MD Helicopter's (MDHI) letter of intent from the Dutch national police for eight twin-engined Explorers is to be converted into a firm order.

The moves comes after rival manufacturer Eurocopter failed to convince a Dutch Court that the performance data for the Explorer, issued by MDHI's Benelux distributor Helifly, were incorrect and did not fulfil the requests laid down in the tender issued last September.

The row erupted between the European consortium and the Dutch Government earlier this year after the MD Explorer was selected over other helicopters, including the EC135 twin, following a competitive tender.

"The court rejected Eurocopter's claims, leaving us free to finalise the contract with the Dutch police for a firm order for eight Explorers and an option for a further two", says Helifly. The first aircraft is due for delivery next April and the following seven aircraft within the proceeding 24 months. Options would be exercised in 2003. Eurocopter was unavailable for comment.

MDHI plans to double helicopter production at its Mesa, Arizona base by 2002, following the purchase of buildings from Boeing on its Falcon Field airport site. The announcement comes less than 18 months after the Dutch-owned company acquired the US aircraft manufacturer's civil helicopter line, which also includes the single engine 500 and 600 series.

The sale includes a 3,720m2 (40,000ft2) hangar used by Boeing for US Army pilot training and five more buildings that house MDHI's assembly, completion and delivery, paint, warranty and repair, and administrative functions. Construction of a 3,250m2 spare parts warehouse has begun and should be complete in October, says MDHI.

The RDM Holdings subsidiary's expansion plans call for a ramp up in production from 50 to 100 aircraft a year within the next two years. To drum up demand, MDHI is nurturing new markets such as corporate and news gathering as well as stimulating sales in the EMS and law enforcement markets. The company is also targeting developing regions, including China, Russia and Latin America.

Source: Flight International