ROME — Norway and European conglomerate NH Industries (NHI) agreed to an out-of-court settlement today that commits the manufacturer to pay Oslo €375 million ($432 million) as the finale to a long-running dispute over a cancelled NH90 helicopter contract.
As part of the settlement, Norway will also return all 14 of its NH90 aircraft to NHI, alongside spare parts, tools and mission equipment, according to a joint statement from both sides. (The industry firm comprises Airbus Helicopters, Leonardo and GKN Fokker Aerospace.) The helicopters and associated resources are to be reintegrated into the wider NH90 program, so other users of the helicopter can use them.
“This solution reflects the parties’ mutual agreement to bring all related disputes to a conclusive end,” the joint statement said.
It noted that mediators from the Oslo District Court facilitated discussions with NHI and the Norwegian MoD.
As Breaking Defense previously reported, Oslo made the decision to cancel the rotary contract in 2022, citing what it called delays, errors and excessive maintenance, while demanding compensation from NHI of nearly 5 billion kroner ($525 million).
“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,” then-Norwegian Minister of Defence Bjørn Arild Gram said at the time.
Despite the problems, NH Industries CEO Axel Aloccio told reporters last year that there are “lots of commercial opportunities” available to increase NH90 sales, in the region between “50 to 100” aircraft. He shared specifically that “a lot” of interest from Middle East nations has been expressed.
Norway first agreed to acquire the helicopters in 2001 to support coast guard and anti-submarine duties, but delays and maintenance problems ultimately proved to be the program’s downfall.
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The Nordic nation has since moved ahead with a part replacement for the troubled rotorcraft, approving a $1.1 billion acquisition of six Sikorsky MH-60R Seahawks in 2023.
Although the Norwegian settlement offers NHI the chance to put a bruising battle behind it, public criticism of the NH90 from within its user base has still to cool off entirely.
Theo Francken, Belgium’s Minister of Defence, said earlier this year, that the country will soon retire NH90 Tactical Transport Helicopters (TTHs), after he labelled the rotary acquisition a “bad purchase.”