Economy Hang-up at A400M
16 years delay – federal government nevertheless awards next billion-euro contract to Airbus
Status: 13.07.2023 | Reading time: 5 minutes
The Air Force currently has 40 A400M aircraft in its operational fleet
Source: dpa/Julian Stratenschulte
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The history of the A400M military transporter is one of delays. Now it will probably take until 2026 before the model is fully operational for the Bundeswehr. There is still a new deal worth billions – a much-needed success for Airbus.
For armaments companies it is a fixed formula: sales are not only made when a product is sold, but also afterwards – with maintenance, repair and modernization. One example is a newly negotiated and expanded contract between the Bundeswehr procurement authority and the armaments company Airbus Defense and Space. According to WELT information, the new framework contract for the support of the Air Force military transporter A400M for a good seven years until the end of 2030 has an order value of 1.408 billion euros – without VAT.
It is about future servicing, maintenance, troubleshooting, deferred complaints and major inspections (C-Check) on the aircraft. A staggering sum for a military transport that made its maiden flight in 2009, entered service in 2013, but has still not met all contracted capability milestones. The model even shows another significant delay.
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The amount of almost one and a half billion euros for the maintenance package is mentioned in a tender database with the bid for Airbus. A company spokesman for the armaments division confirmed the volume on request. It is a framework agreement. It is said that the total amount is capped at this maximum value.
Airbus has looked after the Air Force’s A400M models right from the start. Now the scope is expanded. The maintenance and repair work is to be covered from the Airbus site in Manching near Munich, from the air base in Wunstorf near Hanover and from Hanover Airport. In addition, a new maintenance facility with a hall is to be built at Wunstorf Airport, which will go into operation in 2027. This hall is part of the overall package, they say.
Hardly any reports of aborted missions
For Airbus, the new framework agreement is another milestone in the turbulent history of the A400M, which was marked by high losses and delays. The A400M model was initially labeled as a breakdown pilot after many technical problems. There are now hardly any reports of aborted missions. Instead, Airbus and the pilots praise the model’s capabilities. This was shown, for example, during the evacuation mission in Afghanistan and Sudan. In many flights, the Airbus model has proven what it can actually do. The British recently drew attention to a long-haul flight lasting a good 20 hours, during which an A400M model was refueled three times in the air.
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However, the milestones once agreed upon with the initial customers who have ordered 170 machines have not yet been met. The German Air Force currently has 40 A400M in its operational fleet. According to Airbus, a delivery plan has been agreed for the delivery of the remaining aircraft up to a total of 53 copies. However, this delivery schedule is confidential. The latest armaments report from the Ministry of Defense mentions two deliveries this year. This was confirmed by the Airbus spokesman.
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However, Airbus is still struggling with losses from the A400M project. In the last financial year it was around half a billion euros. So Airbus urgently needs high-yield income from the program, which is being carried out with the handbrake on. A total of ten units were delivered in 2022 (2021: eight), bringing the total to 115. Only one A400M example was handed over in the first quarter of 2023. Furthermore, there are relatively many minor technical problems or inspection instructions (Airworthiness Directives) from the EASA supervisory authority, eight this year alone.
It is noteworthy that in the most recent armaments report by the Federal Ministry of Defense, the date up to the major final milestone FOC (Final Operational Capability), as a paraphrase for full operational capability, is now scheduled for 2026. That would be another delay. In the previous armament report, 2023 was mentioned as the date. Based on the current contracts, this is a delay of 46 months. Measured against Airbus’ far too ambitious original planning for the military aircraft, there is now a delay of 195 months or 16 years since the first parliamentary resolutions were passed in 2003.
Criticism from the Ministry of Defense
The Federal Ministry of Defense criticizes the A400M development relatively bluntly. It should be noted that “despite an established and actively operated risk management system on the part of the federal government, it has not been possible to date to keep the project on schedule”. The reasons for this are manifold. “They include, among other things, challenges on the contractor side, changes due to usage knowledge, newly introduced capability requirements and complex approval processes,” reads the ministry’s analysis. Added to this is the complexity of the many countries involved.
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For example, there are delays in the installation and certification of a laser-based protection system (DIRCM). The armaments report confirms that readiness for action is progressing, but warns the industry and thus Airbus at the same time. Literally in the language of the ministry, it says: “The production of readiness for use and the elimination of technical defects or the additional costs, especially in the plannable maintenance to compensate for them, are to be promoted as a matter of priority.”
Meanwhile, the Airbus strategists already have another project in their sights. Put simply, they are plans for a little brother of the military transporter A400M. It would then be a possible European competitor for the C130 Hercules model that has been built by the US armaments company Lockheed Martin for decades. The French armaments division of Airbus is now leading an industrial team financed with 30 million euros from an EU armaments fund. The project, entitled FASETT (Future Air System for European Tactical Transportation), aims to outline what a tactical European military aircraft that would be operational by 2030 to 2040 could look like. In addition to Airbus, the consortium also includes Hensoldt, MTU Aero Engines, Rheinmetall and Rolls-Royce Germany from Germany.
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