Thursday, April 01, 2010

DTN News: A400M Military Transport Plane ~ Several Nations Want Fewer Planes

DTN News: A400M Military Transport Plane ~ Several Nations Want Fewer Planes Source: DTN News / EADS (NSI News Source Info) PARIS, France - April 1, 2010: The partner nations of the Airbus A400M military transport plane will reduce their orders by up to 10 planes in exchange for increased funding for the delayed and financially troubled project. Britain said this week it would cut its A400M orders by three to a total of 22 planes. While France is sticking to its 50 orders, Germany is mulling to trim its contract for 60 planes, German newspapers reported. Other partner governments include Belgium, Luxembourg, Spain and Turkey. European defense officials said the new contract could be signed as early as June. The cuts are apparently part of a March 7 deal between Airbus' parent European Aeronautic Defense and Space Company and the partner nations, which have agreed to pay an additional $2.7 billion for the planes, a pass on penalties on current delays and a new delivery schedule. The bailout plan, worth $4.8 billion in total, followed threats from the European aerospace company to pull the plug on the project if an agreement to refinance construction of the A400M military transport plane wasn't swiftly reached. The project was agreed to in 2003 with Airbus ordered to construct 180 A400Ms at a fixed price of $29 billion. Technical delays, ballooning costs and political blunders caused delays in project, however, with the plane's maiden voyage taking place only last December in Seville, Spain. The project now is expected to cost around 50 percent more than original estimates and is three to four years behind schedule. The partner countries desperately need a new freighter plane: Britain is eager to modernize its fleet of Hercules and C-17 carriers, worn by the mission in Afghanistan; and France and Germany want new transport planes to replace their 4-decade-old C-160 Transall machines, which are slow and inflexible. Airbus claims the A400M can carry double the load of the hugely popular Lockheed C130 Hercules, also a four-engine turboprop, and is more fuel-efficient than the jet-powered Boeing C-17. Meanwhile, officials in the partner nations harshly criticized the management failures linked to the program. "There is clearly a problem of organization and industrial management," he said. "EADS and Airbus have drawn conclusions on organization but they have to work harder on their capacity to manage programs," Laurent Collet-Billon, the head of the French arms procurement office was quoted as saying by Defensenews.com. "I think EADS has to make a very big effort to improve its management culture."

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