Qatar Airways, Airbus Settle Contentious A350 Case

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Facts

  • On Wednesday, Qatar Airways and Airbus announced they have reached an "amicable and mutually agreeable settlement" ending an 18-month dispute over the safety of A350 jets and averting a potentially damaging UK court trial.
  • Safety concerns over Europe’s premier long-haul jet caused Qatar Airways to ground Airbus 350s citing that the craft’s fuselages were “degrading at an accelerated rate.” The concerns spiraled into a highly-unusual public dispute worth $2B.
  • In December 2021, Qatar Airways sued Airbus in London over the fuselage issues. Cracks in the painted surface exposed gaps in a sublayer of A350 lightning protection — prompting the airline’s regulator to ground 29 of the jets; Airbus then canceled a Qatar Airways order for 50 "A321neo" jets.
  • According to the joint statement released by the two companies, the settlement is “not an admission of liability for either party,” and it added that a repair project is in progress.
  • Financial details of the settlement were not publicly disclosed, but Qatar will receive the 23 remaining A350s this year. Airbus also reinstated the airlines’ order for 50 A321neo aircraft which Qatar Airways will receive in 2026.
  • Airbus said it did its best to avoid pushing Qatar’s order farther back in its queue, but some experts suggest the company could have met the demand sooner. The settlement has also stopped the clock for an accruing grounding compensation claim that was growing by $6M per day.

Sources: Reuters, Al Jazeera, FT, and SamChui.

Narratives

  • Narrative A, as provided by Airbus. There is a mischaracterization of non-structural surface degradation on Airbus’ A350. This is leading to unfounded questions about the craft’s safety. Safety is Airbus’ top priority, and any perceived flaws with the jet are merely cosmetic. Calling the safety of Airbus’ craft into question is irresponsible and a threat to international protocols on safety matters.
  • Narrative B, as provided by Qatar Airways. Despite what Airbus may say, the issues present in the Airbus A350 are more than "cosmetic." The crafts have an underlying issue that needs to be addressed, and the damage to the fuselage is not common for standard aircraft. Qatar Airways cannot risk flying a jet with safety concerns.