12 H-225 Caracal Delivery Slots Could be Up for Grabs After Contract Termination

The United Arab Emirates canceled an outstanding €800 million contract for the sale of a dozen H-225 Caracal multirole helicopters from Airbus, citing high lifecycle costs and a limited mission envelope.

“We recently terminated a contract with Airbus Helicopters to purchase H225 helicopters," said Muammar Abdulla Abushehab, defense industry affairs sector chief on the Tawazun council. The body acts as a sort of advisory board for defense procurement for the UAE. "We found it difficult to continue the contract due to the high lifecycle cost, the limitations in adapting to modular designs of future mission requirements, and the complex technical proposal."

The cancellation is undoubtedly a stinging one for Airbus, putting an end to an order placed in December of 2021. While there are probably plenty of politics involved in any procurement decision, Abushehab said the decision was simple logistics, adding that Airbus "lacked the serious motivation to respond to our demands in order to meet the pressing requirements of the government." 

Perhaps more important than the actual technical performance of the Caracal was the foreign manufacture, particularly after so many nations around the world learned to mistrust external logistics. The Tawazun council is no different, preferring now to to make as much of their defense equipment as they can. With the money they're able to throw around, Airbus competitors and peers have been quite willing to play the game and make in-country partnerships. So far Boeing, Leonardo, Saab, L3 Harris, and Raytheon have all inked deals of their own to establish a presence inside the UAE. In addition to the monetary issue, the country is offering 'offset credits' for companies that improve the economy, transfer tech, improve logistics chains, and provide job opportunities for locals. 

“At this point in time, our primary focus is on developing in-country value through all of the operations that we undertake in collaboration with both our local and our international partners,” Abushehab concluded.

FMI:www.airbus.com