Seven nations eyeing ex-RAN SH-2G(I) says Kaman

Kaman says it does not expect to see a sale of former Australian SH-2G(I) Super Sea Sprite helicopters for at least another 12 months but is confirming that it is now in talks with seven countries on possible deals.

Kaman’s second quarter report to investors, lodged with US regulators 6 August, says that “management believes that a significant portion of this inventory will be sold after 3 July 2010, based upon the time needed to market the aircraft and prepare them for sale”.

The quarterly report says that Kaman Aerospace has secured “42 marketing licences required by the US government [and] began discussions with seven foreign governments regarding the sale of the helicopters and received small orders for the spare parts and related equipment.”

Kaman took over ownership of all eleven ex-Royal Australian Navy SH-2G(I)s in February this year in exchange for bank guarantees to the Australian government for A$39.5 million, with A$26.7 million due by March 2011.

The quarterly report says that “as at 3 July 2009 the company has made required payments of A$0.4 million. As of that date the US dollar value of the remaining A$39.1 million required payment was $31.2 million”.

The head of helicopter acquisition in the Australian Defence Materiel Organisation (DMO), MAJGEN Tony Fraser, says that as at 20 August the repayments had reached AUD$580,000 “for sale of parts which are essentially not required for the major sale that we are trying to make”.

Fraser says that “we are satisfied that Kaman’s approach has been professional in trying to sell the aircraft. We are aware of some of those discussions at the moment.”

A DMO team is currently readying to travel to the US for an update on the sale process. “We will be visiting them very shortly to discuss and to confirm their marketing activities.”

The global financial downturn has had some impact on market opportunities Fraser says, but a sale remains likely. “There is no doubt that the economic environment has not helped, but I have been pleased with the feedback we have gained. It looks promising that there are some countries genuinely interested to acquire this type of aircraft from Kaman.”

By Peter La Franchi - Asia Pacific Editor