Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Airbus agrees new contract for delayed A400M military transporter

Stock MarketsJun 14, 2019 04:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: An Airbus A400M aircraft flies during a display on the first day of the 52nd Paris Air Show at Le Bourget airport near Paris

PARIS (Reuters) - Airbus has reached an agreement with European state buyers to revise a contract for its delayed A400M military transporter plane, resetting Europe's largest defense project after a lengthy wrangle over costs and military capability.

Airbus said on Friday it had signed an A400M contract amendment with arms procurement agency OCCAR, which coordinates the A400M purchase for seven core nations, to lengthen the model's production plan while sticking to the program's overall contractual timeframe until 2030.

Dirk Hoke, Chief Executive Officer of Airbus Defense and Space, said: "The overall aim... both for Airbus as well as for OCCAR and the Launch Customer Nations, was to recover a sustainable contractual basis for, and to ensure a proper execution of, the A400M program."

The A400M was commissioned in 2003 to give Europe an independent airlift capacity to support military or humanitarian missions, rather than relying on the Lockheed Martin (NYSE:LMT) C-130 or the now out-of-production Boeing (NYSE:BA) C-17.

A 3.5-billion-euro bailout from Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey rescued the program from cancellation in 2010 after delays and cost overruns.

But problems remained with some of the plane's classified defensive systems, as well as some types of paratrooper drop and helicopter refueling, prompting a new set of contract talks.

Industry officials blame some of the project's problems on an over-ambitious wishlist from the seven purchasing countries, designed in some cases to support local jobs. But the largest buyer Germany has criticized Airbus for failing to do what it promised.

The buyers had already agreed that Airbus would need more time to deliver the plane than originally planned and in return, Airbus pledged to provide "all necessary support and resources" to the A400M program.

Despite being a transporter plane, designers say the A400M's advanced systems such as ground-hugging technology make it one of the most complex military aircraft ever built in Europe. France has praised its performance on operations in Africa.

Even so, Europe's new troop transporter may never go into battle with all its planned military capabilities after buyers agreed to let Airbus negotiate an opt-out for features deemed too complex, a document revealed last year.

Airbus agrees new contract for delayed A400M military transporter
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email