Aircraft
A400M Understanding Reached; EADS Declares a Loss
EADS will receive an extra €2 billion to continue the A400M program, as well as a loan of €1.5 billion to be repaid as a levy on future exports of the airl

EADS will receive an extra €2 billion to continue the A400M program, as well as a loan of €1.5 billion to be repaid as a levy on future exports of the airlifter. An ”understanding” with the eight European partner nations also includes forgiveness of all late delivery penalties to date, and an acceleration of pre-delivery payments.

The outline deal was reached just four days before EADS declared its 2009 annual result–a net loss of €0.8 billion thanks largely to a further €1.8 billion charge against the troubled airlifter. EADS declared satisfaction with the outcome, but it has now written off €4.2 billion on the A400M. Moreover, EADS chief executive officer Louis Gallois acknowledged that an additional €3.6 billion of the company’s money could still be at risk if it doesn’t improve management and execution of the airlifter project.

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