Government says it will continue with Cyclone helicopter program, retire Sea Kings

The Government of Canada says it will begin retiring the military’s Sea King helicopters in 2015, and take delivery of Sikorsky Cyclone helicopters in 2018.

In a news release issued late Friday afternoon, the Defense Department said it has agreed with Sikorsky Aircraft Corporation on principles to negotiate a further contract for the Cyclones, which have been overdue from the manufacturer.

The $5.7-billion plan to acquire 28 maritime choppers to replace Canada’s 50-year-old CH-124 Sea Kings is years behind schedule and billions of dollars over the anticipated budget.

The restructured program will see the continuation of the initial training and testing of the Cyclone now underway in Shearwater, Nova Scotia.

Under the terms of the Principles of Agreement, Canada will see delivery of helicopters with operational capability sufficient to begin retirement of Sea Kings in 2015, and a program to enhance those capabilities culminating in a fully capable CH 148 Cyclone Maritime Helicopter in 2018.

“As the pre-eminent helicopter manufacturer in the world, we regret that we have not executed this program to the satisfaction of the Government of Canada and that no aircraft were delivered in 2013,” said Mick Maurer, President of Sikorsky Aircraft Corporation. “We recognize that we and our sub-contractors must do better. We have completely restructured our approach, and added considerable new resources and technical expertise. As a result of the third-party review commissioned by the Government of Canada, we believe we have the right plan in place to deliver the most capable maritime helicopter in the world.”

“Under the new terms established in the Principles of Agreement, Sikorsky has committed to deliver the needed helicopter capability at no additional cost to Canada,” said the Honourable Diane Finley, Minister of Public Works and Government Services. “In addition, the Government of Canada will only issue further payment to Sikorsky upon capability delivery. This is the right path forward for the Canadian Armed Forces and taxpayers.”

Sikorsky has agreed to pay Canada $88.6 million in liquidated damages for non-delivery.

“The decision to continue with the Maritime Helicopter Project is consistent with our goals of getting the Canadian Armed Forces the equipment they need while protecting the investments taxpayers have already made in this program,” said the Honourable Rob Nicholson, Minister of National Defence. “The Royal Canadian Air Force has been providing guidance in determining operational priorities through the newly established Integrated Product Teams comprised of team leaders from Sikorsky and General Dynamics Canada, as recommended by the third party.”