Airbus Says Its A400M Can Save Canada $3 Billion

Airbus complained to Canada's government leaders its bid to defense officials for the company's A400M military airlift aircraft has gotten a cold shoulder. The European planemaker says the Canadian military had already made up its mind to purchase Boeing and Lockheed products before even accepting any bids.

The accusation led to an uproar in the government's House of Commons Tuesday as lawmakers drilled the country's defense minister Gordon O'Connor.

The government has already announced its intention to purchase several Boeing C-17 as part of its airlift upgrade program, but lawmakers were especially interested in the military's apparent decision to also purchase Lockheed's C-130J. As early as ten days ago the government insisted Lockheed's C-130J was not a favored choice, but reports in the Canadian press say the government has dispatched representatives from three federal branches to Lockheed's Marietta, GA headquarters.

Airbus vice-president Richard Thompson told the Canadian Press, "We have had opportunities to talk to . . . shall we say decision-makers within (National Defense), and we have felt all along that our message has not been heard or listened to. That's why we're here."

The Canadian government hasn't announced an official winner of the $4.9 billion contract to replace its fleet of older Hercules, but O'Connor did say the C-130J "meets the requirements of the military as a medium-lift aircraft and it meets all the requirements."

He added that just because negotiations are ongoing with individual companies the contract is still up for grabs.

When directly questioned about the A400M, O'Connor said the government had no intention of purchasing "paper aircraft" in apparent reference to the fact Airbus has yet to get the A400M off the drawing board and into the air. Airbus' website says the aircraft will first fly in 2008 and enter production in 2009.

Airbus' Thompson blasted the Canadian military's apparent decision to replace its airlift fleet with two different types of aircraft. He says money wise, one airframe that can do both jobs makes better sense.

He added that although the A400M is individually more expensive than either of the US offerings, reduced long-term operational costs would more than make up the difference.

Thompson further complained Airbus' sister company, Spain's Construcciones Aeronauticas SA received the same cold shoulder for its bid to replace Canada's Buffalo SAR aircraft with its C-295 (above) utility aircraft.

"Yes, there is a problem," Thompson said. "As a group of companies EADS seems to find it difficult to get its voice heard. Why? I have no idea."

Thompson didn't rule out legal action should Airbus prove to be disqualified from bidding on the two projects.

FMI: www.airbus.com