The reports quote Gallois as writing that the A400M is "a heavy lossmaker" which is causing "considerable difficulties" for EADS, in terms of the group's financial performance. The "anticipated profits" from the sale of the first 180 aircraft have already been "invested" and the current situation could become "untenable" in a matter of months, unless an agreement can be concluded that "keeps everyone happy." If such a deal cannot be reached, and if the customer countries refuse to waive the penalty payments for late delivery, EADS is warning it will freeze production of the A400M.
On top of all this, French and German media have claimed that the costs of the A400M programme have increased by at least €700-million. This would add the issue of cost renegotiation to the talks between the company and the customer governments.
Initial reports state that Germany is unsympathetic, taking the view that "financial concessions" can only be debated once the aircraft have been delivered. The reactions of the other countries were not known at this publication's deadline. Britain has already bought Lockheed Martin C-130J new generation Hercules tactical, and Boeing C-17 Globemaster III strategic, transports because of delays in the A400M programme.
Given the country's heavy commitment to combat operations in Iraq and especially Afghanistan, it is not in conceivable that it could respond by reducing its order for A400Ms and acquiring more of the American aircraft, which are already serving with great success.
As for South Africa, the local partner companies would almost certainly have to pay their share of any penalties. The local partner companies involved in the A400M programme are Aerosud, Denel Saab Aerostructures (DSA), Grintek (formerly AMS), and Omniples, with Armscor providing engineering services.
Aerosud is mainly responsible for secondary structures. These are - nose fuselage linings, cargo hold linings, and cockpit linings, but the company is also making the cockpit rigid bulkhead, the wing tips, and the nose fuselage galleys. The wing tips are quite important because they will contain elements of the aircraft's defence aids sub-system.
DSA is responsible for the top shells for the centre fuselage section - these can be thought of as being equivalent to roof panels. The company is producing two top shells for each aircraft - one each in front and behind of the wing box, which joins the wing to the fuselage. In addition, it is making very large wing/fuselage fairings, manufactured mainly from composite materials but including aluminium parts. Each such fairing is 15 m long, 7 m wide, and nearly 3 m high. DSA is also contributing the ribs and spars for the tail fin, and centre wing box structural components.
Grintek is providing life-time monitoring systems for the aircraft, and Omniples is producing satellite communications antennas.
There was one piece of good news for the embattled A400M programme. On September 10, an example of Europrop International TP400-D6 turboprop engine, which will power the A400M and which has been a significant cause of delays in the programme, had a completely successful two hour ground run. Mounted on the wing of a modified C-130, the engine achieved and maintained full power without any problems. The plan is to have another three or four such ground tests, followed by taxi trials, followed by a flight test programme, all to preceed the first flight of the A400M itself, now expected to take place next year.
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