The South African (SA) ministry of defence has decided to terminate a contract with Airbus for A400 strategic airlift aircraft.

In 2005, South Africa signed a contract with Airbus to acquire eight A400s and South Africa also became a partner in the A400 programme.

The decision to cancel is a result of the extensive increase in cost of the programme and Airbus’s failure to deliver the aircraft on schedule, according to a South African Government statement.

Armscor, which is responsible for the acquisition, maintenance and disposal needs of SA Defence will be asked by the defence ministry to terminate the programme.

Also, $379m (R2.9bn) will be refunded to the country’s national treasury as per the contract provisions.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData