Qatar Airways and Airbus both racked up wins and losses in court this week. Both sides are now facing a major difficulty next summer to solve their dispute
Qatar Airways and Airbus
Qatar Airways and Airbus both saw some wins and losses in court this week. The biggest takeaway was the High Court’s decision to approve a quick trial, potentially set for a three-month time next summer. However, the court also dismisses arguments over the re-sale of produced A350s that Qatar refuses to accept.
High Court in London has accepted QR’s argument
The Qatar Airways-Airbus fight has barreled into a full-blown legal conflict and is now headed for trial. According to Reuters, the High Court in London has accepted QR’s statement that the question over the A350’s protective covering is one of “public interest” and warrants a trial as quickly as likely.
While this does not indicate anything about the final judgment, the airline will see this as a win in its books
However, Airbus didn’t leave the court empty-handed. The judge permitted the European giant’s request to not split the trial in two, removing the necessity for further technical analysis, and accepting the recent research. Also, Airbus will be permitted to keep trying to deliver aircraft to Qatar Airways and has the power to resell the jets if it wants to.
With the contract still in place, Airbus will be able to claim economic damages from Qatar’s failure to pay the fixed amounts it must. This could trigger massive payments were the case to fail next year and result in a loss for the Middle Eastern carrier. However, until then, Airbus is stuck holding onto dozens of A350 deliveries that are moving nowhere.
Also, read
- Joby Aviation FAA air carrier certification to begin air taxi services
- Bombardier unveils ‘fastest passenger jet since the Concorde’ following supersonic test
- Emirates posts $1 billion annual loss, bets on profitability in FY2022-23
Airbus and Qatar Airways are now openly accusing each other
Airbus has long been pushing for the case to be privately settled rather than muddled through expensive litigation. However, Qatar Airways has pushed that it is now a safety concern and must be looked at by the courts for a decision. In the judge’s view, this case has already been too acrimonious, with Judge Waksman saying,
“At the moment this case looks unsettled liable – that might change…The prices for both sides are way over the top in my judgment. There is far too much period that is being paid here.”
Once a multi-billion dollar partnership, Airbus and Qatar Airways are now openly accusing each other of risking lives and creating problems for their own economic interests.
If all goes well, the two sides will come to a compromise, permitting some healing. If not, we are headed for a trial that will see confidential documents about the order enter the public area and be scrutinized by all.
Thank you
Stay updated with avitiona2z.com
Join our Telegram group for the latest updates
