U.S. aerospace giant Sikorsky still has yet to pay the $8 million in penalties the Conservative government levied against it for failing to deliver on the Canadian Forces maritime helicopter program, now already more than three years behind schedule.
In the meantime, the Defence Department isn’t saying when it expects to receive the first of the new helicopters to replace its aging Sea Kings.
The original plan called for the first Sikorsky Cyclone helicopter to be delivered in November 2008 with deliveries of all 28 helicopters completed by early 2011.
But Sikorsky has yet to deliver a single aircraft to Canada under the $5.7 billion program.
According to government documents the U.S. firm could have faced anywhere from $36 million to $89 million in penalties for failing to meet various project deadlines and in January 2008 Defence Minister Peter MacKay said such fees would kick in if Sikorsky didn’t deliver.
But the Conservative government eventually waived those and instead a new deal was negotiated to allow Sikorsky to deliver an “interim” or incomplete helicopter. Sikorsky, however, missed the new deadline for that delivery as well and in the spring of 2011 the government hit it with an $8 million penalty – the maximum the company could face for failing to provide an interim aircraft.
That fine has yet to be paid.
In the meantime, the Defence Department isn’t saying when it expects to receive the first of the new helicopters to replace its aging Sea Kings.
The original plan called for the first Sikorsky Cyclone helicopter to be delivered in November 2008 with deliveries of all 28 helicopters completed by early 2011.
But Sikorsky has yet to deliver a single aircraft to Canada under the $5.7 billion program.
According to government documents the U.S. firm could have faced anywhere from $36 million to $89 million in penalties for failing to meet various project deadlines and in January 2008 Defence Minister Peter MacKay said such fees would kick in if Sikorsky didn’t deliver.
But the Conservative government eventually waived those and instead a new deal was negotiated to allow Sikorsky to deliver an “interim” or incomplete helicopter. Sikorsky, however, missed the new deadline for that delivery as well and in the spring of 2011 the government hit it with an $8 million penalty – the maximum the company could face for failing to provide an interim aircraft.
That fine has yet to be paid.