Reuters, Friday November 28 2008
* Procurement agency wants Airbus timetable clarification
* OCCAR does not expect maiden flight before next summer
* EADS reiterates no firm date for test flight, delivery
(Rewrites, adds EADS statement)
By Sabine Siebold
BERLIN, Nov 28 (Reuters) - European arms chiefs want Airbus parent EADS to break its silence over the timetable for the delayed A400M airlifter and are estimating it will be 18 months late, according to a German government document seen by Reuters.
The 20 billion euro project to provide airlift capacity to seven European NATO countries has been postponed indefinitely by Airbus Military as the planemaker and its engine producers argue over the blame for flaws in the
plane's turbo-prop power system.
Since delaying the first flight in September, EADS has declined to say when the aircraft, which was already running 6-12 months late, would be ready, saying it was at the mercy of the performance of its engine suppliers.
OCCAR, the procurement agency which placed the record European defence order for 180 A400M planes in 2003, is pressing EADS to be more transparent, according to a report provided to opposition politicians by the German government.
"It was made clear to the supplier (Airbus) that a complete reporting of the project situation is the unavoidable basis for continuing this project," the report said.
The comments were contained in a German government response to a query from the opposition Free Democrats. The document was obtained by Reuters on Friday.
The 2003 order for 180 planes by OCCAR was Europe's biggest single arms purchase contract. OCCAR helps manage armament contracts for the biggest European economies.
The report said OCCAR does not expect the maiden flight of the plane before next summer. It was originally scheduled in January 2008 before a series of delays that culminated in EADS withdrawing any published target date in September.
Three weeks ago, Germany's Defence Ministry said it expected a delay of over 12 months to the first flight of the A400M.
The document said that Airbus Military sees problems with other parts of the plane as well as the engines, which are made by a consortium led by Rolls-Royce and Safran.
Industry sources have told Reuters there are unidentified problems with the tail structure of the aircraft.
PENALTIES
EADS declined to comment on the report but repeated it could not say when the A400M would take to the air or be delivered.
"EADS cannot confirm any date for the expected first flight of the A400M, nor therefore give any agenda for the delivery schedule, as long as it has not agreed with the engine manufacturers a reliable schedule for the full
delivery of the propulsion system," a spokesman said in an emailed statement.
Engine makers say they have delivered their work on time.
EADS is negotiating with governments to try to avoid penalties in the event of late delivery.
Germany has taken a hard line on the contract while France has expressed willingness to discuss modifications.
Britain has said it needs more information before deciding on the scope for any penalties.
Germany said in the report it would pursue its claims for damages from EADS and would keep in mind its right to cancel its contract if the plane is delayed by more than 10 months.
Germany still plans to take delivery for 60 A400M planes.
The report said the defence ministry had not yet considered in detail how to fill the gaps in urgently needed airlift capacity. The A400M was designed to replace ageing Franco-German Transalls and Lockheed Martin Hercules C-130s.
Germany's FDP party, which requested the report, criticised the government for lacking a plan so far for coping with the delays and for being "held off" over requests for data by EADS.
"It is careless of the defence ministry not to have tested or examined any interim or alternative solutions, despite the uncertainty about the A400M's arrival and the importance of air transport in operations," FDP defence
expert Elke Hoff said.
Britain said this week it was considering buying or renting Boeing C-17 transport planes to fill the gap. (Additional reporting by Tim Hepher and Sebastian Engel; writing by Erik Kirschbaum and Tim Hepher; editing by Rupert Winchester and Simon Jessop)