Singapore Short-lists Airbus, Leonardo for $1Bn Utility Helicopter Deal

Replacement of its fleet of Super Puma military utility helicopters is the next step in Singapore’s military modernization, which also is shopping for modern Chinooks as well as tactical transport and maritime surveillance aircraft. (US Navy photo)

SINGAPORE --- Singapore will soon pick the winner of a $1 billion tender for military utility helicopters, the first of several lucrative deals the island nation is pursuing as it modernizes its air force and navy amid rising tensions in the region.

With Southeast Asia’s largest defense budget, Singapore is a key prize for global arms companies as it looks to invest in new technology and replace ageing equipment.

China's increasingly assertive actions in the South China Sea, which are worrying Southeast Asian countries, are partly a factor, say analysts, given that these have led to Singapore's neighbors spending more on their militaries.

Modern military technology also helps Singapore to keep its edge and compensates for its small size and population, said Richard Bitzinger, a regional security expert at the S.Rajaratnam School of International Studies in Singapore.

Data from IHS, a consultancy, estimates Singapore's annual defense budget will hit $10.72 billion in 2020, up from $9.08 billion in 2015 and about $8.23 billion in 2011.

The most immediate decision for Singapore is to replace its Super Puma helicopters, which are made by European aerospace giant Airbus. Singapore is seeking around a dozen multi-mission aircraft to deploy off ships and on land.

Airbus and the helicopter division of Finmeccanica have been shortlisted and are in final discussions before a decision is made, said sources familiar with the details of the procurement. A decision will be made "soon", defense minister Ng Eng Hen said in April.

Airbus declined comment and Finmeccanica did not respond to questions.

HARDWARE SPREE

The city state is also studying tactical lift helicopters to replace its Boeing Chinooks, transport-cargo planes to replace its aging Lockheed Martin C-130s, and maritime patrol aircraft to replace its Fokker 50s, say several sources familiar with the country’s requirements. (end of excerpt)

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