Australien

[Jacks]

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Australia Could Buy Up to 60 NH90s

(Source: defense-aerospace.com; issued Sept. 2, 2004)

PARIS --- While Australia’s planned order for 12 NH90 helicopters, announced Aug. 31, is valued at about A$ 1 billion, industry and government officials say repeat orders now in the pipeline or planned could boost the total number of NH90s to as many as 60, worth over A$ 5 billion.

However, the final contract negotiations for this first contract may prove more difficult than anticipated. Australia selected the NH90 on the basis of a Best And Final Offer for a 40-helicopter buy. The price quoted in that offer may no longer be acceptable to the supplier, as the initial order has now been reduced to 12. Australian Defence Minister Robert Hill told reporters that a decision on the upgrade or replacement of the Black Hawks, for which the remaining 28 NH90s were planned, would not be made before 2005 or 2006.

The risk for the NH90 industry group is that the Australian government may refuse to pay a higher price despite the lower number it is ordering. For domestic political reasons, Australia also is likely to insist on local assembly of at least some of the initial 12 helicopters, even though this makes much less financial sense than it would for 40 aircraft.