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Qatar Airways suing airport builders

Friday, 4 January 2013
 
 
 

Construction company faces law suit after failure to complete job. Image: ITP

Qatar Airways’ New Doha International Airport (NDIA) has suffered a 12 month development setback, forcing the airline to file a US$600 million legal claim against German-Emirati construction company Lindner Depa Interiors (LDI).

The airport was originally scheduled to open its doors to the public in December 2012 but LDI failed to complete the project on time, according to the Moodie Report.

LDI’s contract for over US$250 million required the construction of 19 airport lounges at NDIA.

Qatar Airways expansion plans had been halted and the delay caused hefty revenue losses, further construction costs and penalties, as well as greatly inconveniencing passengers.

“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,” Qatar Airways chief executive Akbar Al Baker said.

Al Baker expected more claims against LDI to come from other entities affected by this delay.

“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,” Al Baker said.

The airport will now open in the second half of 2013.

“The new facility is destined to be an iconic world-class airport that is expected to set high standards in excellence,” Mr Al Baker said.

The initial phase of NDIA is expected to manage over 28 million passengers per year, with capacity anticipated to more than double by the time the airport becomes fully operational in 2018.
 
Source = e-Travel Blackboard: P.T
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