Blames Enginemaker For Delay... But SAFRAN Disagrees

Airbus parent company EADS is involved in a public argument with one of its contractors over delays in the A400M military transport program. The A400M, which EADS has called Europe's most ambitious military procurement program ever, was supposed to be ready for its first flight later this year.

EADS announced Thursday it has indefinitely postponed that first flight because the A400M's engines are not ready. The company emphasized the schedule change does not affect its overall investor guidance for 2008... though Oppenheim Research analyst Winfried Becker called the news "clearly negative," and predicted EADS will have to cut its earnings guidance sooner instead of later.

The A400M's engines are coming from EPI Europrop International GmbH, a consortium involving Industria de Turbo Propulsores, or ITP, of Spain, MTU Aeroengines of Germany, Britain's Rolls-Royce and Snecma Moteurs of France, which is part of the aerospace engineering consortium SAFRAN.

EPI did not directly comment on catching the blame from EADS... but SAFRAN pointedly noted it has already delivered eight TP400 turboprop engines for the first two A400M test aircraft.

"The control software for these engines, also covering control of the propeller and the nacelle, which are the responsibility of Airbus Military, are currently in the final phase of compliance with civil aviation standards," Safran said, according to The Associated Press.

"However, prior to the first flight of the A400M, this software will integrate adjustments following the completion of engine test flights on a (Lockheed) C-130. These tests, which are under the responsibility of Airbus Military, have not yet started."

In development for over 20 years, the A400M has been repeatedly delayed due to a variety of factors. In June, Airbus CEO Thomas Enders said first flight of the A400M wouldn't take place until late summer or early fall... about three months later than previous estimates.

EADS has reportedly booked 180 orders for the A400M from the governments of Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey.

FMI: www.europrop.aero, www.airbusmilitary.com