has cancelled two of the 23 A350s that are still on order for Qatar, but has decided not to pursue other purchasers.
SOURCE: NEWS AGENCIES
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