Merkel, Sarkozy to discuss cost overruns on A400M project

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

Merkel, Sarkozy to discuss cost overruns on A400M project

Talks on the cost overruns in the Airbus A400M military cargo plane project, between client countries and European Aeronautic Defence and Space Company (EADS) will continue on Thursday in Berlin, announced German Ministry of Defense.

The German Chancellor Angela Merkel and French President Nicholas Sarkozy are expected to take up the issue at the German-French joint cabinet meeting which will be held in Paris on Thursday.

Parties failed to reach an agreement on how the 11 million Euro cost overrun would be shared, at the last meeting on January 26, 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 were discussed at the meeting.

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

The deadline given to EADS by the client countries will expired on January 31.

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: 01 Şubat 2010, 14:13
Add Comment