Airbus’ A400M Aerial Transport: Delays, Development, and Deployment
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.
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
A400M: Tech Specs and Issues
A400M: Industrial Team
Contracts & Key Events
2014 – 2018
2008 and earlier
Appendix A – The A400M Program: Dilemmas & a Deal
Background: A400M Program
News and Views
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