Airbus and OCCAR Sign A400M Contract Amendment

A400M M54-04 landing at Labuan airport on Nov. 17, 2017.

SHAH ALAM: Airbus and OCCAR sign A400M Contract Amendment. Airbus SE has signed the A400M contract amendment with OCCAR, the Bonn, Germany-based organisation for joint armament cooperation, which manages the multinational programme on behalf of the Launch Customer Nations Germany, France, United Kingdom, Spain, Turkey, Belgium and Luxembourg. This contract signature concludes the discussions between both sides on the Global Rebaselining of the A400M programme, which had been initiated in March 2017.

“The overall aim of the Global Rebaselining – both for Airbus as well as for OCCAR and the Launch Customer Nations – was to recover a sustainable contractual basis for and to ensure a proper execution of the A400M programme,” said Dirk Hoke, Chief Executive Officer of Airbus Defence and Space. “I would like to thank our customers for their engagement and support during the discussions over the last two years. This new situation will also support our efforts to export the A400M worldwide.”

A RMAF Hawk Mk 208 being refueled by the A400M. 25th Hawk Anniversary FB.

While the agreement are between Airbus and the OCCAR countries, it will also affect us – the only export for the A400M customer so far. It is unclear so far however how the new agreement will affect RMAF and its operations of the A400M.

The full statement.

With the contract amendment, Airbus as well as OCCAR and the Launch Customer Nations have agreed on the following:

1. New capabilities development plan

Based on this new plan, Airbus aims to provide all agreed capabilities over an adjusted timeframe and to give solid visibility to the Launch Customer Nations for a better planning of operations and engagements. First elements of this new planning have already been implemented with deliveries of tactical capabilities which enable the Launch Customer Nations to operate in various mission profiles all around the world.

2. New production delivery schedule

All parties have agreed to stretch the A400M production plan while keeping the programme’s contractual timeframe until 2030. The new production delivery schedule both addresses the Launch Customer Nations’ expectations and significantly reduces the financial exposure. Furthermore, the new delivery schedule enables the A400M programme to adjust the production rate in order to accommodate export orders in the coming years.

3. New retrofit delivery schedule

The new retrofit agreement with the Launch Customer Nations will implement the final contractual standard with associated capabilities to all of the delivered A400M aircraft.
This new agreement will minimise aircraft downtimes to meet customer expectations while optimising the retrofit process for Airbus.

4. New financial terms

Airbus, OCCAR and the Launch Customer Nations have agreed on the implementation of a revised financial retention mechanism. This new scheme recognises the achievement of A400M capabilities which have already been implemented in service while keeping an incentive to finalise the development of the ultimate contractual standard.

Furthermore, a significant compensation in products and services has been agreed in exchange of accrued financial obligations due to past late deliveries. This provides both the customers and industry with an opportunity to jointly enhance the A400M platform.

“The discussions with our customers towards the Global Rebaselining of the A400M programme had already provided first tangible results in 2018. On the basis of this contract amendment signature, Airbus is fully committed to continue on this positive path and to providing its A400M current and future customers with the most powerful and technologically advanced military transport aircraft available on the market,” said Dirk Hoke.

Three RMAF A400M flying following the opening ceremony of LIMA 17. Airbus

— Malaysian Defence

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10 Comments

  1. @…
    Is that the Turkish F-35? Wasn’t that delivery frozen by Trump?

    Reply
    That’s Turkish future fighter experimental

  2. “That’s Turkish future fighter experimental”
    Ahh, I see. They look so similar from rear shot.

  3. Since we have plenty of C-130s, would it be more cost efficient to convert a couple of them to MPA rather than outright buy another aircraft? It has the required range, endurance, & space capacity for the job, plus the rear space for maybe ramp deployable sonar buoys.

    Reply
    I believed they are talking about the Js…not earlier variants…

  4. Another thing to consider is the Cost Per Flight Hour.

    The CN-235 CPFH is usually put at about USD 2.5-3K (usaf afsoc documents)

    The C-130H CPFH is put at USD 9K (usaf documents)

    Remember MPAs need to be airborne for quite a lot. No use for a super advanced MPA if it spends most of the time in the hangar rather than in the air and over the sea.

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