• Racial redress

    The next adult generation is at risk of being polarised on the basis of skin colour, says Solly Moeng.

  • To do list

    Keep separate lists to ensure your to-dos don't get cluttered and gain stress-free productivity, Ian Mann.

  • Clueless leaders

    Zim's leaders are clueless about managing the economy or leading the nation, says Malcom Sharara.

All data is delayed
See More

Canned deal: Armscor gets back R9.1bn

Dec 19 2011 17:21
I-Net Bridge
Johannesburg - Airbus Military has refunded pre-delivery payments for the eight A400M military transport aircraft worth R9.1bn (€837m) to parastatal Armscor, it said on Monday.

In a statement, it confirmed that it had, at the same time, opened the door to further close co-operation with SA.

"The agreement we signed with Armscor on November 29 2011, draws a line under the cancelled A400M acquisition, but crucially, it lets us all move forward together to explore further opportunities, including upcoming acquisition projects led by Armscor," Airbus Military CEO, Domingo Urena said.

SA was given full industrial partner status in the A400M programme in 2005. In return, the country committed to acquire eight A400M aircraft in a firm- and fixed-price contract.

During the 2009 recession, SA cancelled the order with Airbus, claiming that the cost of the planes had escalated. However, this was denied by Airbus. The aircraft manufacturer has always stressed that the €837m figure remained accurate.

Despite SA cancelling its order, local companies, Denel Aerostructures and Aerosud, remained responsible for the design engineering, manufacturing and supply of several major parts, including aircraft top shells (roof); wing-fuselage fairing (the largest single aircraft component ever manufactured in SA); aerodynamically complex wing-tips (which directly influence fuel efficiency and carbon emissions); as well as cabin and cockpit insulation & linings and galleys.

In addition, Cape Town-based Cobham SA, was the supplier of the satellite communications antennae and related systems, Airbus said.

Airbus had also launched and committed to R4bn worth of industrial and research activities with South African partners through to 2020.
arms deal  |  airbus  |  armscor


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Labour’s call for a cap on salary of high earners is?

Previous results · Suggest a vote