The A400M's wings are made in Filton near Bristol, employing more than 800 people.
One of the projects that could suffer cuts is the Airbus A400M military plane.
The new Airbus A400M simulator is designed and built by Thales Training and Simulation in Crawley.
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In another clash with Ruggiero, Berlusconi ruled out Italian participation in the European military airbus project, the A400M.
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The A400M, built by aerospace firm EADS, has been dogged by uncertainties over technical specifications and pressure on defence budgets.
"The A400M is an emblematic programme which Europe could not abandon, " Herve Morin, the French defence minister, told a news conference.
However, the company admitted that the new A400M military transport aircraft has been beset with technical problems, forcing it to delay its first flight.
In terms of design, the A400M has a classic high wing configuration, fuselage with ramp and large rear door, high flotation retractable landing gear and "T" tail.
The A400M fuselage has been designed with a spacious cabin, making it suitable for the transport of bulky cargo like helicopters, heavy vehicles, missile batteries and light vehicles placed side by side.
The A400M military transport plane program was launched six years ago with an order for 180 planes from seven governments--Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey--but the project is running at least three years late.
The agreement includes plans for common maintenance and training on the A400M transport aircraft - which both countries are acquiring - and the possibility of France using the UK's air-to-air refuelling aircraft, when there is spare capacity and training.
Delays to the transport aircraft, the A400M, which is due to enter service in March 2015, six years later than planned, have meant the MoD has had to acquire extra aircraft to ease pressure on the RAF's transport fleet.
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