Aerospace Contracts
8:00 am
Mon January 6, 2014

Sikorsky to Pay Damages Over Canadian Delays

Sikorsky's Cyclone maritime helicopter at the Paris Air Show.
Credit Creative Commons

Sikorsky will pay damages to the Canadian government over a delay in fulfilling a helicopter order. But Canada said it will continue with the contract despite the difficulties.

Canada ordered an independent review of its Maritime Helicopter Project, and came close to scrapping the whole deal. The idea was to replace a fleet of Sea King craft with Cyclone Maritime copters built by Sikorsky. But the Stratford-based aerospace company missed the 2013 deadline to fulfill the $4.7 billion contract for 28 aircraft.

In a decision announced late last week, the Canadian government said it will go ahead with the stalled project, but it will require the company to pay $88.6 million in damages. It also wants to see a no-cost upgrade in the final product.

Sikorsky said it's working with its subcontractors to restructure its approach to the order, and has added new resources and technical expertise. The company said it's confident of hitting the newly agreed deadline.