PARIS: Airbus and Qatar Airways have settled a dispute over grounded A350 jets, the companies said on Wednesday, averting a potentially damaging UK court trial after a blistering 18-month feud that tore the lid off the global jet market.
The “amicable and mutually agreeable settlement” ends a $2 billion row over surface damage on the long-haul jets. The spat led to the withdrawal of billions of dollars’ worth of jet deals by Airbus and prompted Qatar to increase purchases from Boeing.
The cancelled orders for 23 undelivered A350s and 50 smaller A321neos have been restored under the new deal, which is also expected to see Airbus pay several hundred million dollars to the Gulf carrier, while winning a reprieve from other claims. Financial details were not publicly disclosed.
The companies said neither admitted liability. Both pledged to drop claims and “move forward and work together as partners”. The deal heads off what amounted to an unprecedented public divorce trial between heavyweights in the normally tight-knit and secretive $150 billion jet industry.
The two sides had piled up combined claims and counter-claims worth about $2 billion ahead of the June trial. French Finance Minister Bruno Le Maire welcomed the deal, which came in the wake of increasing political involvement amid close ties between France, where Airbus is based, and Qatar.
“It is the culmination of significant joint efforts. It is excellent news for the French aerospace industry,” he said. Airbus shares closed up 1% before the announcement.
Qatar Airways had taken the unusual step of publicly challenging the world’s largest planemaker over safety after paint cracks exposed gaps in a sub-layer of lightning protection on its new-generation A350 carbon-composite jets.
Airbus had acknowledged quality flaws but backed by European regulators, had insisted that the jets were safe and accused the airline of exaggerating flaws to win compensation.
Neither side commented on settlement details. Airbus said it would now work with the airline and regulators to provide the necessary “repair solution” and return Qatar’s 30 grounded planes to the air. Confirmation of a settlement came after Reuters reported a deal could arrive as early as Wednesday.
