Financial Times FT.com

South Africa drops Airbus contract

By Jeremy Lemer in London

Published: November 6 2009 02:06 | Last updated: November 6 2009 02:06

South Africa has become the first customer to cancel its order for the A400M military transport aircraft from Airbus, dealing yet another blow to the struggling pan-European aircraft programme.

The government said it had no choice but to pull out because of the European aircraft maker’s failure to deliver the aircraft on time and to budget. Since 2005 when the contract was signed, costs have jumped from R17.6bn to over R30bn ($3.9bn).

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