That $6b Qatar Airways contract

That $6b Qatar Airways contract

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Who would’ve thought peeling paint would be enough to cancel a $6b deal? That seems to be the reason why Airbus told Qatar Airways it would not be fulfilling its order for 50 new A321neo passenger jets last week.

Last month, Qatar Airways took Airbus to court in London over issues with the Airbus A350 aircraft. The airline complained that paint was cracked and peeling on the exterior of 21 of the 53 recently delivered planes, exposing the copper meshing used to insulate the aircraft from lightning strikes.

Qatar Airways ended up having to ground the affected planes and is now seeking to collect $600m in compensation from Airbus. The drama was enough for Airbus to scrap its most recent contract with Qatar Airways worth $6b.

Why it matters

According to Reuters, five other airlines had reported paint or skin flaws on the A350 since 2016. Airbus claims it is looking into changing the design of anti-lightning mesh for the aircraft but insists the planes have adequate backup protection from lightning.

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