Final A400M contract to be signed by yr-end

FARNBOROUGH – Airbus SAS chief executive Noel Forgeard is confident
that the final contract for the launch of the A400M military transport aircraft will be signed by the end of 2002 — a year after the initial contract was signed.
The eight-nation project has so far been dogged by delays, but Forgeard said he expects the latest hold-up, a row over Germany’s contribution, to be resolved after the German elections in September this year.
“We are very confident that the present government as well as the opposition want the A400M,” Forgeard told reporters at a press conference here.
Former German defence Minister Rudolf Scharping, who was removed from office last week, had been unsuccessful in his efforts to get the financing for the project approved because of hefty opposition by the Green Party.
But Peter Struck, who has replaced Scharping, has, according to Forgeard, indicated that he supports the programme.
Responsibility for the A400M falls under Airbus unit Airbus Military SAS, in which Airbus parent company, the European Aeronautic Defence and Space Co NV holds a significant stake, together with the aerospace industries of Belgium, Portugal and Turkey. BAE Systems PLC, which holds a 20 pct stake in Airbus, is also part of the project.
As for the engines to be selected for the A400M, Forgeard said there will be an open and fair competition and that the party with the most cost-effective proposition will be awarded the contract.
Currently, United Technologies Corp unit Pratt & Whitney is competing
against Euro Prop International, a consortium led by Rolls-Royce PLC, for the engine contract.
The two parties have to hand in their final proposals by the end of
September.
Turning to developments at Airbus, Forgeard said that Airbus had a positive cash flow so far this year, despite the downturn in the industry and continuing research and development costs.
Airbus is due to release its first half results together with its parent company EADS on Thursday, so Forgeard declined to be drawn on financial details, apart from saying that he expects operating profit in the first half to be in the ‘four digit figures’ again, like last year.
Overall, Forgeard said he did “not want to be over confident, but I think we’re in a strong position .. .to weather the future.”