Support for the A400M from Spain and Turkey

by: Matthew Potter
April 6, 2009

Category: Business Line, Companies, Contract Awards, Countries, development program, EADS, England, Events, France, Germany, logistics, Military Aviation, production program, Restructuring, Spain, Turkey | RSS 2.0

The Guardian is reporting that these two countries have affirmed their support for their orders from EADS for the new transports. Unlike France, the UK and Germany who have openly discussed canceling or modifying their orders Spain and Turkey have said that they still want the new aircraft. The A400M will be assembled in Spain. There two orders make up about 25% of the planned fleet of the aircraft. It has been decided that the seven NATO countries who have bought the plane will talk every two weeks or so to review the status of the program. The decision on whether EADS would have to pay back the customers due to the two year delay in the program has been extended to May 1st. EADS feels that they need relief both in time and price and really need to renegotiate the contract to account for this long delay. Either canceling the contract or making EADS pay the penalties would be a great blow to the company.

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