From defensenews -
The seven partner countries involved in the Airbus A400M project were to meet Jan. 14 in London amid doubts about the future of the delayed and over-budget program.
France has vowed to "do everything to save" the Airbus A400M military transport aircraft project, but Germany appears reluctant to invest more cash. And Britain said that it "remains committed ... but not at any cost."
Turkey has already refused to put more money into the program, which is three years behind schedule and which is estimated need more than 5 billion euros and up to 11 billion euros to be completed.
Belgium, Luxembourg and Spain are the other countries involved in the project and set to take part in the meeting at the British Ministry of Defence.
European aircraft maker Airbus and its parent group, the European Aeronautic Defence and Space Company (EADS), were not invited to the talks.
Airbus has said it could pull the plug on the project unless it gets extra money pledges by the end of the month, warning that the failure of the A400M program could hurt the viability of the company as a whole.
Airbus has 52,000 employees around Europe, with some 10,000 working on the A400M, a transporter that can carry troops, armored vehicles and helicopters.
The seven client nations have ordered a total of 180 aircraft for $29 billion (20 billion euros).
French Defence Minister Herve Morin told RFI radio on Jan. 14 that Paris was ready to share the burden of the extra costs.
"I'm not bothered by the fact that we would have to pay part of the cost overruns, because I believe this is a magnificent program," Morin said. "We must still negotiate and these additional costs have to be shared between the countries and the manufacturer."
Morin is hoping for a cost-sharing agreement before the end of January and ahead of a NATO defense ministers' meeting Feb. 4 and 5 in Istanbul. But Germany has shown little appetite to shell out more money.
"We are striving to find a solution in accordance with the signed contract and we will not be rushed," German government spokesman Ulrich Wilhelm told a press conference Jan. 13.
Britain's defence ministry said Jan. 12 that it remains committed to the project "but not at any cost.
"We regard the ongoing negotiations as the best means by which to determine a more deliverable program," a ministry spokesman said at the time.
Germany and France are the project's biggest customers, with 60 and 50 orders respectively - which means Berlin's position will be crucial.
"Key to A400M moving forward from here is Germany - not Britain," said Howard Wheeldon, senior strategist at brokerage firm BGC Partners. "I guess that Germany will be put under a degree of pressure today but nothing will emerge until they get back home and report back to German Chancellor Angela Merkel.
"Overall I still expect a deal on A400M price and quantity to emerge over the next 10 days or so."
The heads of Airbus and EADS ramped up pressure on the governments this week to pledge more money for the program by the end of January, warning that the future of the company depended on it.
EADS chief executive Louis Gallois also expressed disappointment that the Jan. 14 meeting did not involve the plane maker.
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