European military transport aircraft manufacturer Airbus Military has flatly denied that the cost to South Africa of acquiring eight A400M airlifters has increased by R30-billion.

“Airbus Military categorically denies the A400M price increase stated in South African news reports this [Thursday] morning,” said the company in a statement issued to the media.

On Wednesday, South African defence acquisition, disposals and research and development agency Armscor CEO Sipho Thomo told the Parliamentary Portfolio Committee on Defence that the acquisition costs for South Africa for all eight A400Ms had soared from R17-billion to R47-billion.

But Airbus Military has affirmed in its statement that “the price tag which has been attributed to Armscor’s CEO, Mr Sipho Thomo, is wildly exaggerated.”

“We can confirm that we are engaged in ongoing discussions with the South African authorities regarding developments with the A400M programme,” said the company.

“This includes: updated information on the aircraft development and manufacturing programme – the first aircraft is due to fly within the next few weeks; the impact on the aircraft delivery schedule; [and the] likely cost impact and possible price adjustments. As these discussions are the subject of ongoing contractual negotiations, we cannot divulge specific details.”

The company further stated its commitment to minimising any further impacts on its customers and to ensuring that the programme remained within a “realistic and affordable budget”.

“In the meantime,” it added, “we have been in touch with the Department of Defence and requested clarity on Mr Thomo’s remarks.”

South Africa is a risk-sharing partner in the A400M programme. South African companies involved in the programme are Aerosud, Denel Saab Aerostructures, (both with the status of risk-sharing partners), Grintek and Omniples, with Armscor providing engineering services.

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