The "amicable settlement" ends a bitter dispute over the safety of corrosion left exposed by cracked paint, which had led Airbus to revoke dozens of jet orders from the Gulf airline.

Airbus said the deal was not an admission of liability by either party, both of whom would move forward as partners. Reuters reported earlier that a deal could be reached on Wednesday.

(Reporting by Tim Hepher; Editing by David Goodman)