Earlier this week, we looked at some stories about how the reality of drilling in the Arctic wasn’t necessarily living up to the expectations that many commentators and companies had had.
And now, according to this news release, Air Greenland is cancelling the two EC225 helicopters it had ordered from Eurocopter.
Apparently the model is well suited to the kinds of activity associated with offshore drilling operations.
But given the slowdown of offshore Arctic development in the region, there isn’t enough demand for such services, says Jens Wittrup-Willumsen, Air Greenland’s Chairman of the Board.
“EC225 helicopters are very suitable for offshore operations and the Search- And- Rescue operations, but there has not been the expected growth and development in these areas,” he said in the news release.
“Unfortunately, this is not a situation unique to Greenland. It also applies to the rest of the world market and it has not been possible for us to sell the helicopters to other parties. To prevent further loss, as a responsible board, we have unanimously decided, upon the recommendation of the Management of Air Greenland, to cancel the contract with the supplier.”
The purchase contract signed in 2011 was to a value of approx. DKK 380 million, said the news release. The exit charges are just over 4 percent, it said.
Write to Eilís Quinn at eilis.quinn(at)cbc.ca