{"id":52115,"date":"2015-11-17T19:07:00","date_gmt":"2015-11-17T19:07:00","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2015\/11\/17\/airbus-to-compensate-germany-for-late-a400m-deliveries\/"},"modified":"2026-08-07T23:48:39","modified_gmt":"2026-08-07T23:48:39","slug":"airbus-to-compensate-germany-for-late-a400m-deliveries","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/training-sim\/2015\/11\/17\/airbus-to-compensate-germany-for-late-a400m-deliveries\/","title":{"rendered":"Airbus To Compensate Germany for Late A400M Deliveries"},"content":{"rendered":"\n<p>G\u00d6TTINGEN, Germany\u00a0\u2014\u00a0European aircraft manufacturer Airbus will have to pay <span class=\"rte rte-comment\">a <\/span>substantial compensation to the German Ministry of Defense due to the late delivery of its A400M transport aircraft and a capability <span class=\"rte rte-comment\">construction <\/span>level <span class=\"rte rte-comment\">of the plane <\/span>that falls short of the\u00a0<span class=\"rte rte-comment\">is not compliant with <\/span>contracted agreement.<\/p>\n\n\n\n<p>According to sources familiar with the subject, both parties agreed\u00a0that the German MoD will receive <span class=\"rte rte-comment\">a sum of EUR<\/span>\u20ac13 million (US$13.9 million) from Airbus for missing the delivery schedule.<\/p>\n\n\n\n<p>Currently, the German Air Force is operating only one A400M. By the end of December, one to two more of the aircraft <span class=\"rte rte-comment\">planes of this type <\/span>could enter service \u2014 provided that the ongoing certification process is\u00a0successfully completed.<\/p>\n\n\n\n<p>The compensation agreements relate only to those two planes, a spokesman for the Department of Defense said. He declined to comment on details, as the information is confidential. Initially, the Air Force should have received <span class=\"rte rte-comment\">a total number of <\/span>five new Airbus airplanes in 2015, which would have added to the one in service. \u00a0<\/p>\n\n\n\n<p>According to the sources, <span class=\"rte rte-comment\">as a further component of the agreement, <\/span>Airbus also has to retrofit, at no charge,\u00a0the two A400Ms <span class=\"rte rte-comment\">at no charge <\/span>to the agreed level of capability\u00a0<span class=\"rte rte-comment\">construction, <\/span>since the planes are not delivered according to specifications and have only an &#8220;initial operating clearance&#8221; <span class=\"rte rte-comment\">(IOC) <\/span>standard. Thus, the aircraft <span class=\"rte rte-comment\">neither <\/span>can neither\u00a0drop loads from the air nor operate on unpaved runways.<\/p>\n\n\n\n<p>As long as the two planes are not modified to the agreed standard, the German Air Force will retain 17 percent of the purchase price, which sources say\u00a0would <span class=\"rte rte-comment\">mean a <\/span>block<span class=\"rte rte-comment\">ed<\/span> payment of \u20ac42 million for the two aircraft. In addition, the Ministry of Defense is to receive an indemnity of \u20ac2.2 million as a credit note for each plane that is delivered and not compliant. <span class=\"rte rte-comment\">to specifications.<\/span><\/p>\n\n\n\n<p>Due to the delays, the <span class=\"rte rte-comment\">German <\/span>Air Force must keep its aging Transall transporters <span class=\"rte rte-comment\">longer <\/span>in service. However, the planes fail frequently and are considered unreliable. Besides Germany, the armed forces of <span class=\"rte rte-comment\">other countries such as <\/span>France, Britain and Turkey are procuring the A400M.<\/p>\n\n\n\n<p>But the delayed rollout affects\u00a0Germany <span class=\"rte rte-comment\">is <\/span>more than it does some other <span class=\"rte rte-comment\">affected unlike other <\/span>European countries because Germany <span class=\"rte rte-comment\">is more affected by the delayed A400M rollout, because it <\/span>relies only on the two aircraft types, Transall and A400M. France, the other user nation of the Transall, also operates the C-130 Hercules and is in discussions with the US to purchase additional aircraft.\u00a0<span class=\"rte rte-comment\">for just recently decided to procure new aircraft of this type in the US.<\/span><\/p>\n\n\n\n<p><span class=\"rte rte-comment\">Britain uses <\/span>In addition to the C-130, Britain uses the Boeing C-17 and has <span class=\"rte rte-comment\">already <\/span>several A400M in inventory. Finally, Germany wants to operate 40 Airbus A400Ms. <span class=\"rte rte-comment\">Since 53 aircraft were ordered initially, 13 are to be sold abroad.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the German Department of Defense, Airbus has not yet submitted a binding delivery schedule for more aircraft next year. Due to the lack of scheduling, an agreement for future indemnities has not been discussed yet, a spokesman said.<\/p>\n\n\n\n<p>The ministry spokesman also confirmed that in <span class=\"rte rte-comment\">the <\/span>upcoming negotiations, <span class=\"rte rte-comment\">difficulties with <\/span>the mission planning system probably will be a topic.\u00a0<span class=\"rte rte-comment\">The ministry spokesman confirmed that <\/span>The system does not meet the operational requirements of the Air Force, the spokesman said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A German press report describes the software for the mission planning module as extremely complex, which could mean that the planning of a flight takes up to 50 hours.<\/p>\n\n\n\n<p>An Airbus spokesman said that his company understands the needs of the German Air Force and together with the customer has launched studies to provide additional capabilities.<span class=\"rte rte-comment\">functionalities.<\/span> He also said the A400M has completed more than 1,200 flights and nearly 5,000 flight hours in service with five air forces, and that the exact time required for mission preparation depends considerably on individual operator procedures.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Email:\u00a0<a href=\"mailto:amehta@defensenews.com\">amehta@defensenews.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Airbus will have to pay substantial compensation to the German MoD due to late delivery of its A4000M transport.<\/p>\n","protected":false},"author":7,"featured_media":113741,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":26,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[7,33,26],"tags":[],"coauthors":[2259],"class_list":["post-52115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-air","category-home","category-training-sim"],"acf":{"subheadline":"","legacy_arc_id":"HBIP2LBHJREKHCKXIWKWCP7NVU","arc_canonical_url":"\/training-sim\/2015\/11\/17\/airbus-to-compensate-germany-for-late-a400m-deliveries\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Airbus To Compensate Germany for Late A400M Deliveries - Defense News<\/title>\n<meta name=\"description\" content=\"Airbus will have to pay substantial compensation to the German MoD due to late delivery of its A4000M transport.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Airbus To Compensate Germany for Late A400M Deliveries\" \/>\n<meta property=\"og:description\" content=\"Airbus will have to pay substantial compensation to the German MoD due to late delivery of its A4000M transport.\" \/>\n<meta property=\"og:url\" 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