Qatar Airways Cancels $5.3bn Airbus A320 Order over Delays

Qatar Airways has canceled the delivery of the first Airbus A320 aircraft over delays caused by engine problems.

Qatar Airways had ordered 50 A320neo-family aircraft for $5.3 billion in 2011 and was to receive the first one last October.

However, the aircraft faced software and hydraulics problems and the carrier’s CEO, Akbar Al Baker expressed his discontent about A320neo PW1100G engines, stating that they were not properly tested for high temperatures in the Gulf region. The problems led to months of delays and Akbar Al Baker claimed that Qatar Airways was allowed to invoke the cancellation cause.

Akbar Al Baker claimed that Qatar Airways should have had 5 A320neos in service by this summer. As a result of the delays, it was forced to reduce flight frequency of 15 routes to Boston, Houston and Miami among others. The company’s CEO stated: “It is making a huge impact on my bottom line. We are, quite frankly, screaming.”

The only way for the airline to fulfil the commitments to their customers is to lease. “We will have no alternative but to lease. We are awaiting final response from Airbus,” said Akbar Al Baker. We are not talking about compensation. It is about us getting planes so we can meet network requirement.”

Akbar Al Baker also claimed that the airline could walk away from more orders of Airbus A320 neo. However, he still expects that plane manufacturer will be able to deliver 10 of the larger A350 airplane by the end of calendar year.

spot_img
spot_img
spot_img
spot_img
spot_img

Hot this week

Stanbic IBTC Bank Nigeria PMI: Marked Growth of New Orders Seen Again in July

Growth was maintained in the Nigerian private sector during...

NAICOM: 43 Insurance/Re Firms Scale Recapitalisation Hurdle, 8 Awaiting Final Verification

The National Insurance Commission, today announced the successful completion...

NLNG Unveils 11 Nominees for The Nigeria Prize for Creative Arts

The first-ever nominees for The Nigeria Prize for Creative...

CBN Lists Five Strategies to Drive Next Stage of Fintech Growth in Nigeria

L-R:  Mr. Emmanuel Ovaga, MD/CEO, PufferPay Ltd; Sola Longe-Okenimkpe,...

NGX Chair: Exchange Adopting Fintech, Digital Solutions to Expand Market

L-R:  Mr. Emmanuel Ovaga, MD/CEO, PufferPay Ltd; Sola Longe-Okenimkpe,...

Topics

Signal Alliance, MainOne Win at Microsoft Nigeria Partners Award

Microsoft Nigeria recently held its maiden edition of its...

NSE President’s Courtesy Visit to DG, SEC

L:R: Mr. Mounir Gwarzo, Director General (DG), Securities and...

African Dev Bank Wins Industry Gong for Pioneering 2019 Social Bond Issue

  Dr. Akinwunmi Adesina President African Development Bank The African Development Bank received...

NCRIB: ‘80% of Policyholders Complaining about Insurance Didn’t Patronise Brokers’

  L-R: Mr. Atanda Olatokunbo, Controller, Internal Audit & Compliance,...

Embracing Healthy Food Culture in Nigeria

By Reginald Onabu Culture separates, yet connects, the world. People...

NCC: The Road to Broadband, Internet Connectivity for Businesses, Individuals

Barrister Adeleke Adewolu Executive Commissioner Stakeholder Management Nigerian Communications Commission The Nigerian...

SIM Boxing and the Unboxing of a Crime Syndicate

Boxes have a multitude of uses, and the word...
spot_img

Related Articles

Popular Categories

spot_imgspot_img