• Thanks for stopping by. Logging in to a registered account will remove all generic ads. Please reach out with any questions or concerns.

A400M Rollout

The rescue:
 
A400M: The Bailout Package
http://www.aviationweek.com/aw/blogs/defense/index.jsp?plckController=Blog&plckBlogPage=BlogViewPost&newspaperUserId=27ec4a53-dcc8-42d0-bd3a-01329aef79a7&plckPostId=Blog%3a27ec4a53-dcc8-42d0-bd3a-01329aef79a7Post%3a6a502979-95c7-491b-a7ce-0368f1d02ae1&plckScript=blogScript&plckElementId=blogDest

After a year of talks, we now have the agreement between EADS and A400M-buying governments on how to cover the multi-billion euro cost overrun on the formerly 20 billion euro military transport program.

Under the terms just announced, governments will put in another 3.5 billion euros, at least. Most of that, 2 billion euros, is a direct adjustment to the scope of the contract. Another 1.5 billion is effectively treated as money made available now that would be recouped as A400M export contracts are booked. Presumably if exports don't cover the total, it is money simply lost to the taxpayer.

Governments will also provide accelerated pre-delivery payments through 2014. That will help EADS's cash flow at a time the company also needs financial resources for various other efforts, including the increasing development bill associated with the A350 twin-widebody.

EADS is having to take another earnings charge, although the 1.8 billion euros to be booked when earnings are released next week is less than expected.

There are still some issues to be worked out, but the big issues now appear settled.

Mark
Ottawa
 
I had the opportunity to visit the final assembly line in Seville, Spain last week and have to say that, if and when it goes into full production, it will be a slick operation. At full capacity, they say they can turn out an aircraft every 13 days, from start to finish, including testing. The whole aircraft is modular, with the different pieces being fully completed, wired and tested before arrival. They then plug them together, perform final functionality tests, and off it goes to the customer. Another interesting method there are using for testing is they are building 5 protypes (three are already completed) and are testing different aspects on each aircraft. #1 (which flew the initial flight tests) is being used to test flight controls and characteristics. #2 is being used for testing the cargo compartment items, #3 is for engines and fuel systems, #4 and #6 (#5 for some reason was started then scrapped), are testing other systems. They plan to have 35,000 flight hours flown between the five aircraft with the thinking being that any problems/changes that are required will be found before full production on #7 begins.

Scheduled first delivery is currently set for 2013.
 
More bad news for the A400M. Apparently the Brits are cutting the number of aircraft they are ordering (from 25 to 22) and its possible that other countries may also follow suite. Full story courtesy of ARES: 

"Who Will Cut A400M Next?
Posted by Robert Wall at 3/29/2010 10:31 AM CDT

The U.K. decision to cut its A400M procurement from 25 units to 22 leaves plenty of room for other buyers to cut their numbers.
When EADS and the partner nations agreed to the outlines for a new contract - to deal with the billion euros in cost overruns - industry said partners could cut the planned buy of 180 units by 10 aircraft without pricing being affected. The U.K. decision to take three of those cuts leaves margin for others to do the same.

Germany, the largest A400M customer, for instance, has said it wants to reduce its total. Germany is on the books to take 60 A400Ms and, unless it breaks the spirit of the March agreement with industry, will remain the largest customer for the European airlifter.

France, the second largest customer and first country that will operate the A400M, has said it will stick to its buy of 50 aircraft.
The U.K. situation, of course, is somewhat different than many other A400M buyers, since London has plenty of airlift options, given it is a C-130J and C-17 operator. French and German airlift hopes are tied much more closely to the A400M."
 
I just got back from Euroland and passed through Toulouse.  A quick trip to the airport and believe it or not, I actually saw an A400, with all four props turning and the damn thing was actually moving . . .  mind you a very slow taxi.

So the thing actually exists.

sarc off
 
Haletown said:
the damn thing was actually moving . . .  mind you a very slow taxi.

So the thing actually exists.

You mean all the flights it has done so far, all the published photographs of it in flight and its recent apearence at ILA 2010 wasnt convincing enough ?

How about the fact that the second A400M, number MSN002, flew for the first time on April 8th ?

What you may have seen MSN001 which is supposed to fly test this summer from Toulouse or more likely MSN003, which should be starting test flights this summer as well, if it has not already.
 
CDN Aviator said:
You mean all the flights it has done so far, all the published photographs of it in flight and its recent apearence at ILA 2010 wasnt convincing enough ?

How about the fact that the second A400M, number MSN002, flew for the first time on April 8th ?

What you may have seen MSN001 which is supposed to fly test this summer from Toulouse or more likely MSN003, which should be starting test flights this summer as well, if it has not already.

ergo the "sarc off"
 
That sound you hear is billions of Euros flushing down some sewer . . . .

Soooooooooooooooooooooo  glad we have 17's & Jercs and the government didn't get stampeded into buying  these.

"Aug 6 (Reuters) - Airbus said on Friday that further cuts in orders for its A400M military transport planes, as one politician from Germany's ruling coalition suggested this week, would mean production would no longer be worthwhile.

The manufacturer cannot afford to build fewer than 170 of the A400M planes, a company spokesman said on Friday after a German politician called for a further cut in Germany's order.

"There would be no economic foundation for the A400M programme with under 170 planes," an Airbus spokesman said

http://uk.reuters.com/article/idUKLDE6751LJ20100806?feedType=RSS&feedName=tnBasicIndustries-SP
 
Haletown said:
Soooooooooooooooooooooo  glad we have 17's & Jercs and the government didn't get stampeded into buying  these.

Sooo witty!  Good job with that, that's sure a nice nickname for the plane.
 
Almost there:

A400M Deal Close To Completion
http://www.aviationweek.com/aw/generic/story_channel.jsp?channel=defense&id=news/asd/2010/11/08/05.xml

LONDON — The customers and companies involved in developing the A400M military transport have taken another step toward putting the European program on a new contractual baseline, with governments extracting slightly better payment terms following months of talks.

In March, an initial agreement was reached on how to restructure contract terms and cover several billion euros worth of cost overruns stemming from technical problems that caused a three-year schedule delay. However, translating that accord into a new contract has proven difficult. In October, the parties reached an initial breakthrough on their remaining differences; and on Nov. 5, following a meeting in Toulouse, the talks were largely completed.

The agreement largely follows what was spelled out in March, according to EADS, although “the government payments are now more back-loaded than previously expected.”

Still to be resolved is the exact functioning of a €1.5 billion ($2.1 billion) export levy facility, under which countries are repaid on exports.

By the end of the year, the partners hope to finalize the terms that will spell out the size of the royalty payment per aircraft and the number of exports over which the total must be amortized. A key concern is to ensure the royalty payment does not drive up the unit price so much as to stifle exports.

Under the accord, governments reduced the total A400M buy to 170 units from 180 (with Germany taking seven fewer airlifters and the U.K. cutting three) [emphasis added] and increased the contract price by €2 billion. Damages owed governments for the delays are suspended unless the new program schedule, which calls for first deliveries in early 2013, is again breached...

Mark
Ottawa
 
In other A400 news today . . .  six Europeans bail on the A400 . . .  :o

http://tinyurl.com/2fbprcp

 
Weird military procurement:

Germany To Take Only 40 A400Ms
http://www.aviationweek.com/aw/generic/story_channel.jsp?channel=defense&id=news/asd/2011/01/26/01.xml

FRANKFURT — Germany plans to further reduce the number of Airbus Military A400Ms its air force will operate. The Bundestag’s budget committee is expected to follow a proposal made by the ruling coalition to use only 40 of the 53 A400Ms the country plans to order.

The issue is on the committee’s Jan. 26 agenda. Juergen Koppelin, a high-ranking member of the liberal Free Democratic Party, says 13 aircraft will be returned to Airbus for export sales.

Germany is the last A400M launch customer to commit to the details of a compromise formed in early 2010. As part of the basic agreement, the country reduced its order to 53 from 60 aircraft [emphasis added]. The deal includes a €2-billion ($2.7-billion) price hike for the first 180 aircraft and a €1.5-billion prepayment that Airbus Military is to return to the governments as export revenues come in, starting with the 185th aircraft.

In return, the A400M launch customers agreed not to cancel more than a total of 10 of the original 180 orders. A reduction of 20 aircraft would far exceed the agreed upon limits and threaten the compromise.

Thus, Germany will buy 53 aircraft but give 13 of them back to Airbus for remarketing...

Mark
Ottawa
 
"Thus, Germany will buy 53 aircraft but give 13 of them back to Airbus for remarketing..."

Now that is a creative way to sell airplanes !

Aren't we fortunate the current government  did not cave to the relentless Liberal and Bloc pressure to have a competitive process when we picked the C17 as our heavy lifter?  I seem to recall the same bunch of  procurement experts and of course the Rideau (We hate the Military) Centre windbags doing their usual blah, blah, blah  bad deal, blah, blah, blah we should have a competition, blah, blah,blah telling us we should look at the A400 are the same bunch of pinheads going on now about sole sourcing of the F35.

They were wrong then and they are wrong now.  That scenario might make a very effective Election ad comparison.


 
Haletown: Quite about the A400M.  As I wrote at now-defunct Torch in May 2006:

CF airlift procurement: Airbus is getting desperate

Both Boeing and Airbus have full-page colour ads in the May 8 Hill Times aimed at our politicians and political media.
...
Airbus...takes the following line, appealing to traditional Canadian parsimony in defence purchases:

A400M: Get more -pay less!

Canada wants a new tactical military transport aircraft. There is also a demand for a new strategic airlift capability. The A400M does both without finding new tax dollars to buy and maintain tow separate aircraft fleets [Airbus' emphasis]...the A400M will be delivered on time and ready for service in 2009...


In a pig's eye. The plane has not flown yet and it will have an all-new engine (PWC should have won the competition for this on merit but the Euros gave it to a Euro consortium--why should we reward this behaviour?). In any case the A400M simply does not have the trans-oceanic range and payload to be a good strategic lifter for Canada...

And from September that year:

Anyone still for the A400M?

Aviation Week and Space Technology (Sept. 18) update: more reasons why Canada was right not to consider this yet-to-fly plane seriously as a CC-130 replacement or as an alternative to the C-17 (text subscriber only)...

Most recently:
http://forums.milnet.ca/forums/threads/80150/post-1012545.html#msg1012545

...I had no objection to sole-sourcing the Jerc or the C-17.  No conceivable competitors...

Mark
Ottawa
 
MarkOttawa said:
Weird military procurement:

Germany To Take Only 40 A400Ms
http://www.aviationweek.com/aw/generic/story_channel.jsp?channel=defense&id=news/asd/2011/01/26/01.xml

Mark
Ottawa

Till this last 13 will be delivered there is a good chance that we have a different government with out the FDP/Liberals.
So there is still a chance we take them for ourself when that time comes.

Regards,
ironduke57
 
A company private industry wants to avoid:

Balancing Act
German Government Seeks to Preserve Influence at EADS

http://www.spiegel.de/international/business/0,1518,746762,00.html#ref=nlint

With Daimler planning to unload shares in European aerospace giant EADS, the government in Berlin is in a strategic pinch: How can it preserve its interests in the Franco-German company in the longer term? Officials at EADS are reportedly suggesting the introduction of a golden share that would give Germany and France vetos on important decision-making.

When it comes to European aerospace giant EADS, the balance of the company between its European partners is always a delicate one. Tail planes for Airbus jets are manufactured in Spain, wings are developed and produced in Britain and aircraft are assembled in Toulouse, France, and Hamburg, Germany. The situation is similar with the company's complicated shareholding -- the partners vie to preserve their state interests. But between no partners is this balance of power as touchy as it is between Germany and France, the two largest stakeholders.

So when Daimler announced a few weeks ago that it intended to shed half its remaining shares in the company, the news sent a collective shudder through the German government. Daimler began unloading EADS shares in 2006, dropping from a 30 percent holding at the time to 15 percent today. Almost five years later, Berlin still hasn't managed to come up with the long-term strategy for retaining influence in the company, which is often described as a European champion, an emblem of the advantages of pan-European cooperation.

Now, German Chancellor Angela Merkel's cabinet is reviewing scenarios under which it could convince automobile manufacturer Daimler to maintain its EADS shares. Although the German government has no direct ownership in Airbus, it does have considerable influence over Daimler when it comes to control of EADS.

A Subsidy for Electric Cars? ..

In addition to Daimler's 15 percent, a consortium of German private and government-owned banks also hold 7.5 percent of EADS shares, but Daimler has control of their voting rights. The consortium purchased the shares four years ago in order to give the government in Berlin time to find a permanent solution to the control issue, but they have only pledged to maintain that holding through 2012.

Chancellor Angela Merkel plans to discuss the new shareholder structure at EADS with Economics Minister Brüderle and Finance Minister Wolfgang Schäuble on Wednesday in order to seek a solution for maintaining the balance between Franco-German interests.

In France, the government preserves its influence in EADS through its own direct holding in the giant as well as through cooperation with media company Lagadere. Now both Daimler and Lagadere have expressed their intent to unload shares and a new solution must be found for this delicate balance of interests between Paris and Berlin in two countries that, while representing the economic motor of Europe, are often pitted against each other in direct political and industrial competition.

Mark
Ottawa
 
Probably too late to influence the KC-X decision . .  Round/Attempt 3 winner could be announced by Friday and then Protest 3 (aka the Howls of Outrage Tour 2011) will be announced on Monday  ;D
 
Jim Seggie said:
Is this thing even flying yet?

The flight test program has been underway for over a year  . .  seem to recall they now have 5 aircraft in the test fleet and have just north of 1000hrs of airborne testing done.

Don't know how much is left before they an get a Euro Certification or when the IOC is or with which nation.

Don't really care 'cause we got the 17's & the 130J's are arriving.
 
How much testing does a ne a/c like this require and how soon do you guys think it will be ready to sell?
 
Back
Top