Deal Would Have Been Worth $3.5 Billion To Airbus

Poland's Economic Ministry has announced that talks between the country and Airbus have "finished," ending negotiations on a deal for 50 EC725 Caracal helicopters.

Reuters reports that the ministry released a statement saying "Poland considers the negotiations regarding the offset agreement with Airbus Helicopters related to the contract for the purchase of Caracal multi-role helicopters for the Polish army as finished."

"For the Polish government the top priority is to ensure the security of the state and the conditions for the development of the Polish defence industry," the ministry continued. "Discrepancies in the negotiating positions of both sides make it impossible to reach a compromise, and therefore the continuation of talks is pointless."

The deal was initiated by Poland's previous centrist government. The government changed following elections last October. In making an agreement with Airbus, the country rejected offers from Sikorsky and AgustaWestland, now Leonardo Company.

Polish media had reported that the deal was off earlier this year, but Airbus said negotiations were still ongoing.

(Image from file)

FMI: www.airbus.com