Norway has reached a settlement with helicopter manufacturer NHIndustries over a long-running dispute involving maritime helicopters. The agreement ends a legal battle that was scheduled to begin in Oslo District Court next week.
The defense ministry announced the settlement Monday morning. Both parties described the negotiations as constructive and professional.
Under the agreement, NHIndustries will take back all helicopters and spare parts from the Norwegian government. The company will pay Norway 305 million euros, equivalent to approximately 3.56 billion Norwegian kroner.
This payment comes on top of 70 million euros already transferred to Norway in previous agreements. The total settlement amounts to 375 million euros, or about 4.4 billion kroner.
The original claim from the Norwegian government was much higher. Officials had sought over 33 billion kroner for the failed helicopter program.
What went wrong with Norway's helicopter program?
Norway originally ordered 14 NH90 helicopters in 2001 for use on coast guard vessels and frigates. The helicopters were supposed to be delivered between 2005 and 2008, but faced significant delays.
By 2018, the defense forces had received only eight helicopters. Just five of those were suitable for training missions. One helicopter remained missing as recently as 2022.
The helicopters also performed worse than expected. They required much more maintenance than anticipated, according to defense officials.
In 2018, Norway's national audit office concluded that taxpayers had spent 8 billion kroner on equipment that was never properly delivered. Parliament later asked the government to find alternative helicopters for the coast guard.
Norway terminated the contract with NHIndustries in 2022. The country decided to purchase Seahawk helicopters from the United States instead.
The unused NH90 helicopters have been sitting idle since then. Earlier this year, defense authorities hired consultants to help store the grounded aircraft.
Several other European countries use NH90 helicopters, including Finland, Sweden, Germany, and France. Multiple nations have reported challenges with high operating costs and poor reliability.
The settlement allows both parties to move forward from the two-decade dispute. Norway recovers some taxpayer funds while NHIndustries can remarket the returned helicopters to other customers.