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Thursday, December 04, 2008

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Posted: Thursday, October 02, 2008, 9:42AM

Supplier fires warning shots as military project hits buffers

Europe’s largest military project is in danger of stalling after the escalation of a wrangle between EADS and one of its suppliers.

EADS faces massive penalties if 180 A400M military transport aircraft are not delivered to seven European nations on schedule.

Engine manufacturer Safran was said to be outraged when EADS recently blamed the “unavailability of the propulsion system” for the new delay to its first flight, with one Safran executive describing the situation as “a set-up”.

Safran insists that it has delivered its eight engines to Airbus Military on time.

“There have been repeated delays on the A380 [superjumbo aircraft] and A400M so the situation is not comfortable for EADS management,” a source told the Financial Times. “It is easy for them to point the finger at others and make sure everybody looks somewhere else.”

EADS chief executive, Louis Gallois, is now believed to have stepped in and has been in communication with Jena-Paul Heiteman, his counterpart at Safran, to try and ease tension between the two companies.


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