The European helicopter manufacturer EH Industries last night said it was considering its position over whether to sue the State over the conduct of the tendering process for the supply of medium-lift helicopters for the Defence Forces.
The Minister for Defence, Mr Smith, confirmed yesterday he had chosen the Sikorsky S-92 over EH Industries' EH101 and another aircraft, the Eurocopter Cougar. Three aircraft for use in search- and-rescue and two further aircraft for troop-lifting are being acquired for the Air Corps.
The tenders for the aircraft were assessed with a number of other alternatives by an Air Corps committee last year and the S-92, EH101 and Cougar were included in a short-list. The Air Corps indicated its preferred aircraft was the Cougar but said it would accept any of the three short-listed.
EH Industries claims the tendering process was unfair because Sikorsky Helicopters' parent company, United Technologies, offered the Government an "offset" deal under which it would give €150 million of business to the troubled FLS Aerospace in north Dublin if it won the contract to supply the Defence Forces with medium-lift helicopters.
The contract with the Defence Forces is initially for three aircraft but it is expected this will rise to five and be worth about €130 million. This will be followed by maintenance contracts with the manufacturer.
In December, United Technologies told The Irish Times the company had already signed conditional agreements with FLS, which was formerly TEAM Aer Lingus. The deal will safeguard up to 1,500 jobs at FLS. Politicians in north Dublin have been lobbying the Government hard to have the Sikorsky tender accepted. Later this year, United Technologies will send the first of 12 Boeing 767s and 20 narrow-bodied jets to FLS to be converted for cargo use.
A spokeswoman for EH Industries yesterday said the company had not yet received formal notification of the tendering outcome and was reserving its position until it received documentation for the Department of Defence.
The EH101 is in use in a number of countries including Portugal, Britain, Denmark and Canada. The Cougar is based on the French Puma aircraft which has been flying for decades. The Sikorsky S-92 however is a brand new aircraft and still undergoing tests for airworthiness. Sikorsky Aircraft Corporation described it as the newest and most advanced medium-lift helicopter in the world.
In a statement, it said it was honoured the S-92 was chosen to provide search-and-rescue and troop transport functions.
It said: "The S-92 comes with a superb pedigree. Its predecessor, the S-61, has for many years provided search-and-rescue services on the Irish Sea and the Atlantic Coast for the Department of the Marine. We look forward to working with the Department of Defence and the Air Corps in fulfilling this contract as speedily and efficiently as possible."
Sikorsky said it had made it a priority to reduce the maintenance costs of the S-92 which are the lowest in its class at $800 an hour. It also said the S-92's airframe has a minimum life of 30,000 hours before needing refurbishment. It is undergoing extreme weather-testing in a climatic chamber and will have crash-resistant fuel systems, crash-worthy seats for crew and passengers and protection from turbine burst incidents.