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EADS sees additional light helicopter sales

Tue Dec 4, 2007 9:28am EST

Reporter's Notebook

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WASHINGTON (Reuters) - The North American unit of European defense company EADS (EAD.PA: Quote, Profile, Research, Stock Buzz) expects to sell nearly 200 additional light utility helicopters as a result of its successful program with the U.S. Army, a top executive said on Monday.

Ralph Crosby, chief executive of EADS North America, said the Army was very pleased with the company's work on the UH-145 Light Utility Helicopter, based on a commercial version, despite controversy about cabin temperature raised by a U.S. lawmaker last month.

"The Army is our staunchest supporter," he said, noting that EADS delivered the first UH-145 on schedule, despite a contract protest that delayed the program by 100 days.

In June 2006, the U.S. Army chose EADS' UH-145 military helicopter as its next light utility helicopter, EADS first major prime contract in the lucrative U.S. military market.

The Army plans to buy 322 aircraft with a potential total program life-cycle value of $3 billion, but Crosby said the company could sell around 500 helicopters, including foreign military sales, in the longer-term.

He said the potential value of the additional sales would be in line with the expected value of the original program.

He said one UH-145 had already been sold to the government of Malta.

He said EADS participated in a conference several months ago to discuss potential other foreign sales, but declined to give any additional details.

"This is an aircraft program that will go on for a long time," Crosby said. "The aircraft is working very, very well".  Continued...

 
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