Mon, Jan 24, 2022
Is Airbus Tired of Playing Games, or Making a Move of their Own?
The long-running dispute and court battle between Qatar Airways and Airbus has escalated, with both sides taking moves against one another that has seen billions of dollars pulled off the table.
The origin of the argument began with the CEO of Qatar Airways, Akbar Al Baker, demanding restitution for paint flaws on the company's relatively new A350s. The aircraft were grounded in Qatar due to paint flaking, chipping, and peeling around the aircraft's anti-lightning mesh material. Reportedly, some sections of paint exposed seams and gaps on the aircraft, as well as supposed imperfections in some aircraft. European authorities found the issue relatively benign, saying it had little bearing on safety of flight as a predominately cosmetic issue. The notoriously picky Baker demanded restitution, however, seeking $700 million from Airbus as compensation. His company even refused to accept two more of the pricey A350s until the complaints were addressed.
In the London court, Airbus argues they are exaggerating their paint concerns out of self-interest, and that their refusal to take the additional aircraft as ordered rendered contracts moot. Qatar has used similar tactics in the past, walking the line between a simple picky customer and anal-retentive deal seeker. Past However serious, such tactics are not new between the two: Back in 2014 Qatar took issue with minor aspects of the A380, from the texturing of the paint, the interior wall coverings, and even the flooring. The fix resulted in Airbus removing and replacing the floor throughout the aircraft, an expensive and time consuming affair.
Now, the refused A350s gave Airbus an out, and a possible chance to start playing some hardball of their own. If Qatar didn't want their plane, then why would it want any more? Airbus went ahead and canceled a separate deal for atar to buy 50 of its narrowbody A321 jets inked in 2017. All in all, that price tag was worth $6.35 billion, but opening up that block of aircraft could alter that price a bit once exposed to current-year market forces. A321s are a hot commmodity, Airbus says, following a post-pandemic economic recovery and return to the norm. Qatar is chapped, of course, owing to their need for every plane they can get before the country's FIFA World Cup this fall. The tremendously popular sporting event will very likely see the airline swamped with football enthusiasts starving for high-level competition in-person after years of lockdown and cancellations.
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