Airbus denies possible cancellation of SA defence contracts

Nov 26, 2009 4:42 PM | By Staff Reporter and AFP

Airbus, Sub-Sahara Africa has refuted a media report that its parent company European Aeronautic Defence and Space (EADS) was ready to retaliate against South Africa after the country cancelled a contract to buy Airbus military planes and sought repayment of an advance.

Current Font Size:

Picture: Airbus

The report which appeared in the international financial newspaper La TribuneA said that the EADS was "seriously considering cancelling most of the orders that have already been signed, worth about 400 million euros , in the framework of a partnership with (South African) industry (notably with the Denel and Aerosud groups) and which were linked to the contract to purchase eight A400Ms."

Earlier this month, South Africa said it had cancelled its order for eight A400M military transporters, citing cost escalations. It was a fresh blow to the A400M program, already three years behind schedule. South Africa has also asked EADS to reimburse it 250-300 million euros that it had paid as an advance

The nesaper also said EADS was reported to have asked missile maker MBDA, in which it has a 37.5-percent stake, to freeze discussions with Denel. MBDA, seeking a stake of 51 percent in Denel, has been in talks with the South African company for the past two years.

In a statement spokesman for Airbus, Sub-Sahara Africa, Linden Birns, said:“There are currently no plans to withdraw work packages from South Africa. Airbus enjoys strong and valuable partnerships with South Africa and its suppliers in the local aerospace industry.”

Comments

Nov 26 2009 05:27:47 PM
nkosipeter

Might as well cancel all outstanding arms contracts, as we have already been invaded and conquered by Nigerians, Mozambiquans and some 4 million Zimbabweans.

There is no need to throw good money after bad, more arms won't help. It's too late.

Report Abuse

Nov 26 2009 06:08:20 PM
VinceRSA

It is absolutely fantastic - The alignment of the word "Denial" and The "ANC" always simultaneously!

What else is NEW in this ANC Officially Legislated "Tribal Dictatorship smothering the last vestiges of a once upon a time democracy" in this world today?