PARIS (AP) -- EADS on Friday denied reports it might pull out of its troubled A400M military transport plane program, saying it is rather looking to renegotiate parts of the contract.
The European defense and aerospace giant says that "contrary to what has been circulated in the press," there are no talks within the company about a "scenario" to withdraw from the program. More than 6,000 EADS employees now work on it, the company said in a statement.
European Aeronautic Defence and Space Co., the parent of plane maker Airbus, has been struggling to manage delays to the A400M that have already cost Airbus euro1.7 billion ($1.84 billion) in penalties and other charges.
Airbus Military signed a contract in 2003 with a group representing Belgium, Britain, France, Germany, Luxembourg, Spain, and Turkey for 180 aircraft in the program. Since then, South Africa has ordered 8 aircraft and Malaysia 4 -- for a total of 192 planes.
EADS and Airbus recently proposed a "new approach" to the seven European NATO countries that first ordered the plane through procurement agency OCCAR.
In its statement on Friday, EADS said: "There are ongoing discussions with OCCAR and the customer governments, the aim of which is to establish the right frame that will enable the best achievement of the program."
EADS shares were down 3.3 percent to euro12.50 (US$16.10) in midday Paris trading Friday.
