Sikorsky offers £125m to 'secure' FLS jobs

Sikorsky Helicopters has told the Government it will offer £125 million (€159 million) of business to the troubled FLS Aerospace if it wins a £100 million contract to supply up to five helicopters to the Aer Corps. In a letter to the Government, Sikorsky's president, Mr Dean Borgman, said the firm had already signed conditional agreements with the Dublin Airport-based FLS.

Beginning late next year, Sikorsky's parent, United Technologies, will send 12 Boeing 767s and 20 narrow-bodied jets to FLS to be converted for cargo use if it wins. The closing date for "best and final price" tenders from the four firms in the hunt to supply the Aer Corp's demand for a medium-range helicopter expires at noon today.

An examination by a Department of Defence team has shown that all the models on offer meet the technical demands required, a number of sources have indicated. The leading contenders for Ireland's biggest military contract are Sikorsky's S-92, EADS-Eurocopter's Cougar and the EH-101 from a consortium led by Augusta/Westland. Two will be bought for search and rescue operations, along with an option on a third, while options are on offer for two more "general purpose military transports".

The prospect of extra business for FLS has whetted the appetite of Fianna Fβil Dublin northside TDs, who have lobbied the Minister for Defence, Mr Smith, and the Taoiseach. FLS has been hugely damaged by the fall-out from the September 11th atrocities and it has very little business on its books after March, according to industry sources.

The Irish contract is hugely important to Sikorsky, which has conducted a high-profile campaign - often to the annoyance of senior Department of Defence officials. In his letter last week, Mr Borgman said the offset business to FLS and other Irish companies, including AIB, "clearly demonstrated its commitment" to the country. Yesterday, an FLS spokeswoman said the cargo conversions would help to secure the 1,600 jobs in the airport: "It puts us into a new market," she said.

EADS Eurocopter said recently it would match an earlier version of Sikorsky's offset offer but no concrete proposals have yet been made.