European aerospace manufacturer Airbus has been forced to pay a large one-time pay-out for delays to its much-maligned A400M program. The company announced in its full-year 2017 report that it would have to make a payment of €1.3bn($1.4bn) in order to mitigate the “impact of the adaptions on schedule, capabilities and retrofit” for the aircraft.
The A400M ‘Atlas’ is a heavy military transport aircraft, designed to compete with aircraft such as the C-130 and C-17 manufactured by US companies Lockheed-Martin and Boeing. It is the largest, and most expensive European aerospace project, and has faced multiple programs over the course of its development. The original budget of €20bn ($24.5bn) has been significantly overrun, and Airbus itself has written-off up to €7bn ($8.68bn) on the project.