Airbus Grapples with Delay of A400 Military Transport
European aerospace group EADS announced on Wednesday, Oct. 17, the delay of its military transport plane by at least six months. The announcement comes after EADS delivered its jumbo A380 over a year behind schedule.
EADS, Airbus' parent company, said Wednesday that slow progress in the development of computer software for controlling the A400's engine would delay the military transport plane's delivery by at least six months and possibly as much as one year.
The first A400Ms -- giant, four-engine turboprop planes -- to the French air force "are now expected to start six months later than initially planned with a risk of a further slippage of up to a half year," the European Aeronautic Defense and Space Company said in a statement.
The company said the changes in the schedule would affect A400M deliveries to both European and other nations. The plane is now due to makes its first flight in the middle of 2008, according to EADS.
Financial impact to be announced soon
The A400M is Europe's largest military industrial project and was launched by seven countries in May 2003.
Germany has ordered 60 planes, France 50, Spain 27, Britain 25, Turkey 10, Belgium 7 and Luxembourg 1, AFP news agency reported.
EADS has already written a provision of 352 million euros ($498 million) into its accounts to deal with the delays and would address the delay's complete financial impact in an upcoming earnings release.
Confirmation of the A400 setback came just days after the European plane maker was able to celebrate the delivery of its A380 superjumbo -- the world's largest passenger plane -- to Singapore Airlines more than a year behind schedule. (ends)
The British newspaper Western Daily Press reported Oct. 18 that Goldman Sachs analyst Sash Tusa said in a research note:
"The first six to eight aircraft with excess structural weight are likely on our calculations to have a payload deficiency of at least 20 per cent. These aircraft would therefore be incapable of carrying the contractually specified armoured fighting vehicles."
Yesterday the European planemaker confirmed a number of factors have hit A400M production, including delays to its TP400 engine. The all-new propeller-driven powerplant is being developed by Europrop International, a consortium in which Rolls-Royce's Bristol-based military division has a 20 per cent stake along with partners Snecma, MTU and ITP.
-ends-
Airbus Grapples with Delay of A400 Military Transport Plane
