A significant settlement has been reached between Airbus-led defense firm NHIndustries (NHI) and the Norwegian government concerning a controversial cancellation of a military helicopter order. The agreement, worth 305 million euros (approximately $351 million), comes in response to Norway’s legal actions regarding the NH90 helicopters that were contracted over two decades ago.
Norway initially ordered 14 NH90 helicopters in 2001, intended to enhance the capabilities of its navy frigates and coast guard vessels by the projected delivery timeline of 2008. However, the ambitious program encountered extensive delays, and by 2022, Norway had only received eight of the helicopters. Frustrated by the repeated postponements and unmet expectations, the Norwegian government opted to terminate the contract last year.
In pursuit of damages and reimbursement, Norway filed a lawsuit against NHI, seeking an impressive total of nearly 2.9 billion euros. The consortium, which includes notable players in the aerospace and defense sectors—Airbus Helicopters from France, Leonardo from Italy, and Fokker from the Netherlands—engaged in discussions that ultimately culminated in this financial settlement.
The Norwegian Ministry of Defence announced that this agreement effectively concludes all ongoing legal proceedings between the two parties, paving the way for future collaborations or procurements without the shadow of this dispute looming overhead.
In a strategic pivot following the cancellation of the NH90 helicopters, Norway has turned to US manufacturer Sikorsky, ordering six Seahawk helicopters. This decision reflects a shift in Norway’s defense procurement strategy and underlines the challenges faced by international defense projects when unforeseen complications arise. The substitution of the NH90 with the Seahawk highlights Norway’s urgent need to ensure that its naval and coast guard forces are adequately equipped for their operational requirements.
