Malaysia says Airbus A400M delivery to be delayed

Malaysia's order for four Airbus A400M military planes will proceed but delivery will be delayed by at least three years to 2016, a senior official said Friday.

The European aircraft manufacturer suffered a major blow on Thursday as South Africa cancelled a multi-billion dollar contract to buy eight of the aircraft because of delays and a huge cost rise.

South Africa and Malaysia were the only two non-European orders for the A400M. Malaysia placed its order in 2005 for the four planes originally due to be delivered in 2013.

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