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.

Hot this week

CIIN Boss, Yetunde llori, Bows Out, Lists Achievements in Office

Mrs. Yetunde llori, the President/Chairman of Council, Chartered Insurance...

WorldStage Business Forum Q2 2026: Prof. Baale Makes Case for Building World-class Nigerian Corporate Culture

L-R: Mr. Segun Adeleye, President/CEO, World Stage Limited; Prof. Lere...

Insurance Brokers Reaffirm Commitment to Local Content, Digital Innovation at SUPERNEWS Conference

Deputy President of the Nigerian Council of Registered Insurance...

Regency Alliance Insurance Launches N7bn Private Placement

Regency Alliance Insurance Plc has officially launched a private...

Topics

Royal Exchange: N11bn Premium Drop in 9 Months, N356m Loss in Qtr 3

Royal Exchange Plc has reported N11 billion drop in...

The Nigeria Prize for Literature: Akubuiro, Gomba, Ojomu Make 2023 Shortlist of Three

The Advisory Board for The Nigeria Prize for Literature...

UN Broadband Commission Adopts Plan of Action Against COVID-19

    An emergency virtual meeting of the Broadband Commission for...

How Fortune Ran Out for Nigeria’s Goodluck Jonathan

Nigerian President Goodluck Jonathan makes a declaration in front of supporters at a ceremony in Abuja on November 11, 2014. Goodluck Jonathan’s rise to the top of the pile in Nigeria’s ruthless political world has been described as accidental -- a matter of good luck. But the amazing run of coincidence and chance that brought the son of a canoe-maker to the Presidential Villa in the capital, Abuja, seems to have come to an end.

Senate May Reject Amaechi, Fashola as Ministers

There are growing indications that the Senate may not confirm Hon. Rotimi Amaechi and Babatunde Raji Fashola as ministers following growing allegations of corruption during their tenure as executive governors of Rivers and Lagos states respectively. A high-ranking PDP Senator from the South-South region told Business Journal on condition of anonymity in Abuja that the PDP-caucus at the Senate will make sure that both Amaechi and Fashola fail the ministerial confirmation hurdle.

6 Ways to Make Money on the PalmPay App in 2024

If you need an additional source of income, you...

Disruptive Innovations: Implications for the Future of Work

  By Tony Ojobo "Your job won't be taken by AI, but...