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A400M: Persisting Cancellation Rumors

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The rumor mill has plenty to say about the much troubled A400M these days.  According to several sources, Airbus management has been studying a possible cancellation of the program.

Air & Cosmos has reported comments from Louis Gallois last week in which he indicated that EADS had seriously underestimated the complexity of the aircraft integration issues.

Cancellation?  We do not think so, not yet.  EADS is now in full negotiations with client states to limit financial penalties (let’s also not forget who imposed the engine choice to EADS back 8-9 years ago).  At this point, A400M is an aircraft that Europe probably cannot afford yet to cancel.  There is more to this than just FADEC:  there are complex political issues, there is KC-30 for USAF, there is potentially some C-17s for European Air Forces and consequently a lot background negotiations that will be going full speed over the next few months.

G2 Solutions @ January 19, 2009

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