Airbus says it revokes Qatar order for 50 A321 jets as rift widens

Airbus on Thursday raised the stakes in a dispute with one of its largest customers, Qatar Airways, over grounded and undelivered A350 jets by announcing it had revoked a separate contract for 50 smaller A321s the airline needs to open new routes. The move is expected to deepen a dispute that moved closer towards a rare courtroom clash on Thursday, with a procedural hearing over Qatar’s claim for $600m in compensation over A350 flaws penciled in for the week of April 26 in London. Airbus revealed it was walking away from the contract for A321neos in skeletal arguments presented during a scheduling session over the A350 dispute at a division of Britain’s High Court on Thursday, people familiar with the matter said. “We confirm we did terminate the contract for 50 A321s with Qatar Airways in accordance with our rights,” an Airbus spokesman said following a filing setting out provisional arguments. Qatar Airways is expected to fight the A321 contract’s termination, having said it plans to take delivery of the jets even though it is refusing to take more A350s until a dispute over surface erosion on the larger planes has been resolved. The A321 order stems from a deal first signed some 10 years ago which was then worth $4.6b at list prices. It was later modified to switch 10 of the A321s to a newer version. Qatar Airways has said the A321s will help it launch flights to new markets where there is currently not enough demand for larger aircraft, but which are out of reach of smaller A320s.<br/>