Norway Returns Troubled NH90s and Receives Hundreds of Millions in Compensation

NHIndustries has agreed to pay Norway €375 million in compensation for the troubled NH90 helicopters.

In early October, it was reported that the Norwegian government was preparing a lawsuit against the NHIndustries consortium, seeking compensation for delivered NH90 helicopters that did not meet the customer’s requirements.

The Norwegian Ministry of Defense announced a settlement with NHIndustries under an agreement that cancels Oslo’s claims against the consortium.

The supplier agreed to take back all delivered NH90s along with components, pay €305 million in compensation, and provide a €70 million bank guarantee. As a result, the Norwegian government will dispose of the problematic aircraft and recover part of the funds spent.

While the compensation is far less than the previously announced €2.8 billion, it is almost equal to the €500 million Oslo paid NHIndustries for 14 NH90 helicopters.

Even if the case had gone to court, there was no guarantee that Norway would have received full compensation.

The problematic deal

Norway announced the purchase of 14 helicopters in 2001. They were intended for the Royal Norwegian Navy and the Coast Guard, with deliveries scheduled between 2005 and 2008.

The Navy was to receive six helicopters configured for anti-submarine warfare, and the Coast Guard was to receive eight for search-and-rescue missions.

The program faced delays from the start: the first helicopter was delivered only in December 2011. The following year, the Ministry of Defense announced that it might need to purchase a different type of helicopter due to slow deliveries.

Later, reports indicated that Oslo was considering the U.S. MH-60 Seahawk as an alternative to the NH90 for anti-submarine missions.

By January 2016, the country had received six NH90s. Two years later, a report by the Norwegian Armed Forces said the fleet did not provide enough flight hours to meet mission requirements and recommended converting all 14 helicopters for anti-submarine roles.

A study in September 2018 concluded the NH90 could still meet Navy and Coast Guard needs if access to spare parts and maintenance capacity improved. The goal was to achieve that by 2022.

However, by 2022, the Ministry of Defense was increasingly concerned about continued delays and missed contractual obligations by NHIndustries. The search for alternatives resumed.

In June 2022, then Defense Minister Bjorn Arild Gram announced the termination of the NH90 contract. Oslo cited delays, technical issues, and excessive maintenance demands and sought compensation from NHIndustries.

At that time, Norway had received 13 NH90 helicopters, but only eight were fully operational.

In 2023, the country announced it would partially replace the NH90 with six MH-60R Seahawks.

Belgian Defense Minister Theo Francken also criticized the NH90 program, saying Belgium would retire its four NH90 TTH helicopters soon and calling the purchase a “bad buy.”