Legal threat over Aer Corps contract

one of the leading contenders for the Aer Corp's £100 million (€127 million) helicopter contract has warned that it may take legal action if the original tender rules are not strictly obeyed.

The move by EH Industries follows Sikorsky Helicopters' offer - of £125 million worth of cargo aircraft conversions - to the troubled FLS Aerospace in Dublin Airport if it gets the Aer Corps deal.

The Sikorsky offer has been strongly supported by Dublin northside Fianna Fβil TDs, who argue that the business could safeguard 1,500 FLS jobs.

Last night, however, the Department of Defence insisted that offset offers, such as the FLS business, would not be taken into account in deciding the winner.

Mr Bob Adams, EH Industries' Regional Business Director, said his company had become concerned about the selection rules following repeated publicity about Sikorsky. He added: "The helicopter chosen will be in service saving lives off the Irish coast for 30 years. It should not be selected on the basis of short-term considerations.

"Unless the original tender process is strictly adhered to or unless a new tender process is initiated specifically including offset, EH Industries will have to consider its position."

Asked to clarify his statement, Mr Adams said: "We will consider making our position about making an appeal against the process. I have not taken any legal advice. Under EU law the process has to be fully transparent. I have no problem with a competition that is transparent. There is an opaqueness about this."

A company briefing note read: "EH Industries is concerned that the selection process for medium-life helicopters has been contaminated by short-term political issues concerned with saving jobs in north County Dublin."

Four companies, including EH Industries and Sikorsky, yesterday met the Department of Defence's noon deadline for "best and final bids" for the medium-range helicopter contract.

EH Industries' EH-101 is the most expensive model on offer to the Aer Corps - when compared to EADS-Eurocopter's Cougar and Sikorsky's S-92. The EH-101 has already won contracts to supply the Royal Air Force, the Royal Navy, the Canadian Air Force, the Italian Navy, and Danish and Portuguese military forces.