Poland Abandons Airbus Helicopter Purchase

Martin M. Sobczyk

WARSAW--The Polish government said on Tuesday it has walked away from a deal for 50 Caracal helicopters from Airbus because it was bad for national security, as Airbus insisted it had been misled in the bidding process.

Poland last week said it ended talks with Airbus Helicopters over a $3.5 billion delivery. It later said it would buy Black Hawk helicopters made in Poland by Lockheed Martin.

The decision to reject a deal first agreed by the previous Polish government has strained ties with North Atlantic Treaty Organization ally France, whose president delayed a planned visit to Warsaw in reaction.

Defense Minister Antoni Macierewicz said at a press conference on Tuesday Airbus would take over a servicing plant in central Poland as a result of the deal. Speaking at the repair plant, he said the facility guaranteed the security of the Polish military-industrial complex.

Prime Minister Beata Szydlo also said her government insisted that the helicopters be manufactured in Poland to support jobs in the arms industry.

Airbus said it would take action to defend its interests.

"Never have we been treated by any government customer the way this government has treated us," Airbus Groups Chief Executive Tom Enders said in a statement. "The controversial and contradictory declarations of the Polish government over the course of this procurement proceedings created the impression of unprecedented confusion."

Polish officials have said they were dissatisfied with the offer Airbus made for trade-off investments in Poland. The company said it was ready to offer $2.8 billion in such trade-offs as part of the deal.

Write to Martin M. Sobczyk at [e-mail]

(END) Dow Jones Newswires

October 11, 2016 10:36 ET (14:36 GMT)

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