The Aerospace, Maritime and Defense Industry Association does not believe Airbus will cancel further contracts with South African companies following government’s decision to pull out of a deal to procure eight Airbus military crafts.

Defence Minister Lindiwe Sisulu announced on Thursday a decision to cancel government’s acquisition.

Sisulu said government could not afford the significant cost escalations, said to have risen from R17bn to R47bn.

The association’s Simphiwe Hamilton believes this will not happen.

Military analyst at the Institute for Security Studies Henry Boshoff said South Africa needs huge aircraft.