Airbus Claims Engine Makers Are To Blame For Delivery Tardiness

Faced with more late delivery penalties and production woes, Airbus is in a situation that seems to be snowballing. Adding to the tension of running behind schedule on several projects, France and Germany are applying political pressure to EADS, Airbus' parent company.

Two years behind on proposed deliveries of its A380 superjumbo airliner, EADS is facing huge sums in late penalties to several airlines. According to the International Herald Tribune, another EADS project likely to incur penalties is a naval variant of its NH90 Helicopter, running behind as well.

Adding to current woes is a dispute with engine makers for its A400M military transport. Previously announced to be 11 months behind schedule, the first flight of the A400M has now been postponed indefinitely until powerplant difficulties can be ironed out.

EADS, facing late penalties due seven European nations waiting for ordered A400Ms, is balking at carrying the financial burden on its own. EADS' attitude is that since the delay is because of the engine makers, the engine makers should cough up the payment.

After talks between European Union defense ministers in Deauville, France, French defense minister Hervé Morin said, "EADS is telling us, 'You can't make us pay all that,' and we are saying, 'We'll see.'"

Defense Minister Franz Josef Jung stood firm on Germany's position on the delays. "I can only urgently demand that the industry does its utmost to respect treaties," he said.

EADS, originally preferring Pratt & Whitney Canada to be their sole engine supplier, insists that a political arrangement forcing them to enlist three rival European engine makers in the $27 billion A400M project is at the center of the problem.

Rolls Royce, Safran, and MTU Engines have disputed EADS claims, saying they delivered their end of the bargain on time.

Stretching EADS even thinner is Latécoère, a French builder of fuselage parts for the A380. Saying that it had been left stranded by delays in completing the A380, it wanted Airbus to hand over money it was owed on the aircraft earlier than scheduled, IHT said.

FMI: www.airbus.com, www.eads.com