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Wed, Jan 26, 2011

Germany Bails Out A400M Program

Berlin Will Buy 53 Of The Airbus Airlifters, Sell 13

The German government says it has reached an agreement with Airbus to buy 53 of the A400M airlifters, and plans to sell 13 to outside parties. The agreement reportedly removes the final hurdle to completing the long-overdue and over-budget transport aircraft.

A consortium of European governments have been working to rescue the project, agreeing to a price increase that will push the overall cost of the aircraft to the various governments to nearly $2.7 billion. Reuters reports that another $2 billion is hedged against exports of the plane.

The aircraft was delayed for four years while its engines were under development. Is is now scheduled for first deliveries in 2013.

A budget spokesman for the coalition government of German Chancellor Anglea Merkel said in a statement that the agreement will lead to "long term relief" for the German Defense Ministry.

FMI: www.airbus.com

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