Berlin 11-Dec-2009
The EADS/Airbus A400M military transport took off for the first time today in Seville Spain, a good sign that Europe’s largest defence project is literally off the ground.
The A400M was launched in 2003 with an order for 180 planes from seven governments and is now 4 years late. partly because of engine-development issues.There is a risk that the program may be cancelled after Airbus/EADS missed contractual deadlines to fly the plane earlier this year, which has now given the governments the right to cancel the program.
Such a move would be a disaster for EADS/Airbus which might have to repay 6 billion Euros it has already received from the governments.
Over the past few months EADS/Airbus and the governments have met twice in Berlin to renegotiate the terms of the original contract, but with so much at stake, no one is yet commenting on the results.
Watch this space.
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