Severe and Persistent Delays Might Lead to A400M Airbus Order CancellationsMarch 06, 2009
 The development of the Airbus A400M military transport airplane is on the verge of collapse because of persistent delays, leading Germany to say it may cancel its order of 60 planes by the end of this month, according to an article in Spiegel Online, a leading German publication. If other European countries that have placed orders with Airbus follow Germany's lead, Airbus might be forced to make billions of dollars in repayments. That seems likely, according to the article, because Airbus is close to missing a "critical milestone" on March 31. The airplane, which was to have flown its maiden flight in January, 2008, has yet to take flight. The European Aeronautic Defence and Space Company (EADS), the parent company of Airbus, said that the Airbus A400M has faced many technical problems. The company is unsure when the prototype will actually take off. The A400M was hailed as joint effort between several European countries that are part of the EADS consortium. But technical problems have plagued the aircraft, including problems with the software that controls the steering mechanism, according to Spiegel Online. Germany has ordered 60 A400M planes worth about 8 billion euros. France has ordered about 50 planes, and all told 192 planes have been ordered by nine countries. If all these countries cancel their orders, Airbus is likely to face a financial crisis. © Airbus Military S. L. 2008. Airbus S.A.S., EADS N.V., EADS-CASA, The French Air Force, The German Air Force, Lockheed Martin Aeronautics Company, United Nations |
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