Home ›› 03 Feb 2023 ›› Asia Biz
Qatar Airways and Airbus announced Wednesday the end of a $2.5 billion dollar battle over peeling paint on passenger jets before it became an embarrassing court case.
After months of negotiations and talks between French and Qatari leaders, the two sides said they were “pleased to have reached an amicable and mutually agreeable settlement” over the surface degradation that forced the grounding of 29 A350 jets.
Experts said neither side wanted a prolonged court case. Qatar Airways needs jets for its expansion plans while Airbus could not afford to alienate one of its most important customers.
Qatar Airways had sought about $2.5 billion in damages and penalties before a British court where the case was due to be heard from June.
“A repair project is now underway and both parties look forward to getting these aircraft safely back in the air,” they said in a statement.
The European jet builder and the fast-growing Gulf airline said that the details of their accord would remain “confidential” and that “the settlement agreement is not an admission of liability for either party.”
“This agreement will enable Qatar Airways and Airbus to move forward and work together as partners,” they added.
Qatar grounded the jets in 2021 after paint started peeling on the exterior of some of its long-haul wide-body A350 planes. Its regulator said there could be a threat to the jet’s lightning protection.
While Airbus acknowledged the paint problem, the company and the European Aviation Safety Agency (EASA) said there was no threat to airworthiness.
Qatar Airways launched a legal battle and refused to take deliveries of more of the models. In retaliation, Airbus cancelled the sale of 19 A350 jets and 50 A321 medium-haul planes.
An Airbus spokesman told AFP the latest agreement meant that the orders, had been re-established.
