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(Reuters) -Qatar Airways condemned what it described as an “incendiary” decision by planemaker Airbus to revoke an order for A321neo jets as it seeks a court ruling to reinstate the plane deal.
Airbus said last month it had pulled out of the deal because Qatar Airways had broken a separate contract in a dispute about surface flaws on larger A350 jets, something the carrier denies.
The companies have been locked in a dispute over blistered paint and degradation to anti-lightning protection on the long-haul A350s. Qatar has grounded 21 of the jets and is refusing to take delivery of more. Airbus says they are safe to fly.
Despite placing a preliminary order for 25 or more competing Boeing (NYSE:BA) 737 MAX planes last month, Qatar Airways has not surrendered hopes of receiving the in-demand A321neo and is seeking a UK court injunction to prevent the deal being cancelled.
In a hearing on Friday, a British judge rejected Airbus’ request to delay discussion on the A321neo for five weeks and ordered it not to do anything in the meantime that may scupper its ability to fulfil the A321neo deal if Qatar wins that case.
The hearing gave glimpses of what looks set to be a rare and bitter two-stage court battle in aviation, 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.
Qatar Airways accused Airbus of cancelling the A321neo to put pressure on the airline in the dispute over damaged A350s.
“They took the risk and knew it would be absolutely incendiary. We have paid $330 million 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.
Airbus Chief Executive Guillaume Faury said on Thursday the planemaker had been forced to cancel the A321neo order in order to “exercise our rights” as part of the A350 row.
On Friday, he reiterated on French BFM TV that Airbus was ready to find an amicable solution, while adding “it takes time”.
Qatar Airways has sued Airbus for more than $600 million plus $4 million a day and is refusing to take delivery of further A350s until its regulator receives formal analysis.
Airbus has said Qatar Airways has mischaracterized the problem as a safety issue and misinterpreted the contract.
Airbus told the court on Friday it would not attempt to redeploy initial delivery slots for other airlines pending the new hearing. Qatar Airways is due to take six A321neo aircraft a year starting in February 2023.
Reuters reported on Thursday that Qatar Airways was expected to seek a ruling to preserve the A321neo deal.
Airbus is meanwhile preparing to launch its own counter-claims in the A350 case.
