Tuesday, January 12, 2010

A400M project at risk

EADS' CEO Louis Gallois has issued a warning that the A400M project cannot continue beyond the end of January unless European customers agree to increase funding of the development costs. EADS had made a "mistake in accepting a fixed price contract on a programme with huge technical challenges and an unrealistic schedule" but aid partner nations shared the blame for insisting on production sharing and engine choices. A400M cannot be allowed to jeopardise the whole Airbus business, the CEO of Airbus has said. However with defence budgets coming under increased pressure this may not be the time to ask for more cash.