There is a new German MoD press release today on A400M.  Following are the salient points:

-- "Customer nations (CN) and industry have agreed on the new baseline of funding the A400M program.

-- EADS has accepted the offer of the CN, which still has to be approved by the nations due to national legal regulations. This includes a price increase of €2 billion and an export credit of €1.5 billion.

-- Both parties agreed on a revised delivery schedule and airplane system performance. Delivery of the first aircraft for the Luftwaffe is planned for 2014. Payload performance will allow transport of all planned main equipment, e.g., the PUMA IFV.

-- Detailed contract modifications will be negotiated within the coming weeks."

-- EADS had entered the program modification asking the CN of covering €6 bn of a estimated €11 bn cost overrun. They already had made provisions of €2.4 bn in the past and an additional €1.8 bn in 2009.

-- Luftwaffe deliveries had been planned starting early 2011, so this means a three-year delay. In the order of delivery, France will be the first customer in early 2013 then.

Due to the € 1.5 bn credit line, CN will be participating on future export sales.