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

Hot this week

PufferPay CEO, Emmanuel Ovaga, to Keynote Business Journal Fintech & Financial Inclusion Roundtable 2026

Mr. Emmanuel Ovaga, the Chief Executive Officer (CEO) of...

SERAP asks Akpabio, Abbas to Explain ₦1.3bn Allocation to ‘Fictitious Presidential Council’

The Socio-Economic Rights and Accountability Project (SERAP) has urged...

FG to IMF: Response to Recent Misrepresentations on Public Expenditure

The Federal Government has noted recent public commentary alleging...

Topics

Polaris Bank Signs Up to PAPPS to Ease Customers’ Cross Border Payment

Polaris Bank, Nigeria’s leading digital retail Bank, has enrolled...

Embraer to Sack 4000 Staff

Brazilian plane manufacturer, Embraer announced plans to reduce its...

Mutual Benefits Assurance Celebrates 27th Annual Thanksgiving Service

Dr. Akin Ogunbiyi, Chairman, Mutual Benefits Assurance Plc and...

Financing Development under President Buhari: The Role of Pan African DFIs

By Roberts Orya, MD/CEO Nigerian Export-Import Bank (NEXIM) The Central Bank of Nigeria (CBN) has prognosticated a possible economic recession in 2016. This possible worst outcome of the present slump is something I am sure President Muhammadu Buhari would do everything to prevent. No president wants to be known in history as a 'Recession President.' However, this undesirable economic situation can sometimes become a reality, even inspite of the best efforts of a well-meaning leadership.

African Alliance to Host NCRIB South-South Area Committee

Joyce Ojemudia Managing Director/CEO African Alliance Insurance Plc African Alliance Insurance Plc...

Emmanuel Ibe Kachikwu: The Dawn of Transparent Reform in NNPC

The above inspirational tune by Dr. Emmanuel Ibe Kachikwu, Group Managing Director (GMD), Nigerian National Petroleum Corporation (NNPC) minutes after he took over the reins clearly underscores the key importance of his mission and desire to change the story of NNPC along the path of transparency and sustainable contribution to national economic growth.

NCC Chief, Danbatta, to Unveil Compendium, Key Projects Sept 7

Professor Umar Garba Danbatta, Executive Vice-Chairman and Chief Executive...

Unity Bank, Experts Advocate Green Investment, Climate Innovation to Drive Economic Resilience

Nigeria’s retail lender, Unity Bank Plc, alongside leading climate...
spot_img

Related Articles

Popular Categories

spot_imgspot_img