Airbus and Qatar Airways have settled a dispute over the safety of grounded A350 jets, the companies said on Wednesday, averting a potentially damaging UK court trial following a blistering 18-month feud that captivated rivals.
The "amicable and mutually agreeable settlement" ends a $2 billion row over damage to the surface of Europe's premier long-haul jet - an unprecedented public spat which had led to the withdrawal of billions of dollars of Qatar jet deals by Airbus.
Those orders - for 23 undelivered A350s and 50 smaller and in-demand A321neos - have been restored under the new deal, though Qatar will get the A321neos three years later than originally scheduled in 2026, with the A350s resuming in 2023.
Airbus has meanwhile put forward a repair solution and will work with regulators to find the best way to restore the 30 grounded A350s to the air, an Airbus spokesperson said.
Both companies said there was no admission of liability by either party and pledged to drop their legal claims and "move forward and work together as partners".
That heads off what had amounted to a corporate divorce trial between two of the largest players in the normally tight-knit and secretive $150 billion global jet market.
Both sides had accused each other of bad faith and piled up combined claims worth around $2 billion ahead of a two-part High Court trial just 120 days away in London in early June.
'JOINT EFFORTS'
French Finance Minister Bruno Le Maire welcomed the settlement.
"It is the culmination of significant joint efforts. It is excellent news for the French aerospace industry," he said.
Financial details of the agreement, which experts say could involve the payment of a portion of the $1 billion sought by the carrier to compensate for disruption, were not disclosed.
Qatar Airways had challenged the world's largest planemaker over safety and taken it to court after cracks in the painted surface exposed gaps in a sub-layer of lightning protection. It had called for an official repair solution and more analysis.
Airbus had acknowledged quality flaws but insisted that the jets were safe, backed by European regulators, and accused the airline of exaggerating flaws to press a compensation claim.
News of the deal came after Reuters earlier reported a deal could be reached as early as Wednesday.
On Tuesday, Reuters reported the tone had improved and negotiations had accelerated following political activity and a smooth meeting between the companies and their regulators.