South Africa cancels Airbus deal

South Africa has cancelled a multi-billion dollar contract for eight military aircraft with Airbus, citing escalating costs and delivery delays.
The deal for the A400M planes was signed a number of years ago, when the proposed cost of the planes was significantly less.
A government spokesman said the cost was now too great given its more limited resources during the downturn.
The A400M has suffered technical problems and has been delayed.
It was due to fly for the first time in March