Government of Canada to continue with Maritime Helicopter Project and begin retiring Sea Kings in 2015
Today, the Government of Canada and Sikorsky announced that a Principles of Agreement (POA), which will form the basis of formal contract negotiations to put recommendations [from a Hitachi Consulting report] into place, was concluded on December 31, 2013.
Under the terms of the POA, Canada will see delivery of helicopters with operational capability sufficient to begin retirement of Sea Kings in 2015, and a program to enhance those capabilities culminating in a fully capable CH-148 Cyclone Maritime Helicopter in 2018.
Sikorsky has agreed to pay Canada $88.6 million in liquidated damages for non-delivery.
“We regret that we have not executed this program to the satisfaction of the Government of Canada and that no aircraft were delivered in 2013,” said Mick Maurer, President of Sikorsky Aircraft Corporation. “We recognize that we and our sub-contractors must do better.”
I/C