EADS has finally responded to the partner nations’ rescue plan.
March 8: European giant EADS has finally responded to the A400M military transport programme partner nations’ financial offer rescue plan for the flailing project.
The plan involves increasing the price of the contract by €2 billion; partner nations waiving all liquidated damages related to current delays; an additional €1.5 billion in exchange for a cut of future export sales (Export Levy Facilities) and the acceleration of pre-delivery payments between 2010 and 2014.
EADS has said that this agreement “provides a sound basis for a successful evolution of the A400M programme” and that the company “will strive to identify opportunities to significantly reduce risks in the A400M programme and to deliver a state of- the-art product within the new frame of the contract.”
The financial impact to EADS is an extra € 1.8 billion provision for fiscal year 2009, forcing the company into a loss. A full set of revised accounts will be published on March 9.