European buyers of the A400M military transport plane have signed an agreement in Toulouse in France to rescue the €20bn programme to build the beleaguered transport aircraft.

The agreement calls for a price increase per plane of €11m, for a total of just under €2bn, and an additional €1.5bn provided by credits against future exports.

Developed by EADS, the A400M programme has been delayed due to uncertainties over technical specifications and pressure on defence budgets.

Under the agreement, buyers will acquire a total of 170 planes, instead of 180 initially planned when the project was launched in 2003.

The UK has decided to reduce its order by three planes to 22, while Germany will take 53 planes instead of 60.

The A400M aircraft buyers include government’s of seven nations, the UK, France, Germany, Belgium, Luxembourg, Spain and Turkey.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

French Defence Minister Herve Morin said the A400M was an emblematic programme that Europe could not abandon for fear of being dependent on the US in the 21st century.

Airforce Technology Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Airforce Technology Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now