South Africa scraps A400M deal.

This just in, don’t know how true it is yet, but more woes for the A400M.:(

Airbus deal scrapped
Article By:
Thu, 05 Nov 2009 12:25

Cabinet has decided to terminate the multi-billion rand Airbus A400M military aircraft contract, government spokesman Themba Maseko said on Thursday.

Briefing the media following Wednesday’s regular Cabinet meeting, he said this was because of extensive cost escalation and delays in the contractual delivery time.

The original cost of acquiring the eight military airlift planes was R17-billion, but going ahead with the deal would now mean paying in the region of R40-billion due to the cost escalations, he said.

The R2.9-billion already paid would be refunded.

There would be no penalties for cancelling the contract, because of the delays in the delivery deadlines stipulated in the contract.

The SA Air Force would now have to go back to the drawing board to re-assess its current airlift capacity and needs.

The cancellation might impact on South Africa’s peacekeeping missions in Africa, Maseko said.

http://business.iafrica.com/news/2034101.htm