European military transport aircraft manufacturer Airbus Military, a subsidiary of airliner maker Airbus, has revealed that it held talks on Monday with the South African government regarding this country’s cancellation, last November, of its order for eight A400M airlift aircraft.

“South Africa is a key country, strategic, its a bridge for us, a reference point for the future,” Airbus Military director Domingo Ureña-Raso told the Agence France-Presse news agency.

“South Africa confirmed its cancellation of eight A400Ms in December, but we continue to talk with the government to understand the reasons for this cancellation.”

Regarding the South African companies that were awarded work packages under the A400M programme, he stated that “We are continuing ... to have our engagements with our suppliers in South Africa.”

On Friday, South African Defence Minister Lindiwe Sisulu had stated that the company had still not acknowledged the cancellation of the deal. She said that “we await the response of Airbus to the cancellation of this contract  so that we can facilitate the return of the money that has already been paid out in line with the agreement we have with them.”

Officially, South Africa has maintained that the reasons for the cancellation was the cost escalation of, and delays in, the A400M programme.

Last October, the then CEO of the country’s defence acquisition, sales and research and development agency Armscor, Sipho Thomo, asserted that the acquisition costs for South Africa for all eight A400Ms had soared from R17-billion to R47-billion – an increase of R30-billion (roughly €2,8-billion) for South Africa alone.

Airbus then and since has vehemently denied this.

The recent deal to save the A400M, agreed between Airbus and the seven European countries which are the partners in the programme, increases the costs for all these countries combined by €3,5-billion for 180 aircraft.

A crude calculation, assuming the cost increase is the same for each and every aeroplane, would mean the programme, if South Africa were still a member, would have cost this country about another €19,5-million or roughly R200-million per A400M, or something like €156-million or R1,6-billion in total.