Why Qatar Airways Hated Airbus
Not long ago, Qatar Airways (QA) and Airbus got embroiled in a legal matter that remains one of the most interesting in the history of plane manufacturer vs airliner relationships. Starting as a small matter when then QA CEO Akbar Al Baker remarked that the case at hand was of “critical safety”, hardly anyone anticipated the twists and turns that things quickly took.
The scuffle regarded the Airbus 350 and this article is dedicated to telling you the full details of everything that happened. In it, I will share about details of the accusations that QA brought forth, their validity, how they were resolved (or not) etc.
In the end, this dispute’s legacy will continue to have implications beyond the two companies in question so you should read it with a border picture in mind. And as always, please let me know what you made of everything in the comments section.
Summary
Before going into the full breadth of events, let me briefly take you through the overview so you know where we are headed. Basically, Qatar Airways established at the start of 2021 that the surface paint of her A350 jets was peeling and cracking. In the air company’s words, the same compromised safety. Consequently, QA grounded all 20 planes of this kind.
Airbus perceived QA’s statements as exaggerated and her actions as overreacting pointing out that no other carrier across the world was experiencing any such difficulties. They admitted that there was an issue but that it was just about the paint used and nothing else. The European Union Safety Agency supported (EASA) Airbus too.
QA remained insistent in her assertions nonetheless there forcing a dispute to ensue. Airbus was concerned that if nothing was done in response, her public image would be tainted there costing it loads of monies if say, other airlines grew weary of the A350 too and decided not to purchase it.
Having commenced, the legalese went through a long and tedious process that did not come to a close until the passing of two years. In Feb of 2023 thus, both Airbus and QA issued a joint public statement confirming that their grievances had been resolved amicably.
Detailed timeline
Okay then, let’s go through the ten stages that makeup the bitter falling out of Airbus and QA, and the eventual burying of the hatchet. I have made each of them straight to the point not to bore you and yet well explained with the details that should not be missed.
Early Complaints
As a matter of fact, QA was not the first to take issue with Airbus’ painting of the A350. The misunderstanding between the two made headlines mostly because of the nature of Qatar Airway’s response and perhaps because Qatar is significantly larger than some of the other companies involved.
One of the early birds on this one was Lufthansa. In February 2021, they sent three of their A350 carriers back to their manufacturer for repainting. The step was taken after an understanding was arrived at by the two entities to follow through the terms of the aero planes’ warranty.
Qatar Airways comes in
Three months after the Lufthansa incident, Qatar publicly expressed generic concerns around its relations with Airbus. They refused to be any more specific even when pushed by media. The CEO at the time also pointed out that QA would stop taking on the affected planes should nothing be done about the technical failures.
In June, Qatar followed through with its earlier threats i.e. they stopped taking in the planes. Mr. Akbar also revealed the specifics of his company’s queries publicly for the first time. In August, QA would go on to take what is probably the most drastic measures of all i.e. ground all its A350 liners.
It stated that it was doing this on account of advice given to them by Qatar Civil Aviation Authority.
Third parties back Airbus
Five days after QA’s actions above, the European Union Aviation Safety Agency issued a public statement declaring that the defects raised by Qatar had been blown out of proportion. In particular, EASA affirmed that the queries regarding the A350 could not affect the carrier’s airworthiness.
The agency further pointed out that they had been aware of Qatar’s complaints going back a year from then the implication being that they were sure of what they were talking about.
On the same day that EASA communicated the information above (August 10th), Singapore Airlines came out and made an even grander defense. The body stated that they had not experienced any paint difficulties whatsoever with their A350 aero planes.
Qatar tries to fill the gap
In November, Qatar announced that it would be returning her A380 fleet into service in order to feel the gap left by the A350. The transport company pointed out that they were doing this reluctantly seemingly because they had no choice– purchasing an aero plane as big as this actually takes time.
These sentiments reechoed QA’s earlier positions in calling the decision to buy the A380 a mistake to begin with.
Airbus has had enough of QA’s press releases at this point. At the beginning of December, it announces that it is trying to establish ways of legally addressing the wrangle.
Failed UK Government settlement
Hearing that the Qatar Airways-Airbus question might end up in court, then United Kingdom Investment Minister Gerry Grimstone offers to mediate it perhaps hoping to provide expedience as issues of this kind will otherwise take years to end. Unfortunately, the Minister’s endeavor is not successful.
Qatar presses charges against Airbus at the London Technology and Construction High Court Division. On 6th January, 2022, it seeks $600m in damages and $4m for every single day that the grounded A350s remain out of activity.
Airbus goes on the Offensive
The contentions around the A350 notwithstanding, Airbus and QA are still doing business regarding other types of planes and here, the former company sees an opportunity to strike back. On January 21st, it cancels plans of delivering all 50 Qatar orders of the A321.
In retaliation, Qatar Airways releases a video that shows the extent of the damage that is the genesis of the conflict. It is the first time that the public gets to see for itself. Further, the airline sets in motion the procurement of 100 planes from Airbus’ rival Boeing. Fifty of these are of the 737 MAX type intended to occupy the vacuum left by the A321.
The court battle commences
We are in court now and each side makes it case. Working on arguments by QA’s lawyers, the judge imposes a temporary injunction on any further actions by Airbus that may frustrate the purchasing of the A321 until the outstanding matter is resolved. This means that Airbus cannot sell the affected planes.
Airbus raises grievances around the fact that QA has refused to purchase any other A350s despite earlier contracts. The plane producer asks that it is awarded $220m. Qatar denies that it owes any such monies asserting that the state of these aero planes are likely to cause fires if flown.
Preliminary rulings from the court
April 26th: court delivers a ruling allowing Airbus to proceed with using the A321 QA orders as it wishes despite earlier agreement to sale. The rationale is that the actions of QA with the A350 jets revoked the common ground arrived at in regards to A321. The judge says that this judgment can be challenged in future should QA wish it.
A month later, the court agrees to handle the matter expeditiously in the interest of the public. QA is happy about this though Airbus would still rather have an out-of-court settlement.
Should we trust words or actions?
With all that is going on, there is concern that Qatar and Airbus will not go past their present fighting. While attending the IATA conference in June however, Airbus CEO Guillaume Faury says that despite what is happening in public, the two companies continue to communicate.
Guillaume’s assurances become even harder to believe though when two months after the fact, Reuters runs a story intimating that his organization had cancelled all remaining QA orders. In total, there are 19 of them. Airbus later confirms this.
The final resolution
Qatar Airways demands that Airbus produces documentation relating to settlements that the European plane manufacturer entered with other airlines regarding the concerns similar to those it raised about the safety of Airbus planes.
QA is in turn asked by court to produce correspondence with Qatar Civil Aviation Authority on which it has claimed all along was the basis of its grounding of the Airbus.
These two factors coupled with the fact that it is clear at this point that the trial will take longer than expected (this is Dec, 2022 and the proceedings are to start in June the following year) force the two parties to agree to settle.
Where the relationship is at now
The details of the understanding that the two companies arrived at is not known to us as it was never made public. We however, have the conduct of these guys in the times coming after to read from.
First, Airbus agreed to carry out repairs on the A350s that QA complained about as having defects. Additionally, the plane maker has since adopted a different approach to building all A350s that were constructed after 2023.
The copper foil used now in the layering is not the same as that which was used before. This is despite the fact that the entity insists that the planes manufactured previously were safe.
Airbus did reinstate her delivery of planes to QA too. The challenge is that some of them had already been disbursed to elsewhere so they have had to make do with what was left.
It is fair thus, to conclude that while this might not be the best of times that QA and Airbus have had, it is certainly far better than what things have been like in the last couple of years and that it could very well be that it is a moment that could potentially be the foundation of stronger ties in the future.
