Airbus contracts stay secret

AIRBUS has succeeded in keeping from the public's gaze documents that detail commercial contracts with Qantas relating to the purchase of its fleet of A380 superjumbos.

By InvestSMART · 3 Feb 2011

By InvestSMART ·
3 Feb 2011

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AIRBUS has succeeded in keeping from the public's gaze documents that detail commercial contracts with Qantas relating to the purchase of its fleet of A380 superjumbos.

Lawyers for the maker of the superjumbo sought the orders in the Federal Court in Sydney yesterday for the documents to remain confidential. The Airbus contracts are among a raft of documents Qantas has supplied to the court to support its damages claim against British jet-engine manufacturer Rolls-Royce.

Justice Steven Rares accepted the application by Airbus to have both a purchase agreement for the A380s and parts of a document relating to a bespoke arrangement between Airbus and Qantas to be kept confidential.

Airbus's lawyer, Jason Potts, cited commercial sensitivity as the primary reason for the documents to remain secret. He said the bespoke arrangement between Airbus and the airline related to "certain rights that were given to Qantas as a launch customer [for the A380] in certain events".

Qantas launched the claim in December against Rolls-Royce for damages arising from a mid-air engine explosion involving an A380 on November 4. The airline has sought to stymie any bid to shift the matter to British courts if talks over a settlement break down.

Qantas's lawyer, Andrew Bell, SC, said the airline and Rolls-Royce were still in negotiations aimed at reaching a settlement.

The airline's chief executive, Alan Joyce, has said that he would prefer to reach a negotiated settlement with Rolls-Royce rather than seek damages through the courts.

Analysts estimate the grounding could cost Qantas as much as $207 million

The directions hearing will resume on February 9.

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Frequently Asked Questions about this Article…

What Airbus documents have been kept confidential in the Qantas A380 legal matter?

Airbus successfully applied in the Federal Court in Sydney to keep certain documents confidential, including the A380 purchase agreement and parts of a bespoke arrangement between Airbus and Qantas. Justice Steven Rares accepted the application to shield those documents from public disclosure.

Why did Airbus want the Qantas contracts to stay secret?

Airbus's lawyer, Jason Potts, told the court the primary reason was commercial sensitivity. He said the bespoke arrangement contained certain rights granted to Qantas as a launch customer for the A380 in specified events, and revealing those details could harm Airbus's commercial position.

How are the Airbus–Qantas contracts connected to Qantas’s claim against Rolls‑Royce?

Qantas supplied the Airbus contracts among a range of documents to the Federal Court to support its damages claim against Rolls‑Royce. The materials relate to Qantas’s legal action following a mid‑air engine explosion on an A380.

What prompted Qantas to launch a damages claim against Rolls‑Royce?

Qantas launched the claim in December after a mid‑air engine explosion involving one of its A380s on November 4. The airline is seeking damages arising from that engine failure.

Are Qantas and Rolls‑Royce still negotiating a settlement or going to court?

According to the article, Qantas and Rolls‑Royce were still in negotiations aimed at reaching a settlement. Qantas’s CEO Alan Joyce has said he would prefer a negotiated settlement rather than pursuing damages through the courts.

Could the A380 grounding cost Qantas a lot of money?

Analysts cited in the article estimate the grounding could cost Qantas as much as $207 million, reflecting the significant financial impact of the incident and associated operational disruption.

Will confidentiality mean those Airbus documents aren’t used in the court case?

No. Qantas supplied the Airbus documents to the court to support its claim, but Airbus successfully applied for parts of those documents—the purchase agreement and elements of the bespoke arrangement—to be kept confidential. The materials can still be before the court while certain details remain sealed from public view.

When and where did the legal directions hearing take place, and what’s the next step?

The matter was before the Federal Court in Sydney, where Justice Steven Rares accepted Airbus’s confidentiality application. The directions hearing is scheduled to resume on February 9.