A400M Restructuring Moves To Negotiations
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By Robert Wall
PARIS
Government stakeholders in the Airbus Military A400M transport have agreed to formally start talks with industry to renegotiate the contract and keep the program alive.
During a meeting in southern France, defense ministers from the seven core A400M customer countries have said they will remain committed to the program, rather than exercising the option to cancel the deal owing to program delays.
The decision, although widely expected, is a reprieve for industry, which otherwise would have had to pay back more than €5.7 billion already spent on the program.
Talks to secure a new contract are to be completed by year’s end. Those will focus on potentially relaxing some performance requirements and also other contractual relief. Currently, the program is loss-making for industry.
EADS, which is the largest industrial stakeholder in the A400M, welcomed the decision. It said that “EADS and Airbus are fully committed to finding an agreement that is technically and contractually acceptable to both sides.”
Industry is still targeting first flight of the A400M around the end of the year. However, the schedule going forward still remains uncertain. German defense minister Franz-Joseph Jung has signalled the airlifter could be four years late.
Photo: Airbus Military
