Turkish Utility Helicopter Contract Signed Between SSM and Sikorsky
Within the framework of the needs of the Turkish Armed Forces, the Turkish Utility Helicopter Project tender started in 2007 was made known by the Defence Industry Executive Committee on 1 April 2011 after a four-year period and the decision was reached to commence contract signing negotiations with Sikorsky that competed with Agustawestland. However, due to disagreements on various issues, the signing with Sikorsky could not be completed. After a 3-year resolution process, with the agreement of both parties, the Turkish Utility Helicopter Project contract came into force.
Negotiations having continued since 2007, the contract for the Turkish Utility Helicopter tender for the production of 109 T70i helicopters by TAI and the Undersecretariat for Defence Industries (SSM) at TAI facilities with a total cost of 2.5 billion dollars was signed on 21 February 2014.
In the meeting that took place at the SSM, SSM Undersecretary Murad Bayar, TAI Chairman of the Board of Directors Yalçın Kaya, CEO and President of TAI Muharrem Dörtkaşlı and Sikorsky’s VP for Sales and Marketing Bob Kokorda as well as representatives of other sub-contractor firms participated.
To be completely built at TAI facilities, the Sikorsky S-70i helicopters, as a result of being equipped with Aselsan’s own modern avionics systems and TEI’s T700-TEI-701 engines, will become the indigenous T-70i helicopter and will be produced in two separate configurations for seven different users (Land Forces Command, Air Force Command, the Gendarmerie General Command, the Chief of Staff Special Forces Command, the Chief of Staff Electronics Systems Command (GES), the General Directorate of Security and the General Directorate of Forests) for a total of 109 helicopters. In return for the 109 helicopters produced under the project, Sikorsky will produce 109 helicopters and commits to sell these helicopters to third parties. It is expected that the sales volume will reach 8 billion dollars in the long-term.
First Helicopter Will Be Delivered in 2018
Following the signing of the contract, in order for the programme calendar to come into effect, a 16-month period is foreseen. During this period it is expected that the principal sub-contractor Sikorsky will undertake production under Turkish license and receive export licenses relating to the other components within the coverage of the contract as required by United States legislation. Subsequent to obtaining the licenses, the first T-70i helicopters will be delivered to the General Directorate of Forests during the 55th month under the configuration of the General Directorate and the joint configuration T-70i Helicopter to the Land Forces Command during the 57th month. The commencement of this programme it will provide a stimulus to the Turkish defence industry and many firsts will take place. For the first time multiple mission needs of 6 different users will be consolidated and a joint configuration will be acquired. The helicopter acquisitions that took place up to now from Sikorsky were direct acquisitions. For the first time with this project these helicopters will be produced under license in Turkey. Within the coverage of the project for the first time production of gear and dynamic systems will be realized in Turkey. Within the coverage of the project, GE’s T-700 Black Hawk engine will be produced in Turkey and under the TEI parts number, the opportunity for overseas sales will take place. One of the most important gains from this project is that Aselsan will realize the design of a cockpit to a foreign company and these Turkish designed cockpits together with the helicopters to be produced will be marketed and sold throughout the globe excluding the United States.
In the helicopters acquired up to now there was no Turkish work share. For the first time with this project 67% of local industry contribution will be realized. Again within the coverage of this programme, the cockpit, cabinet and panels will be produced by TAI, avionic suits by Aselsan, engines by TEI and landing gear and blades by ALP Aviation.
Sikorsky for the first time with this project will provide a Turkish industry work share in international sales. The company has given a commitment to the Turkish side to use local industry capabilities in Turkey. Planned to take place for a 30-year period, the total amount of the commitment is expected to reach 1.4 billion USD.
