SCHIPHOL-RIJK (dpa-AFX) - Airbus SE (EADSF.PK) announced that it has signed a Declaration of Intent with the A400M Launch Customer Nations, Germany, France, United Kingdom, Spain, Turkey, Belgium, Luxemburg, defining the framework for mutually binding contract amendment in 2018.
Tom Enders, Chief Executive Officer of Airbus, stated, 'This agreement with our customers is an important step to further mitigate risks remaining on the A400M programme.'
Enders added, 'However, since its inception in 2003, this programme has suffered not only from a number of operational issues but, more importantly, under a flawed contractual set-up and insufficient budget which resulted in significant losses for Airbus as prime contractor. We have a good chance to stop or at least reduce the bleeding now and deliver the capabilities our customers need,'
Airbus, European defence agency OCCAR and the seven countries have agreed to work on several contractual elements, including a revamped delivery plan, a roadmap for the development and completion of military capabilities for the A400M.
Airbus noted that an increase to the Loss Making Contract provision on the programme, which may be material, is under assessment for the full year 2017 results which will be disclosed on February 15, 2018. The company has recorded a total charge of EUR 2.2 billion in 2016 due to A400M programme exposure.
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