South Africa buys A400M

SA, Airbus to sign a deal

09/12/2004

Johannesburg – South Africa is committed to buying at least €837m worth of military aircraft in exchange for investment, technological knowledge and jobs, the transport department said on Thursday. The country has agreed to participate in the A400M multi-role mission transport aircraft design and manufacture programme, after it accepted an invitation to do so by Airbus Military.

In return, South Africa is committed to procure between eight and 14 aircraft – valued from Eu837m – between 2010 and 2014.

The terms of the agreement between the South African government and Airbus Military were still being negotiated.

“We are confident that a memorandum of agreement will be signed in the coming weeks,” the transport department said in a statement.

Airbus Military’s Peter Jost said in September a University of the Wi****ersrand study had shown that an interest in as few as eight of the about Eu98m (R778m) aircraft would create at least 401 direct jobs and 2767 indirect employment opportunities over the programme’s projected 50-year life.

It could also add R859m to the country’s gross domestic product over 15 years.

Jost said the SA Air Force needed the aircraft. The existing SAAF transport fleet, a dozen upgraded C130 medium transports and a few, smaller Spanish-built Casa light transports, could not meet future airlift requirements.