FT - 10 Jan 09
Airbus, and its parent EADS, admitted last night its A400M military transport aircraft programme was in disarray and it had approached European governments to try to renegotiate aspects of the €20bn programme.
.
.
EADS said last night it wanted to review the timing and technical characteristics of the A400M, as it admitted it was still unable to set a date for its first flight.
EADS subsidiary, Airbus Military, said it proposed resuming production of the aircraft only once it had reached "adequate maturity" based on flight test results. The company admitted that it was still working with the consortium of engine manufacturers to firm up a date for the first flight. Delivery of the aircraft would then take place around three years after the first flight.
EADS said it would only be able to "reliably determine all financial implications once a committed industrial plan, including the availability of systems, is fully stabilised" and once it knew the position of its launch customers to its proposal.
The news throws into disarray the proposed delivery schedule of the €20bn programme, Europe's largest military project, which has run into serious problems with growing delays and rising losses. The French air force had originally been due to receive the first delivery in October 2009.
EADS was forced in November last year to take an additional €341m charge for the latest delays. It warned at the time it was still unable to produce a reliable delivery schedule and said it would face further charges for the loss-making, fixed-price contract.
It took an initial €1.37bn charge a year ago. EADS has blamed the delays on problems with the propulsion system for the aircraft, specifically the engine control software