Berlin talks on A400M project cost overruns resume

Talks on Airbus A400M military cargo plane project cost overruns, between the client countries and European Aeronautic Defence and Space Company esumed Tuesday in Berlin.

Berlin talks on A400M project cost overruns resume

Talks on Airbus A400M military cargo plane project cost overruns, between the client countries and European Aeronautic Defence and Space Company (EADS) resumed Tuesday in Berlin.

Parties failed to reach an agreement on how the 11 million Euro cost overrun would be shared, at Friday's meeting which was attended by Airbus President Thomas Enders and EADS President Louis Gallios and undersecretaries from client countries: Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey.

The offer of EADS to build fewer planes for the same price, along with other alternatives is being discussed at the meeting.

Germany, which has ordered one-third of the 180 aircraft, refuses to make extra contributions.

An EADS spokesman who declined to be named said they did not give up on the goal of reaching a settlement before January 31.

The deadline given to EADS by the client countries will expire on this date.

In 2003, the A400M programme was given a budget of 20 billion euros for 180 aircraft, but development ran into problems and the plane needs an estimated 11 billion euros more for production to be completed successfully.

The European Aeronautic Defence and Space Company (EADS) has asked seven countries that ordered the military transport plane to cover 5.2 billion euros (USD 7.4 billion) in unanticipated costs.

Turkey announced that it would not pay extra money for the cost overruns.


AA

Last Mod: 27 Ocak 2010, 10:54
Add Comment