Poland likely to scrap $3 billion Airbus helicopter deal: report

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Poland’s $3 billion (2 billion pounds) army helicopter deal with Airbus (AIR.PA) is “very likely” to be canceled, the deputy defense minister said on Tuesday, signaling one of Warsaw’s key military programs, speeded up in response to the Ukraine crisis, may face delays.

Poland’s previous centrist government, beaten by the Eurosceptic Law and Justice (PiS) party in a parliamentary election in October, agreed a provisional deal with Airbus for 50 EC-725 Caracal multi-purpose helicopters, turning down offers from Sikorsky (LMT.N) and AgustaWestland (SIFI.MI).

The contract, negotiated by the economy ministry, has yet to be signed and PiS has repeatedly said it would rather see the deal awarded to a producer manufacturing locally. Both Sikorsky and AgustaWestland have facilities in Poland.

Read more: http://www.reuters.com/article/us-poland-airbus-idUSKCN0V40SL

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2 Comments

  1. Just as wrong as calling “conservative” a government promissing to introduce noumerous new taxes and increase deficit further that any recent government.

    When it comes to the price of Rusian gas, let’s not forget the contract signed by Wojciech Jasiński (PiS) back in 2006 still in effect until 2022. The same Jasiński who agreed to long term and retroactive huge price increase was just apointed by the current “conservative” government to run ORLEN.

    Who do you think is pocketing big bribes in this case?

    Back to helicopters deal: it would make sense only if it was replaced by another contract. Increasing the size of the army while canceling contract for military equipment is not going to improve Poland’s defense.

  2. Lech Jaworski on

    It is wrong to call previous Polish government to be centrist. It was very much leftist coallition , supporting Russia and very corrupted. It allowed Russia to charge Poland $500 for the same amount of gas which is selling to Germany for $350. From Canada it would cost $71, delivered.
    Buying helicopters from France would be treasonous when Poland manufactures them herself.
    Did somebody pocket big bribe?

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