The settlement comes just a week before a scheduled trial in Oslo’s Borgarting Court of Appeal. It resolves Norway’s €2.86 billion lawsuit over the failed delivery of 14 NH90s and NHI’s €730 million countersuit, marking a rare amicable conclusion to one of NATO’s most controversial aircraft procurements.

Origins of the NH90 Program

The NH90, a twin-engine multi-role helicopter first flown in 1997, was designed for naval and anti-submarine warfare missions under a European consortium led by Airbus Helicopters (62.5%), Leonardo (32%), and GKN Fokker (5.5%).

Norway ordered 14 aircraft in 2001—six for anti-submarine operations and eight for coastguard duties—to bolster defenses along the Arctic coastline near Russia’s Kola Peninsula.

Persistent Delays and Performance Failures

Chronic technical issues—ranging from software faults and corrosion to excessive maintenance—plagued deliveries for over a decade.

By 2022, Norway’s fleet averaged just 100 flight hours annually, far below its 400-hour target.

Declaring the platform “incapable,” Defense Minister Bjørn Arild Gram canceled the contract in June 2022, grounded the helicopters, and sought NOK 5 billion (€460 million) in refunds.

The Settlement Terms

Under the agreement, NHI will pay €305 million to Norway in addition to €70 million already covered by bank guarantees, totaling €375 million ($356–431 million).

Oslo will return all 14 helicopters, associated parts, and tools to NHI for redistribution to other operators.

Both sides will waive remaining claims, avoiding years of litigation.

Strategic Shift to U.S. Seahawks

Norway will replace its NH90s with Lockheed Martin MH-60R Seahawks, purchased under a $1 billion U.S. Foreign Military Sales (FMS) deal approved in 2023, with deliveries scheduled for 2025–2027 and full operational capability expected by 2030.

The move restores Norway’s anti-submarine capacity amid increased Russian naval activity in the Arctic.

Industrial and Political Implications

The resolution spares Airbus and Leonardo further reputational damage from a public trial that could have exposed flaws in the NH90’s multinational governance.

Other NATO users—including Australia, Belgium, the Netherlands, and Sweden—have also scaled back or retired their fleets. NHI insists that upgrades have since improved availability across the 600-aircraft global fleet.