Seven core nations which have committed themselves to buying the plane, with the largest order coming from Germany. The German response to the cost overruns has been very pragmatic and cool especially since this is a critical military matter which needs to be resolved.

The fate of Europe’s A400M military plane hangs in the balance with Airbus calling for a European ministerial meeting to address concerns of cost escalations, saying its own viability is at stake.

The A400M is Europe’s largest defense project.

This development comes in the wake of Airbus seeking to write-off 1.2 billion euros against the A400M losses. It has further pleaded the 7 NATO buyers to limit its exposure to heavy fines and payment delays in the view of new technical snags.

In its letter to government buyers, Airbus has mentioned “significant risks ahead” in the A400M project whose original estimated cost of 20 billion euros is now slated to cost more than 30 billion euros, according to 2 sources familiar with the letter’s contents.

“We are committed to the A400M program. However we are responsible to sustain the viability of Airbus,” reads the letter signed by Denis Ranque, Airbus’ Chairman and Tom Enders Airbus’ CEO. The letter has been sent to countries including France, Germany, Spain, Belgium, Turkey, UK and Luxembourg.

While noting of the “huge losses” on the project, Airbus has called for a meeting of ministers of the above nations in order to take a stock of the situation.

Any decision will have an impact on Europe’s defense industry.

Airbus has also called for talks with Europrop International (EPI), the consortium that is responsible for providing the A400M’s turboprop engines, which have been the cause of some of the delays.

EPI is owned by Britain’s Rolls-Royce, Germany’s MTU Aero Engines, France’s Safran and Industria de Turbo Propulsores from Spain.

Although a spokeswoman for Airbus declined comment on the specifics of the company’s contacts with the governments, she however disclosed that there would be 3 components in the discussions: the OCCAR pan-European procurement agency, the nations and the engine manufacturers.

EPI could not immediately be reached for comment.

OCCAR’s spokesman stated that the agency was in regular touch with Airbus, he however declined to comment on the company’s request for new measures.

In 2010, Airbus had received a 3.5 billion euro bailout package from the 7 A400M purchasing nations, it has however suggested that the measure did not go far enough to limit the company’s financial exposure.

The A400M’s largest buyer, Germany has shown a more pragmatic approach saying it is important that Airbus resolves all of its outstanding issues, especially since this is a military program.

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