WRAPUP 1-Airbus dogged by compensation claims

By Tim Hepher

PARIS, Oct 2 (Reuters) - Planemaker Airbus was hit by a merry-go-round of compensation claims on Thursday over delays to two of Europe's biggest military and industrial projects, setting it at odds with governments and at least one supplier.

France and Germany confirmed they were seeking penalties for late delivery of the A400M, a 20 billion euro project to supply airlift capacity to seven NATO nations, while Airbus parent EADS has tried in vain so far to pass the tab to its engine makers.

French Defence Minister Herve Morin told Reuters EADS was resisting paying full penalties for late delivery of the A400M, which would come on top of commercial fines paid to airlines for a two-year delay in the A380 superjumbo passenger jet.

"EADS is telling us 'you can't make us pay all that' and we are saying 'we'll see'," Morin said after talks between European Union defence ministers in Deauville, northern France.

An EADS spokesman declined comment.

Top A400M customer Germany took an even tougher stand.

"For me it's the principle of pacta sunt servanda (treaties must be respected). I can only urgently demand that the industry does its utmost to respect treaties," Defence Minister Franz Josef Jung told journalists in Deauville on Wednesday.

The delays are seen as increasingly political as Europe seeks ways of pooling airlift to perform overstretched missions, while the financial crisis tightens pressure on defence budgets.

A candidate for cuts could be the next tranche of EADS-built Eurofighters, developed with Britain's BAE Systems BA.L and Italy's Finmeccanica (SIFI.MI), and EADS has already warned buyers it will ask them for penalties if they trim orders.

On the other hand, EADS faces possible penalties for delays to the naval model of its NH90 helicopter, built by Eurocopter.

"People are saying risks are rising and should be shared," an industry official said this week, asking not to be named.

ENGINES ROW

EADS announced a 6-12 month delay in A400M production a year ago due to engine snags and took a 1.4 billion euro charge.

The plane's designers believe they are paying a high price for a political deal hashed out years ago to allow three rival European engine makers to build the A400M engines together.