Canada to impose fines against Sikorsky over helicopter delays

OTTAWA Mon Feb 11, 2013 2:49pm EST

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OTTAWA Feb 11 (Reuters) - Canada will impose significant additional financial charges against United Technologies Corp's Sikorsky unit over delays in delivering helicopters, Public Works Minister Rona Ambrose said on Monday.

Canada signed a C$5 billion ($5 billion) deal with Sikorsky in 2004 for 28 search and rescue helicopters, the first of which was supposed to be delivered in 2009. The project has been plagued with delays and Canada is still waiting for the first aircraft.

"Our government expects Sikorsky's obligations under this contact to be met and to date they have not been met ... we have already applied millions of dollars in liquidated damages and we are going to be applying significant additional charges," she told the House of Commons. She did not give precise details.

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