Norway and Europe Settle Helicopter Dispute

Norway and European aerospace firms agreed to settle claims over the cancelled NH90 helicopter order, avoiding a trial. Norway will receive 305 million euros plus 70 million already paid. The helicopters, facing delays, are part of Norway's defenses against submarine threats. The settlement ends a long-standing procurement issue.

In a significant agreement, Norway and a consortium of European aerospace manufacturers resolved mutual claims regarding the cancellation of the NH90 submarine-hunting helicopters order. The settlement avoids a potentially contentious defense industry lawsuit, as confirmed by both parties.

Airbus, Leonardo, and GKN Fokker, the owners of NHIndustries, agreed to pay Norway 305 million euros on top of an earlier payment of 70 million euros. This settlement covers much less than the 2.86 billion euros initially sought by Norway, which was to finance replacement helicopters from the U.S.

Scheduled to start five months of public hearings, the trial was deemed sensitive amid Europe's rearmament against submarine threats. However, the deal closed a complex procurement issue dating back to 2001, when Norway ordered NH90s to provide a unified naval force. The decision ends extended delays and maintenance challenges faced by the project.

(With inputs from agencies.)