Finmeccanica clarifies position on the VH-71 programme
With regards to the US Defence Administration's possible cancellation of the VH-71 programme, Finmeccanica confirms that this is only the first step in a particularly complex budget approval process and confirms that this will have no financial impact on the Group.
The value of Increment 2 was in fact not included in Finmeccanica's budget and in multi-year plan. Therefore there are no changes to the guidance provided to the market.
The contract for Increment 1 was received in January 2005 and is worth around USD 3.7 billion (of which approximately USD 1 billion pertaining to Finmeccanica through its subsidiary AgustaWestland). The contract involves the development of nine helicopters (8 already delivered), of which five pilotproduction and four test vehicles, and is valid until 2011. Congress has already authorised funding for Increment 1.
The potential cancellation of the programme would entitle Finmeccanica to receive penalty payments that will compensate for the termination of the contract. The contract foresees provisions related to the payment of Termination Fees, which must be defined in accordance with the rules laid out in the Federal Acquisition Regulation.
We believe the potential cancellation of the programme is in no way related to the technical characteristics of the helicopter (whose excellence in performance has never been questioned), nor to the platform cost, which is highly competitive. The cost increases arising from the customer's requests for highly specialised systems and on-board equipment might have had an influence on today's US Department of Defence announcement.
More from Defence Helicopter
-
![Germany to send WS-61 Westland Sea King helicopters to Ukraine]()
Germany to send WS-61 Westland Sea King helicopters to Ukraine
Germany has committed to sending Ukraine six of its 21 retiring WS-61 Westland Sea King multirole, amphibious helicopters.
-
![Boeing secures $271 million to advance modernisation of US Special Operations' MH-47G Chinook]()
Boeing secures $271 million to advance modernisation of US Special Operations' MH-47G Chinook
Boeing has clinched a major contract modification to further its backing of the US Special Operations Command’s MH-47G Chinook aircraft modernisation effort.
-
![Dubai Airshow 2023: South Korean homegrown helicopters make international debut]()
Dubai Airshow 2023: South Korean homegrown helicopters make international debut
Two KAI helicopters, the KUH-1E utility helicopter and the Light Attack Helicopter (LAH), have taken centre stage at the Dubai Airshow 2023.
-
![Italian Navy receives final NH90 helicopter]()
Italian Navy receives final NH90 helicopter
The Italian Navy now boasts a fleet of 56 NH90 helicopters comprising 46 SH-90As and 10 MH-90As.
-
![Argentina seeks AW109 and CH-46 Sea Knight helicopters]()
Argentina seeks AW109 and CH-46 Sea Knight helicopters
The Argentinian Air Force (FAA) and the Argentinian Naval Aviation Command (COAN) are looking for options to upgrade their helicopter fleets.
-
![DSEI 2023: Lockheed to produce about 40% of Black Hawks on UK soil if it wins NMH contest]()
DSEI 2023: Lockheed to produce about 40% of Black Hawks on UK soil if it wins NMH contest
Lockheed Martin promises a boost to the British job market and export opportunities, while strengthening ties with Poland and positioning the UK for a future in rotorcraft technology in the event of a New Medium Helicopter competition triumph.
