Wragge & Co has advised on the A400M defence procurement in Europe. Working with ‘Organisation Conjointe de Coopération en matière d’Armement’ (OCCAR), the firm advised on the re-negotiation of a ground-breaking €20 billion contract for the development and supply of up to 170 A400M military transport aircraft from Airbus Military S.L.
Projects partner Michael Whitehouse, who led the project, said: “This landmark, high-profile project for European defence procurement agency OCCAR involved working with seven European nations. It demanded a thorough understanding of the defence sector and a pragmatic, commercial approach. It’s exactly what we deliver, with our dedicated, cross-firm Aerospace and Defence team experienced in international and politically significant projects. The use of an innovative standstill structure gave the parties breathing space to agree revised commercial terms and allow the project to go forward.”
Working closely with OCCAR, the purchasing agent for the governments of Belgium, France, Germany, Luxembourg, Spain, Turkey and UK, Wragge & Co advised on the rights and obligations of OCCAR and the Nations under existing arrangements with Airbus Military. The firm designed a structure to allow time for the renegotiation of the programme when the technical issues on the design and build proved beyond the provisions of the original contracting structure.
Wragge & Co also advised representatives from the various different legal systems on the intricacies of the English common law. This included the potential rights and risks which would arise on any breach of contract and how such rights could be lost. The firm was able to put in place a standstill framework. This protected all parties while they found a way forward to re-establish an agreed basis for the standard–setting military transport aircraft.
Wragge & Co then worked closely with OCCAR, during that standstill period, in amending the contract to reflect the heads of terms agreed by the Nations and Airbus Military, such that the project now goes forward on an agreed design and build programme. In the meantime, four A400M development aircraft have entered flight test, with the first delivery to the first operator, the French Air Force, by the end of 2012/early 2013.
The cross-firm Wragge & Co team included commercial associate Julia Holdright, commercial litigation partner Clark Sargent and associate Andrew Nugent Smith.
Wragge & Co’s 30-lawyer strong Aerospace & Defence team provides expertise in key areas including alliancing, partnering and outsourcing transactions, PFI and other government projects, defence procurement, aircraft maintenance, repair and overhaul, supply chain management and resolution of disputes concerning such matters. Clients include British Airways, Cranfield Aerospace, Meggitt, Goodrich, MoD, QinetiQ and GKN.
