Airbus (AIB, Toulouse Blagnac) has cancelled a third Qatar Airways A350-1000 order after the carrier continued to refuse delivery of any more units of the type until the manufacturer fixes fuselage paint defects, Reuters has reported.

In January, Airbus cancelled two A350 orders and is also seeking USD220 million in damages from the carrier for its refusal to accept anymore A350s. As it stands, Qatar Airways still has twenty A350-1000s due none of which the airline is planning to take until a solution is found to the paint degradation problem. The Qatari Civil Aviation Authority (QCAA) has thus far grounded twenty-three out of Qatar Airways' fifty-three A350s (including A350-900s and -1000s) on safety grounds. In late March, the airline argued that the exposure of anti-lightning copper wiring to the elements increased the risk of a fuel tank ignition.

Airbus, backed by the European Union Aviation Safety Agency (EASA), admits the problem exists but steadfastly denies that it constitutes an airworthiness issue and maintains it does not affect safety. Other airlines and regulators have acknowledged the problem but have not grounded the type.

In January, Qatar Airways filed a lawsuit against the manufacturer in the London High Court, seeking USD618 million in damages. However, as the amount is calculated on a per-day basis, it has since grown to over USD1 billion.

Concurrently with the discussions over the A350s, the two companies are embroiled in a lawsuit related to Airbus's decision to unilaterally cancel orders for fifty A321-200neo placed by Qatar Airways. On April 7, the judge deferred a decision on whether Airbus could proceed with the cancellation to at least April 26, when the next A350 case hearing is scheduled.

Qatar Airways argues that Airbus had no right to cancel the order unilaterally and that the decision would leave the carrier with no alternative to add other aircraft with similar characteristics during a period of expected high demand. In an unusual twist, Airbus argued that the airline could order aircraft from lessors or even Boeing as an alternative. The manufacturer's lawyer Sonia Tolaney even stated that the B737 MAX had a "comparable if not better range" to the A321neo.

Qatar Airways' A321neo deliveries were due to begin in 2023. In February, the judge told Airbus to pause any "practical effects" - such as the reallocation of delivery slots to other customers - pending a final ruling.