Airbus has terminated Qatar Airways' order for 50 A321neos amid the two parties' dispute over premature surface degradation on some A350s and the airline's decision to halt further deliveries of the long-haul jet. The European airframer confirms that it terminated the narrowbody order "in accordance with our rights", but declines to provide detail on that decision. A skeleton argument presented by Airbus during a 20 January hearing at the UK High Court's technology and construction division in London shows that the airframer notified Qatar Airways about the A321neo order cancellation in the context of the A350 dispute, and that Airbus expects the termination to "give rise to a further issue between the parties". The Gulf carrier launched legal action against Airbus in December 2021 following months of bitter dispute about the A350 surface issue. The case centres on Qatar Airways' claim for compensation from the airframer for grounded aircraft as a result of the issue. Earlier in 2021, the Middle Eastern carrier said it had been ordered by Qatar's regulator to ground aircraft because of the surface degradation. Data lists 21 of Qatar Airways' 53 A350s as being in storage. A further 23 A350s are on order by the airline. According to Airbus's skeleton argument, Qatar Airways' total compensation claim amounts to more than $700 million and, in the airline's view, increases by $4 million every day. A second allegation by the Doha-based carrier is that Airbus failed to provide a "full root cause analysis" of the surface degradation issue in the airline's view. Airbus argues it has "fully complied with its obligation to provide a full root cause analysis of the condition". In its skeleton argument, the airframer says that Qatar Airways has not identified "any instances in which the root causes analyses produced by Airbus were wrong or failed draw the correct conclusions". Qatar Airways has refused to take delivery of further A350s until the dispute about the surface issue is resolved. Airbus argues the airline has since been in breach of contractual obligations to take delivery of two A350s. The 50 narrowbodies – 40 A321neos and 10 A321LRs, all to be powered by CFM International Leap-1A engines – represent Qatar Airways' only order with Airbus in addition the 23 on-order A350’s. Qatar Airways says its A321neo order is "an entirely separate" matter to the dispute about A350 surface degradation. Noting that it is "adhering to all of our obligations under all applicable contracts", the airline states: "It is therefore a matter of considerable regret and frustration that Airbus has taken the apparent decision to expand and escalate this dispute. We continue to urge Airbus to undertake a satisfactory root cause analysis into the cause of the defects." The carrier adds it "remains prepared to help with the root cause analysis however it can".