According to the report published in the international financial newspaper, La TribuneA said, “The EADS was seriously considering canceling most of the orders that have already been signed, worth about 400 million euros, in the framework of a partnership with (South African) industry (notably with the Denel and Aerosud groups) and which were linked to the contract to purchase eight A400Ms.”

Earlier, South Africa confirmed that it had cancelled its order for eight A400M military transporters, citing cost escalations. The A400M program was already three years behind schedule.

South Africa has also informed EADS to repay it 250-300 million euros that it had paid as an advance.

The paper also said that the EADS was reported to have asked missile manufacturer MBDA, in which it has a 37.5% equity stake, to suspend talks with Denel.

On the other hand, MBDA is looking for a stake of 51% in Denel and has been making discuusions with the South African Company for the last 2-years.

While talking to reporters, a spokesperson from Airbus, Sub-Sahara Africa, Linden Birns said, “There are currently no plans to withdraw work packages from South Africa. Airbus enjoys strong and valuable partnerships with South Africa and its suppliers in the local aerospace industry.”