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A400M rescue agreement reached

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A400M rescue agreement reached

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An agreement in principle has been reached to rescue the troubled Airbus project A400M military transport.

Spain’s defence minister said the governments that are buying the aircraft will go ahead with a rescue deal.

The alternative was to abandon Europe’s largest defence project, which has suffered spiralling costs and delays.

Britain, France, Germany, Belgium, Luxembourg, Spain and Turkey will issue a declaration of support for the project and Airbus’s parent EADS will get 3.5 billion euros to set against its losses.

The deal will leave EADS with losses of 1.7 billion euros on top of 2.4 billion already written off.

The aerospace group had wanted more than t3.5 billion and even threatened to abandon the project if it did not get that.