EADS A400M May Face French Resistance

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As we have written in the past the A400M transport EADS is building for a variety of European countries is facing issues due to a two year delay in its development. The company had faced a March 1 deadline for cancellation of orders which would have required the paying back of several hundred million Euros to those who have already ordered it. The twelve nations who are customers agreed to a 3 month extension to that deadline, but now both France and Germany have openly discussed either canceling their orders or possibly reducing the number or aircraft they plan to purchase. Forbes writes that the French government discussed reducing their investment in the A400M. England also may revisit their planned buy. EADS had been able to recover from the financial impact of the A380 delays but now faces similar issues with the delayed military transport program. Combined with the declining commercial business right now with the downturn in the world’s economy EADS can not afford the collapse of the A400M anytime soon.

Tags: Deadline, Government, Aerospace & Defense, Vertical Industries, Investment, Manufacturing, Enterprise Software, Software, Finance, 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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