ARC NEWS
​Airbus cancels Qatar Airways A321neo order amid A350 dispute
January 24, 2022
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".


Hong Kong lifts flight ban on Boeing 737 Max
January 24, 2022
Hong Kong's Civil Aviation Department on 21 January published a directive lifting its flight ban on Boeing 737 Max aircraft, allowing airlines to resume flights to airports in Hong Kong's airspace. The move may not immediately impact air traffic, however, as the Hong Kong government maintains a strict quarantine policy on international arrivals in support of its Covid-19 elimination policy. Furthermore, there are no airlines based in Hong Kong that operate Max jets or have them on order, the regulator's directive enables carriers to resume flying Max jets through Hong Kong International airport. Affected carriers with routes to Hong Kong include India-based Spicejet, which has 11 Max 8 jets in service; Singapore Airlines, which operates eight Max 8s; and Fiji Airways, which has five Max 8s in service. Each of those carriers is based in nations that have lifted flight bans on Max jets, which were first imposed in March 2020 following two fatal crashes. The Hong Kong regulator states that operators of Max aircraft must carry a valid certificate of airworthiness and make design changes equivalent to those ordered by the US Federal Aviation Administration, which in November 2020 lifted the US flight ban on Max jets. The government of mainland China has not yet lifted its flight ban on Max aircraft. The Civil Aviation Administration of China (CAAC) on 2 December published a directive allowing fixes to Max automated flight controls that contributed to two fatal crashes. Modifications including software fixes will be made to Max aircraft in China, but the CAAC may require additional steps before giving final approval for those jets to return to China's airspace. Boeing says that an estimated one third of the Max aircraft it has in storage are awaiting deliveries to China. Operators in the country grounded 97 Max jets in March 2019. That represents 66% of all Max aircraft in storage worldwide.


Air Austral gets greenlight for €20 million of support
January 21, 2022
The European Commission on 18 January approved a €20 million ($22.7 million) aid scheme for the Reunion Island-based carrier Air Austral to help the airline secure its cash flow and prepare for the future. This support comes from the French government for Air Austral, says the airline, which has been greatly affected by the ongoing pandemic and its consequences. The aid is in addition to previous shareholder loan grants from the regional council for Air Austral. The airline has also been devising a restructuring plan for several weeks now. The plan, which will be set in action within the next six months, will guarantee long-term business continuity and job security, the airline says.


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