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EADS: Airbus A400M problems won't delay other projects
  • | Dow Jones | February 04, 2010 02:11 PM

European Aeronautic Defense & Space Co. NV (EADS) said Thursday it doesn't expect the delays in the development of its A400M military transport plane to hurt other programs, including the development of the A350.

"The A350 will not be affected. All our programs are on track," Christian Duhain, corporate vice president, EADS International Development Asia Pacific and Latin America, told a press conference.

The A350, which will directly compete with Boeing's 787 Dreamliner, is scheduled to be delivered in 2013. Some 500 A350 planes are on order.

Airbus, EADS's subsidiary, has been struggling to develop the A400M heavy-lift aircraft and is currently in negotiations with the seven countries that commissioned the aircraft to pump in an additional EUR6 billion in its development.

Duhain would not comment, when asked whether the A400M delays would result in order cancellations from its customers. About 180 A400Ms are on order, and South Africa canceled its order of eight such aircraft in November. The A400M is three years late.

Duhain said in 2008 EADS outsourced EUR400 million in development work to its Asia-Pacific plants and expects the outscourcing to grow "in double-digits."

He also said EADS is looking to establish an industrial development facility in Vietnam.

"Vietnam has very high ambition and a strong will to develop an aerospace industry. We want to take benefit of the lack of aerospace infrastructure there," Duhain said, without elaborating.

He said Vietnam Airlines has become a very important customer for Airbus, which has sold more than 40 planes to the carrier.

Airbus, Duhain said, has delivered 79 planes to China in 2009 more than any other country in Asia-Pacific.

He said the Asia-Pacific region made up 25% of EADS's global revenue in 2008 and that the company aims to increase the proportion to 30% by 2015.

Asia-Pacific revenue totaled EUR10.7 billion in 2008, while orders were worth EUR29.2 billion, he said.

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