Deal Reached To Continue Troubled A400M Program

By ANDREW CHUTER Published: 7 Apr 2011 08:03

The seven European nations in the Airbus A400M program have finally signed contract amendments formally allowing the development and production of the military airlifter to go ahead.

The deal follows severe financial and technical problems on the airlifter that at one stage threatened the future of the over-budget, much-delayed aircraft, which is being built by EADS subsidiary Airbus Military for Belgium, France, Germany, Great Britain, Luxembourg, Spain and Turkey.

The revised contract was signed in Seville, Spain, by Airbus Military and OCCAR, the executive agency managing the program on behalf of the European launch nations.

The participating nations and EADS reached a framework agreement in principle 13 months ago but have been involved in negotiations since then to iron out the details.

Airbus announced early last month it was launching series production of the aircraft, but final signing of the contract amendments was delayed as the details on an export levy facility as part of the rescue package were being hammered out with the U.K. and Turkey.

EADS chief executive Louis Gallois said in a statement that the signing was a "major milestone" in a program that represents a strategic defense capability for Europe.

The four A400Ms flying in the test program have amassed more than 1,400 flying hours and nearly 450 flights. Deliveries to France, the launch customer, are on track for late 2012 or early 2013, Airbus said.

The airframe builder has orders for 170 aircraft from the European launch customer plus another four for Malaysia.

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