The Armchair Soldier wrote:Airbus Says U.S. to be Biggest Customer for A400M Military JetEuropean plane maker Airbus believes the United States will be the biggest customer for its A400M military transport jet, despite a fatal crash involving one of them during a test flight last month.
"By the next decade at the latest, the U.S. armed forces will be the biggest customer for the aircraft," Airbus chief executive Tom Enders told the weekly magazine WirtschaftsWoche in an interview.
Despite its current technical problems, there was no other rival product at the moment, Enders argued.
Boeing's C-17 was larger and Lockheed Martin's C-130 was smaller.
"But a lot of countries don't want either extreme. For the next few years, there will only be one alternative, the A400M, which is also a lot more fuel-efficient and more versatile," he said.
Read More:
http://www.naharnet.com/stories/en/181857
This could well be true, the only competitor is the Russo-Indian co-development. Historically, they haven't gone well (and not much heard of it lately).
Got to skim-reading the leading-in bit and looks like this bit was left half way:
"In 2009, Airbus acknowledged that the program was expected to lose at least €2.4 billion and cannot break even without sales outside NATO countries. A PricewaterhouseCoopers audit of the program projected that it would run €11.2 billion over budget without corrective measures, which would result in an overrun of €7.6 billion. On 24 July 2009, the seven European nations announced that they would continue with the A400M program, and form a joint procurement agency to renegotiate the contract with EADS. On 9 December 2009, the Financial Times reported that Airbus requested an additional €5 billion subsidy for the project. On 5 January 2010, Airbus repeated that the A400M may be scrapped, costing Airbus €5.7 billion unless €5.3 billion was added by partner governments. On 11 January 2010, Tom Enders, Airbus chief executive, stated that he was prepared to cancel A400M production if European governments did not provide more funding; delays had already increased its budget by 25%.
On 5 November 2010, Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey finalised the contract and agreed to lend Airbus Military €1.5 billion."
Namely, it wasn't enough. The law suits flying across the Atlantic re: state subsidies for passenger liner development made another loan impossible, and therefore even more money went in as quasi-equity. Will only become payable (back) from export sales.
Ever-lasting truths: Multi-year budgets/ planning by necessity have to address the painful questions; more often than not the Either-Or prevails over Both-And.
If everyone is thinking the same, then someone is not thinking (attributed to Patton)