EADS CEO's Comments on A400M Raise Issues

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The EADS led program to build a new transport for seven European companies continues to have its struggles. A few weeks ago the customers decided to extend a deadline where EADS would have to start paying back some of the money received for the A400M. Recently Germany and France discussed abandoning the program and now Reuters reports that comments by Tom Enders, the German head of Airbus, have led to speculation that EADS would cancel the aircraft on their own. Published on Sunday on Spiegel Online Enders said that either the contract needed to be changed or the aircraft program needed to be ended. By the end of Monday the company had reaffirmed their support for the program but did say that delays would continue and it would be best to restructure the contract. There were also reports that Enders may leave to take over the German state railways. The A400M has had about two years of delay primarily caused by development and integration of the engines.

Tags: Program, Aircraft, A400M, Aerospace & Defense, Manufacturing, Matthew Potter

Matthew Potter works supporting US Army aviation programs. He holds degrees in history as well as studying at the Defense Acquisition University. He has written for Seeking Alpha and at his own website, Defense Procurement News.

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