Airline Seeks $1-Billion in Damages for Alleged A350 Flaws

Airbus and Qatar Airways are heading to court to settle a case that threatens to dissolve one of aviation’s closest commercial partnerships.

The case, a bitter, safety and contractual dispute, was brought by Qatar Airways after the carrier grounded 21 of its A350 long-haul airliners over flaws in their protective coating. The airline has questioned the jets’ defenses against lightning—which strikes commercial jets about once a year—and is suing Airbus for $1 billion in damages for idled planes. Airbus has counter-sued for the return of millions of dollars of credits awarded Qatar Airways when the aircraft in question were sold. In addition, the airframe manufacturer accuses Qatar of prevarication, claiming the airline’s refusal to accept aircraft is a contrivance intended to tackle overcapacity.

Presiding over the trial is David Waksman, a UK judge who granted the airline a relatively quick timetable. In a statement to a division of London's High Court, Waksman stated, “I am in absolutely no doubt that this case should be tried as soon as is practically possible.” The judge has openly deplored the media-circus surrounding the case, stating, “The costs for both sides are way over the top in my judgment. There is far too much time that is being spent here …"

Despite backing Qatar’s call for a speedy trial, Waksman rejected a bid by the airline to split the trial into two parts to allow Airbus to perform a deeper technical analysis, something the aerospace consortium says it has already done. Waksman also refused to order Airbus to stop formally trying to deliver more A350s to Qatar Airways, or to refrain from re-selling undelivered aircraft, while the dispute drags on. The procedural ruling means Airbus is free to attempt to trigger payment clauses as more planes are built. It can also try to sell A350s that Qatar has rejected to carriers like Air India—which industry sources say could step in as a buyer. The clauses are part of thousands of confidential documents likely to come under the microscope during the trial as two of the industry's most powerful players battle in open court.

Qatar Airways said an "expedited trial (would) provide a swift resolution of this unprecedented dispute" and allow it to assess the cause of damage to aircraft that Qatar has grounded.

Airbus hailed the blocking of the airline's injunction requests and renewed calls for a settlement, claiming, "The continued litigation is not in the interests of either party.”

Waksman, who concedes the case presently looks unsettle-able, has urged both sides to enter a period of reflection between now and next month, when a window for the trial opens.

Other airlines continue to fly the A350 after European regulators reaffirmed the design’s safety.

The legal spectacle has drawn concerns from top officials in Qatar and France, but neither state has yet intervened directly.

FMI: www.airbus.com, www.qatarairways.com