Canada and Sikorsky Have Issues with New Helicopters

by: Matthew Potter
January 7, 2009

Category: Business Line, Canada, Contract Additions, Contract Awards, Military Aviation, production program, Restructuring, Sikorsky | RSS 2.0

In 2004 the Canadian government ordered 40 new helicopters from Sikorsky to replace aging Sea King search and rescue aircraft. The original contract was for about $5 billion Canadian and set an initial delivery date of 2008. Now The Globe and Mail reports that due to requirement changes requested by the government $117 million had to be paid to Sikorsky. The contract has also slipped deliveries to 2012. There are also indications that due to further changes planned by the government more money will have to be paid. At the same time Canada has refused to collect a penalty clause in the contract to punish the company for delayed deliveries.

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