DGAP-Ad-hoc: Airbus SE / Key word(s): Miscellaneous
Airbus signs Declaration of Intent with A400M Launch Customer Nations
07-Feb-2018 / 17:45 CET/CEST
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*Ad-hoc release, 7 February 2018*
*Airbus signs Declaration of Intent with A400M Launch Customer Nations *
- Serves as a milestone to help mitigate programme risks going forward
- Agreement defines framework for mutually binding contract amendment in
2018
Airbus SE (stock exchange symbol: AIR) has signed a Declaration of Intent
(DoI) with the A400M Launch Customer Nations (Germany, France, United
Kingdom, Spain, Turkey, Belgium, Luxemburg) defining the framework for
achieving a mutually binding contract amendment later in the year.
Airbus, European defence agency OCCAR and the Customer Nations have agreed
to work on a number of contractual elements including a revamped delivery
plan as well as a roadmap for the development and completion of military
capabilities for the A400M.
The DoI, finalised today, represents an important step towards reaching a
contractually binding agreement with OCCAR and the Launch Customer Nations
in 2018 to mitigate risks and to ensure the future of the programme. OCCAR
is managing the A400M programme on behalf of the seven Launch Customer
Nations.
This Declaration of Intent provides a new baseline on which to evaluate the
A400M contract.
An increase to the Loss Making Contract provision on the programme, which
may be material, is under assessment for the Full Year 2017 results which
will be disclosed on
15 February 2018. With a clear roadmap in place, the remaining exposure
going forward would be more limited.
"This agreement with our customers is an important step to further mitigate
risks remaining on the A400M programme. I thank the nations for their
support in this complex effort and hope for their continued engagement until
we sign a mutually beneficial contract amendment," said Tom Enders, Chief
Executive Officer of Airbus. "On this basis, Airbus remains committed to the
A400M and to providing our customers' air forces with the best-ever military
transport aircraft. However, since its inception in 2003, this programme has
suffered not only from a number of operational issues but, more importantly,
under a flawed contractual set-up and insufficient budget which resulted in
significant losses for Airbus as prime contractor. We have a good chance to
stop or at least reduce the bleeding now and deliver the capabilities our
customers need."
In February 2017, Airbus called upon the Launch Customer Nations to engage
in discussions with respect to readjusting the contractual set-up of the
A400M, one of Europe's most important and largest joint defence
collaboration programmes ever.
During a Ministerial conference on 30 March 2017 in Madrid, the Launch
Customer Nations expressed their willingness to support such a dialogue and
to enter into contract adjustment discussions with Airbus.
Since then, Airbus and OCCAR have set up a number of working groups
assessing areas requiring adjustments such as delivery planning as well as
the military capabilities development roadmap, the results of which have led
to today's DoI.
In view of the ongoing confidential discussions required to reach binding
terms, both parties have agreed to refrain from further comment.
*****
*About Airbus*
Airbus is a global leader in aeronautics, space and related services. In
2016 it generated revenues of EUR67 billion and employed a workforce of
around 134,000. Airbus offers the most comprehensive range of passenger
airliners from 100 to more than 600 seats and business aviation products.
Airbus is also a European leader providing tanker, combat, transport and
mission aircraft, as well as one of the world's leading space companies. In
helicopters, Airbus provides the most efficient civil and military
rotorcraft solutions worldwide.
*Media contacts*
Martin Agüera +49 175 227 4369
Kieran Daly +34 689 669 661
Rod Stone +33 630 521 993
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Language: English
Company: Airbus SE
P.O. Box 32008
2303 DA Leiden
Netherlands
Phone: 00 800 00 02 2002
Fax: +49 (0)89 607 - 26481
Internet: www.airbusgroup.com
ISIN: NL0000235190
WKN: 938914
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich,
Stuttgart, Tradegate Exchange
End of Announcement DGAP News Service
652349 07-Feb-2018 CET/CEST
(END) Dow Jones Newswires
February 07, 2018 11:45 ET (16:45 GMT)
