The row had led Airbus to withdraw billion-dollar plane deals and Qatar Airways increasing its purchases from Boeing Co.
A major disagreement between Qatar Airways and Airbus has come to an end after more than two years, the two parties said.
Qatar Airways and Airbus announced an “an amicable and mutually agreeable settlement” to end the crisis few months before a court case that was scheduled to begin in the High Court of London
The $2 billion dispute about surface damage to the long-haul jets was resolved after the two sides revealed in a brief joint statement issued on 1 February that they would end their legal claims against one another, but that the details of the settlement were confidential.
The row had led Airbus to withdraw billion-dollar plane deals and Qatar Airways increasing its purchases from Boeing Co.
Under the current agreement, the 23 unfulfilled A350s and 50 smaller A321neo orders that were cancelled have been reinstated, and Airbus is also anticipated to pay the Gulf carrier several hundred million dollars while forgoing additional claims, according to Reuters. Financial information, however, was kept private.
According to the two parties, neither admitted fault, however both promised to renounce their grievances and “move forward and work together as partners.”
The agreement ends what amounted to an extraordinary public divorce trial between titans of the $150 billion jet industry, which is typically close-knit and shrouded in secrecy, Reuters said.
Prior to the June trial, the two parties had amassed claims and counterclaims totalling roughly $2 billion.
The purchase, which followed growing political participation amid close connections between France, where Airbus is based, and Qatar, was praised by French Finance Minister Bruno Le Maire.
“It is the culmination of significant joint efforts. It is excellent news for the French aerospace industry,” he said.
Before the announcement, Airbus shares finished up 1%.
Qatar Airways took the extraordinary step of openly suing the world’s largest aircraft manufacturer over safety concerns after paint cracks revealed holes in a sub-layer of lightning protection on its latest generation of A350 carbon-composite aircraft.
Despite acknowledging quality issues, Airbus argued that the aircraft were safe, supported by European regulators, and accused the airline of misrepresenting issues in order to obtain compensation.
Qatar will finally receive the in-demand A321neos it needs to plan its growth in 2026, though three years later than anticipated. Separate from the contentious A350 contract, IATA, the international association of airlines, had criticised Airbus’ decision to cancel the order.
The agreement is also anticipated to put an end to a claim for compensation for grounding that had been accruing $6 million per day due to a condition enacted after repainting a plane for the World Cup showed major surface damage, Reuters said.
According to court documents, Airbus’ theoretical liability, which was initially estimated at $200,000 a day per plane, had increased to a total of $250,000 per hour for 30 jets, or $2 billion annually, by the time the deal was reached. On the specifics of the deal, neither party spoke out.
In order to provide the necessary “repair solution” and get Qatar’s 30 grounded jets back in the air, Airbus said it would now collaborate with the airline and authorities.
Prior to the disagreement, Qatar was the largest A350 operator in the world, with 53 of the planes delivered out of an order for 76 of them made in June 2007.
