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Thu, Aug 24, 2006

EADS Orders A400M Audit, But Denies Rumors Of Delay

First Flight Set For Early-2008

Responding to growing customer concerns, European aerospace conglomerate EADS ordered an audit this week of its Airbus A400M military transport program -- but denied rumors the plane could be delayed as much as two years.

The audit -- announced by EADS joint chairmen Thomas Enders and Louis Gallois -- is intended to bring to light any unanticipated issues with the program. A company spokesman told the London Times the audit should be complete later this year.

Rumors of delays to the A400M came as news surfaced of additional delays in the first deliveries of the Airbus A380 commercial plane due to production snags, and the unveiling of an upgraded A350.

"People think engineers will be taken off the A400M and transferred to the A380 program and the A350XWB (extra wide body)," the EADS spokesman said. "But we are clear that we are not going to have any problems hitting our targets."

First flight of the A400M is scheduled for January 2008, with delivery of the first plane to the French Air Force in October 2009 -- goals that Airbus Military senior vice-president Richard Thompson said should be met without difficulty.

"The program is fully funded and it is ring-fenced and there is no question of resources being taken away from A400M to go to A380 or the A350," said Thompson in an interview last month.

But at least one aerospace analyst quoted by the Times says there are too many people -- both from within Airbus, and outside the company -- saying there are problems with the plane, for there to be nothing wrong with the program.

"Realistically it’s going to be at least October, if not November or December, before we know the exact scale of the problem at the A400M program, given that EADS will probably not start a review of the program before it has completed the review of the A380," said the unnamed analyst.

"I think there are going to be delays, and I think they will cost money."

Seven launch nations -- Germany, France, Spain, the UK, Turkey, Belgium and Luxembourg -- have ordered a total of 180 A400Ms. South Africa has ordered another eight airframes, while Malaysia has ordered four.

FMI: www.airbus.com, www.eads.com

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