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A400M Faces Production Challenges in 2015

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The A400M is not yet out of the woods. Airbus had to add a charge of €551 million ($620 million) in the last quarter of 2014 owing to delivery delays to the program's partner nations. The company is currently renegotiating delivery schedules and enhancement with its customers.

The problems cited by the manufacturer in its full-year 2014 earnings release Feb. 27 include military functionality challenges and industrial ramp-up. The company has announced that management actions have been launched to secure future deliveries. Airbus has now to explain if it will change its production schedule for 2015.

Initially, the company was supposed to deliver 22 aircraft to at least four customers (France, Malaysia, Germany, U.K.) The new management, appointed in January, has to solve one of Airbus's biggest problems. A Feb. 10 meeting in Berlin with the military managers was supposed to give new guidance and discuss the new schedule ahead, including possible compensation for customers.

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