Airbus loses South African contract

Airbus has received a devastating blow with the termination of a multibillion contract from South Africa.

The South African Government struck the deal with Airbus for eight military aircraft several years ago. The A400M was designed six years ago and was a planned replacment for the US built Lockheed Martin Hercules.

At the time of ordering, the planes were said to cost just under six and a half billion rand but the A400M has suffered many deals and technical difficultes and the cost has escalated beyond the reach of the government. A government spokesman commented that during these harsh economical conditions the country's finances were being stretched and the growing cost of the project was just too great for the nation to fund.

Airbus, who are hoping for a test flight in the coming weeks, are disappointed by the decision from South Africa but the company takes solace in the news that seven European countries, including France and the UK have vowed to continue to support the project.