German price cut demand delays air deal

An eleventh hour demand by Germany for a price reduction is delaying the signing of a $16bn contract for production of the Airbus A400M military transport aircraft. The contract is regarded as central to Europe's plans to build a defence capability and the contract was due to be signed by the countries involved on 16 November 2001. However, the German request coupled with Italy's failure to decide whether or not to participate, means governments are now hoping to conclude negotiations by the end of 2001.