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Revelation wrote:aaexecplat wrote:That said, Airbus KNEW who AAB was and what he was capable of. Who in their right mind chose to sign that SCL in 2020 with such an open-ended liability? They effectively gave AAB a license to print money and were then surprised it came to be. Now it also makes sense why AAB is willing to go to war. If he can uphold the SCL and ground more planes along the way (almost certainly what he is doing), he could turn that into billions without an expiration date.
It seems it's not just Airbus who hires high end legal talent.
aaexecplat wrote:So in summary of the AirInsight article:
- In November of 2020, QR brings the paint issue to Airbus' attention
- Airbus agrees to sign an SCL that stipulates $175k/day damages for every plane out of service for 12+ hours a day
- In the summer of 2021, Qatari regulator is the only regulator to ground A350
- Now AAB says he is owed $700 million+
kanban wrote:Well one thing can be put to bed, it's obvious that QR was trying to maintain the surface paint to little avail.
It looks like several things are involved. these is expansion contraction whether temperature, internal pressurization or moisture penetration and freezing. There also seems to be interactions between panels at the join which might be caused by differing build processes that react differently to expansion/contraction. There are definitely adhesion issues even on panels that would have the same environment on both surfaces. The crown reminds me of pictures of 727's on frosty mornings where the crown stringers are unfrosted. Also to note on the crown there is an area of no damage around an antenna (?) which probably has more supporting structure under it. it is puzzling that ait appears the damage follows the edge between paint colors right across the fasteners .
BT, the wings probably have a totally different build process plus years of wing build experience, so I would not expect to see problems there. The damage appears to be areas where the vendor manufacturing process and experience was lower (newer). It would be interesting to see if the panels exhibiting the damage come from the same vendors or facility as the good panels. There is always a possibility of surface contamination during transport of panels and sections to and around the FAL..
Qatar is correct in complaining.
zeke wrote:aaexecplat wrote:So in summary of the AirInsight article:
- In November of 2020, QR brings the paint issue to Airbus' attention
- Airbus agrees to sign an SCL that stipulates $175k/day damages for every plane out of service for 12+ hours a day
- In the summer of 2021, Qatari regulator is the only regulator to ground A350
- Now AAB says he is owed $700 million+
The SCL was signed for MSN420, from what I can gather QR have applied that to their entire fleet.
zeke wrote:aaexecplat wrote:So in summary of the AirInsight article:
- In November of 2020, QR brings the paint issue to Airbus' attention
- Airbus agrees to sign an SCL that stipulates $175k/day damages for every plane out of service for 12+ hours a day
- In the summer of 2021, Qatari regulator is the only regulator to ground A350
- Now AAB says he is owed $700 million+
The SCL was signed for MSN420, from what I can gather QR have applied that to their entire fleet. Warranties on “consumable” items like exterior paint and interiors are normally only for 12 months. I have no idea who is advising them that aircraft that are 3-7 years old would have cosmetic livery issues covered under warranty. That is why it is common for aircraft to be repainted every 4-6 years and there are published procedures for that.
Polot wrote:SCL for MSN420 is probably reflective of rest of the fleet. There is nothing special about MSN420 (eg test frame) other than the fact that it appears that MSN was the last one QR took delivery of. If Airbus applied a special SCL for that frame (delivered after problems with A7-ALL uncovered?) some lawyers might make the argument that Airbus is accepting culpability for the issue…
cat3appr50 wrote:
As an analogy, consider that an auto dealer sells somebody a new automobile (let alone a multi-million $ new aircraft), at any price point, and subsequently it’s exterior paint is peeling off (and able to be peeled off so easily as indicated in the vid), had that general wrinkled and peeling-off appearance (as shown in the video over a significant surface area of the aircraft and exposing the grid beneath), and the exterior paint was missing on many fasteners, etc. And the auto dealer (and manufacturer) that had sold that product didn’t seem to adequately enough appreciate the buyers/customer concerns about root causes as to why that paint failure is happening, underlying surfaces were being exposed, as well as potential more-concerning issues if continuing to degrade, it would seem one would react the same as Qatar Airways/Al Baker did.
All just my opinion.
zeke wrote:Polot wrote:SCL for MSN420 is probably reflective of rest of the fleet. There is nothing special about MSN420 (eg test frame) other than the fact that it appears that MSN was the last one QR took delivery of. If Airbus applied a special SCL for that frame (delivered after problems with A7-ALL uncovered?) some lawyers might make the argument that Airbus is accepting culpability for the issue…
Cannot be retroactive, and cannot cover aircraft that have already had their warranties expire.
If you bought a car battery with 12 month warranty 5 years ago, and buy the same model today however that now comes with a 18 month warranty, you cannot retroactively apply the warranty of new one for the other that was purchased 5 years earlier. Car batteries performance degrade over time (even so called “maintenance free” batteries), and how they degrade depends on how they are used, and where they are used.
I think Airbus will be more than happy to admit paint comes off, more than happy to admit that surfaces degrade with time. They will have never have given a warranty implied or otherwise to state that the paint will not change over the life of the aircraft. No airline could reasonably argue that paint should not deteriorate over time when it is normal industry practice to maintain and repaint it.
Paint is a cosmetic issue, it is not a safety issue, QR in their filing and even in their latest press release have asserted it as a safety issue eg “serious and legitimate safety concerns regarding the surface degradation”. EASA have come out and clearly stated it is not a safety issue.
What I can guarantee is that when QR do get around to repainting their aircraft, that new paint work will start degrading the second the work has been completed. Maintaining an aircraft is like maintaining a steel bridge, when you complete painting it the process to repaint starts all over again.
sxf24 wrote:
Why are you bringing warranties into the discussion? That’s not at issue.
zeke wrote:sxf24 wrote:
Why are you bringing warranties into the discussion? That’s not at issue.
It is central to QRs court filing
Eg
“ Alternatively, damages for the Defendant’s failure to pay AOG Compensation in breach of Clause 3.2 of the SCL and/or the Warranties.”
“ THE CTAPA (1) Warranties 39. Pursuant to the CTAPA, the Defendant warranted that (amongst other things) (the Warranties):
39.1 Each Aircraft and all Warranted Parts would be free from defects in workmanship (clause 12.1.1(ii)).
39.2 Each Aircraft and all Warranted Parts would be free from defects in design, including in the selection of materials (clause 12.1.1(iii)).
(2) Breaches of Warranties 40. As a result of the Defendant’s failure to provide root cause analyses, the Claimant cannot currently give full particulars of the Defendant’s breaches of warranty and reserves the right to supplement the particulars below as and when the root cause analyses are provided.”
“ As a result of the aforementioned breaches of warranty the Claimant has suffered loss and damage in respect to those Aircraft still within their Warranty Period. The Claimant presently quantifies its loss and damage in the same amount as its claim under the SCL, and reserves the right to plead its loss further in due course.”
Polot wrote:And now we are getting back to argument of what is “normal” degradation and wear and tear. QR and Airbus are clearly not in agreement.
Polot wrote:You act as these are QR’a first planes. They have/had A3202, A330s, A340s, 787s, 777s, A380s yet only the A350 has experienced paint issues so unsatisfactory to QR that they have halted deliveries and sued the OEM over it.
Polot wrote:Just because a warranty ran out doesn’t mean owner is necessarily responsible to pay for repair of design/material defects.
zeke wrote:Polot wrote:And now we are getting back to argument of what is “normal” degradation and wear and tear. QR and Airbus are clearly not in agreement.
Can you point to a statement by QR which says that the surface should not degrade at all ?
Can you point to a statement by Airbus which says that the surface should not degrade at all ?
The answer to both of these questions is no, neither have made such a statement as it is known that the surface will degrade over time. That is not in dispute.
Polot wrote:zeke wrote:Polot wrote:SCL for MSN420 is probably reflective of rest of the fleet. There is nothing special about MSN420 (eg test frame) other than the fact that it appears that MSN was the last one QR took delivery of. If Airbus applied a special SCL for that frame (delivered after problems with A7-ALL uncovered?) some lawyers might make the argument that Airbus is accepting culpability for the issue…
Cannot be retroactive, and cannot cover aircraft that have already had their warranties expire.
If you bought a car battery with 12 month warranty 5 years ago, and buy the same model today however that now comes with a 18 month warranty, you cannot retroactively apply the warranty of new one for the other that was purchased 5 years earlier. Car batteries performance degrade over time (even so called “maintenance free” batteries), and how they degrade depends on how they are used, and where they are used.
I think Airbus will be more than happy to admit paint comes off, more than happy to admit that surfaces degrade with time. They will have never have given a warranty implied or otherwise to state that the paint will not change over the life of the aircraft. No airline could reasonably argue that paint should not deteriorate over time when it is normal industry practice to maintain and repaint it.
Paint is a cosmetic issue, it is not a safety issue, QR in their filing and even in their latest press release have asserted it as a safety issue eg “serious and legitimate safety concerns regarding the surface degradation”. EASA have come out and clearly stated it is not a safety issue.
What I can guarantee is that when QR do get around to repainting their aircraft, that new paint work will start degrading the second the work has been completed. Maintaining an aircraft is like maintaining a steel bridge, when you complete painting it the process to repaint starts all over again.
And now we are getting back to argument of what is “normal” degradation and wear and tear. QR and Airbus are clearly not in agreement.
You act as these are QR’a first planes. They have/had A3202, A330s, A340s, 787s, 777s, A380s yet only the A350 has experienced paint issues so unsatisfactory to QR that they have halted deliveries and sued the OEM over it.
Duke91 wrote:Polot wrote:zeke wrote:
Cannot be retroactive, and cannot cover aircraft that have already had their warranties expire.
If you bought a car battery with 12 month warranty 5 years ago, and buy the same model today however that now comes with a 18 month warranty, you cannot retroactively apply the warranty of new one for the other that was purchased 5 years earlier. Car batteries performance degrade over time (even so called “maintenance free” batteries), and how they degrade depends on how they are used, and where they are used.
I think Airbus will be more than happy to admit paint comes off, more than happy to admit that surfaces degrade with time. They will have never have given a warranty implied or otherwise to state that the paint will not change over the life of the aircraft. No airline could reasonably argue that paint should not deteriorate over time when it is normal industry practice to maintain and repaint it.
Paint is a cosmetic issue, it is not a safety issue, QR in their filing and even in their latest press release have asserted it as a safety issue eg “serious and legitimate safety concerns regarding the surface degradation”. EASA have come out and clearly stated it is not a safety issue.
What I can guarantee is that when QR do get around to repainting their aircraft, that new paint work will start degrading the second the work has been completed. Maintaining an aircraft is like maintaining a steel bridge, when you complete painting it the process to repaint starts all over again.
And now we are getting back to argument of what is “normal” degradation and wear and tear. QR and Airbus are clearly not in agreement.
You act as these are QR’a first planes. They have/had A3202, A330s, A340s, 787s, 777s, A380s yet only the A350 has experienced paint issues so unsatisfactory to QR that they have halted deliveries and sued the OEM over it.
It is also an unusual time when Airlines are losing money left and right while Airbus does not. Would Qatar ground those planes during the usual times when they need the capacity? Other A350 airlines dont sue the OEM, so I doubt it. Qatar is also in the unusual position to have their own federal agency that can ground the planes if they want, giving them leeway to do those stunts
Duke91 wrote:It is also an unusual time when Airlines are losing money left and right while Airbus does not. Would Qatar ground those planes during the usual times when they need the capacity? Other A350 airlines dont sue the OEM, so I doubt it. Qatar is also in the unusual position to have their own federal agency that can ground the planes if they want, giving them leeway to do those stunts
Duke91 wrote:Okay, they need the capacity now, but are also losing money left and right.
Polot wrote:Duke91 wrote:Polot wrote:And now we are getting back to argument of what is “normal” degradation and wear and tear. QR and Airbus are clearly not in agreement.
You act as these are QR’a first planes. They have/had A3202, A330s, A340s, 787s, 777s, A380s yet only the A350 has experienced paint issues so unsatisfactory to QR that they have halted deliveries and sued the OEM over it.
It is also an unusual time when Airlines are losing money left and right while Airbus does not. Would Qatar ground those planes during the usual times when they need the capacity? Other A350 airlines dont sue the OEM, so I doubt it. Qatar is also in the unusual position to have their own federal agency that can ground the planes if they want, giving them leeway to do those stunts
That argument would hold more weight if QR wasn’t leasing in more aircraft and taking planes out of retirement at the moment. That suggests the A350’s capacity is needed. No one has presented any evidence proving that QR has ceased paying lease or finance payments on the grounded planes.
Revelation wrote:kimshep wrote:It seems to me that everyone is attacking AAB, rather than Airbus. It is true that AAB has and is being demanding on answers from Airbus. He has also stated that QR cannot be sure / unsure regarding the safety of these A350 aircraft and their pitting.. So far, Airbus has issued statements indicating that this is a 'cosmetic issue' only. Despite QR's attempt to assist, by providing comprehensive documentation, it would appear that Airbus has little interest in investigating this issue. Poor customer service, in my view
Airbus ( ref: https://www.bloomberg.com/news/articles ... r-air-rift ) has said more than it's just a cosmetic issue, it may take new materials to solve the problem.
zeke wrote:majority of what I see in that video is rivet rash, and you can see where someone at some time has come in and touched up paint again afterwards.
LDRA wrote:The root cause thing in QR filing made me chuckle. Is QR entitled to any "root cause" explanation? They brought copies of the product, not the product design. There is zero obligation from OEM to explain "root cause" to QR
Duke91 wrote:Okay, they need the capacity now, but are also losing money left and right.
zkojq wrote:kimshep wrote:What also has escaped attention here is that a number of other A350 operators have experienced the same issues as QR, to varying degrees. That includes Finnair.
Remind us again, how many non Qatar A350s are grounded due to paint issues?
zkojq wrote:kimshep wrote:3. AAB could decide to form a small cabal with the other aggrieved A350 customers. They now can see how Airbus could choose to treat them. Strength in numbers?
Why would other airlines come to the aid of QR? The other airlines with A350 paint degradation issues are working with Airbus to find a solution. Just because QR are throwing toys out of the metaphoric pram doesn't mean that the other airlines want to join in.
Revelation wrote:Duke91 wrote:It is also an unusual time when Airlines are losing money left and right while Airbus does not. Would Qatar ground those planes during the usual times when they need the capacity? Other A350 airlines dont sue the OEM, so I doubt it. Qatar is also in the unusual position to have their own federal agency that can ground the planes if they want, giving them leeway to do those stunts
They are also in the position of having to take A380s out of storage to fly missions better suited to A350, and have the World Cup coming up in a few months as well.
oldJoe wrote:, but team B don`t deliver for a while !
zeke wrote:That is why it is common for aircraft to be repainted every 4-6 years and .....
TC957 wrote:May I ask 1) Did Concorde suffer paint issues ? It famously stretched by several inches inflight and the exterior was subject to kinetic heat at Mach2, and 2 ) have VN reported A350paint issues ? they have several early-built frames, a dark colourscheme and operate in a pretty warm climate.
MrHMSH wrote:TC957 wrote:May I ask 1) Did Concorde suffer paint issues ? It famously stretched by several inches inflight and the exterior was subject to kinetic heat at Mach2, and 2 ) have VN reported A350paint issues ? they have several early-built frames, a dark colourscheme and operate in a pretty warm climate.
Looks like 8/14 of VN's fleet is flying, including the oldest (VN-A886 MSN14). To my knowledge VN haven't reported issues. Neither have ET who also fly in challenging conditions, though with younger aircraft. Some of ET's ships are older than some of QR's affected examples.
bikerthai wrote:I see the "rivet rash". But in this case, it's a misnomer because we typically do not use rivets in composite structures.
geomap wrote:MrHMSH wrote:Looks like 8/14 of VN's fleet is flying, including the oldest (VN-A886 MSN14). To my knowledge VN haven't reported issues. Neither have ET who also fly in challenging conditions, though with younger aircraft. Some of ET's ships are older than some of QR's affected examples.
"At least six other carriers have also complained of paint damage on A350s, including Finnair, Cathay Pacific, Etihad, Lufthansa, Delta Air Lines, and Air France, reported Reuters."
smartplane wrote:LifelinerOne wrote:Opus99 wrote:None of those frames have been ordered through lessors though. All through QR. Lessors are only involved with QR on the sale and leaseback. Not on the initial order
True, but since then, of their 53 A350s in the fleet, 44 are now leased. Which means they can't return them that easily and will need to negotiate with all the different lessors... And in this environment, I don't see them being very open to get the aircraft back without a hefty penalty.
For me the timing of this escalation is interesting and I would not be surprised that the degration issue has been inflated by Qatar Airways (and the civil aviation authority, which I see as one as they all report to the same ruler in Qatar) to mitigate losses accumulated over the years by the airspace blocking in the Middle-East and the pandemic.
It's telling that the civil aviation authorities in Europe, Hong Kong and Singapore don't see this as a safety issue but as cosmetic.
With Qatar defaulting on taking delivery on ready A350s, they most likely have no choice to limit their exposure to Qatar and therefore cancel the A321neo-order.
QR has placed orders for A35 and A321 aircraft, and in doing so, earns retrospective credits as physical deliveries are made.
Retrospective credits are not accrued on a straight line. Final deliveries of an order or tranche attract greater value.
None, some or all of the credits to-date, may have transferred to the lessors, with credits from later deliveries retained by QR.
The value of credits can be increased or decreased depending on use. For example, dollar for dollar by using to meet milestone payments on the current order / tranche. Perhaps up to 20% bonus if a new (to the customer) acquisition is made, like A32NEO or A350F. Or a discount if used for parts and services, and a massive discount if cashed up.
By cancelling the A32NEO order, Airbus has eliminated the most lucrative option.
Retrospective credits operate like bank accounts. Both Airbus and Boeing include a right of set-off. Likely accrued credits have been frozen, and are being set-off against unpaid milestone payments.
In business, the customer is usually always right, except very rarely when they are wrong. I have a special admiration for any supplier who has what it takes to say no to an important customer, and the back bone and moral fortitude to follow through. There will be some respect at Boeing, other airlines and suppliers for Airbus.
geomap wrote:
Can you provide some backup for this claim? My quick searches indicate a range of 7 to 10 years for full exterior paint replacement.
geomap wrote:"At least six other carriers have also complained of paint damage on A350s, including Finnair, Cathay Pacific, Etihad, Lufthansa, Delta Air Lines, and Air France, reported Reuters."
majano wrote:Are you aware that QR is claiming millions per day from Airbus because the more frames grounded means more compensation (if they win)? So it doesn't matter that the capacity is needed if you get more from the planes being on the ground. Additionally, not one poster who brings up this aircraft being brought out of storage reason has demonstrated that the capacity brought back matches the capacity of the 21 grounded A350. In as far as I am aware QR had only eight A330 and by August 2021 had brought back to service only five. https://www.ch-aviation.com/portal/news ... ates-a330s. According to the below, a minimum of five A380s were to come back to support winter routes only. But the A350 will not come back after winter. https://www.qatarairways.com/en/press-r ... 20due%20to.
zeke wrote:
And Lufthansa started their A350 repaint at 4 years
https://simpleflying.com/lufthansa-airb ... paint/amp/
aemoreira1981 wrote:The cancellation of orders is now a potential point for action. Can Airbus actually win in court on that, and if it doesn’t, what happens to airlines who are allocated earlier slots that must now be given back?
zeke wrote:As for the fuselage crown, I simply put that down to the compression loads. The A350 fuselage structure uses cobonding to incorporate the omega (hat) stiffeners with the fuselage skin.
aemoreira1981 wrote:The cancellation of orders is now a potential point for action. Can Airbus actually win in court on that, and if it doesn’t, what happens to airlines who are allocated earlier slots that must now be given back?
sxf24 wrote:aemoreira1981 wrote:The cancellation of orders is now a potential point for action. Can Airbus actually win in court on that, and if it doesn’t, what happens to airlines who are allocated earlier slots that must now be given back?
QR says they were performing on the A321 contract and it’s not normal to link contracts for different models. Will be interesting what the court says or if Airbus actually cancelled the order and reallocated the slots (versus threatening to do so).
I hope this is resolved soon because Europe may need natural gas from Qatar.
gloom wrote:Just a quick reminder, anyone noticed we're quite a long time from the drama start?
If I'd just go down to my car, make a scratch here and there (barely visible), then put it out and let it there for a few months, do you think it would picture a real damage on say November 2022?
And if I had a plan to get a compensation, I could possibly think of a place/conditions to make it even worse.
I have a strong feeling videos/pics are real. And they show the damage now. I'm pretty sure it looked quite different on day "+1". It's just non-maintained, left to develop etc. Far from what it was originally.
That's just my 2 cents.
Cheers,
Adam