The French government has told Airbus and other contractors working on the A400M multirole military transport aircraft program that it won't take delivery of the aircraft it has ordered starting in 2013 and won't pay for them until Airbus agrees to a satisfactory maintenance contract for the planes.

The head of the French arms procurement agency, Laurent Collet-Billon, told the defense commission of the National Assembly earlier this month that discussions over the maintenance contract with Airbus and its partners "are difficult, as none of their proposals have met our expectations," according to a transcript of Collet-Billon's testimony before the Defense Commission of the French National Assembly posted on the assembly's website.

"We still haven't had a satisfactory proposal from Airbus, notably as regards the engine. I told the manufacturers that, without a maintenance contract, I won't take delivery of the aircraft and won't pay for them," he told the commission members.

Collet-Billon disclosed that France had planned to negotiate a joint maintenance contract with the U.K. for the first planes that are expected to be delivered starting early in 2013. France has ordered 50 of the aircraft and the U.K. has trimmed its initial order for 25 to 22.

Officials at Airbus Military, the military aircraft division of European Aeronautic Defence & Space Co. NV (EAD.FR), weren't immediately able to comment on the matter.

-David Pearson, Dow Jones Newswires; +331 4017 1740, david.pearson@dowjones.com

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