EADS has confirmed that it has reached an ‘in principle’ deal with development partner nations on future funding for the troubled A400M airlifter program, although it has stressed that some details still need to be worked out.
The announcement will see partner governments contribute an additional €3.5bn (A$5.25bn) to the program, €2bn ($A3bn) of which will be sunk directly into development, with the remaining €1.5bn (A$2.25bn) repayable if additional export orders are booked. The payments will be made through to 2014, bolstering EADS’s cash flow in the interim.
Reports indicate EADS will likely have to take another earning charge on the program, likely to be in the region of €1.8bn (A$2.7bn).
