Qatar Airways is looking to sue Depa Interiors (LDI), a German Emirati joint venture construction company for delaying the opening of the New Doha International Airport.
Qatar Airways will be filing a $600 million legal claim against German Emirati joint venture construction company Lindner Depa Interiors for having failed to meet the deadline of setting up the New Doha International Airport.
According to a report by Breaking Travel News, the construction company went into a contract worth over $250 million promising to set up 19 lounges in New Doha International Airport by the summer of 2012. However, they failed to deliver what they promised and how the airline is taking them to court.
A statement from the airways claims the construction company defaulted badly, the delay in delivering what they promised has led to huge revenue losses.
Qatar Airways chief executive Akbar Al Baker said the "extreme poor performance" and "inability to execute the work within the time required for the project as the reasons for LDI's contract being terminated, resulting in the legal action estimated at up to US $600 million now being taken."
"We are extremely disappointed by the poor performance of LDI which has failed to carry out the contract in a timely manner which in turn has forced a delay of the opening of the New Doha International Airport by nearly a year," said Al Baker.
"We have been badly affected as an airline with the delay impacting Qatar Airways' expansion plans that include new aircraft deliveries and opening up new routes at the rate we want to and more importantly causing a lot of inconvenience to our passengers in addition to the revenue losses to the airline and its subsidiaries.
"Our subsidiaries have been also affected by this delay including Qatar Duty Free, the food outlets and the ground handling which had a negative impact on the revenues of the airline."
