France says EADS replied positively to A400M offer

PALMA DE MAJORCA, Spain Feb 25 (Reuters) - Airbus parent EADS (EAD.PA) has replied positively to an offer from European governments of a price increase worth 2 billion euros for the troubled A400M military airlifter, France said on Thursday.

"We received a reply from EADS yesterday evening to the letter sent by governments several days ago. The company is no longer making further financial demands," French Defence Minister Herve Morin said after talks between government buyers.

The 10 percent price increase is designed to lift a threat over thousands of defence jobs and is part of a 3.5 billion euro aid package to rescue the project from delays and overspending.

Another 1.5 billion euros will be provided in indirect financial support, the structure of which has not yet been agreed, Morin told reporters.

Morin said that Spain, which is hosting the discussions on the sidelines of European defence talks, was pushing for any countries that failed to take part in this part of the scheme to renegotiate their share of A400M construction work.

Delegates said there were doubts over to what extent Britain and Turkey would agree to contribute to the 1.5 billion euros.

Spanish officials and EADS were unavailable for comment.