Spain and Britain are heading for a clash over the location of hundreds of aviation jobs as European governments complete a bailout for the delayed Airbus A400M military plane, Reuters quoted people familiar with the matter as saying. Spain is putting increasing pressure on the UK to surrender high-skilled production jobs if the UK fails to contribute its full share of a 3.5-billion-euro ($4.8 billion) aid package assembled by seven nations to rescue Europe's largest defence project. Spain has proposed relocating jobs, tools and machinery from Filton, near Bristol, to Spain if the UK weakens its commitment to the troop plane, the sources said. Technical problems have pushed the heavy airlifter billions of euros over budget and delayed delivery by about four years. The proposal was put forward as Britain wavered in recent weeks over its share of a top-up package of loans to Airbus parent EADS, to be provided alongside international aid of 2 billion euros to help meet cost overruns, the sources said. Britain is expected to take part in a bailout which buyer nations said they had agreed in principle last week, but has yet to agree on the form the extra financial boost should take. "The (Spanish) suggestion is as a result of the British not wanting to join in the same type of solution that other buyers have selected," a person familiar with the matter said. The sources, who asked not to be identified, said Spain had aired options including shifting work on the plane's advanced composite wings to Spain if Britain blocked part of the deal. Under the most sensitive option, Madrid would agree to pay for the cost of transferring the massive jigs, or cradles used to hold the wings in place during production, out of Britain. Britain's Ministry of Defence (MoD) declined comment. An EADS spokesman said he was unaware of the proposal and declined further comment, as did a Spanish industry ministry spokesman. A spokeswoman for Britain's Department of Business, Innovation and Skills, which oversees the aerospace industry, said: "Negotiations on the A400M are ongoing. We continue to work with colleagues in the MoD on the way forward." The move comes as Britain prepares for elections expected on May 6, with employment high on the list of voter concerns. The A400M wings plant at Filton employs about 800 people. Britain says it wants the A400M but not at any price. It has ordered 25 planes out of 180 airlifters bought by seven nations. Other buyers are Spain, France, Germany, Belgium, Luxembourg and Turkey. Partners in the A400M plan to meet in Berlin on Friday.
