EADS accepts governments' conditions to continue the A400M programme

18:45 GMT, March 5, 2010 defpro.com | According to various press agencies, the German Ministry of Defence announced today, 5 March 2010, that the involved governments and aerospace giant EADS have agreed on the general terms to continue the A400M transport aircraft programme.

According to the source, EADS has accepted the offer of the customer nations which, however, still has to be approved by the individual governments. This offer mainly includes a total cost increase of €2 billion ($2.7 billion) as well as export credits amounting to €1.5 billion.

The parties, reportedly, also agreed on the schedule of the programme as well as on the technical parameters and performance characteristics of the aircraft. Delivery of the first aircraft to Germany is to take place in 2014. Furthermore, the required payload of the A400M has been guaranteed, allowing systems such as the Puma infantry fighting vehicle (IFV) to be transported by the A400M.

The contract between EADS and the customer nations will be adapted in details in the course of next weeks.

As a German MoD spokesman said on Friday, the agreement was worked out by deputy defence ministers and industry representatives in a meeting in the German capital in accordance to Defence Ministry guidelines.

As the Associated Press reports, officials from Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey were at the meeting to consider manufacturer EADS' answer to their offer on how to deal this prestigious European future airlift programme.

An EADS company statement said: "EADS considers that this agreement provides a sound basis for a successful evolution of the A400M programme. EADS will strive to identify opportunities to significantly reduce risks in the A400M programme and to deliver a state-of-the-art product within the new frame of the contract."

The programme, being one of Europe's largest and most important development and procurement programmes, has been controversially discussed in the press due to significant delays and technical problems during the development phase. The future of the A400M programme was uncertain as EADS asked the involved governments to assist in the funding of the increased costs. The latter amount to €11 billion, according to Airbus estimates. This brings the overall costs for the A400M to an estimated €31 billion ($44.5 billion).


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