If anything, this will be good for FSTA. Airbus could cut a deal to provide more A330's in pax fit and AAR (we are short of both remember) in exchange for the nations axe-ing A-400M and EADS will have to bite the bullet on development costs. EADS will take ahit, but not go bust.
Only losers will be Rolls who are getting a good bite of the cherry with export deals being arranged with the chinese courtesy of the UK government anyway, together with any smaller component producers etc.
But who knows? They may get the first one flying and we may fly it yet! I do hope so, all projects have developmental issues and A400m promised t be a great aircraft.
Having More C130J/C-17 woulnt be a bad investment either mind...