Wednesday, October 5, 2016

Germany Buys Lockheed C-130 As Airbus A400 Delays Continue

 Germany will buy Lockheed Martin's C-103J amid delays with a competing military transport plane from Airbus.
 (Lockheed Martin Photography by Thinh D. Nguyen)

Germany said Tuesday it will buy four to six Lockheed Martin C-130J transport planes but still plans to plans to follow through with its full purchase of Airbus' delayed A400.

The decision comes after Airbus booked a $1.12 billion charge on its military transport in July over delays caused by an engine component issue, and the European aerospace giant warned that it could take more charges.

German officials said that even with the Lockheed deal, they would still buy 53 Airbus A400Ms.

Lockheed shares fell 1.45% to finish at 237.10 in the stock market today. U.S.-listed shares of Airbus rose 1% to 15.14.

Earlier this year, France agreed to buy the C-130, which is also used by the U.S. and other allies.

(Gillian Rich - Investors Business Daily)

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