Norway cancels US helicopters deal, they are unreliable and want $ 500 million back

In a dramatic move protesting the rotorcraft's abysmal operational availability, Norway has canceled its contract for NH90 helicopters and has immediately and permanently grounded its entire fleet. Norway also wants back the $500 million it paid manufacturer NHI Industries for the 13 helicopters in its fleet, in addition to interest and other expenses.

Thirteen of the 14 NH90 helicopters on order are delivered, but only eight arrived in a fully operational configuration, according to the Norwegian Defense Ministry. Where the fleet is required to fly 3,900 hours a year, it averages just 700 hours annually. The helicopters spend more time in the shop than in the air, Norwegian Minister of Defense Bjørn Arild Gram said figuratively.

“Regrettably, we have reached the conclusion that no matter how many hours our technicians work and how many parts we order, it will never make the NH90 capable of meeting the requirements of the Norwegian Armed Forces,” Gram said in a prepared statement. “Based on a joint recommendation by the Armed Forces and associated departments and agencies, the Norwegian Government has therefore decided to end the introduction of the NH90 and has authorized the Norwegian Defence Material Agency to terminate the contract.” The agency is preparing to return the helicopters to NHI, along with all spares and other equipment it has received.

Norway signed the initial contract for 14 NH90s in 2001, eight for the Coast Guard and six to serve on Fridtjof Nansen class frigates. They were supposed to replace the Westland Lynx in anti-submarine warfare, utility, search-and-rescue, and other maritime missions. Initially slated for delivery by the end of 2008, the fleet still is not complete, and the helicopters in service cannot perform the missions for which they were bought, said Gro Jære, Director General of the Norwegian Defence Materiel Agency.

NHI, a consortium of European aircraft and defense manufacturers led by Airbus and established specifically to build the NH90, said it is “extremely disappointed” by Norway’s decision and “refutes the allegations being made against the NH90 as well as the company.” The company also questioned whether Norway could legally scuttle the NH90 deal but did not explicitly threaten legal action.

NHI said it was not offered the possibility to discuss a proposal to improve the availability of the NH90 in Norway or to address Norway's requirements before the plug was pulled.

“The NH90's inherent characteristics offer any armed forces with an advanced, fully integrated mission capability, survivability, speed, range of action, discretion as well as night and all-weather operations without equal in the world in its category. In its naval configuration, it is an incomparable asset to answer the needs of Norwegian Armed Forces, allowing the most advanced surveillance capabilities in the North Sea, just as the NH90 is doing elsewhere across Europe at sea protecting nations,” NHI said in a June 10 statement. “NHIndustries and its partner companies are and have continuously been absolutely committed to addressing the concerns previously expressed and have brought the appropriate and tailored solutions to the table to meet the specific and unique Norwegian requirements. With 13 helicopters delivered out of 14 and the fourteenth ready for acceptance, we were close to finalizing the main scope of the initial contract.”

Gram said Norway must find a suitable maritime helicopter to replace the NH90 quickly. Without mentioning specific helicopters, he said Norway will "consider several alternative approaches to meeting our operational requirements, but we must be prepared for the fact that there will be no easy solutions." That likely will include the Sikorsky MH-60 Seahawk helicopters Norway considered as a Lynx replacement before going with the NH90.

Norway is one of 14 nations that operate the NH90. The others are Australia, Belgium, Finland, France, Germany, Greece, Italy, the Netherlands, New Zealand, Oman, Qatar, Spain, and Sweden. Of those countries, Norway is not the only one that has struggled with keeping the aircraft fit for service. On the same day the Norway ditched its NH90 fleet, the Qatar Emiri Air Force accepted its fifth helicopter.

Citing similar difficulties with maintenance and availability, Australia in December announced it is ditching its fleet of MRH90 battlefield utility helicopters, a variant of the NH90 also known locally in that country as the Taipan, and replacing them with U.S.-built UH-60 Black Hawks. Australia chose the NH90 over Sikorsky’s UH-60M in 2004. The European-built helicopter entered Australian service in 2008, and the fleet of 46 Taipans will now retire a decade ahead of schedule to make way for about 40 Black Hawks.