Jim Bagnall/OTTAWA
WESTLAND is again attempting to persuade Canada to purchase the EH Industries EH101 as the helicopter programme is believed to be about to receive a considerable fillip with an UK Ministry of Defence order for around 25 aircraft.
A procurement to meet the Royal Air Force's long-standing utility-helicopter requirement, is expected to be announced, on 2 March. The bulk of the order will be for the EH101, with up to an additional ten Boeing CH-47 Chinooks also being acquired.
Westland and Agusta, which form EH Industries, will push the EH101 to meet Canadian search and rescue (SAR) and anti-submarine warfare helicopter requirements. Funding for both requirements was due to be determined on 27 February with the release of the Canadian Government budget.
The Canadian Defence Department has a requirement for 35 ASW helicopters, with a further 15 required for SAR. Westland and Agusta would offer the EH101, dubbed the Cormorant AW320, for both roles.
An initial contract for both requirements collapsed in late 1993. The then-recently elected Liberal Government threw out the EH101 on the grounds that it was to expensive.
The companies now say that they can supply 45-50 Cormorants at C$202.5 billion ($144 billion), roughly half the cost of the original programme.
Philip Burton, a Westland director and executive in charge of overseas sales, says: "The sunk costs, the non-recurring costs have already been paid by the British and Italian Governments. Now Canada doesn't have to pay for them."
Westland and Agusta are now proposing what is essentially an off-the-shelf aircraft.
A Government decision has yet to be taken over whether it wants to own or lease its SAR fleet. In covering this option, Westland and Agusta are understood to be discussing the potential sale of the SAR helicopters to Canadian Helicopters, which would then lease the EH101s to the military.
The two companies are still engaged in negotiations with the Canadian Government over the cancellation cost of the first order. Burton says that the claim will not be dropped simply because the EH101 is being re-offered.
Source: Flight International
