Qatar Cancels First A320neo Over Delays

June 4, 2016

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Qatar Airways has cancelled its first Airbus A320neo and remains at an impasse with the European plane maker over delays in deliveries caused by engine problems.

The delays are having an impact on Qatar Airways' bottom line, but the carrier said it is not seeking compensation, Akbar Al Baker told reporters.

The airline announced in May it was reducing the frequency of more than a dozen routes from Doha because of hold-ups in the delivery of new aircraft from Airbus.

"We are 5 aircraft down this summer. This is why we are screaming because it is making a huge impact on my bottom line," Al Baker said.

"We are still at an impasse. We have walked away from our first A320neo because more than a certain number of days late, so exercised a walk away clause," Al Baker said.

He said he still expects Airbus will be able to deliver 10 of the larger A350s as promised this year.

"We will have no alternative but to lease. We are awaiting final response from Airbus," he said. We are "not talking about compensation. It is about us getting planes so we can meet network requirement."

(Reuters)