French conglomerate Safran is unlikely to book new provisions despite a delay in deliveries of the A400M European military aircraft, announced this week, the head of the company's largest division said.
Safran is part of a consortium developing engines for the future airlifter, which has slipped six to 12 months behind its target delivery date of October 2009. Analysts say the delay could lead to heavy provisions at airframe maker EADS.
"We have a business plan which allows us to cover technical issues. We took a 50 million euro provision at the end of June which should easily cover remaining problems in the programme," said Marc Ventre, Executive Vice-President Propulsion.
Airbus Military, controlled by EADS, says engine problems are among factors to blame for the delay in Europe's largest future military project, the 20-billion-euro A400M transporter commissioned by seven European NATO countries.
Built by a consortium of four companies, the TP400-D6 turbo-prop engines boast the largest propellers built in the West, but buck-passing among consortium members and with Airbus has been blamed for problems in defining and building them.
Ventre said the problems included glitches on the power gear box, supplied by Italian firm Avio, the high-pressure compressor and part of the drive shaft called a Bendix Coupler - key parts that are possible to put right but needing more time, he said. ( Reuters )