New Government 'Very Likely' To Cancel Contract

Poland's defense minister said Tuesday that the county's $3 billion deal with Airbus Helicopters is "very likely" to be scrapped following national elections last October.

Cancelling the deal could mean delays in one of Warsaw's key military programs.

Reuters reports that the previous centrist government had made a provisional agreement with Airbus Helicopters for 50 EC725 Caracal multi-purpose helicopters. Airbus beat out Sikorsky and AgustaWestland for the contract.

But that government was turned out in parliamentary elections in October by the Eurosceptic Law and Justice party (PiS), and the contract had not been signed prior to the election. The PiS has repeatedly said that it would prefer to see that business go to a producer with manufacturing facilities in Poland. Both AW and Sikorsky have such plants.

Defense Minister Bartosz Kownacki said that while Poland is "not allergic to the French," but the government would have to "really get as much as possible from the French side to make this contract profitable for us."

The Rzeczpospolita daily newspaper said that the contract negotiation are scheduled to end by February 10. Airbus Helicopters said they would have no comment until the talks concluded.

(Image from file)

FMI: www.airbushelicopters.com