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South Africa cancels eight Airbus military planes (Roundup)
Nov 5, 2009, 16:04 GMT
Paris/Johannesburg - The government of South Africa on Thursday announced it was pulling out of an eight-plane Airbus military deal because of escalating costs and delivery delays.
Defence Minister Lindiwe Sisulu said South Africa pulled out of the contract on Wednesday and was expecting a refund of the 2.9 billion rand it has already paid towards the A400m aircraft.
When South Africa signed the contract with Airbus in 2004, the planes were valued at 1.7 billion rand.
It emerged in parliament last month that the bill had nearly tripled over five years, to 47 billion rand.
'The termination of the contract is due to extensive cost escalation and the supplier's failure to deliver the aircraft within the stipulated timeframes,' government spokesman Themba Maseko said Thursday.
Problems in the plane's technical development have delayed delivery of the aircraft by three years. South Africa's order was due for staggered delivery between 2010 and 2012.
Jacques Rocca, Airbus spokesman, told the German Press Agency
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