NDI OPPORTUNITIES CONFERENCE: BUILDING FOR GROWTH
The Annual NDI Conference is taking place for the first time in Tortworth Court Hotel, near Bristol. On Tuesday 13th and...
AGREEMENT REACHED ON A400M COSTS
Wednesday 24 February 2010
European governments have reached an agreement on sharing the costs of the over-budget A400M military transport plane, writes BBC News
Spanish Defence Minister Carme Chacon said that the seven countries involved and the planemaker EADS, owner of Airbus, had reached an agreement.
Further technical details would be agreed on Thursday, he said.
The A400M is 5bn euros ($7.25bn; £4.5bn) over its initial budget as a result of weight and engine problems.
The announcement came at a meeting of European Union defence ministers in Majorca.
"I am able to tell you with great satisfaction that we have reached an agreement in principle," Mrs Chacon said.
But an EADS spokesman told the BBC that "this doesn't seem like a big breakthrough to me" because of all the details that still need to be agreed.
Split over costs
A spokesman for the UK's Ministry of Defence said he expected a joint statement from all involved by Thursday afternoon.
"We are waiting for all the partner nations to agree on a single statement" before commenting, he told the BBC.
Airbus chief executive Tom Enders had told the BBC the company would consider ending the programme if European governments failed to provide more money.
Seven countries - Belgium, France, Germany, Luxembourg, Spain, Turkey and the UK - have ordered 180 A400M aircraft in total between them.
Under contracts signed ahead of the start of the programme six years ago, Airbus has agreed to sell them the planes for a fixed price.
There had been a split between those countries who want the aircraft built and in use quickly - notably the UK and France - and those who would prefer to proceed more slowly to spread the cost, in particular Germany.
The A400M, which is designed to fly troops and equipment, is supposed to replace ageing military cargo carriers in several European air forces.
It had been due to go into service last year, but will not take to the skies until 2012 at the earliest. The delay led to South Africa cancelling an order for eight planes.
