Airbus said buyers had agreed to work on contractual changes, including a ‘new roadmap’ for development and completion of capabilities for the A400M, in simple terms less promised capabilities are to be integrated and delivery is to be slowed.
Airbus had already taken a writedown of 1.2 billion euros one year ago after the A400M suffered engine gearbox problems and delays in fitting parachuting capacity and advanced defences. It is understood that Airbus has been urging partner nations to cap its exposure to fines caused by technical delays to the programme.
We understand that Airbus is expecting the rate of production to fall from 19 per year to 15 in 2018 and 11 in 2019 in order to help to extend the life of the programme and increase the chance of export sales.
“An increase to the Loss Making Contract provision on the programme, which may be material, is under assessment for the Full Year 2017 results which will be disclosed on 15 February 2018,” Airbus said in a statement.
“Since its inception in 2003, this programme has suffered not only from a number of operational issues but, more importantly, under a flawed contractual set-up and insufficient budget which resulted in significant losses for Airbus,” Airbus Chief Executive Tom Enders said in the statement.
“We have a good chance to stop or at least reduce the bleeding now and deliver the capabilities our customers need,” he added.