EADS Loses $600 Million Indian Copter Deal

Mumbai: India's Defense Ministry on Thursday cancelled a deal to buy 197 helicopters from the European Aeronautic Defense and Space Company following allegations of irregularities in the bidding process.
The government has ended exclusive talks with EADS' Eurocopter unit on the order, believed to be worth $600 million, and will issue a tender for fresh bids, Defense Ministry spokesperson Sitanshu Kar told media in New Delhi, without elaborating why.
Eurocopter spokesperson Cecile Vion-Lanctuit told Forbes.com the company was surprised the deal had fallen through.
Following trials of Eurocopter's AS 550 C3 Fennec and the Bell 407, made by Textron, in desert and high-altitude conditions, the Indian Army in February opted for the Eurocopter helicopter.
Under the deal, Eurocopter was to have sold 60 helicopters in "fly away" condition to the army while the remaining 137 were to be assembled by state-owned Hindustan Aeronautics, with whom Eurocopter has collaborated with since the 1960s.
06/12/07 Ruth David/Forbes, US

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Categories: Foreign Dec 2007, General Aviation Dec 2007