Nov. 5 (Bloomberg) -- South Africa canceled an order to buy eight Airbus A400 military transport aircraft after the costs soared.

The deal would have placed an “unbearable burden” on taxpayers, government spokesman Themba Maseko told reporters in Cape Town today. “The termination is due to extensive cost escalation and the suppliers failure to deliver the aircraft within the stipulated timeframe.”

The government announced the plan to buy the planes in December 2004, saying it expected them to cost 837 million euros, or 6.4 billion rand at the prevailing exchange rate. By the time a contract was signed, the price had surged to 17 billion rand and subsequent delays resulted in a further increase to 47 billion rand ($6.1 billion), Sipho Thomo, head of the state arms procurement agency, told lawmakers on Oct. 14.

On Oct. 15, Airbus said the 47 billion-rand price tag referred to by Thomo was “wildly exaggerated,” and that it was in discussions with the government about the deal.

Maseko said the planes would have cost about 40 billion rand.

In 2004, the government said the planes were needed to enable the defense force to meet its peacekeeping obligations in the rest of Africa, and the fact that local companies would help Airbus build them would develop the country’s aerospace industry.

To contact the reporters on this story: Mike Cohen in Cape Town at mcohen21@bloomberg.net

Last Updated: November 5, 2009 04:34 EST