Long-Running Dispute Ends with Norway Returning Helicopters, Parts, and Equipment
Norway and European conglomerate NH Industries (NHI) have reached an out-of-court settlement in their dispute over a cancelled NH90 helicopter contract. According to a joint statement, NHI will pay Oslo €375 million ($432 million) to finalize the agreement. The industry firm comprises Airbus Helicopters, Leonardo and GKN Fokker Aerospace.
As part of the settlement, Norway will return all 14 of its NH90 aircraft to NHI, along with spare parts, tools, and mission equipment. These resources will be reintegrated into the wider NH90 program, making them available to other users of the helicopter.
The joint statement said, “This solution reflects the parties’ mutual agreement to bring all related disputes to a conclusive end.” Mediators from the Oslo District Court facilitated discussions with NHI and the Norwegian Ministry of Defence.
Background: Norway Cancelled Contract in 2022 Citing Delays and Maintenance Issues
Breaking Defense previously reported that Oslo decided to cancel the rotary contract in 2022, citing delays, errors, and excessive maintenance. Norway demanded compensation from NHI of nearly 5 billion kroner ($525 million).
Then-Norwegian Minister of Defence Bjørn Arild Gram said at the time, “Regrettably we have reached the conclusion that no matter how many hours our technicians work, and how many parts we order, it will never make the NH90 capable of … meeting the requirements of the Norwegian Armed Forces.”
NHI Remains Optimistic About NH90 Sales Despite Criticism
Despite the problems, NH Industries CEO Axel Aloccio told reporters last year that there are “lots of commercial opportunities” available to increase NH90 sales, in the region between “50 to 100” aircraft. He shared specifically that “a lot” of interest from Middle East nations has been expressed.
Norway initially agreed to acquire the helicopters in 2001 to support coast guard and anti-submarine duties. However, delays and maintenance problems ultimately led to the program’s downfall.
Norway Moves Forward with Sikorsky MH-60R Seahawk Acquisition
The Nordic nation has since moved ahead with a partial replacement for the troubled rotorcraft, approving a $1.1 billion acquisition of six Sikorsky MH-60R Seahawks in 2023.
NH90 Still Faces Criticism from Other Users
Although the Norwegian settlement allows NHI to move past a difficult chapter, the NH90 still faces public criticism from other users.
Belgium’s Minister of Defence, Theo Francken, said earlier this year that the country will soon retire NH90 Tactical Transport Helicopters (TTHs), labeling the acquisition a “bad purchase.”
