Another EADS program in trouble?(Assembly Lines)

PARI -- Already struggling to smooth out production problems with its A380 super-jumbo commercial jet, the European Aeronautic Defence and Space Co. (EADS) now says it is also experiencing problems with its A400M military transport aircraft.

Summing up the results of a formal 2-month assessment, EADS says the new aircraft is "progressing according to the contractually agreed schedule." However, the company also says the program faces significant "challenges" that must be overcome before delivery of the first aircraft in 2009. Specific "critical risk" areas include systems design, especially in the area of electrical harnesses; engine modifications; and issues related to final assembly.

[ILLUSTRATION OMITTED]

The review team for the A400M included a number of veterans of a recent formal review of the ill-starred A380, which is being developed by EADS' Airbus subsidiary. Currently, the production schedule for the A380, which is expected to begin commercial service in 2007, has been pushed back by months, and even years in some cases, because of problems with the aircraft's electrical wiring.