Hard blow for Airbus, South Africa cancels its order for A400M

(BRUXELLES2) The news came this Thursday, from the spokesperson for the South African government, Maseko, after the meeting of the Council of Ministers. South Africa cancels its order for eight Airbus A400Ms. The reason: delayed delivery and escalating costs. These would have almost tripled, going from 17 billion rand (1,48 billion euros) to 40 billion Rand (3,5 billion) *. The government hopes to recover 2,9 billion rand (175 million euros) paid in advance. But he would not have to pay cancellation penalties given the overrun of the deadlines. Budgetary restrictions have overcome strategic and political necessities. By doing the
spokesman for the South African government did not hide that the army will now have to re-examine its needs for air capacity and that this cancellation could compromise certain peace operations of South Africa on the African continent.

(*) There is no doubt also a reason for this, the revaluation of the euro on the world price which has increased the cost of the plane for countries outside the euro zone. The British face the same problem. Part of the costs being denominated in $ but another part in euros.