The Airbus A400MAirbus got a lifeline on Friday for its troubled A400M military airlifter program when ministers from seven European governments agreed to continue to support its development.
The A400M is being designed to replace existing cargo planes that air forces use around the world. Airbus says it represents the "new airlifter of the 21st century," but development delays have put the program $7 billion over budget and four years behind schedule.
Defense ministers meeting in Le Castellet, France, hailed from France, Belgium, Britain, France, Germany, Luxembourg and Turkey.
The wild card in the negotiations was Britain, which had been feared to drop out of the project, according to the New York Times.
"We hope to save the program. We have decided to open a renegotiation," British defense procurement minister Quentin Davies told Reuters.
In March, the governments had agreed to a moratorium on cancellations. That moratorium ended in July, reports Dow Jones. Now, the governments have until the end of 2009 to renegotiate the contract.
The European governments have collectively ordered 180 of the planes, "making it the largest-ever European military contract," the Times reports. The contract is worth 20 billion euros ($27.7 billion).
"EADS and Airbus are fully committed to finding an agreement that is technically and contractually acceptable to both sides," Airbus's parent company, the European Aeronautic Defence and Space Co., said Friday in a statement.