Rumors Swirl That EADS May End A400M Program

The Guardian of England writes about rumors that EADS may end the A400M transport program. The program is significantly behind schedule and EADS is facing having to pay penalties to the countries that have ordered the new aircraft. In December the company had to announce a further delay of two years in the programs after original problems due to issues with the engine development. The last schedule was a first flight planned for the second half of 2009 and then first delivery in 2012. If EADS, or the customers, decide to terminate the contract the amount of the penalties would be reduced. The company is also trying to renegotiate the penalties in the contract.