No deal reached on airbus A400M cost overruns

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

No deal reached on airbus A400M cost overruns

European Aeronautic Defence and Space Company (EADS) and client countries failed to reach agreement at the meeting on announced cost overruns in Airbus A400M military cargo plane project.

No progress was recorded on how the 11 million Euro cost overrun would be shared, at the 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.

EADS spokesman said the meeting was postponed and they aimed at resolving the issue by the end of January.

Defense Industry Undersecretary Murat Bayar represented Turkey during the meeting at the German defense industry which was closed to the press.

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.


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Last Mod: 23 Ocak 2010, 10:42
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