Airbus seeks talks over A400M costs

PARIS: Airbus called for new talks with European governments to ease "heavy penalties" for delays to its A400M military aircraft, after taking a fresh 1.2 billion euro ($1.3 billion) charge for Europe´s largest defence project.

Chief Executive Tom Enders told reporters Airbus was paying for the "original sin" of striking an unrealistic deal when the plane was launched in 2003.Airbus said fresh problems with engine gearboxes and delays in supplying the troop and armoured vehicle carrier´s defensive capabilities had led to further severe penalties and cash being held back by governments.

"We cannot go on like that. This is unacceptable and puts a huge burden on Airbus and we need to do something about it," Enders said.

The agency representing seven NATO buyers - Belgium, France, Germany, Luxembourg, Spain, UK and Turkey - was not available for comment.

But officials in Germany, the largest A400M buyer which has been most critical of the project, expressed little immediate appetite to help Airbus cope with the new problems.  "That´s entirely their own doing," said one military official who asked not to be named.