The South African government is buying into a profitable aerospace programme with European giant Airbus which will see the country acquiring more than eight new military aircraft at a cost of about R6.6 billion.

The announcement was made in a statement by the transport ministry yesterday although it is believed that the cabinet gave the green light for the project last week.

Called the A400M multi-role mission transport aircraft design and manufacture programme, it entails South Africa being part of an inter-country project to build Airbus Military as new cargo plane.

Special advisor to Transport Minister Jeff Radebe, Ian Phillips, said that South Africa's contribution would be the manufacturing of "work packages" for the new aircraft, in particular parts of the airframe unit which would be attached to other parts "Lego-style".

Other countries involved in the project, Belgium, France, Italy, Britain, Germany and Spain, would each be responsible for the creation of different components of the plane.

Phillips said the SA contracts had been awarded to Denel and private Johannesburg company Aerosud.

"The aircraft is still in its development phase, it doesn't even exist yet."

"All the countries will participate in the development of this aircraft which will fill a particular niche in the transport arena," he said.

He said it was hoped the new cargo plane would take its maiden flight in 2008.

It is envisaged that South Africa would take delivery of between eight and 14 aircraft between 2010 and 2014 as the programme matured.

Phillips said the cost of R6.6bn for eight aircraft was "a ballpark figure" as South Africa could qualify for certain discounts depending on the number of planes bought.

"What makes this project particularly delicious is the simple fact that this is the only global aviation programme that is new and 21st century.

"Because we are investing now, if the South African companies perform to global standards, we will be part of a global supply chain into the aviation industry for the next 50 to 60 years," he said.

Phillips added that South Africa had been invited to participate in the programme because of its "good relations" with Europe and because of significant advantages in the local aviation industry such as low energy costs.

A memorandum of understanding between the government and Airbus is expected to be signed within the next few weeks.

The statement said the new aircraft would replace the nine Hercules C130 aircraft currently being used by the defence force for military transport and airlifting.

"They will need to be replaced by about 2010," it said.

It added that over the last three years, South Africa had spent more than R100 million to contract in privately owned "airlift capabilities" in order to deploy personnel, resources and material into Africa as part of peacekeeping operations.

Phillips said the department of trade and industry had been trying to develop a strategy for the long-term development of the country's aerospace sector and this project suited government's objectives in that regard.

With acknowledgements to Sheena Adams and the Cape Times.