BERLIN - A controversial major arms deal between Germany's Bundeswehr (armed forces) and Airbus Helicopter was granted approval by the country's parliament (Bundestag) on March 4. The agreement is the first major arms deal concluded by Defense Minister Ursula von der Leyen - and is also more expensive than expected at EUR8.7 billion ($9.7 billion), or EUR430 million than the plan outlined by the previous defense minister, Thomas de Maiziere.

Under the latest multibillion plan, Germany will procure 168 Tiger combat and NH90 transport helicopters in total. This represents a significant downsizing of the original plans which called for a total of 202 helicopters (Tiger, NH90 and MH90 Sea Lions) at the cost of EUR8.46 billion. In short, the Bundeswehr will be receiving 34 fewer rotorcraft platforms at an increased cost of EUR240 million.

The renegotiated contract leaves the Bundeswehr with a total of:

- 68 Tiger attack helicopters instead of the originally planned 80 units. Of these, only 40 will be operational, with the remainder (units already delivered) cannibalized for spare parts.

- 82 NH90 transport helicopters instead of the 122 initially earmarked.

- 18 MH90 (Naval Frigate Helicopters) "Sea Lions" for the German Navy (Luftwaffe) that will serve as replacements for the aging Westland Sea King and Lynx fleets.

The Bundestag's approval of the renegotiated deal is contingent upon Airbus Helicopters meeting performance specifications and delivery timelines. The company will also be required to present regular reports on the progress of the overall program. Any failure to meet these requirements will allow the German Defense Ministry to level penalties or cancel the contract outright.

Source: Reuters
Associated URL: http://in.reuters.com/article/2015/03/04/germany-defence-airbus-idINL5N0W618420150304