By Cristina Roca 
 

Airbus SE (AIR.FR) said Friday that it reached an agreement with the Organisation for Joint Armament Cooperation, or OCCAR, on the A400M military aircraft contract, bringing to a close renegotiation talks that lasted over two years.

The European plane maker said the two parties agreed on an adjusted timeframe for capabilities delivery, and the first elements of the new plan have already been delivered.

Airbus and the Germany-based organization, which manages collaborative armament programs on behalf of Germany, France, the U.K., Spain, Turkey, Belgium and Luxembourg, agreed on a new production delivery schedule that significantly reduces financial exposure, Airbus said. The program's contractual timeframe will be maintained until 2030.

Under the agreement, the parties agreed a revised financial-retention mechanism that will maintain "an incentive to finalize the development of the ultimate contractual standard," Airbus said. "Furthermore, a significant compensation in products and services has been agreed in exchange of accrued financial obligations due to past late deliveries."

A new retrofit delivery schedule was also agreed upon.

Write to Cristina Roca at cristina.roca@dowjones.com; @_cristinaroca

(END) Dow Jones Newswires

June 14, 2019 02:59 ET (06:59 GMT)