Could Qatar Airways’ A321neo Order Be Reinstated?

A few weeks ago, the contract to sell 50 of the 321neos was terminated by Airbus. It looks like all hope may not be lost, and we could see this contract reinstated.

Airbus ordered to delay Qatar Airways A321neo cancelation

There is a $600 million legal dispute involving the A350. The A350 fleet has been grounded by Qatar Airways because the surface is degrading at an accelerated rate. The issues have been argued that they are not real.

The relationship between the airline and aircraft manufacturer deteriorated to the point that the manufacturer decided not to sell the A321neos to the airline. The reason for this is that Qatar Airways refused to take delivery of the A350s, putting them into default on new planes.

A UK judge has ordered the delay of the revocation of the A321neo order. This prevents other airlines from getting early delivery slots. The injunction that is being sought by Qatar Airways will have to be heard in early April.

This means that the A321neo order is still alive.

Will Airbus and Qatar Airways reconcile?

It's becoming more and more likely that the two airlines will reconcile here. Within the past few days, the CEO of the aircraft manufacturer made it clear that they are looking for a solution with the airline of their choice.

Even though the company claims that the A350 doesn't have safety implications, it has begun to acknowledge that the A350 is experiencing surface degradation. This is still progress compared to the claims made by Airbus.

It is likely that the two airlines will reconcile in the coming weeks.

• While there’s no indication that the court will necessarily rule in Qatar Airways’ favor in early April, this at least buys Qatar Airways several weeks to come to an agreement with Airbus, before the delivery slots are given to another airline
• Qatar Airways still has many A350s on order, so it seems easier for Airbus to once again develop a good relationship with Qatar Airways, rather than try to cut ties altogether
• Qatar Airways placed a Boeing 737 MAX order shortly after Airbus canceled the A321neo order, though it’s not a firm commitment yet, so I imagine Qatar Airways still has a way to get out of it
• The simple reality is that the A320neo family of aircraft is better than the Boeing 737 MAX family of aircraft in terms of range, comfort, etc.; with Qatar Airways’ narrow body fleet currently consisting of A320 family aircraft, it would also be much more efficient for the airline to maintain this

Bottom line

There is a huge dispute between the two airlines. The cancellation of the A321neo order was a huge blow to the carrier's short haul fleet plans. A judge has ordered Airbus to not give delivery slots to other airlines until a hearing takes place in early April, after a court ordered that the order be restored.

As we are hearing the narrative from the executives at Airbus shift slowly, it seems likely that the two airlines will be able to come to an agreement. They are willing to reach an agreeable solution, and are admitting that there are more than just paint issues with the A350.

Do you think the two companies will make up?