Fleet Air Arm Association of Australia

Seasprite Program Cancelled

Updated 24 March 2008

Following the cancellation of the Seasprite helicopter program, an agreement has now been reached between the Government and the contractor, Kaman, to cancel the project on mutually-agreed terms.

Subject to US Government approval, the project aircraft, training equipment and spare parts would be returned to Kaman for sale on the open market. The Australian Government and Kaman would share in the profits of subsequent sales.

Under the agreement, the Australian Government will receive at least 50 per cent of the proceeds from any sale of the helicopters by Kaman with a guaranteed financial return from Kaman of $39.5 million. In addition a further $30 million worth of spares will be retained for use on the Seahawk and Black Hawk helicopter fleets.

The Government will also assist Kaman personnel to find other jobs.

The Federal Government began a review of the Seasprite helicopter project in late 2007 and announced in March the project would not proceed. Minister for Defence, Joel Fitzgibbon, said on March 5 the Government had decided it intended to cancel the project.

Mr Fitzgibbon said that to ensure the Navy maintained an effective naval aviation capability, the Government has decided on two measures:

• Firstly, an interim approach would focus on improving the operational availability of the current Seahawk fleet; and
• Secondly, the Government would investigate the planned replacement of the Seahawk during its White Paper deliberations.

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