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Mon, Oct 15, 2012

Negotiations Continue On Canadian Sea King Replacement Helicopters

Program Is Already Five Years Behind Schedule

The government of Canadian Prime Minister Stephen Harper is continuing to negotiate with Sikorsky Aircraft for the helicopter that will eventually replace the country's aging fleet of Sea Kings.

The aircraft is the CH-148 Cyclone (pictured in file photo). Sikorsky President Michael Maurer told the Canadian Press that the issue is that the program was not structured as a development program, which it essentially is. "They want their aircraft the way they ordered them," he said, adding that he didn't want to negotiate in the media. Maurer said that there are also procurement rules and regulations that have to be followed.

He also said that in the short term, not delivering the five test helicopters would be good for the company's bottom line. He said the company would "realize operating profit growth above our guidance range."

One member of the Canadian Parliament, New Democratic Party member Jack Harris, blasted that statement, saying that Canadian taxpayers should not be asked to improve Sikorsky's bottom line.

Canada has been working to replace the aging Sea Kings since the 1980s. The first contract with AgustaWestland was cancelled by the government of Jean Chretien in 1993.

The Sikorsky program, which was first announced in 2004, is five years behind schedule. The Sea Kings will mark 50 years of service next year.

FMI: www.sikorsky.com, www.forces.gc.ca/site/home-accueil-eng.asp

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