Poland may scrap $3 billion army helicopter deal

Poland likely to scrap $3 billion army helicopter contract with Airbus

Photo by: Reuters (Archive)
Photo by: Reuters (Archive)

Airbus Helicopters CEO Guillaume Faury stands near a multi-role military helicopter EC 725 by Airbus Helicopters at an international military fair in Kielce, southern Poland September 2, 2014

Poland’s $3 billion deal with Airbus for the production of army helicopters may face delays or cancellation, deputy defence minister said.

Poland’s previous government turned down offers from Sikorsky and AgustaWestland by agreeing on a provisional deal with Airbus for 50 H225M Caracal Eurocopter helicopters.

The contract was negotiated by Poland's Economy Ministry but is yet to be signed but Poland’s current government, (PiS) has said it would rather see the deal awarded to a producer with facilities in the country, both Sikorsky and AgustaWestland have facilities in Poland.

Defence Secretary Bartosz Kownacki said to the national Polish news agency that the final assessment of the negotiations will be negative, but considering how big the differences are, it is very likely that an agreement will be reached.

Poland would have to get as much as possible from the French side to make this contract profitable for us, Kownacki said.

Kownacki was quoted as saying that Poland may be better off scrapping the deal and paying a potential fine, which may reach millions of zlotys, rather than accepting the losses that the contract would impose on the Polish defence industry.

Negotiations are expected to conclude by February 10.

TRTWorld, Reuters