Airbus Contract Problems = Jobs Problems, Over-reliance on US Aircraft

The cost over-runs at Airbus - no doubt due to France's 'social compact' and Germany's 'workers' paradise' - are threatening torpedo the Airbus cargo aircraft before it ever goes into production.

Airbus last year already had to book a loss of 2.4 billion euros for the project and it has since warned that it would face even heavier losses and have to cancel the project altogether if the states did not give more money.

France, a big EADS shareholder, and Spain, where the aircraft are being designed and built, have signalled they would be willing to pay more.

The countries, however, have been unable to stop the German government from digging its heels in. Angela Merkel, the German chancellor, and Nicolas Sarkozy, the French president, spoke by telephone on Thursday evening about the conflict in Afghanistan, but officials said they did not discuss the A400M informally.

Now, part of the problem are the requirements. They're trying to make one place for both short-range tactical lift (C-130 type work) and long-haul big-cargo (C-17ish stuff) and wondering why it doesn't do either very well. Europe's shrinking defense budgets are biting them in the ass again.

By: Brant