http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.38Change: 0.05
R/$ = 11.57Change: -0.03
Au 1276.24 $/ozChange: -2.53
Pt 1262.50 $/ozChange: -7.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 13, 2010

European aerospace CEOs warn of need for funding deal on A400M programme

Back
Seville|Airbus|EADS|Engines|Resources|Testing|Spain|EUR|USD|Financial Solution|Product|Transport|Louis Gallois|Tom Enders|A400M
|Engines|Resources|Testing|||Transport||
seville|airbus|eads|engines|resources|testing|spain|eur|usd|financial-solution|product|transport-industry-term|louis-gallois|tom-enders|a400m
© Reuse this



The A400M military transport aircraft programme cannot continue without a “significant financial contribution” from the countries that have ordered the aircraft, Airbus CEO Tom Enders warned on Tuesday, while speaking at a function in Seville, Spain.

In an otherwise very upbeat presentation of the company’s successes during last year – production and delivery of a record 498 commercial aircraft, plus 16 military aeroplanes – and prospects for this year, Enders affirmed that if “we look forward into 2010 and the  challenges we are going to face, one issue stands out right now: the A400M and the financial solution we urgently need to find together with our government customers .... Otherwise we would eventually jeopardise the whole of Airbus (and maybe even EADS), our ability to innovate and modernise our product offering and, hence, our competitiveness.”

At the same function, EADS (which owns Airbus) CEO Louis Gallois reported that the A400M programme was costing his group between €100-million and €150-million ($145-million and $217-million) each month. “We cannot continue beyond the end of January without knowing where we are going financially,” he warned. “I am sending a message of urgency to governments. We are ready to negotiate at any time.” The A400M programme is running two years late and has inflicted a shortfall of €2,4-billion  upon EADS.

Gallois admitted that EADS had erred “in accepting a fixed price contract on a programme  with huge technical challenges and an unrealistic schedule,” and argued that there were “responsibilities on both sides .... It was the nations who pushed the production sharing between countries, including some choices with engines. We must find a solution for sharing the burden with them ... if we want to protect the capacity of the group, we can’t add losses to losses without clear limits.”

Enders assured that Airbus, together with EADS, wants to continue the A400M programme.  The programme has been efficiently reorganised, and the company has been completely open to its customers regarding the financial and technical status of the A400M. “We know from flight testing so far that we have indeed a great plane under development,” he highlighted.

If the A400M programme is cancelled, Enders said that the resources assigned to it, in particular the engineers, would be very quickly redeployed to the A350 XWB airliner and other Airbus programmes.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
JSE-listed Hudaco Industries’ share price climbed nearly 16% on Friday afternoon as the company announced that it would bring an end to a years-long tax challenges with the South African Revenue Service (Sars). In a trading statement to shareholders, Hudaco revealed...
President Jacob Zuma
South Africa was open for more investment and the country offered investment opportunities that no “wise” businessperson should miss, President Jacob Zuma told captains of commerce and industry during the yearly Business Interaction Group meeting on the sidelines of...
The Department of Trade and Industry (DTI) has rejected claims by black economic-empowerment (BEE) advisory firm EconoBEE that there is likely to be a delay to the scheduled May 1 implementation of the revised BEE Codes of Good Practise. “We are on track for the May...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
BRUCE BRADFORD The 3D printers have a clear upgrade path to eventually print in wood, ceramics and metal-alloys
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks