Policy

Compensation crisis escalates between Airbus and Qatar – Doha refuses to pay $220 million


The crisis escalated sharply between the international carrier Airbus and Qatar, after Doha squandered the people’s money for their own interests. The global company dealt the Gulf state a strong blow in advance, as events developed again.

This comes after Qatar Airways refused to pay Airbus $220 million in compensation for not accepting the A350.

Qatar Airways, which requested compensation of more than $700 million, said that its contract with Airbus was not terminated after the refusal to receive two A350 wide-body planes, adding that the manufacturer did not specify this amount as compensation.

The plane’s surface defects made it vulnerable to lightning strikes during flight, claiming that the European Union’s aviation safety agency, which supported Airbus for no safety problem, had not carried out a comprehensive analysis.

This comes after Airbus canceled Qatar Airways’ request for A350 aircraft and a separate request for 50 A321 aircraft, a smaller aircraft, stressing that no new industrial capacity will be released for the company’s model, and demanded Qatar to compensate $220 million in their dispute.

Airbus also decided to cancel its contract with the airline as part of a severe legal dispute, while Qatar Airways is trying to get a court order to reverse the cancelation.

Qatar Airways, in a dispute with Airbus over surface paint problems, refused to receive more aircraft, while the two sides argued and filed a lawsuit late last year.

A judge is expected to rule next April, to decide whether to allow the annulment of A321.

In January, a court document revealed that Qatar Airways had demanded Airbus Aircraft Manufacturing Company $618 million in compensation, as part of a dispute over the erosion of the surface of A350s. This was a failed deal concluded by Qatar without confirming the safety of those aircraft and the waste of public funds, in an attempt to compensate for its losses and its huge economic collapse during the past year.

Airbus also claims an additional $4 million for each day that Doha ceased operating its 21 aircraft of this type at the order of Qatari regulators, causing this defect, which includes corrosion and holes in the lightning surface.

The crisis emerged months ago because of roof damage, including paint and a key layer that protects against lightning, which Qatar Airways says has so far prompted local regulators to suspend 21 flights.

In September 2021, Qatar Airways Group announced in its annual report for 2021/2020 a massive loss of $4.1 billion, with operational result losses amounting to $288.3 million.

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