Airbus cancels $6 billion A321Neo contract with Qatar Airways over this issue

After refusing to take any more A350s until the problem is fixed, Airbus has terminated its 321neo contract with Qatar Airways.

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Airbus cancelled an order for 50 single-aisle A321neo jets from Qatar Airways worth more than a billion dollars. The Associated Press reports that Airbus confirmed its decision to terminate the contract for the A321neo while Qatar Airways is embroiled in a legal battle over the grounding of the larger A350 plane.

Qatar Airways announced in December that it would sue Airbus in London over what it said was the accelerated surface degradation of the wide-body A350. There was no other option for Qatar Airways, which has grounded 21 of its jets.

The termination of Airbus' 321neo contract follows its refusal to take any more A350s until the problem is fixed. With the month long FIFA 2022 World Cup beginning on November 21, Qatar Airways will rely on the long-haul A350 to handle the increased inflow of passengers.

Qatar Airways operates 53 Airbus A350s in both its 1000 and 900 series. There are still more A350s on order with the French manufacturer, making its total order of 76 airplanes the highest in the world.

In a brief statement to the Associated Press, Airbus confirmed that it had terminated a Qatar Airways contract for 50 A321s. The airline did not provide further details.Bloomberg first reported the cancellation of the A321neo contract. Qatar Airways did not immediately respond to requests for comment.

Last year, Qatar Airways stated that it had no choice but to seek a court order to compel Airbus to thoroughly investigate the cause of the corrosion beneath the paint on its fuselage.

According to Qatar Airways, it is not possible to determine if any proposed solution will correct the underlying condition.Despite no other airline grounding the A350 because of safety concerns, Airbus stated that it intends to vigorously defend its position.

With inputs from PTI