http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.29Change: -0.06
R/$ = 10.67Change: -0.05
Au 1296.95 $/ozChange: 1.75
Pt 1481.00 $/ozChange: 3.50
 
 
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
Updated 7 hours ago Nigeria-focused oil and gas explorer Oando Energy Resources (OER) on Wednesday announced that it had completed the acquisition of the Nigerian upstream oil and gas business of New York-listed ConocoPhillips for a total cash consideration of $1.5-billion as well as a...
Updated 7 hours ago The disciplinary hearing of telecommunications giant Telkom’s suspended CFO Jacques Schindehütte was set to resume next Wednesday. Telkom said it hoped the hearing would result in a definitive resolution on the matter of Schindehütte’s personal conduct after a...
While unauthorised expenditure by South Africa’s municipalities has declined year-on-year, irregular expenditure has recorded a R2-billion increase as municipalities failed to follow legislated procurement procedures, the latest Auditor-General South Africa audit...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
GARYN RAPSON Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will open the door for court battles to determine who will be held liable for the remediation
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...
 
 
 
 
 
 
 
 
 
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