Airbus threatens to jettison the A400M programme

Airbus is threatening to jettison Europe's most high-profile defence project, a €20bn ($28.8bn) programme to build the A400M military transport/refuelling aircraft, unless partner nations arrive at necessary funding decisions before the end of this month.

A400M

''We need to stop this constant drain on resources,'' German newspaper Die Welt reported, citing Airbus chief Thomas Enders. ''We've asked the governments to take their share of the burden and this needs to be done as soon as possible.''

Airbus wants about 5.3 billion euros ($7.6 billion) more than the 20 billion euros agreed on in the original contract, signed in 2003, so that it may deliver 184 of these military transport aircraft.

The threat is seen as a desperate bid by the European aircraft maker to increase pressure on partner governments, particularly Germany, to subsidise the cost overrun on the troubled project.

Germany is the largest customer for the aircraft and has been particularly intransigent on issues related to costs.

The programme's "partner" nations include France, Germany, Spain, Turkey, Belgium, Luxembourg and the UK. The first aircraft was originally due in October 2009 but will now be delivered in 2012 at the earliest.