European aerospace group Eads is ready to retaliate against South Africa after the country cancelled a contract to buy Airbus military planes and sought repayment of an advance, a press report said on Thursday.
The report, carried in the financial newpaper La Tribune, said the European Aeronautic Defence and Space company (Eads), the Airbus parent company, was “seriously considering cancelling most of the orders that have already been signed, worth about €400-million, in the framework of a partnership with [South African] industry [notably with the Denel and Aerosud groups] and which were linked to the contract to purchase eight A400Ms.”
However, Eads later issued a statement saying: ‘There are currently no plans to withdraw work packages from South Africa. Airbus enjoys strong and valuable partnerships with South Africa and its suppliers in the local aerospace industry.
“At the same time, Airbus is strengthening its ties with South African academia and research institutes, several of which are engaged in Airbus’s global Research & Technology programme to identify and develop new technologies for eco-efficient aircraft.”
Eads was also reported to have asked missile maker MBDA, in which it has a 37,5% stake, to freeze discussions with Denel. MBDA, seeking a stake of 51% in Denel, has been in talks with the South African company for the past two years.
Earlier this month, South Africa said it had cancelled its order for eight A400M military transporters, citing cost escalations. It was a fresh blow to the A400M programme, already three years behind schedule.
South Africa has also asked Eads to reimburse it €250-million to €300-million that it had paid as an advance. — AFP