Airbus threatens to scrap A400M aircraft

“We need to stop this constant drain on resources,” Airbus said on Tuesday. “We’ve asked the governments to take their share of the burden and this needs to be done as soon as possible.”

The threat is seen as a last desperate bid by the European aircraft maker to increase the pressure on the European partner governments that have signed up to the programme, particularly Berlin, to finance the cost overrun on the troubled project.

Germany is the largest customer for the aircraft and has so far taken a hard line in long-running negotiations to address the rising costs.

Analysts warned that abandoning the programme would be costly for the aircraft maker, which would have to repay €5.7bn in development funding under the original programme contract.

Cancelling the project would also prove hugely embarrassing for Airbus, which exclusively makes commercial aircraft and is aiming to break into the defence procurement market via the A400M. Its parent, European Aeronautic Defence & Space, is already involved in military programmes through its Eurocopter subsidiary, as well as its stake in the Eurofighter consortium.

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