EADS, governments reach A400M Agreement

EADS just announced an agreement with the eight governments that ordered the A400M to resolve the financial dispute. The two-page press release may be downloaded here: EADS A400M.

7 Comments on “EADS, governments reach A400M Agreement

  1. A loss for 2009 for EADS… What a mess this programme is…
    On the face of it, EADS got a good deal:
    Increase the price of the contract by €2 billion;
    • Waive all liquidated damages related to current delays;
    • Provide an additional amount of €1.5 billion in exchange for a participation in future export sales (Export Levy Facilities).
    • Accelerate pre-delivery payments in the period of 2010 to 2014, a new schedule of which will be finalised in the amended contract;

    Makes me wonder what they didn’t get! Looks like the inceased provision for 2009, will draw the line under this affair. Now they have to “deliver a state of-the-art product within the new frame of the contract.” Airbus found that bit tricky in the last couple of developments 🙂

  2. I am sure there will be aditional chapter to this evolving story.

    This is not the end of the complexities and delays that haunt this project.

  3. EADS whilst maintaining the technical & innovative high ground with the A380 & A4400M but do seem intent on compiling a catalogue of financially miss managed programs, with the A350 programe well under way let’s hope the lessons learnt.

    • Imho Boeings excellence here lies in better management
      of the public image presented.

      And have a look at media reporting: Even on home turf EADS
      and Airbus are derided where reporting on Boeing is positive.

      • You can’t compare the media coverage between a publicly-listed company and a pan-European champion. Case in point, look-up any media coverage on the BAE fraud fines compared to the A400M (i.e. http://www.spacewar.com/reports/BAE_to_pay_450_million_dollars_in_fraud_fines_999.html). The media hags in Europe would always gravitate towards news of the EU corporate champion as there are more angles and stories that can be explored and told especially in terms of the negotiations between the countries involved in this mess er..project.
        I also think that EADS management gambled and was willing to compromise its reputation (in front of the media) as part of their strategy to get the contract reworked and their demands met. At the end of the day, it is always easier to repair your reputation than to fix your financials.

  4. To: vojoboy on March 8, 2010
    at 9:19 am

    So you think it is all self-afflicted Euro Masochism 😉

    There certainly is a vast difference in projected selfesteem between Europe and the US.

  5. @Uwe: Its not as simple as that and nope its not a matter of who has cajones made of iron.
    EADS did get what they want didn’t they? and that’s all that counts.

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