(By Balaseshan) United Technologies Corp. (NYSE:UTX) said its subsidiary has signed $120 million BLACK HAWK helicopters maintenance contract with the Australian Defence Force (ADF).
Sikorsky Aircraft Australia Ltd. signs a four-year agreement with the ADF for ongoing logistics and engineering support for the Commonwealth of Australia's fleet of BLACK HAWK (S-70A) and SEAHAWK (S-70B) helicopters.
Valued at more than $120 million, with six annual renewable options, the contract is a follow-on agreement to the current standing offer, which is expiring after an eight-year term.
The performance-based nature of the contract is designed to help increase the fleet's overall annual flying rate while maintaining and controlling costs. Additionally, the contract provides for engineering, technical, and field service support, as well as publication updates.
Sikorsky Aircraft Australia does business as Sikorsky Helitech, a Sikorsky Aerospace Services (SAS) company based in Brisbane, Queensland, Australia. SAS is the aftermarket business of Sikorsky Aircraft Corp., a subsidiary of United Technologies.
Sikorsky Helitech will provide repair and overhaul management services, as well as customer service support, including management of maintenance and logistics elements such as freight, acquisition of spares, and replacement of repairable components.
"For the last twenty-five years, Sikorsky's BLACK HAWK and SEAHAWK helicopters have played a crucial role as part of the ADF. Our ability to offer in-country OEM expertise will further improve the operational readiness of the fleet and enhance our government's ability to successfully execute a variety of key missions," said George Cheetham, Managing Director of Sikorsky Helitech.
UTX is trading up 1.41% at $75.90 on Thursday. The stock has been trading between $66.87 and $89 for the past 52 weeks.