March 8, 2010 / 5:13 PM / 9 years ago

FACTBOX-Who contributes what to A400M bailout

 March 8 (Reuters) - European nations have agreed a 3.5
billion euro ($4.8 billion) bailout for the Airbus EAD.PA
A400M military transporter after a raft of technical problems
and delays. [ID:nLDE6241P1]
 Following are the amounts to be invested by each country,
based on a pro-rata share of the cost overrun and details of the
original contract contained in a recently leaked audit report, a
draft of which was obtained by Reuters. [ID:nLDE60K19R]
 
 PRICE SUPPORT
 Nations have awarded Airbus parent EADS EAD.PA a roughly
10 percent price increase worth a total of 2 billion euros.
 The table shows the amount pledged by each nation according
to their proportionate share of the project and assuming full
delivery of the planes ordered. (In practice, some nations may
choose to fund their contribution by applying the old budget to
fewer deliveries, thus reducing the cost per plane. This would
postpone a decision on how to fund the last few planes):
 
                  Planes     Original   Implied     Share of
                  ordered    cost       increase     project
                             (mln eur)  (mln eur)   (percent)
 Germany            60        6,398        667         33
 France             50        5,331        556         28
 Spain              27        2,879        300         15
 Britain            25        2,666        278         14
 Turkey             10        1,066        111          6
 Belgium             7          746         78          4
 Luxembourg          1          107         11          1
 --------------------------------------------------------
 Total             180       19,193      2,000        100
 
 FINANCIAL SUPPORT
 Nations also agreed indirect aid in the form of 1.5 billion
euros of financial suport to be repaid from future exports. Here
is how the money would be raised based on existing shares:
 
                (million euros)
 Germany            500
 France             417
 Spain              225
 Britain            208
 Turkey              83
 Belgium             58
 Luxembourg           8
 ----------------------
 Total            1,500
 
 RECAP OF COST OVERRUNS                             (mln eur)
 Value of original contract*                         19,193
 Actual anticipated and potential losses*            11,243
 Possible losses not generating provisions*           3,640
  (Losses that can be reduced through risk reduction)
 = Resulting loss based on original contract          7,603
 Less provisions taken up to Q3 2009                  2,400
 = Net cost overrun                                   5,203
 Government support 
      a) Price increase**                             2,000
      b) Export levy facility**                       1,500
 = EADS share of cost overrun                         1,703
 Actual EADS provisions to be taken in Q4 2009**      1,800
 (Sources: Leaked audit report (*), EADS (**), interviews)
 
 See also:
 A400M bailout reaction mixed  [ID:nLDE6270E3]
 FACTBOX-The big money behind Airbus A400M talks
[ID:nLDE60K19R]
 FACTBOX-Sizing up the Airbus A400M "grizzly"
[ID:nGEE5B92KT]
 FACTBOX-What could the A400M cost over-run fund?
[ID:nLDE61F1W6] 
 GRAPHIC/SPREADSHEET - How the negotiations unfolded 
 here
 (Reporting by Tim Hepher, Sabine Siebold, and Matthias Blamont;
Editing by Dan Lalor)
 ($1 = 0.7307 euro)
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