War of Words Heats Up As Airbus to Seek Compensation from Poland

Airbus Helicopters to Seek Compensation In Spat Over Failed Deal with Poland

(Source: Deutsche Welle German radio; posted Oct 11, 2016)

French aircraft maker Airbus has attacked the Polish government for its handling of a failed helicopter deal. The row has caused a rise in diplomatic tensions between Paris and Warsaw.

The Polish government had unexpectedly ended negotiations with Airbus Helicopters earlier in October over a 3.14 billion euro ($3.5 billion) deal to purchase 50 Caracal helicopters.

Poland announced that it would instead opt for buying at least 21 Black Hawk helicopters made at a plant in Poland by the US company Sikorsky, which is part of the Lockheed Martin group. The government said that its main motivation was to support jobs at the local plant.

"Foreign investments in Poland should be modern, long-term and should guarantee good prospects of employment for Polish workers," Prime Minister Beata Szydlo said. "The conditions of cooperation should be beneficial to both sides," she added.

The criticism came just days after French President Francois Hollande postponed a visit to Warsaw in response to a breakdown in talks over the purchase.

Airbus to seek compensation

Airbus, which had won a tender under a previous Polish government to procure the helicopters, meanwhile claimed that it had been misled for months and said it would seek compensation.

"Never have we been treated by any government customer the way this government has treated us," Airbus chief executive Tom Enders said in a statement.

"Airbus wanted to invest in Poland big time and we wanted to contribute to building a competitive aerospace industry in this country. But the Polish government slammed the door on us. We take note of this," he added, stressing that Airbus would have created some 6,000 new jobs in Poland, and developed a state-owned servicing plant in the city of Lodz in central Poland. Enders stressed that his company would seek "remedies," without providing further details.

Accusations and counter-accusations

Polish Defence Minister Antoni Macierewicz told reporters in Warsaw that "it wasn't the Polish side who broke off the talks."

"Unfortunately the two sides did not see eye to eye on the offset package," he said, referring to the original arrangement of setting up a factory in Poland.

Poland's Deputy Development Minister Radoslaw Domagalski-Labedzki meanwhile said the negotiations were terminated because Poland realized its expectations would not be met, adding that Airbus had long been aware of Poland's reservations.

The rapid succession from the announcement of the breakdown in talks with Airbus to the official switchover to Lockheed Martin as the new provider for the helicopters has raised question over the government's real intentions.

(EDITOR’S NOTE: The war of words is escalating between Airbus and the Polish government.
"France has good military products, we are interested [in them], but we will never accept to be treated like a third world country. The country, which accepts it, will lose a possibility for any kind of international activity," Macierewicz was quoted as saying by the Polish Television, Sputnik News reported Oct. 12.
Airbus chief executive Tom Enders entered the fray on Tuesday, saying the company had been "misled for months" and would be seeking compensation.
According to Mr Enders, Airbus "wanted to invest in Poland big time", but “The Polish government had "slammed the door on us", BBC News reported Oct 11.

(ends)

Statement of Airbus Group Chief Executive Tom Enders

(Source: Airbus Group; issued Oct 11, 2016)

"Never have we been treated by any government customer the way this government has treated us. The controversial and contradictory declarations of the Polish government over the course of this procurement proceedings created the impression of unprecedented confusion.

“Airbus wanted to invest in Poland big time and we wanted to contribute to building a competitive aerospace industry in this country. But the Polish government slammed the door on us.‎ We take note of this."

“The confusion has been further increased by the latest declarations of the Polish government concerning the purchase of helicopters from contractors who decided to submit non-compliant offers in the tender and were disqualified.

“We have an impression that we have been misled for months by the current Polish government. ‎We spent a huge amount of efforts and money in recent years trusting that we were in a fair and professionally-conducted competition. We will of course seek remedies".

(ends)

Statement of Lockheed Martin Corporation, Sikorsky Aircraft Corporation and Polskie Zakłady Lotnicze Sp. O.O.

(Source: PZL Mielec; issued Oct 11, 2016)

Regarding the visit of Prime Minister Mrs Beata Szydło and Minister of Defense Antoni Macierewicz in the Polskie Zakłady Lotnicze, please find a joint statement of Lockheed Martin Corporation, Sikorsky Aircraft Corporation, and Polskie Zakłady Lotnicze Sp. o.o.

"We are very pleased that the Polish Prime Minister Beata Szydło and the Minister of National Defence Mr. Antoni Macierewicz announced that the Polish government will acquire helicopters Black Hawk.

Purchasing Black Hawk helicopters, manufactured in Poland by Polish workers for the Polish special forces meet urgent operational needs of the Polish Army and strengthen the machinery and engineering sector of Polish economy.

We are ready to start negotiations and implementation of the contract, which further strengthen the export potential of Black Hawk. "

(ends)

The Prime Minister and the Defence Ministry Head In Mielec

(Source: Polish Ministry of National Defence; issued Oct 11, 2016)

On Monday, Prime Minister Beata Szydło and Defence Minister Antoni Macierewicz participated in a meeting with the production crew of Polskie Zakłady Lotnicze Sp. z o.o. – PZL Mielec.zdjęcie.

The head of the Defence Ministry also met with the management of PZL Mielec and visited the Aircraft Study and Testing Center (Pol.: Centrum Badań i Prób Statków Powietrznych).

“Later this week talks will begin, which will be concluded this year. (...) This year, the first helicopters will be delivered, allowing for exercises by our special forces to occur. This shows what potential Poland has, and what potential Mielec has,” said the Defence Minister during a meeting with the employees of PZL Mielec.

Earlier in the day, Prime Minister Beata Szydło and the Secretary of State in the Defence Ministry Bartosz Kownacki visited PZL Świdnik (Pol.: Wytwórnia Sprzętu Komunikacyjnego PZL – Świdnik S.A.).

During the visit, the Prime Minister and the Deputy Minister met with the plant crew.

During her visit on Monday in Świdnik, Prime Minister Beata Szydło recalled that "The Program of Responsible Development" (Pol.: “Program na Rzecz Odpowiedzialnego Rozwoju”) focuses on the reindustrialization and development of modern innovative technologies based on indigenous potential.

“We want to rebuild Polish industry and give it a chance. We want it to become the “flywheel of development” in Poland and for Polish companies to have a chance to compete with the best in the world. This is the ambition of our Government,” said the Prime Minister. “The basis for this industry is for it to be the supply source of the Polish Armed Forces,” she added.

“The Polish Government must defend the best interest of the Polish State, and thus understood, is the supply of good and modern weaponry for our Armed Forces,” stressed Prime Minister Beata Szydło. As she later added, “The priority of the government is for Poland to have new firms and factories producing, good, world-renowned equipment, including equipment for the army (…),” summing up.

“The interest of the security of the State requires that companies produce and service helicopters”, said, in turn, the Deputy Minister of Defense Bartosz Kownacki, referring to the end of the offset talks regarding the Caracal helicopters.

“Since the terms of the offset (...) have not been met, since they did not meet the security interests of the State, we could not sign this agreement,” added Mr. Bartosz Kownacki.

The Deputy Minister stressed that the negotiations could not continue indefinitely, because the needs of the armed forces require the providing of appropriate, modern helicopters in the earliest possible time frame.

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