Airbus-led defence firm NHIndustries (NHI) has agreed to pay Norway 305 million euros ($351 million) to settle a dispute over a cancelled order for long-delayed military helicopters, the government said Monday.

Norway ordered 14 NH90 helicopters in 2001 to equip its navy frigates and coast guard by the end of 2008.

But the program was plagued by long delays, prompting the Norwegian government to tear up the contract in 2022 after receiving only eight aircraft.

Oslo then sued NHI — a consortium comprised of Airbus Helicopters, Italian defence firm Leonardo, and Dutch counterpart Fokker — seeking nearly 2.9 billion euros in reimbursement and damages.

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The two sides ended up reaching a settlement that ends all legal proceedings, the Norwegian defence ministry said in a statement.

In 2023, Norway ordered six Seahawk helicopters from US manufacturer Sikorsky to replace the NH90 aircraft it gave up on.

AFP