On Thursday, Airbus said in a court document that Qatar Airways has indicated that a provisional agreement to buy up to 50 Boeing 737 MAX jets has expired. This is the latest twist in the legal battle between the European manufacturer and the Middle East carrier.
The MoU lapsed
In January, Qatar Airways and Boeing signed a deal for 50 Boeing 777X aircraft and an additional Memorandum of Understanding (MoU) for up to 50 737 MAX units (25 MAX 10s on firm order plus 25 options).
The MoU for 50 MAX aircraft came as a retaliation to Airbus, which, in the previous days to the Qatar announcement, had canceled an outstanding A321neo order for a total of 50 airplanes. The first delivery was supposed to take place in February 2023, and Qatar Airways had made up to $330 million in pre-delivery payments on the aircraft.
Both parties have been involved in a very public row over problems with some of Qatar Airways Airbus A350 passenger jets.
Recently, Airbus requested a copy of the Boeing 737 MAX agreement after Qatar Airways brought it up as part of its bid for compensation for damage to the A350 fleet, now worth $1.4 billion.
According to Airbus’ UK court filing, and reported first by Reuters, Qatar Airways rejected the request on the ground that the Boeing deal had now “expired.”
Simple Flying reached Qatar Airways for comment. The airline had no immediate comment.
Not the first time Qatar has rejected a Boeing order
If Qatar Airways indeed let the Memorandum expire, it wouldn’t be the first time it rejects an order for MAX aircraft.
In 2020, the airline told Boeing that it would not take up its order for 30 B737 MAX aircraft because it didn’t need the type. That order was destined for Air Italy, an Italian startup backed up by Qatar Airways, which disappeared in February 2020.
Qatar Airways’ first order for MAX aircraft was signed in October 2016 and included a letter of intent for up to 60 MAX jetliners (30 options).
Following the cease of operations of Air Italy, Qatar Airways no longer required the MAX. In October 2020, the airline’s CEO, Akbar Al-Baker, told Sky News,
"We only had 30 [737 MAXs] ordered. We have already informed Boeing that we will have to replace them with some other type of airplane because we had bought it for a particular airline in which we had invested, and we have withdrawn our investment from that airline, so we will not require the 737 MAXs anymore."
But this time was supposed to be different
Nonetheless, it was expected Qatar Airways would confirm the Memorandum of Understanding with Boeing.
During the IATA Annual General Meeting, Al Baker told AirInsight that Qatar was planning to sign a firm order because “more aircraft have issues that needed to be solved.”
If the deal between Qatar Airways and Boeing has effectively expired, it could harm the “strong relationship” between both companies, as Boeing could feel exploited and as a plan B while Qatar Airways settles its disputes with Airbus.
What do you think about this latest development in the legal dispute between Airbus and Qatar Airways? Let us know in the comments below.
Source: Reuters, AirInsight.