Airbus’ A400M Aerial Transport: Delays, Development, and Deployment

Airbus’ A400M is a EUR 20+ billion program that aims to repeat Airbus’ civilian successes in the full size military transport market. A series of smart design decisions were made around capacity (35-37 tonnes/ 38-40 US tons, large enough for survivable armored vehicles), extensive use of modern materials, multi-role capability as a refueling tanker, and a multinational industrial program; all of which leave the aircraft well positioned to take overall market share from Lockheed Martin’s C-130 Hercules. If the USA’s C-17 is allowed to go out of production, the A400M would also have a strong position in the strategic transport market, with only Russian AN-70, IL-76 and AN-124 aircraft as competition.

Airbus’ biggest program issue, by far, has been funding for a project that is more than EUR 7 billion over budget. The next biggest issue is timing, as a combination of A400M delays and Lockheed’s strong push for its C-130J Super Hercules narrow the field for future exports. This DID Spotlight article covers the latest developments, as the A400M Atlas moves into the delivery phase. Will Airbus’ 3rd big issue become its own customers?

The A400M Program

History

The original EUR 16 billion A400M Letter of Intent was signed in December 2001 for development and production of 196 aircraft, with a 1st flight in 2006 and initial deliveries in 2008. A EUR 20 billion contract was eventually signed between the EU’s OCCAR agency and Airbus Military in May 2003, for 180 planes. June 26/08 saw the first A400M aircraft rolled out at the final assembly line in Seville, Spain, but aircraft weight growth became a critical issue, testbed issues slowed engine certification, 1st flight slipped to December 2009, and the 1st delivery to a customer (France) took until July 2013.

A 2009 French Sénat report estimated that A400M production would ramp up only in 2014, and that it would take until 2020 to clear the backlog introduced by development delays, assuming acceptable settlement of contractual and development issues. Costs per A400M aircraft were placed at EUR 145 million.

The beginning of deliveries is a key milestone, and its lateness escalated into a significant issue. In September 2008, EADS CEO Louis Gallois reportedly sent a letter to the governments of 7 countries who had ordered the A400M, asking them to waive the contract’s built-in penalties for late delivery. Their alternative was a freeze in production from Airbus. Their core customers refused to budge, the freeze came to pass, and it took until November 2010 before a revised OCCAR contract got the project moving again.

Future

The full details of Airbus’ revised deal can be found in Appendix A, but the gist is that the core countries paid more, including “loans” whose conditions make repayment unlikely. The program was overhauled, and the timeline changed. Overall, A400M deliveries would be an average of 3.5 years late, with an initial plane for France scheduled in March 2013 (it was actually July 2013). The 2012 – 2024 delivery schedule from the revised 2010 agreement is reproduced below:

Unfortunately, as of 2013, this schedule is already obsolete. Airbus Defence & Space’s biggest challenges are fourfold: schedule, shifted orders, second-hand sales, and speed of delivery.

Schedule. In the 2010 deal, France and Spain initially decided to space the same number of planned aircraft over a longer delivery time. Subsequent budgets indicate further delays in France, and other customers are also looking to delay their deliveries. That will “save” money in a particular budget year, but stretching out production means paying fixed costs over a longer period of time. Which means higher costs per plane, unless additional orders fill out the production line and make up the difference.

Shifts. Unfortunately, other core customers are making that difficult. In the 2010 deal, Germany and Britain responded to budget pressures by reducing their orders slightly, while remaining within the contract. Their “options” will almost certainly never be exercised, which means a de facto order reduction of 10 planes.

Second-hand Sales. Airbus’ biggest deal concession was subtle, but its effects are even more far-reaching: customers are allowed to re-sell their aircraft on the global market. So far, at least 26 A400Ms will be up for sale from the core group: 13 from Germany, and 13 “austere configuration” planes from Spain. Both countries need the initial deliveries to keep their aged airlift fleets running, but the “zu verkaufen” signs should start going up around 2018. France is also considering such sales, but in a more abstract way. For now, their immediate and urgent need for aerial transport capacity will keep them squarely focused on bringing the A400M Atlas into their operational fleet.

Speed of delivery. A lack of serving aircraft to act as an example and qualification, and a backlog of almost 200 planes, have already cost Airbus potential opportunities in Norway, Canada, and India. Lockheed Martin is using that time to solidify the C-130J variant’s position as a transport and special forces aircraft with roll-on special mission options, including precision weapons and maritime patrol. Meanwhile, Embraer’s jet-powered KC-390 is putting its own plans and customer base together on 2 continents.

A400M: Tech Specs and Issues

According to the February 2009 report from the French Sénat, serious development problems and delays have arisen in the aircraft’s digital engine controls, navigation and low-level flight systems, horizontal tail surfaces, and the definition of the wing design. The November 2010 agreement involves an interim standard that would not be capable of the more sophisticated flight modes, until avionics issues have been resolved.

The key specifications change to date involves base weight estimates that have risen by 12t/ 26,500 pounds. Airbus isn’t proposing to change the aircraft’s 37t carrying capacity, which implies a new maximum landing weight of 134t instead of 122t. That means that the most likely performance changes will be to speed (300 knots target), unrefueled range (3,450 nm target for 20t C-130J class payload; 1,780nm target at maximum 37t), and to the length of runway required for takeoff (914 m/ 3,000 feet target) and landing (822 m/ 2,700 feet target) when fully loaded.

A cruise speed of Mach 0.68 – 0.72 would have approached the C-17 strategic transport’s Mach 0.74 – 0.77, and significantly bettered the C-130J’s Mach 0.56 – 0.59. Testing of production aircraft will reveal where the A400M ultimately ends up, and how much of a competitive advantage it can retain. After 2015 or so, the jet-powered Embraer KC-390 will put even more pressure on the A400M to offer competitive performance in this area.

Takeoff and landing distances are also worth watching. Some customers and potential customers may have issues if performance changes extend those runway lengths extend too far, and begin to exclude a number of bases currently in use by Lockheed’s competing C-130 family.

A400M: Industrial Team

Technically, the OCCAR contract is with Airbus Military Sociedad Limitad (AMSL). AMSL includes various divisions of EADS (90%), Turkish Aerospace Industries (5.6%), and Belgium’s Flabel (4.4%). Industrial roles include:

Contracts & Key Events

August 1/18: German MEDEVAC The German Luftwaffe will have its first A400M in intensive care aeromedical evacuation (ICAE) configuration on standby starting from 1st August 2018. The “flying intensive care unit” can carry up to six medical patients to safety, including two in critical condition. That capacity will be expanded to reach 10 patients in time, surpassing the capability of the existing fleet of C160 Transall transports. Germany, which is the largest buyer of the multinational A400M, has received 20 of the 53 A400M aircraft it plans to buy. It has taken years to add certain capabilities to the aircraft, and officials are still working on enhanced protective measures. Introduction of the A400M in MEDEVAC configuration will complement the capability currently provided only by the Luftwaffe’s A310 Multi Role Tanker Transport (MRTT), which can also treat up to six patients in addition to providing intermediate care to 16 others and 22 less serious cases.

July 24/18: Refueling issues Airbus Defense & Space is set to launch flight test in the first quarter of 2019 to prove the ability of its A400M tactical transport to refuel helicopters in flight. Previous tests have shown that the refueling maneuver brings the helicopter to close to the airlifter’s tail and causes stability issues for the rotorcraft. The company is currently in the process of testing an updated hose design, that will be housed within the same under-wing refueling pod but has a length of 120ft instead of the previous 90ft. Air-to-air refueling operations with fixed-wing aircraft are currently advancing as planned.

July 9/18: 1st export customer? Airbus may soon sign its first export contract for its A400M military transport plane. The name of the potential export country as not been named yet. Airbus Defense and Space Chief Executive Dirk Hoke said, “we are pretty optimistic that there will be a first signature of a contract for the A400M for export still this year”. Airbus’ A400M is a €20+ billion program that aims to repeat Airbus’ civilian successes in the full size military transport market. A series of smart design decisions were made around capacity, extensive use of modern materials, multi-role capability as a refueling tanker, and a multinational industrial program; all of which leave the aircraft well positioned to take overall market share from Lockheed Martin’s C-130 Hercules. Airbus says the A400M, built by Airbus for seven NATO buyers (Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey) is finally turning the corner after years of cost overruns, technical challenges and schedule delays.

March 26/18: French deliveries France received its 14th A400M Atlas military airlifter and meets a major milestone. The delivery took place several months in advance of the scheduled date, thanks to significant improvement in the quality of the aircraft delivered. Delivery of the 14th unit means that the French air force now has a large enough fleet of A400Ms to fly operational missions and test further tactical capabilities such as in-flight refueling of fighter jets. France ordered a total of 50 A400Ms. The 15th A400M is due to be shipped next year, the first of the 11-strong batch of units scheduled for delivery in the draft 2019-2025 military budget law. Airbus’ A400M is a €20 billion program that aims to repeat Airbus’ civilian successes in the full size military transport market. A number of smart design decisions and versatility leave the aircraft well positioned to tale overall market share form Lockheed Martin’s C-130 Hercules.

March 9/18: FMS Sale Indonesia has approved the purchase of two A400M transport aircraft from Airbus with plans to use them in the civilian role. The cargo-lifters will be put to work by the Indonesian Trading Company (PPI) moving goods around the eastern part of the country, with training and maintenance assistance provided by the Indonesian Air Force. PPI is responsible for the purchase and distribution of goods such as food and fuel and the eastern part of the country lacks roads and are highly dependent on aircraft to bring in the supplies. According to reports last January, it was reported that Indonesia could procure up to five A400s and approximately $2 billion had been set aside for the program.

February 16/18: Program Fines Airbus has announced a fresh hit of 1.3 billion euro ($1.6 billion) on its A400M military transport plane, bringing charges mounted on the troubled program over the 8 billion euro mark. The firm’s Chief Executive Tom Enders said in a results statement that the deal would “significantly reduce the remaining program risks,” which comes a week after reaching a provisional agreement with seven European NATO buyer nations over further delays in the troop transport’s deliveries. Airbus also posted an adjusted 2017 operating profit of 4.253 billion euros on revenues of 66.767 billion euros and predicted a 20 percent rise in the widely watched core profit item. Analysts were on average expecting adjusted 2017 operating profits of 3.996 billion euros and revenues of 67.343 billion, according to Reuters.

February 14/18: NATO Agreement Documents seen by Reuters show an agreement between Airbus and seven NATO nations that allows the airframer to deliver the A400M without some of its promise features. The accord allows Airbus to negotiate deals with the individual buyers—which include Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey—so that some of the complex add-on features can be removed from the official specifications. However, it was unclear what complex add-on features—known as “permanent non-compliance” items—could be removed from the transport plane’s specifications as they were not listed in the document. In return for these concessions, the Airbus has pledged to provide “all necessary support and resources to the A400M program,” after delivery delays and issues with some technology has pushed the program’s budget beyond the original $24.5 billion. Both Airbus and the NATO purchasers were unavailable for comment.

January 31/18: Showdown with NATO Airbus will meet with several NATO members in London on February 5, to discuss a potential write down on fines imposed on the firm over the A400M Atlas military transport program. During the meeting, originally scheduled for November, Airbus will try to convince officials from Belgium, France, Germany Luxemborg, Spain, Turkey and the UK, as well as Europe’s procurement agency OCCAR, that a cap on financial penalties is required, otherwise the whole program could be at risk. A series of technical problems in manufacturing, specifically with the cracking of the engine’s gearbox, has seen program costs skyrocket and deliveries fall years behind schedule. In 2010, the seven nations gave Airbus a $4.3 billion bailout, and the firm took a $1.5 billion write-down last year, warning of “significant risks ahead.”

January 19/18: Deliveries—Germany Airbus made its first A400M Atlas transporter delivery of 2018 with the number of deliveries of the Atlas made by the firm now standing at 56. The aircraft was delivered to the German Air Force, bringing to 15 the total number now operated by Berlin out of a total order of 53 units ordered. Airbus also confirmed that a total of 19 A400Ms were delivered in 2017, the highest annual output since the program commenced deliveries in 2013, with the firm now holding a backlog of 118 aircraft to current European operators plus fellow program partners Belgium and Luxembourg. It also continues to market the type to a range of potential export customers.

December 27/17: Milestone-Refueling On December 21, Airbus announced that its A400M tactical airlifter conducted the successful refueling of six Spanish Air Force F/A-18 Super Hornet fighters during a single flight. The mission was undertaken on December 13 as part of an air-to-air refuelling (AAR) human factors certification flight, and involved a complex series of AAR scenarios such as changes of area, receivers with unknown priorities, and unexpected increases in numbers of receivers. The six fighters that participated in the flight came from the Spanish Air Force Test Centre (CLAEX) and the 12th Operational Wing based at Torrejón, and simulated a fleet of eight. A total of 11.4 tonnes of fuel was dispensed using both the underwing pods and the centre hose refuelling unit, and certification authorities on board confirmed good results and the flight validated the A400M two-crew cockpit concept for tanker missions.

December 4/17: Deliveries France has received its first A400M Atlas transporter fitted with pods that will allow for midair refueling of fighter jets. The aircraft was handed over to the French Air Force (FAF) on November 22, and the eleven Atlas units already delivered and in service with Paris will undergo a later retrofit to have the fuel pod added. Manufacturer Airbus is set to deliver a further three A400Ms to the FAF by 2019, and is also working to deliver two key capabilities sought by France, namely in-flight refueling of helicopters and the ability to drop paratroopers from doors on both sides of the aircraft’s fuselage. British firm Cobham has been tasked by Airbus to deliver a hose for helicopter refueling—with a test flight expected toward the end of 2018—while Airbus have built test parachute jumps out the fuselage doors, backed by detailed computer modeling on the aerodynamics, and continue to work on increasing weight and various pallets for cargo airdrops from the rear ramp.

November 17/17: Issues/Fixes Approval for a permanent propeller gearbox (PGB) fix onboard Airbus’ A400M Atlas transport aircraft will slide into next year, according to propulsion system supplier Europrop International (EPI). EPI had hoped to secure European Aviation Safety Agency (EASA) certification for a “Pack 2” series of modifications to the TP400-D6 engine’s Avio Aero-supplied PGB in the third quarter of this year. These modifications intended to reduce vibration and “reinforce endurance and reliability,” however, as EPI want to supply a fully mature PGB solution, certification will not take place until 2018. In the meantime, an EASA certified “truncated plug solution” has been retrofitted to all in-service A400Ms and installed with new engines since the start of this year. EPI said this solution has given “strong relief to the operators” by removing the need to conduct on-wing inspections of the gearbox after every 20 flying hours.

November 15/17: Contracts-Equipment The UK Ministry of Defense (MoD) has signed an agreement with Italian firm Leonardo for the supply of equipment that will simulate radar threats onboard its fleet of new A400M transport aircraft. One threat simulation system will be ordered initially, with future orders expected to grow as the RAF’s fleet does. It uses special Radio-Frequency (RF)-emitting ‘hoods’ which will cover the A400M’s sensors while the aircraft is still on the ground, stimulating its RF sensors with real radar energy. The RAF will also purchase Leonardo’s handheld threat simulator, which will allow crews to conduct more thorough pre-flight checks before taking off in a hostile environment. The value of the contracts were undisclosed.

October 04/17: An agreement between Airbus and Thales will see the latter manufacture and deliver additional training simulators for Airbus’ A400M transport and refueling aircraft to the governments of France and Germany. So far, Thales has delivered five orders for A400M full flight simulators and two flat panel flight-training devices to France, Germany, Great Britain and the International Training Center in Seville, Spain, and will deliver a sixth full flight simulator to the Spanish military in 2018. Thales said the firm “is proud to have received such long-standing commitment from Airbus and we will continue to provide high-quality simulators to enable flight crews to train for their missions.”

August 07/17: The British Royal Air Force (RAF) has brought a A400M Atlas tactical airlifter to this year’s Mobility Guardian exercise in the US, the first time the aircraft has participated in such exercises. Based out of Joint Base Lewis-McChord, Wash, it will participate in nine missions during the exercise, which aims to test the abilities of the Mobility Air Forces to execute rapid global mobility missions in dynamic, contested environments, and involves over 3,000 Airmen, Soldiers, Sailors, Marines and international partners. The RAF plans to induct 22 A400Ms into its tactical and strategic airlift fleet, complimenting the C-17 Globemaster III currently in operation.

May 10/17: A report by the German Defense Ministry has raised concerns over the military readiness of the A400M due to contractual wrangling with manufacturer Airbus, as well as ongoing technical issues with the aircraft. First ordered in 2003, the A400M aimed to give European nations an independent transport capability but costs have since spiraled and Airbus has warned of “risks ahead” for the continent’s largest defense project. The report warns that Airbus may request delays ranging between 12 and 18 months in order to fix the issues, which could lead to a German capability gap when Berlin retires its fleet of C-160 Transall aircraft in 2021. In response to this gap, Germany and France have decided on a plan to jointly procure and operate a number of C-130J aircraft from Lockheed Martin in order to augment their A400M fleets.

March 30/17: Indonesia has signed a letter of intent to buy a number of A400M aircraft from Airbus. The announcement was made by the office of French President Francois Hollande following his recent trip to the region. While the number of aircraft to be sold was not given, Jane’s reported in January that Jakarta wanted to buy five A400Ms, joining neighboring Malaysia as only the second export customer for the troubled program. Previous attempts to sell the transport to South Africa in 2009, and more recently Chile, have all fallen through amid soaring costs and development delays.

February 26/17: Airbus has announced that there have been no signs of further cracks or damage in the combustion chambers of A400M transport aircraft. Safety regulators from the European Aviation Safety Agency (EASA) had to conduct investigations and safety checks into all aircraft after unexplained cracks were discovered in the combustion chamber of an A400M engine owned by Malaysia last year. The EASA airworthiness directive called for inspections of all engines similar to the Malaysian one, and follow-on checks after 500 hours, and then every 250 hours after that. Airbus has also called for fresh talks with European defense ministers in order to discuss the latest issues concerning the transporter and to agree on future steps to ensure the best interests of the program.

February 23/17: Airbus has asked European governments to ease punitive penalties against the company in relation to delays in its delivery of the A400M transporter, after the company received a fresh hit of $1.3 billion. Partner governments have been growing weary with Airbus after recent problems in regards to the plane’s delivery, gearbox issues, and delays in supplying defensive aids, and the project has been hit further by bureaucratic arguments and the withholding of cash from governments. “We cannot go on like that. This is unacceptable and puts a huge burden on Airbus and we need to do something about it,” Chief Executive Tom Enders said.

February 15/17: Airbus will breath a sigh of relief after an investigation into an oil leak that grounded a A400M transporter which was carrying a German government minister on board does not point to a fundamental new problem with the plane. Initial reports suggested that the leak appeared to be linked to the hydraulic system used to adjust the turbine blades in one of the four powerful A400M engines. However, it is now suggested that the leak had been found between the propellers and the nacelle, or engine housing, which are part of the power system but not components of the engine itself. Last week’s breakdown was on a trip that was meant to showcase the aircraft’s capabilities as Airbus seeks to win back confidence in the troubled A400M project.

February 13/17: Only one of eight A400M transport aircraft operated by the German military is ready for use. The disclosure comes just days after Defense Minister Ursula von der Leyen was forced to switch aircraft in Lithuania due to the aircraft experiencing an engine oil leak. Of the seven out of action, three A400Ms have broken down, two are undergoing scheduled maintenance while one more is having a retrofit. The seventh has just been delivered and is having acceptance trials. Technical problems have plagued the A400M program, putting it years behind schedule, with Germany’s share of the costs having risen to $10.2 billion from an initial estimate of $8.6 billion.

February 8/17: The German government is reportedly in talks with several countries on a plan to jointly operate a large number of the 13 Airbus A400M military transport planes it had planned to sell. Berlin had initially planned to buy 60 of the aircraft, but later lowered the number to 53. In 2011, the German parliament then approved a plan under which 13 of those aircraft would be sold to other countries to save money. Countries believed to be part of the aircraft pooling include Switzerland and the Czech Republic.

January 20/17: Indonesia’s government has approved a $2 billion plan to purchase five A400M transport aircraft from Airbus. News of the deal marks a significant leap in the country’s modernization plans and provisions included in the deal will allow Indonesian engineers to study and observe the assembly of various major aircraft components, including wings and fuselage shells, for the first two airframes in Seville, Spain. State-owned firm PT Dirgantara will then conduct the final fit-out of the last three airframes at its plant in Bandung.

January 9/17: Airbus landed a $504 million contract to support the British Royal Air Force’s (RAF) A400M Atlas transport aircraft fleet. The deal will see the company provide maintenance, upgrade and repair support of the planned 22-strong fleet of Airbus-built aircraft through 2026. Based at the RAF’s air transport hub at Brize Norton, work will be carried out in a soon-to-be-complete $76 million hanger, capable of housing three Atlas aircraft at one go. Until now, the maintenance of the RAF aircraft had been conducted under an industry-led initial support contract involving Airbus subcontracting scheduled maintenance work to the engineering arm of Flybe, the British regional airline.

December 15/16: Germany will still seek to give further penalties to Airbus over the severe delays experienced to the delivery of A400M Atlas transport aircraft. A Defense Ministry report to parliament stated that the European multinational A400M program is years behind schedule, with Germany’s share of the costs having risen to 9.6 billion euros ($10.2 billion) from an initial estimate of 8.1 billion euros. Initial aims of the program would have seen Germany receive 11 A400Ms in 2016, for a total of 17. Instead, it will have received just seven by the end of the year.

December 14/16: The German Air Force has received their first upgraded A400M Atlas military transport aircraft. According to manufacturer Airbus, the tactical upgrades include improvements in airdrops, paratrooping, and self-defense. Berlin intends to replace their legacy fleet of C-130 airlifters with the updated planes, however delays to the plane’s delivery have resulted in friction between the government and Airbus. The government has also awarded Rheinmetall a $143 million contract to upgrade 90 Fox armored transport vehicles for the country’s armed forces.

November 18/16: Spain’s Air Force has received its first A400M transporter from Airbus. Aircraft MSN44 carried out its maiden flight from Airbus’s Seville final assembly site in September, and is the first of 27 examples on order for Spain. The delivery came days after Airbus announced that two A400Ms had successfully demonstrated the in-flight transfer of fuel using a fuselage-housed hose-and-drum unit.

November 16/16: Airbus has successfully demonstrated that its A400M tanker can refuel another A400M. Two “buddy-buddy” flights were flown out of Seville, Spain with more than 50 contacts in level flight, and turns using the centerline hose and drum unit (HDU). The presence of the HDU, a third point of contact not found on any other tanker currently on the market, enables the refuelling of large receivers such as another A400M or C-130.

November 14/16: Airbus has been slammed by French Defense Minister Jean-Yves Le Drian over the company’s delivery schedule of the A400M transport aircraft. In recently released minutes from a November 2 meeting of the defense committee of the lower house National Assembly, Le Drian stated “The problem is the company…Today, the A400Ms delivered are not operational – and the problem does not concern just France: that is the case everywhere.” Talks are now underway for a more timely delivery of tactical versions of the A400M which has seen issues with a lack of capabilities including parachute drops, self defense, and landing on short runways. In order to cover urgent operational requirements and fleet replacement, Paris has ordered four Hercules C-130J transport planes to fill the gap.

September 30/16: Delivery of the Malaysian Air Force’s fourth and final A400M transport aircraft will happen early next year. The first aircraft was delivered in March 2015, the second came early this year while the third was received in the middle of this year. Gen Tan Sri Roslan Saad told reporters that the latest A400M will come with a software upgrade.

September 20/16: Airbus admits to planned cost-cutting measures as the European defense giant embarks on a project to introduce more digital methods into its operations. The company stated that “the envisaged cost-cutting aims at being a contribution to value creation and in particular to the digital transformation at Airbus Group,” but denied reports that they are working on new cuts as a result of cost overruns on their largest planes. Aircraft such as the A400M military transporter have undergone severe delays, cost overruns, and fines during its development, causing much ire from customer nations.

September 8/16: Spain’s first A400M airlifter has made its maiden flight. Known as MSN44, the aircraft took off from the A400M final assembly line in Seville, Spain, and landed nearly four hours later. Manufacturer Airbus considers the flight an important milestone toward the aircraft’s delivery.

August 30/16: Airbus has successfully conducted a sand strip landing test of its A400M transporter during certification demonstrations in Woodridge, UK. The surface is the last of three unprepared landing strips on which the company is certifying the aircraft to operate, and follows completion of gravel testing during trials in Ablitas, Spain, and testing on a grass surface in Écury-sur-Coole, in France. A final week of testing will now be carried out with the aircraft carrying higher payloads.

July 28/16: Airbus is to take a $1.5 billion hit for issues involving delays with its A400M transporter and A350 jetliner. The A400s gearbox issues accounted for $1.03 billion of the losses, adding to $5 billion already ready written off during the aircraft’s development. Designed to give some of Europe’s NATO members an independent heavy transport capability, the cost overruns are now being attributed to an overambitious fixed cost with delays and mishaps cutting into a slim profit margin.

July 27/16: French aerospace laboratory Onera has released details on their test of the A400M transporter. The company had been contacted by manufacturer Airbus to conduct the studies of a new hose and drogue configuration designed to permit helicopter refueling from the airlifter. Customers involved in the A400 program’s development have experienced frustration over the lack of helicopter refueling capabilities, with France having already bought two Lockheed Martin KC-130J tankers to perform the task, and Germany considering a similar acquisition.

July 21/16: Four more A400M cargo aircraft will be delivered to Germany from Airbus by the end of the year. Issues involving the aircraft’s gearbox have resulted in a reduction of unit delivery, with the company now capable of delivering a total of five in 2016 rather than the originally agreed nine. With 53 A400s ordered by Germany, the defense ministry convened a new working group on June 29 to look at the country’s transport needs, including how to bridge the capacity gap caused by delays in the A400M program.

July 11/16: Airbus has had an interim fix to the cracking issue found on the power gearbox of the A400M certified by the European Aviation Safety Agency. Officials at the company stated that production of the new component will start immediately but it is not clear how fast can the retrofit kits be delivered to the end user. The issue has affected two of the three aircraft already delivered to the German Air Force.

July 6/16: Cracks on two out of three A400Ms operated by the German Air Force have been discovered on their propeller boxes, with Airbus due to replace one of the four engines on the first aircraft this week. The company has declined to say how many of the 27 troop and cargo carriers already delivered to customers have been affected by the issue. Power gearboxes used on the aircraft are manufactured by General Electric’s Italian unit Avio Aero.

June 23/16: France has received delivery of its first A400M aircraft with tactical capabilities from Airbus. While the delivery is number nine of an eventual 50 A400s, aircraft MSN33 is the first with the ability to participate in missions such as airdrops and includes the addition of cockpit armor and defensive aids system equipment, plus clearance for the Atlas to transfer and receive fuel in-flight. It’s expected that two more such aircraft will be delivered by the end of the year, and three already in service will be upgraded with such features.

June 22/16: Airbus believes that it has found a solution to its A400M tactical transport incapability of refueling helicopters in flight. Tests conducted on the company’s H225 helicopter revealed that the rotorcraft’s proximity to its T-tail meant that the air-to-air refueling activity could not be safely completed using a standard, 24.4m (80ft)-long hose. The potential solution, still awaiting tests, involves using a stiffer hose that is more narrow in diameter which will result in a slower refueling time.

June 7/16: A looming capability gap in Germany’s military transport fleet may result in the Ministry of Defense looking to urge A400M partner nations to procure and jointly operate a limited fleet of C-130 Hercules airplanes. Ongoing participation of German forces in Mali has highlighted the need for aircraft capable of landing on small and poorly fortified airfields and participation in special operations, limitations found in the A400M. At present, Germany operates the C-160 Transall which is due for retirement in 2021.

June 3/16: Despite the mounting delays, Germany is to keep true to its commitment to the A400M program. The government is, however, looking at acquiring other transport planes since the aircraft cannot land at small airports. Germany has taken umbridge with Airbus’s delays over the last few months, with German parliamentary and military sources indicating that the German air force was looking at potentially acquiring up to 10 C-130J aircraft built by Lockheed Martin.

June 2/16: Some of the problems surrounding the development of the A400M cargo lifter are “homemade” according to Chief Executive Officer of Airbus Group, Tom Enders. Quoted in German newspaper Bild am Sonntag, Enders said that the current issues in the program could have been avoided by not opting to develop the aircraft’s engine from scratch, but also mentioned the insufficient quality from suppliers. Despite the delays the issues have caused to delivery, Airbus has urged governments to stay the course and not look for alternatives…naturally.

May 16/16: Airbus is to swap out parts and components of its troubled A400M aircraft during regular maintenance and upgrades after cracks were discovered in a French aircraft. German lawmakers were notified of the updates after being addressed by Germany’s Defense Ministry. With three of Germany’s 53 ordered A400s delivered, the government has demanded retrofits of the three aircraft which did not meet requirements, such as air dropping of paratroopers and equipment, and medical evacuations. Feared delays to delivery may send Berlin looking elsewhere to meet its transport aircraft gap with Lockheed Martins C-130J and Boeing’s C-17 potential options.

May 13/16: Indonesia is to consider purchasing a small number of Airbus A400M cargo aircraft, making them the first export country outside of Europe. The country’s interest in the troubled aircraft was expressed by Defense Minister Ryamizard Ryacudu who talked to Reuters on May 11. Ryacudu also said the government agreed to buy eight Russian Sukhoi Su-35 fighter jets this year, but added the price was still being negotiated.

April 29/16: Airbus has reported further delays to the development of the A400M with the latest issue involving the engine gearbox of the military transport plane. In a statement following the the first-quarter financial results by chief financial officer Harald Wilhelm, he warned of “serious challenges for production and customer deliveries” of the A400M this year. Negotiations on a new delivery schedule are being held through OCCAR, the European procurement agency.

April 8/16: Glitches surrounding the production of the turboprop TP400 engine gearboxes on the A400M may take several months to rectify. The comments were made by Philippe Petitcolin, CEO of Safran, one of the companies behind manufacturer Europrop. “There is no problem in the short term, but it affects reliability in the long term. It is being fixed,” he said, indicating that while it may take time to fix, it will not affect delivery schedules of the aircraft. The A400M is powered by two pairs of turboprop engines whose propellors rotate in opposite directions, requiring two different versions of the gearbox.

April 4/16: New issues surrounding the propeller gear boxes on the Airbus A400M will not affect delivery, according to the company. The first issue regards the material structure and strength of the ring gear in about 14 gear boxes produced in the first half of 2015. A separate fault is an issue with the cracking of a plug that could see small parts of metal released into the oil system of the gearbox, affecting gear boxes that rotate to the right. Airbus plans to deliver 20 of the cargo planes to customers this year.

March 18/16: The German Air Force may look to acquire additional transport aircraft alongside its procurement of Airbus A400Ms. Sources within the government and military have denied that the new buys are in relation to ongoing problems with the A400M; however, as many as ten new aircraft may be purchased. Potential models for the Germans could be Lockheed’s C130 Hercules, as the A400M is too wide and heavy to land on some runways.

February 25/16: Following a 2015 filled with delays, fines and threats of lawsuits, Airbus aims to double deliveries of their A400M transport aircraft in 2016. Having only completed 11 deliveries last year, the company’s chief executive Tom Enders has vowed a target of “20-plus” deliveries in 2016. Stable revenues in Airbus’ defense and space division has helped the company, which is trying to realign their delivery and upgrade schedule to make up for delays. But upgrades regarding the aircraft’s military capabilities remain a challenge.

January 11/16: Problems surrounding the Airbus A400M acquisition by a group of European NATO members are set to continue as Turkey expects not to receive any deliveries this year. Ankara was expecting two of the heavy cargo planes to arrive during the year as part of an order for ten made in 2003. The initial schedule would have already seen Turkey take possession of six by 2016, but only three are now in operation. Delays to the schedule seem to have stemmed from the May 2015 A400M crash in Spain which saw four airmen killed. As a safety precaution, all deliveries of the aircraft to customers were stalled. The news comes as others in the program, such as France, have looked elsewhere to make up for the temporary shortfall.

December 16/15: Turkey has received delivery of its third Airbus A400M after the first two had been sent back to Spain for retrofit and software work. The delays in their flights came following the crash of an A400M in Spain during the summer. Disputes have arisen between the Turkish government and Airbus over delays and production problems, but they are not the only country to have done so. While Germany has started to receive initial orders of the plane, it fined Airbus $14 million in November over delays to deliveries.

December 4/15: Germany has received the first Airbus A400M cargo aircraft, with a second planned to be delivered by the end of the year. Five were initially to be delivered to Germany in 2015, but delays have caused this to be scaled back to just two. Slow production of the aircraft has led to delays in deliveries to seven European NATO members involved in the A400M program. Germany fined Airbus $14 million last month once the late delivery was announced. Germany has ordered 53 of the aircraft in total which is Europe’s most expensive aircraft acquisition program.

December 3/15: The Spanish government has come to an agreement with Airbus to decrease its order of A400M cargo aircraft. Spain is legally obliged to continue with the purchase of the full fleet of 27, but this has been postponed. Instead, a temporary reduction in the order will be allowed with 14 planes being delivered by 2022. Discussions will then continue as to what will be done with the remainder of the acquisition. Problems with the order arose after the Spanish Air Force found it difficult to fund the full order on time. The Airbus A400M Atlas program was developed for the requirements of seven European NATO members. At a cost of $22 billion, it is Europe’s biggest arms contract, but had been initially fraught with delays and technical problems. One of the planes crashed in May, just north of Seville, during an air force test flight.

November 27/15: Airbus is to offer surveillance and intelligence reconnaissance upgrades for its A400M and A330 Airborne tanker planes. The announcement comes at a time when governments are seeking a short-cut to enhance intelligence gathering capabilities, as action against the Islamic State increases along with operational requirements. The ability for these aircraft to hold all required fuel in their wings allows for existing off the shelf equipment to be installed with ease. Airbus has orders for these planes from France, Britain, Saudi Arabia and Turkey, all of whom are currently taking action in the Middle East. This could be seen as an attempt by Airbus to boost the usability of their aircraft amid a decrease in sales of the A400M. The drop is a result of the crash of one of the planes in Spain earlier this year.

November 16/15: Germany has reportedly fined Airbus €13 ($14) million for its failure to deliver on time two A400M military transport planes. This follows reports from earlier this year of the German Ministry of Defense seeking €300 ($280) million compensation from the company over its delays and France cancelling its order in favor of C-130 Hercules from Lockheed.

October 12/15: Egypt is showing interest in the Airbus A400M, according to two Spanish press reports [Spanish]. With potential deals falling through with South Africa and Chile (which opted for the Embraer KC-390), the North African country would be the first export customer after Malaysia joined the program in 2005, as well as the first customer following the crash of one A400M in May. Egypt operates 24 C295 transports, also manufactured by Airbus.

September 11/15: The Royal Air Force appears to have taken delivery of its fourth A400M aircraft, with 70 Squadron’s Twitter account posting a photograph of the new transporter at RAF Brize Norton. A third aircraft was delivered in July, with a total of 22 on order from Airbus. The Ministry of Defence’s Defence Infrastructure Organisation began work in August to expand the Brize Norton airbase to accommodate the growing fleet.

August 6/15: With the delivery of a third Airbus A400M transporter to the Royal Air Force in July, the UK’s Defence Infrastructure Organisation (DIO) has begun construction of a new maintenance facility for the fleet. The $65.7 million project at RAF Brize Norton is slated for completion next year, with the RAF expecting the delivery of nineteen more A400Ms.

May 11/15: Following the crash of an Airbus A400M transport aircraft in Seville, Spain on Saturday, the Royal Air Force, Luftwaffe and Turkish Air Force have grounded their fleets. The aircraft was on an Airbus test flight, with the crash killing four crew members. The destroyed aircraft was due for delivery to Turkey in June, which would have made it the third Turkish A400M, following a 2003 contract for ten of the aircraft.

March 17/15: First delivery to Malaysia. Malaysia
received the first of four Airbus A400 transport aircraft, with this being the first export customer for the model.

Jan 30/15: Military aircraft chief fired over delays. Airbus sacked its military aircraft chief as European partners chafe at continuing delays in the delivery of the A400M heavy lift plane. Domingo Ureña Raso is out and the program’s industrial activities will be transferred to another unit. A wider reorganization is underway, the details of which are to be announced in late February.

Dec. 8/14: MRO. The UK’s Defence Equipment & Support and France’s DGA finalized their joint support contract with Airbus via the OCCAR agency, whose terms had been a point of contention for years (see Oct 12/11 entry). In the meantime France had put an ISS contract in place back in February 2013. The two countries will share spares inventory and maintenance services. Sources: UK MoD | DGA.

Nov. 28/14: UK schedule. Since the 1st delivery was delayed and acceptance is taking more time than expected, one or two of the UK’s first 4 A400Ms may now be delivered in early 2015. Officials hope to reach initial operating capability later that year with 7 aircraft, and reach the total of 22 deliveries by 2018. Standard Operating Clearance 1.5 has slipped into 2015, when the aircraft should demonstrate tactical capabilities that are still unmet.

Source: AviationWeek: A400M Capability Delays Won’t Impact U.K. Operations.

Nov 14/14: Airbus outlook. Airbus announced strong financial results 9 months into 2014 but had this to say on the Atlas:

“The A400M programme industrial ramp-up is ongoing and entering into progressive enhancements of military capabilities but with some delays incurred. The sequence of progressive enhancements and deliveries is under negotiation with customers and related costs, risks and mitigation actions are under assessment. A contractual termination right became exercisable on 1 November 2014. However, management judges that it is highly unlikely that this termination right is exercised.”

Sept 23/14: Malaysia. Airbus announces that the 1st of 4 aircraft ordered by Malaysia is under final assembly in Seville, Spain, and will be delivered at the beginning of 2015, presumably before the LIMA ’15 airshow. Two more deliveries are to follow through 2015, and a final one in 2016. Malaysian pilots are currently being trained by the company. With just 4 planes this will complement rather than replace the existing fleet of C-130s.

The program’s cost comes to MYR 3.5 billion (around $925 million at 2005 exchange rates) including training and logistics, according to the Malaysian Air Force. That’s a sizable investment for a country whose entire defense budget barely reached $5 billion in 2014 (MYR 16.1 billion), with just $850 million (MYR $2.7 billion) available for “development” (i.e. procurement) according to the Treasury.

IHS Jane’s has the cost at a much higher MYR 8 billion. We think that’s just wrong. It contradicts official figures, and even after a sizable industrial offset with Composites Technology Research Malaysia (CTRM) as part of the original deal, it’s way out of scale with both the aircraft’s known flyaway cost and the country’s finances. Sources: Airbus, Malaysian Air Force and Treasury websites | IHS Jane’s: “First A400M for Malaysia takes shape” | See also MYR 3.5 billion figure in 2012 Malaysia Star, “A400M airlifter gets RMAF chief’s seal of approval”.

Sept 22/14: Germany. Several German newspapers report that an internal memo exchanged last month between the Defense Ministry and federal government auditors states that the government reserves the right to push for price reductions or even terminate the order on a case-by-case basis for any aircraft that falls short of its contractual configuration. The Bundeswehr will need the aircraft soon if it wants to help in interventions from Western Africa to Iraq, as its 5-decade-old Transalls are creaking and some parts are no longer available. There is always the SALIS fallback, which is starting to look long in the tooth for an “interim” solution. Sources: Reuters: “Germany pushes Airbus for cost cuts on A400Ms” (sourced on tabloid Bild am Sonntag) | Die Welt: “So marode sind die Maschinen der Bundeswehr”.

Aug 29/14: UK 1st flight. Airbus announces that MSN15, the 1st of 22 aircraft order by the RAF, made its maiden flight, one month ahead of its scheduled delivery.

Aug 28/14: Aerial Refueling. An Airbus A400M test plane successfully performs 5 air-to-air refueling tests with a Spanish EA-18 Hornet fighter, with 33 dry contacts and 35 wet contacts that dispensed 18.6 tonnes of fuel.

The A400M has a basic fuel capacity of 50.8 tonnes, which can be expanded using optional extra cargo hold tanks. Full provisions for Air-to-Air Refueling (AAR) operations come installed as standard, but the A400M requires the installation of an air-to-air refueling kit with the requisite pods, etc. in order to become a tanker.

July 24/14: A400M Batch I. Aircraft MSN10 (4th production A400M, France’s 3rd) becomes the first of its type to be produced in “Batch 1” version, with a fuel inerting system, and improvements in the avionics and cargo system. In addition:

“To enable the delivery of MSN010, OCCAR-EA has prepared and signed in behalf of France a Contract Amendment related to the implementation of the LPM (Loi de Programmation Militaire) conditions and has signed in behalf of France and the UK a contract amendment related to the definition of “Batch 1 aircraft”, including FR/UK swap of production aircraft. This concludes extensive work performed by all parties that define the conditions of delivery for the four FR Batch1 aircraft (MSN10, 11, 12 and 14) and that update the A400M delivery schedule.”

Sources: OCCAR, “First A400M in “Batch 1″ configuration delivered”.

July 16/14: Aerial Refueling. Airbus performs the first aerial refueling of the A400M, using an RAF A330 Voyager with a Fuselage Refueling Unit. In the course of 4 flights, by day and night, in southern Spain, the A400M received more than 80 tons of fuel in 100 “wet contacts.”

The A400M relies on its probe for refueling, and requires a drogue hose from its refueling tanker. Sources: Airbus DS, “Airbus A330 tanker aircraft refuels A400M”.

July 7/14: Turkey. Turkey’s A400M Atlas complete its 1st international flight, carrying the TuAF’s Soloturk F-16 demonstration team to London for Farnborough on July 2, and touching down in Luxembourg on its way back. Sources: Hurriyet, “Turkish A400M carries military equipment in debut international flight”.

July 2/14: Sub-contractors. South Africa’s Denel Aerostructures announces a 6-year, R 260 million (about $24.2 million) sub-contract from Airbus to manufacture a combination of aluminum rails and cross-tracks for the A400M’s cargo hold. It was reportedly a competitive tender bid.

The firm is already building the plane’s center wing box top shell, and the cargo hold components are expected to begin delivery to Germany by September 2014. Sources: The Citizen, “Denel Aerostructures land military airbus deal”.

May 22/14: Germany. Diehl Defence announces that it will work with its long-time partner Elbit to supply defensive systems for the German A400M fleet. Their cooperation would combine 3 of Elbit System´s J-MUSIC systems into a multi-turret DIRCM (Directed Infrared Counter Measure) system with 360 degree protection.

MUSIC comes in podded (C-MUSIC) and DIRCM solutions, and is designed to protect civilian airliners as well as military aircraft. Existing MUSIC military customers include Italian Air Force C-130J and C-27J military transports and AW101 CSAR helicopters, and Brazil’s KC-390 military transports. Sources: Diehl Defence, “Diehl signed a cooperation agreement with Elbit Systems on A400M protection system” | Defense Update, “Israeli DIRCM laser to protect German A400M transport planes”.

April 4/14: Turkey. Airbus announces that Turkey finally accepted its 1st A400M, and “following today’s contractual transfer of title, the aircraft will be flown to Kayseri air base in central Turkey, where it will initially be used for training.” Airbus CEO Tom Enders had denounced (q.v. Feb 27/14) the Turkish Air Force’s earlier refusal of the aircraft delivery as pure bargaining. Sources: Airbus, “Airbus Defence and Space delivers A400M to Turkish Air Force.”

Feb 27/14: Chile. Infodefensa reports that Chile has sent Airbus an RFI in September 2013 regarding 4-6 C295 light tactical transports, and is also expressing interest in up to 6 A400Ms. Chile actually signed a Declaration of Intent to buy up to 3 A400Ms in July 2005, but they formally switched their interest to Brazil’s smaller jet-powered KC-390 in 2010. Their tactical airlift fleet certainly needs some help, as it’s composed of 3 very aged C-130B/H Hercules medium tactical transports, 3 old C-212 light tactical transports, and about 13 DHC-6 Twin Otter “bush planes”.

The C295 is already in Chilean service as a maritime patrol aircraft, and Chile is reportedly interested in signing a deal for a couple of transport variants before the end of the year. C-212s suffered a series of lethal accidents in 2012, including a Chilean crash that killed 21 people. Their replacement is a high priority. The A400M vs. KC-390 question is less clear, as Chile’s delivery timeline is closer to “end of the decade.” The 2010 MoU with Embraer isn’t binding, and Chilean sources told Infodefensa that:

“Lo que se hara sera evaluar las prestaciones de ese avion, cuando hayan ejemplares de produccion, para determinar si satisface los requerimientos operativos de Chile, sin descartar otras opciones que puedan cumplir dichos requerimientos en mejor forma”

Translation: “When the KC-390 has a flying plane to evaluate, we’ll see if it satisfies our requirements. But we reserve the right to pick something else first, if we think it meets our requirements better.” The A400M is a larger plane that will carry heavier loads, by a margin of around 10t, and may also perform better in Chile’s dusty environs. The flip side is that it’s a significantly more expensive plane, but Chile might be able to get a deal on some of the 13 “austere configuration” aircraft that Spain plans to sell. FACh commander in chief Gen. Jorge Rojas Avila happened to be in Spain at the time of the report, and toured Airbus Military’s factory in Getafe. Sources: Infodefensa, “Chile, interesada en adquirir aviones C-295 y A400M” | Chile’s Defense & Military, “Is Chile Bailing Out on Embraer’s KC-390 Cargo Plane?”.

Feb 27/14: Turkey. Airbus CEO Tom Enders isn’t super-happy with Turkey these days, because they haven’t accepted delivery of production aircraft #3. The plane made its maiden flight on Aug 12/13, and its 1st flight in TuAF colors on Aug 28/13. Enders says that:

“The aircraft is ready to go…. It’s the same aircraft that we delivered to the French Air Force that has been instantly operational and fit for flight. I find the situation increasingly unacceptable…. I constrain myself to one word. Bargaining…. In a multinational program that’s really a problem. How can you efficiently ramp up production if you have no certainty that your customers are taking those aircraft?”

Enders has a point, and subsequent statements imply that Airbus will look to press its case via OCCAR and other core countries, if things don’t settle soon. On the other hand, the Turks didn’t just make a random decision. Undersecretary for Defense Murad Bayar has said they don’t believe that production aircraft #3 meets their contract’s specifications and capabilities. Which is no surprise, given recent German reports (q.v. Dec 11/13). So, yeah, bargaining. Sources: Bloomberg BusinessWeek, “Airbus CEO Says Turkish Delay in Taking A400M Threatens Ramp-Up” | Turkish News, “Airbus and Turkey dispute over A400M military aircraft ” | Airbus Military, “First Airbus Military A400M for Turkish Air Force makes maiden flight” and “Airbus Military A400M flies in Turkish Air Force”.

Dec 11/13: Germany. The German defense ministry says that they expect their 1st A400M in November 2014 as planned, but it will not have the full military capabilities ordered. That will require retrofits after delivery, and they’re only expected to be complete by mid-2015. Sources: Reuters, ”
Germany may get full-spec A400M airlifter later than planned”.

Oct 1/13: The economic challenge. Defense-Aerospace points out that the initial A400M ceremony is just the beginning of the real challenge, which is profitability. His core point is simple: 174 planes might keep a production line going for 6-7 years at rates below their 30 planes per year peak, but won’t recover even R&D and launch costs, let alone pay off additional terms from the 2011 deal.

Giovanni de Briganti further calculates that around 1/3 of the core customer planes have disappeared (3 Britain + 7 Germany now options, 13 German and 13 Spanish to sell, and possibly another 10-15 French to sell = 51/174, or 29.3%), and notes that most of the disappearances will compete with Airbus in the export market.

On the bright side, Airbus can look forward to selling one of very few global options during its production run. The C-17 line is about to close, and the Chinese aren’t quite ready to join the inter-theater airlift competition with their Y-20. That leaves the A400M up against the smaller C-130/ KC-390 class 20-ton capacity intra-theater transports, Ukraine’s comparable but ailing An-70 turboprop program, and Russia’s IL-476 jet. Airbus officials tout Lockheed Martin’s super-long sales period for the C-130, but that’s only because it had enough domestic and foreign orders to keep its line open continuously. If Airbus’ core customers cannibalize its near-term export sales and shut the production line, the program may not have a long term to sell in. Sources: Defense-Aerospace, “Ceremony Opens A400M Profitability Challenge”

Sept 30/13: France. A delivery ceremony for the 1st A400M is held at the Airbus Military Final Assembly Line in Seville, Spain. French and Spanish dignitaries are present, and other deliveries are expected to take place soon. The end of August saw a new A400M flown in Turkish colors, and Sources: French Air Force, “L’A400M Atlas arrive dans les forces” | Airbus Military releases: Aug 28/13, Sept 30/13.

Sept 4/13: Testing. More than a week of gravel airfield testing at Ablitas in northern Spain goes well, with the runway still usable after 25 landings, and no issues with the engines or cockpit, and damage to the A400M “minimal and within expectations.”

Demonstrations included ground maneuvering, rejected take-offs, and propeller reverse thrust at speeds as low as 70kt / 130 kmh, both with and without the optional nosewheel deflector. Sources: Airbus Military, Sept 4/13 release.

Aug 2/13: France. French Defense Minister Jean-Yves Le Drian confirms France’s official target of 50 A400Ms by 2025, but also confirms that the new defense budget would see only 15 A400Ms delivered by 2019, instead of the 27 envisioned in the 2010 agreement. He adds that after 2019, those requirements could change:

“Je n’ai pas fait mes arbitrages pour savoir ce qu’il y aura apres 2019…. Le nombre d’A400M sur le total d’avions de transport dont nous aurons besoin n’est pas fixe.”

France can’t reduce the 50-plane order without heavy financial penalties. What they could do is add more A400Ms to a growing second-hand sales pool, stifling Airbus exports (q.v. July 26/13). Les Echos [in French].

July 26/13: Spain. The Spanish government approves an extra EUR 877.33 million (about $1.165 billion) in their 2013 budget, in order to finance payments that have come due on several major weapons programs. Just EUR 46.6 million of that total involves the Airbus A400M. At the same time, they will look to sell half of their proposed A400M fleet, and make cuts in other programs, in order to finance investments in their troubled S-80 submarine program, and purchases of their Pizarro (ASCOD 2) tracked IFVs:

“Contractually, Spain has to take all of the 27 A400Ms it has ordered,” a spokesman for Airbus Military told defense-aerospace.com July 29, “but if it wants to sell some of them, we have nothing to say.” He also said that the first 14 aircraft are due to be delivered by 2020, and that a decision to sell off the aircraft on will not be taken until after then, “so it’s still some time off.” He added that Spain’s final 13 A400Ms would be delivered in an austere configuration, without many mission systems, to reduce cost.

Germany also intends to sell 13 of their A400Ms, as a Parliamentary condition of accepting the revised 2010 deal. That cut-rate pool of 26 second-hand planes is larger than orders in all but 2 core countries, which means it’s going to put a crimp in export orders. That isn’t ideal for Airbus, but it isn’t completely negative. If they don’t meet their export targets for new-build planes, they don’t have to pay back their EUR 1.5 billion “Export Levy Facility” loan from the core partner countries. Sources: Defense-Aerospace | Publico [in Spanish].

July 21-22/13: Certification. France may be proceeding to military type certification of the A400M, but Der Spiegel reports that Germany will have serious trouble. Germany is behind France in its delivery schedule, but close enough to delivery that certification needs to start now. Unfortunately, the commercial/ OCCAR approach to certification is incompatible with German law. It needs official Bundeswehr approval from the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw), working with the quality standards authority in Koblenz or the Military Technical Department 61 in Manching, Bavaria.

The bad news? Instead of the dozen qualified inspectors they’d need, a decade of steady cuts has left the BAAINBw with no qualified inspectors, and misplaced confidence in an external solution has left them with no legally-compliant plan. Both problems might have been solved with the planned Europe-wide military certification, but Europe hasn’t established any such system. Meanwhile, Airbus Military points rather inflexibly to the production contract, which doesn’t have any provisions for German inspectors to oversee final assembly.

As a result, plans explicitly designed to cut the cost of German licensing may end up backfiring, and create a situation in which the German inspectors who must be involved in certification can’t obtain the information they need to certify, but are still held personally responsible under German law in the event of an accident.

BWB undersecretary Stephane Beemelmans has formed a working group (q.v. Dec 20/12), whose May 31/13 memo recommends the immediate hire of 6 people at basic salaries up to EUR 108,000 per year, and the eventual creation in Cologne, Munster, or Manching of a national military certification agency of up to 400 employees within 4 years. Meanwhile, he’s trying to push the concept of a “virtual” national military aviation authority for the operation to certify the A400M. The legality of that approach could end up being decided by a court, and if it is, German A400M flight operations would be placed in a precarious legal position.

Germany’s defense ministry responds to subsequent questions from Bloomberg by emailing a response that doesn’t answer any of the key questions: “The timely delivery of the German A400M, according to the contract changes from 2010, is secure at this time.” Maybe, but delivery doesn’t mean you can fly them. Der Spiegel | Bloomberg.

July 19/13: Certification. The Certification and Qualification Committee of experts from the 7 A400M partner countries recommend its certification to France’s DGA, who is expected to accept that recommendation and issue a certificate in time for final acceptance of the 1st plane. The DGA acts as France’s technical authority, which is responsible for issuing a military type certificate allowing A400M flights.

Civil certification by EASA is its own separate process, and so is military qualification by the EU’s managing Organisation for Joint Armament Cooperation (OCCAR). DGA [in French].

April 22/13: UK Costs. In response to a Parliamentary question from Angus Robertson [SNP – Moray], UK Secretary of State for Defence Dunne says that their A400M program is likely to come in around GBP 770 million over initial approval costs (around $1.23 billion), despite a cut in the fleet’s size from 25 to 22 planes. As Dunne explains, however:

“It should be noted that the cost variation quoted is assessed against MOD project approval figures, which represent the total MOD costs for any particular project. They therefore do not necessarily reflect contractual obligations. Project performance can be affected by a number of reasons, not all of which are in the contractor’s control.”

Dunne also acknowledges a conflict between this information and his written answer to Mr. Robertson on Nov 6/12, which listed EADS as having 0 projects over budget. The difference? This answer acknowledges Airbus Military as part of EADS, and it also addresses forecast costs rather than budgets to date. Mr. Dunne adds “the passage of time” to that list, making one wonder what has changed in the last 5 months. UK Hansard.

March 14/13: UK. UK minister for defence equipment, support and technology Philip Dunne confirms to Flight International that new RAF A400Ms won’t have in-flight refueling pods added to let them perform as aerial tankers, because:

“The Ministry of Defence has recently refreshed its study into requirements for air-to-air refuelling capability. This concluded that Voyager will meet all requirements; therefore, there is no need for an air-to-air refuelling capability by the A400M Atlas.”

Does Mr. Dunne even read his own press releases? The RAF’s new A330 Voyager MRTTs lack key defensive systems, in order to avoid conflicts with their secondary use as civil charter planes. Those kinds of warning and decoy systems are necessary for refueling aircraft in hazardous environments, as several Parliamentary reports have noted. Dunne’s own March 4/13 announcement touted their importance to the A400M. Flight International.

March 6/13: Testing. Maiden flight of the 1st production-model A400M, which will be delivered to the French Armee de l’Air. Airbus Military.

March 4/13: UK LAIRCM mods. The UK MoD announces a GBP 80 million (about $120 million) contract to develop and install A400M modifications that would let it support Northrop Grumman’s LAIRCM defense system against optically-guided missiles. Those kinds of systems provide, in the words of UK minister Phillip Dunne, “essential defensive capability and peace of mind when operating in hostile environments.”

LAIRCM is designed to equip large aircraft, rather than fighter jets. It detects incoming missiles, and fires a laser at the seeker head. It isn’t powerful enough to destroy the missile, but by varying the pulses, it can provide massive false returns to the seeker. UK MoD

Jan 15/13: MSN7, the 1st production A400M, rolls out of the Seville hangar in French air force colors. It’s scheduled for delivery around mid-2013. Airbus Military.

Dec 20/12: Germany. Germany’s defense ministry approves he formation of a working group to “develop an organization for the safe use of Bundeswehr aircraft and aviation equipment for transportation.” The deadline for their initial report in May 31/13.

What they really mean is that the A400M’s flight certification process doesn’t mesh with German laws, and they need a fast fix. See July 22/13 entry for more. Source: Der Spiegel.

Dec 10/12: Airbus Military has successfully completed the 300 hours of Function & Reliability (F&R) flight-testing, which had been interrupted by engine troubles. This is the last major step toward full certification. Airbus Military.

Aug 31/12: Engines. Airbus Military re-confirms that it will deliver the expected 4 A400Ms in 2013, though France’s 2nd plane will be a bit late within the year.

They also discuss the engine problems that kept them out of Farnborough air show (vid. July 4/12), which also suspended EASA full Type Certificate (TC). The problem was apparently a crack of a cover plate isolating elements within the Propeller Gear Box (PGB), and Europrop is currently validating a new design. As a consequence, the civil Type Certification and military Initial Operating Capability (IOC) will now move into Q1 2013.

July 9/12: Training. Britain places a GBP 50 million order for its first A400M Full Flight Simulator (FFS) and Simulator Support System (SSS), to be co-located with the A400Ms at RAF Brize Norton. It will be delivered in spring 2014, ahead of the first delivery to the Royal Air Force later in 2014. The FFS will be maintained by a joint venture consisting of Airbus Military and Thales UK’s Training & Simulation Ltd (TTSL). The 2 firms have been working on these simulators since 2007, with Airbus providing the data and software package to faithfully simulate its A400M, and Thales providing the simulator.

These simulators are developed and produced in Crawley, UK, and this is actually the 4th FFS. Airbus Military’s International Training Centre in Seville, Spain ordered the 1st, and France and Germany ordered #2 and 3. UK Prime Minister’s Office | Airbus Military.

May 29/12: Engines. Flight International looks at the TP400-D6 turboprop engine sub-program’s progress and history. EPI President Simon Henley describes it as designed “for a civil-standard life, with all of the commercial reliability and availability aspects you’d design, but in a military environment.” Other key excerpts:

“An in-flight shutdown in June [2011] led to redesign of the engine’s idler gear, while the inlet vane was tweaked after the discovery of high-pressure compressor blade fatigue… In the course of bringing the TP400-D6 to series production, assembly was consolidated at MTU Aero Engines’ Munich facility and pass-off testing at MTU’s site in Ludwigsfelde, near Berlin… Having the TP400-D6 line at Munich was seen as a route to greater efficiency for MTU, which could move manpower between different lines – commercial and military… ramp-up plans provide for annual production to reach a peak of 120 in 2015. EPI aims to reduce the time to assemble and test a TP400-D6 from an initial 60 days to 30 days. The engine is flat-rated at 10,000shp (7,460kW) at sea level, and has an uprated take-off capability of 11,000shp for hot and high conditions.”

May 30/12: South Africa. Denel Aerostructures (once Denel Saab Aero) is still losing money, and has pushed expected profitability back to 2016/17. They’re on track to deliver their first A400M parts this year, reportedly losing money on producing A400M parts, but have renegotiated with Airbus and raised prices. They’d better, because Airbus appears to be their only large customer. They just received a R700 million (currently about $82 million) capital injection from the National Treasury. IOL BusinessReport | Mail & Guardian.

March 30/12: High altitude testing. Airbus Military announces that A400M “Grizzly 2” recently visited La Paz, Bolivia, to perform high-altitude tests from an airport located more than 13,000 feet above mean sea level.

The firm also used the trip to do some promotion, showing the plane at the FIDAE airshow in Chile, and visiting Lima, Peru. Chile had an option for up to 3 A400Ms, but seems set to order Brazil’s KC-390s instead. Peru may prove to be more promising.

March 22/12: Prop certified. The European Aviation Safety Agency grants United Technologies Hamilton Sundstrand subsidiary Ratier-Figeac a FH385/386 propeller system type certificate. This is an important certification milestone for the platform, and for the 11,000 hp engine that drives the 8-bladed, all-composite, 17.5 foot diameter propellers.

This is the largest all-composite propeller in production, which handles twice the power of any existing in-service propeller. The firm says that it offers a thrust efficiency peak close to 90% at high cruise speeds, and each wing features a pair of clockwise and counter-clockwise rotating propellers for added aircraft stability and control.

In addition to the propeller system, Hamilton Sundstrand and its subsidiaries supply the A400M’s Secondary Electrical Power Distribution Center (SEPDC), Auxiliary Power Unit (APU), Ram Air Turbine (RAT) emergency power system, Trimmable Horizontal Stabilizer Actuator (THSA), and the Throttle Control Assembly (TCA). Hamilton Sundstrand.

Oct 12/11: MRO. The head of France’s DGA, Laurent Collet-Billon, has told the Assemblée Nationale’s defense commission that Airbus’ maintenance proposals have not been satisfactory, “…notably as regards to the engine.” Without a negotiated maintenance contract, the DGA is threatening to refuse to accept the planes, which would hold up the associated payments.

France is due to be the plane’s 1st operational customer, in March 2013. That requires a first-increment maintenance contract, until Britain begins to receive its planes and a joint maintenance contract can be signed. Les Echos is reporting that the price gap in current negotiations is around 20%.

Kepler Capital equity analyst Christophe Menard also points out that European MRO budgets are set to decline on average by 3.8% per year between 2010-2015, which helps explain the DGA’s drive for savings. On the other hand, Airbus can’t afford to bleed a lot more cash on the A400M project, and they can’t agree to another unrealistic plan like the A400M’s ruinous design phase. To make matters worse, ongoing distrust between Airbus and Europrop appears to be pushing Airbus to seek a significant margin of financial safety, before they will commit to a maintenance contract that includes the A400M’s engines. Aviation Week | Dow Jones | Les Echos and Commission de la défense nationale et des forces armées [both in French].

Sept 17/11: Testing. A400M “Grizzly 1” performs the grueling “high-energy rejected take-off test.” That means it was loaded to the maximum take-off weight, then made a take-off run that was aborted at the V1 decision speed – the maximum speed at which the pilot has to decide whether to continue a take-off. Grizzly-1 blew out 3 tires stopping the plane, which isn’t unusual under the circumstances, and the test was considered a success. Airbus Military.

June 12/11: Marketing. Aviation Week talks to Airbus Military SVP of commercial business, Antonio Rodriguez Barberan. He sees the A400M as dominant by default within a decade, as Boeing’s C-17 line shuts down. Airbus Military’s estimate is 2,450 heavy transport aircraft around the world that are on average 26 years old. 1,015 are in North America, followed by Russia with 475:

“Barberan and his team know which countries to target when they ramp up marketing next year: those with major air forces and a large number of old transport aircraft – such as C-130s, C-17s and Ilyushin Il-76s. “In the next 10 years Asia will be a major market,” he says, except for China… Other candidates include Saudi Arabia and the United Arab Emirates… “In the medium-to-long term the U.S. market is huge and there is a capability gap which the A400M would fill in due time.” This is also true for Australia, which recently procured C-130s, “but in 20 years, when these are becoming old, we will be there.” No presentations have yet been made to India, “but due to the size of the market the A400M would be perfect,” he says.”

March 24/11: Testing. The A400M completes Vmu tests for the lowest feasible takeoff speed. Airbus Military.

March 16/11: Aviation Week reports that the qualified progress between OCCAR and Airbus Military could lead to agreement between the Europrop International (EPI) TP400-D6 engine consortium and Airbus Military, to settle conflicting compensation claims over engine-related delays. Airbus wants EUR 500 million in damages from EPI, and EPI counterclaims EUR 425 million from Airbus. The overall program’s limbo has had a predictably chilling effect on settling this issue.

Former Europrop EVP Jacques Desclaux, who left in January 2011, says the firm is already working according to the broad terms of the OCCAR-Airbus agreement, and believes the OCCAR deal will finalize “within a few weeks.” Meanwhile, engine FADEC software is now flying on 2 of the 4 development aircraft, with software and A400M civil certification planned for the end of 2011. European Aviation Safety Agency engine certification wasn’t really set up for turboprops, just turbofan jets. EASA certification is expected soon, however, and initial production deliveries of the 11,000 shp engines are expected to start in April 2012, with 8 (2 aircraft sets) delivered by the end of 2012, and 16 by the end of 2013. Production won’t really take off until 2014, in part as a result of lessons from the A380 to go slow and incorporate changes that emerge from testing.

Desclaux does say that in at least one instance, debris ingestion during a test of unprepared/rough runway performance forced a safe shutdown, without internal failures in the engine, and subsequent engine removal. That’s not alarming, but it is a good example. The A400M is supposed to handle those conditions, and depending on what engineers find, there could be design changes.

March 9/11: ELF payments. France pays EUR 417 million into the Export Levy Facility, as its share of the EUR 1.5 billion total. The money will be paid back as (or rather, if) the plane reaches specific export targets outside the consortium.

Meanwhile, consortium member Belgium has paid EUR 200 million to Airbus so far, of its EUR 891 million bill for 7 A400Ms to replace its current fleet of 11 C-130s. L’Express | Belgium’s 7 Sur 7.

March 9/11: Leadership. EADS announces that the first 4 production (non-test) A400Ms will be produced in 2012, adding that the production rate will gradually be ramped up to 2.5 aircraft per month by the end of 2015.

They are also replacing program head Rafael Tentor, who has led the programme for the last 4 years, with EADS Sogerm President & CEO Cedric Gautier. Tentor will in turn take over all other Airbus Military programs, covering the C212/ CN235/ C295, as well as the A330 MRTT and all other tanker conversions.

March 7/11: Reports surface that last-minute negotiations with Britain and Turkey have prevented the A400M consortium deal from unraveling, but as of March 9/11, A400M production is restarting without agreement from those 2 countries. Defense News | Reuters.

March 3/11: Testing. Airbus Military has successfully completed the number of required simulated flight-cycles on a full scale test airframe to achieve European Aviation Safety Agency (EASA) civil type certification for the A400M.

The MSN5001 test specimen at Dresden has undergone 1,665 cycles, about 5 times the maximum number of flights expected to be recorded annually by each A400M in service. By mid-2012, 25,000 simulated flights will be performed – about 2.5 times the A400M’s design-life. See also Jan 18/11 entry. Airbus Military.

Feb 8/11: Testing. The A400M does initial cold weather trials in Kiruna, Sweden, accompanied by an Airbus A340-300 carrying support equipment and the test team. It will experience further cold weather testing in Kiruna and at other locations this winter and next. Flight International.

Jan 25/11: 40 for Germany? The governing German Free Democrats’ deputy caucus leader, Juergen Koppelin, says that Germany will stick to its pledge of 53 A400Ms plus 7 options. On the other hand, the options are dead, and Germany now plans to retain a fleet of only 40, and resell 13 on the global market. AP | Defense News.

Jan 20/11: Training. CAE announces a contract from Airbus Military to design and manufacture an A400M cockpit maintenance operation simulator (CMOS) based on CAE Simfinity virtual maintenance trainer (VMT) technology, to support maintenance technician training. The training device will feature virtual displays of the A400M aircraft, cockpit and maintenance accessible areas to provide familiarization, troubleshooting and procedural training for maintenance technicians.

The A400M CMOS will be and will be delivered to the Airbus Military training centre in Seville, Spain in 2012. The base contract includes options for CAE to develop additional A400M CMOS devices, as well as other A400M training systems for maintenance technicians. The contract’s value is cloaked by its presence within a scattershot set of announcements worth a total of “more than $140 million.”

Jan 20/11: Germany. Lawmakers from Germany’s Free Democratic Party symbolically delay their approval of Germany’s EUR 500 million share of the A400M loan agreement. German approval is seen as the last hurdle to signing the program’s contract changes. The vote is now on the Budget Committee’s agenda for next week, where it is expected to pass. Bloomberg.

Jan 18/11: Testing. Airbus Military announces that:

“Major fatigue testing of the Airbus Military A400M has begun on schedule in Dresden in January (see attached photos). The test airframe, known as MSN5001, will be subjected to a punishing regime of loads, 24 hours per day, for an initial four weeks, eventually simulating 160 flights per day. The first 1,665 simulated flights are required for European Aviation Safety Agency (EASA) type certification of the A400M, but over the next 18 months a total of 25,000 simulated flights will be performed – equating to 2.5 times the A400M´s design-life. Static testing of another A400M test airframe, MSN5000 was completed in Madrid in September 2010. That airframe continues to be used for further fatigue tests of composite structures which will last until early 2012.”

Dec 20/10: Testing. “Grizzly 4” makes its first flight, and the fleet of A400M development aircraft completes just over 1,000 hours flight-time and 300 flights n 2010. The overall flight test program will include 5 aircraft and over 3,700 flight hours. Airbus Military

Nov 13/10: CEO jump. A 10-man team of project staff jumps from A400M “Grizzly 3’s” ramp over the La Juliana drop-zone near Seville, Spain. Talk about pressure: it includes Airbus President and CEO Tom Enders, and OCCAR’s A400M Programme Manager Bruno Delannoy. Both men are experienced skydivers, and the team of 10 had 35,000 previous descents between them.

A stunt? A lark? Both – but also a compelling and dead-serious way of putting oneself behind the company/ team’s products, so soon after the very 1st jump. Color us impressed. Airbus Military.

Nov 12/10: Malaysia. Malaysia’s official Bernama press agency reports that Malaysia remains committed to its order for 4 Airbus A400Ms, adding that “It was reported last year that Malaysia, which would receive the planes in 2013, would not have to fork out extra money for the four air-lifters it ordered in 2005.”

Nov 4/10: Testing. “Grizzly 3” is used for the A400M’s first paradrop, as 6 freefall paratroopers from the UK armed forces (2), French armed forces (2), and the French Centre d’Essais en Vol (2) jump in separate passes from 6,000 feet, at the Fonsorbes drop zone near Toulouse, France. Four of them jumped from the left-hand side door, and two from the ramp.

The paratroopers reportedly liked the A400M as a jumping platform. That may be related t