Washington's attempts to block the sale of 12 new tactical transport and maritime patrol aircraft (MPA) to Caracas appear to have succeeded, with a member of the Venezuelan military command confirming the cancellation of a $590 million deal agreed with EADS Casa in November.
Gen Alberto Muller, head of Venezuela's joint chiefs of staff, says the proposed purchase of 10 C-295s and two CN-235 MPAs has been abandoned "because the USA cancelled it". Washington had opposed the deal - which included options on six C-295s - because the aircraft were to contain US-sourced avionics and engines worth around $4 million per platform. EADS Casa had offered to replace the disputed components, but Muller says the modifications would have cost too much.
EADS Casa declined to comment on the sale, or say whether it would seek compensation from Washington in the event of its reported cancellation.
Source: Flight International