Airbus Negotiating To Reduce A400M Penalty Payments

2017 Paris Airshow

The European countries that launched the airlifter are being asked to forgive late deliveries of aircraft and performance

Any project combining a new airframe with new powerplants is likely to run into design, engineering, production and/or performance problems. So it has been with the Airbus A400M Atlas military transport, an example of which is seen above landing at Le Bourget during the 2017 Paris Air Show. Now, customer nations are seeking compensation for the delays.

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By Chris Pocock • Defense Correspondent

June 19, 2017

Airbus is negotiating with the European nations that launched the A400M airlifter for relief from the penalties that they are imposing, for the late delivery of aircraft and for performance shortfalls. The talks began on March 30, following yet another financial charge on the program by the company, when it announced annual results a month earlier.

“We are having a constructive dialogue with OCCAR and the nations, and should be in a better position by the end of the year,” said Fernando Alonso, head of military aircraft, Airbus Defense and Space. OCCAR is the French acronym for the joint procurement agency that negotiates contracts with Airbus for the A400M on behalf of Belgium, France, Germany, Spain, Turkey and the UK. Speaking during a media briefing at Toulouse on June 9, Alonso said that both sides had agreed not to comment further.

However, he did comment on some of the development issues that have delayed the delivery of full capability. One of them is the A400M’s inability to refuel helicopters inflight as promised, because of wake turbulence. The solution is to extend the length of the hose, and a proposal for this has now been sent to OCCAR.

Another is a delay in achieving full load-dropping capability, where Airbus is “progressing little by little,” he said. A third issue is the integration of the A400M’s defensive aids subsystem (DASS). As for the propeller gearbox problems, the interval rate for precautionary inspections is now down to only one per year. EPI, the consortium that provides the aircraft’s giant TP400 turboprops, is working on a permanent fix that will go into production later this year. “That problem is behind us,” Alonso declared.

On a more positive note, Alonso described how the airlifter has been operating from a variety of unprepared surfaces, such as grass, gravel and sandy soil. The French air force has been flying same-day roundtrips between Orleans and such airstrips in Mali, to deliver troops and equipment for Operation Barkhane.

Export prospects for Europe’s big airlifter could revive, as the program matures. “I’ll be spending more time on this now,” Alonso promised. Malaysia is the only customer outside Europe so far, but neighboring Indonesia is a key prospect.