Friday, October 31, 2008

Financial Crisis Claims First Arms Deals Victim

From Flight Global:

In recent weeks, Israel and Australia have reportedly talked about delaying F-35 purchases in the wake of the global financial crisis.

But it's only been talk.

Today, the financial crisis claimed its first major international arms deal when Malaysia Prime Minister Datuk Seri Abdullah Ahmad Badawin announced suspending a roughly $650 million contract for Eurocopter EC725s.

That contract had already come under sharp scrutiny. My Singapore-based colleague Siva Govindasamy reported last week that Eurocopter's competitors were furious with the deal, claiming that Malaysia's government ignored standard acquisition procedures.

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