THE CANADIAN Government has agreed to pay EH Industries (EHI) C$158 million ($115 million) in compensation for the controversial cancellation of its order for 50 EH101 helicopters.

The amount covers cancellation costs and work already carried out before the contract was awarded. The Government has incurred some $200 million in costs associated with shutting down the EH101 programme.

The conclusion of negotiations will benefit EHI's attempts to rekindle the EH101 programme in Canada. The Government has already cleared a programme covering the purchase of 15 search-and-rescue helicopters, while the navy requires around 30 anti-submarine warfare helicopters.

EH Industries intends to bid for both these programmes.

Source: Flight International