Open

Coming up

Don't miss

Replay


LATEST SHOWS

DEBATE

Iraq's Christians - Nowhere to Run? (part 2)

Read more

DEBATE

Iraq's Christians - Nowhere to Run?

Read more

MEDIAWATCH

Towards a "Third Intifada"?

Read more

FOCUS

What solutions for California's overcrowded prisons?

Read more

MIDDLE EAST MATTERS

Gaza conflict: Palestinians mark sombre Eid

Read more

WEB NEWS

Celebrities in the Israel-Gaza crossfire

Read more

IN THE PAPERS

Israeli strike takes out Gaza power station

Read more

IN THE PAPERS

French newspaper apologises for Sarkozy story

Read more

BUSINESS DAILY

Last-ditch talks aim to avert Argentina default

Read more

  • Deadly strike hits Gaza market despite four-hour 'truce'

    Read more

  • Russia defiant as US, EU unveil 'phase three' sanctions

    Read more

  • Argentina fails to reach deal with holdout creditors

    Read more

  • US House votes to sue Obama for over-reaching his powers

    Read more

  • Suspect in Jewish Museum attack charged with 'terrorist' murder

    Read more

  • Women should not laugh in public, Turkey's deputy PM says

    Read more

  • Fourth female suicide bomber targets Nigerian city

    Read more

  • US rebounds to 4% growth in second quarter

    Read more

  • Video: Coping with rocket attacks in Israel’s Sderot

    Read more

  • Rats on the rampage at Louvre museum gardens

    Read more

  • France evacuates nationals, closes embassy in Libya

    Read more

  • 'Compelling' signs Kosovo leaders trafficked organs, prosecutor says

    Read more

  • Graphic: Ebola spreads across West Africa

    Read more

  • Video: How tourism is helping Rwanda’s gorillas, ex-poachers

    Read more

  • Islamists seize key Benghazi army base as fire rages on

    Read more

Europe

Europe approves funds to rescue Airbus military-transport plane

Text by News Wires

Latest update : 2010-03-07

European governments have agreed to cover the cost overruns of the troubled Airbus A400 military transport programme, ending months of difficult negotiations.

AFP- European governments agreed Friday to give aerospace giant EADS an additional 3.5 billion euros (4.76 billion dollars) to save the troubled Airbus A400M military transport project, the firm said.
   
"EADS thanks the nations for the decisive support they are bringing to the programme through this agreement," a statement said, after officials from seven NATO countries met in Berlin to hammer out a deal.
   
"EADS considers that this agreement provides a sound basis for a successful evolution of the A400M programme," the Airbus parent company added, vowing "to deliver a state-of-the-art product within the new frame of the contract."
   
Belgium, Britain, Luxembourg, France, Germany, Spain, Turkey ordered A400M planes but after the project ran into trouble they initially balked at EADS demands that they cover cost overruns of about 5.2 billion euros.
   
French Defence Minister Herve Morin confirmed that a deal had been reached.
   
The entire project, which was meant to show Europe's independence from US defence suppliers and employs 10,000 people, had been under threat, after years of delays lead several countries to question its viability.
   
But some governments, particularly France -- which is home to the main Airbus plant and is particularly attached to the idea of shared European defence prjects -- pushed hard for a solution.
   
According to EADS, the agreement reached Friday saw the original contract to buy the planes increased by two billion euros.
   
Meanwhile, the governments agreed to waive damages for the delays, accelerate pre-delivery payments and provide another 1.5 billion euros in exchange for a share in any future export sales.
  
 

Date created : 2010-03-05

  • AVIATION

    EADS presented with ‘final offer’ to rescue A400M military aircraft deal

    Read more

  • AEROSPACE

    The much-delayed A400M Airbus military plane in maiden test flight

    Read more

COMMENT(S)