The Canadian government has signed an agreement with Sikorsky Aircraft to revive the long-pending multi-billion dollar maritime helicopter project.
"Under the new terms established in the Principles of Agreement (POA), Sikorsky has committed to deliver the needed helicopter capability at no additional cost to Canada," said the Honourable Diane Finley, Minister of Public Works and Government Services.
In addition, the government has commissioned an independent third party, Hitachi Consulting, to determine the viability of the programme.
Specifically, the POA will lead to helicopters delivery with operational capability sufficient to begin retirement of Sea King helicopters in 2015, and a programme to boost those capabilities culminating in a fully capable CH 148 Cyclone Maritime Helicopter in 2018.
Sikorsky Aircraft president Mick Maurer said the company has completely restructured its approach, and also added considerable new resources and technical expertise.
"As a result of the third-party review commissioned by the government of Canada, we believe we have the right plan in place to deliver the most capable maritime helicopter in the world," Maurer said.
Sikorsky has also agreed to pay $88.6m to the government in liquidated damages for non-delivery in 2013.
The restructured programme will see continuation of the initial training and testing of the Cyclone, which is currently underway in Shearwater, Nova Scotia, Canada.
The Maritime Helicopter Project involves delivery of 28 combat-capable CH-148 Cyclone helicopters, associated logistical and in-service support, spare parts, modifications to the Halifax-class ships, as well as construction of a new training facility.