PARIS - European aerospace group EADS on Friday denied a report that it was preparing for a possible collapse of the 20 billion euro ($25.91 billion) A400M military aircraft programme as it tries to renegotiate late delivery penalties. The Financial Times Deutschland reported potential losses due to delays had forced the Airbus parent company to question its role in Europe’s biggest single arms development.
“According to FTD information, the mass of A400M problems is prompting a discussion at EADS over whether the project should be maintained,” the newspaper said.
“A withdrawal—which customers as well could demand—threatens to reverse the transaction.”
EADS denied any internal scenarios to escape the project.
“There is no discussion within EADS about a scenario to withdraw from the A400M programme, contrary to what has been circulated in the press,” the Airbus parent said in a statement.
EADS shares fell more than 4 percent to 12.35 euros.
EADS said this month the project would be delayed by at least three years and called for talks over contract terms.
Airbus blames engine makers led by Rolls Royce and Safran while the engine makers say it is Airbus that has botched the testing of the West’s largest ever turbo-prop.
The FTD quoted the head of Germany’s air force as saying deliveries to the Luftwaffe of the troop and cargo plane would be delayed for as much as four years to 2014.
“That is a disastrous development,” he was reported saying.
