Cape Town : SA's involvement in the design and development of the Airbus A400M military transport aircraft could see its purchase of eight to 14 of them already paid for by the time delivery took place in 2010, says a senior government source.

News of SA's involvement in the Airbus programme to build military transport aircraft hit the headlines late last week.

The plan has been slammed by opposition parties and challenged in court by a group opposed to the purchase of military equipment in general.

The Cape High Court has rejected the application.

On Wednesday, government signed a declaration of intent to be involved in the programme to develop and build the aircraft and ultimately to buy between eight and 14.

It is estimated that the cost of purchase will be between R6bn and R11bn, and that SA could earn about R6bn from the project based on the current order book of 180 aircraft. If more aircraft are sold then SA will earn more for its work in the development of the product.

The declaration was signed by Defence Minister Mosiuoa Lekota and Airbus Military MD Francisco Fernández-Sáinz. It was the first commitment for the A400M from a country outside the existing group of seven European launch nations.

Airbus Military said after the signing that the project had the backing of seven European governments and North Atlantic Treaty Organisation members.

In terms of the programme South African companies will be awarded programme contracts worth about R6bn.

The company confirmed that there were 180 confirmed orders for the aircraft from Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey.

A government statement issued at the signing said that the programme would boost the revitalisation of the domestic aerospace sector "which both parties agree has the knowledge, experience and capability in aircraft design, manufacturing, support and maintenance to contribute and benefit from the programme as a whole".

"The programme involves the design, development, and longer term maintenance of the airframe of the A400M military transport," government said.

It said the programme was critical to SA, so as to meet its growing international obligations "particularly with regard to peacekeeping and support, disaster relief and management, and a range of other civil, commercial and military missions".

Ian Phillips, special adviser to Transport Minister Jeff Radebe, said that government saw the programme as a catalyst to the strengthening of the aerospace industry and placing a wide swathe of local companies in the global chain for the first time.

Phillips said the programme also came at a time when it fulfilled and exceeded the needs of the South African National Defence Force, because it "kicks in precisely when the ageing fleet of C130 transport aircraft will need to be replaced".

Airbus said the A400M was designed to carry a payload of 20 tons over distances of up to 6600km .

The plane is scheduled to make its maiden flight in 2008. Deliveries will start the next year.

With acknowledgements to Wyndham Hartley and the Business Day.