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Bailout agreed for Airbus A400M

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Bailout agreed for Airbus A400M

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European nations have given formal backing to a 3.5 billion euro rescue deal for Airbus’s A400M military transport plane – the region’s largest defence project.

The bailout from seven NATO nations buying the aircraft is the result of an intense political battle to prevent the project collapsing under the weight of cost overruns and delays with the loss of 10,000 jobs.

Airbus had threatened to shut down the project unless the European government gave more money to cover part of cost overruns of more than five billion euros.

The project for the A400M, built in the Spanish city of Seville, will support 40,000 jobs in Europe by 2016, with the first aircraft delivered to the French military between some time in early 2013.