Airbus to change A400M contracts to curb losses

[BUFF 8]

26-02-2008

FRANKFURT (Thomson Financial) - EADS unit Airbus plans to change fixed-price

contracts for its new military transport plane A400M to curb losses,

Financial Times Deutschland reported, without saying where it got the

information.

The aircraft maker aims to change the price increase clause in its contracts

and add a one-year suspension of contractual penalties for delayed delivery,

FT Deutschland said.

EADS booked a 1.37 bln eur charge for delays to the A400M programme in the

third quarter, leading a net loss of 776 mln eur, widening from a loss of

189 mln a year earlier.

EADS also wants to shorten the amount of time during which its customers can

cancel their orders for the military planes, the newspaper said.

Germany, France and the UK have already been informed of the planned changes

to supply contracts, it said.

The first A400Ms were due to be delivered to the French Air Force in Oct

2009.

[+Gocad 26]

The A400M program has been a disaster from day one.

Edited February 29, 2008 by Gocad