http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.70Change: 0.13
R/$ = 10.88Change: 0.07
Au 1198.86 $/ozChange: -1.36
Pt 1245.50 $/ozChange: -0.50
 
 
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|Spain|EUR|USD|Financial Solution|Product|Transport|Louis Gallois|Tom Enders|A400M
|Engines|Resources|||Transport||
seville|airbus|eads|engines|resources|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
South African Nuclear Energy Corporation (Necsa) group corporate services executive Ambassador Xolisa Mabhongo stressed on Thursday that South Africa currently had only one Integrated Resource Plan (IRP) for electricity, the IRP 2010, and that the IRP Update...
Small Business Deputy Minister Elizabeth Thabethe
South Africans needed to become more entrepreneurial and create their own jobs, instead of expecting government to create jobs or rely on private-sector employment. “We need to become masters of our own destinies,” Small Business Development Deputy Minister Elizabeth...
Plans to increase gross domestic expenditure on research and development (GERD) to 1.5% of gross domestic product by 2019 are yet to be formally adopted, despite the target being incorporated in the draft strategic plan of the Department of Science and Technology...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
Updated 6 hours ago In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Updated 6 hours ago Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Updated 6 hours ago Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Updated 6 hours ago Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
Updated 6 hours ago The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...
 
 
 
 
 
 
 
 
 
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