A400M remains in limbo

The future of the Airbus Military A400M transport aircraft programme remains in limbo, with the top management at Airbus and parent company EADS admitting that no meetings have yet been scheduled with the programme's partner nations at which crucial price renegotiations could take place.

Speaking at an EADS press conference in Seville, Spain, on 12 January, company Chief Executive Officer (CEO) Louis Gallois said a deadline of 31 January was effectively in place for an agreement to be made between EADS and the A400M partner nations: Belgium, France, Germany, Italy, Spain, Turkey and the UK. After this date, Gallois said, EADS must file 2009 financial results with its auditors. He declined to say specifically what would happen to the programme itself after this date, citing the need to retain 'negotiating room' with the partner nations. However, the implication was that, with no more money from the partner nations, Airbus could not afford to take the programme any further.

"We are spending between EUR100 million and EUR150 million [USD145 million and USD217 million] per month. We just cannot continue beyond the end of January without knowing where we are going financially," said Gallois. "Today, I am sending a message of urgency to the governments: we are ready to negotiate at any time. ... After 31 January a decision will have to be taken anyway. We will take our own decision. Our duty is to protect as much as possible the interests, capacity and sustainability of EADS and Airbus."