UK judge orders Airbus to delay cancellation of $6bn Qatar Airways jet order

The move effectively prevents the planemaker from allocating early delivery slots for the in-demand A321neo plane to other airlines

Airbus acknowledged quality problems with its aircraft but accused Qatar Airways of mislabelling them as a safety issue to secure compensation. AP

A UK judge ordered planemaker Airbus to delay any practical impact of a decision to revoke a $6 billion jet order from Qatar Airways for several weeks.

The move effectively prevents the planemaker from allocating valuable early delivery slots for the in-demand A321neo plane to other airlines, pending an early April hearing at which Qatar Airways plans to seek an injunction reinstating the contract.

The two sides have been clashing for months about surface flaws on A350s, some of which have been grounded by Qatar over safety concerns as its airline sues Airbus for $600 million.

Airbus acknowledges quality problems but accuses the airline of mislabelling them as a safety issue to win compensation.

The row widened in January when Airbus revoked a deal with Qatar for 50 A321neos, saying its refusal to take disputed A350s had triggered a clause linking the two plane deals.

In a Friday hearing, Qatar Airways condemned the decision.

"They took the risk and knew it would be absolutely incendiary. We have paid $330m for this [A321neo] contract so far and they knew it was a hand grenade being thrown into our bunker," Qatar Airways lawyer Philip Shepherd said.

The technical hearing gave glimpses of what may be a highly charged court battle, with a hearing on Qatar's request for an injunction set for the week of April 4, and a court date on the main A350 dispute set for April 26.

Pending the first of those hearings, a UK judge rejected an Airbus request for more time to prepare and ordered the company not to do anything in the meantime that may affect its ability to fulfil the A321neo deal if Qatar wins that part of the case.

Its lawyer Rosalind Phelps said the cancelled planes had been removed from its industrial plans and warned of damage to its supply chain if its hands were tied too severely.

The first plane is scheduled for delivery in February 2023, with planes to be delivered at a rate of six a year. Planemakers usually order parts up to a year ahead.

Airbus chief executive Guillaume Faury said on Thursday it had been forced to cancel the A321neo order to "exercise our rights". On Friday, he reiterated on BFM TV that Airbus was ready for an amicable solution, adding "it takes time". Sources close to both sides say there are no signs of any truce.

Reuters reported on Thursday that Qatar Airways was expected to seek a ruling to preserve the A321neo deal.

Airbus is, meanwhile, preparing counter-claims in the A350 case. It has cancelled two out of 23 A350s still on order for Qatar but has agreed not to look for alternative buyers for now.