THE final nail has been hammered into the coffin of the Seasprite helicopter project, with defence contractor Kaman deciding to sell the aircraft to another country.
Proceeds from the sale will be shared equally between Kaman and the Australian Government, which has been promised a minimum return of $37 million (US).
In addition Australia will retain spares valued at about $30 million to use on the Seahawk and Black Hawk helicopter fleets.
An agreement between Kaman and the Common-wealth Government was signed on Thursday, opening the door for Kaman to take possession of the 11 still incomplete Super Seasprite helicopters that have been in hangars at HMAS Albatross.
The Seasprites were several years late entering service, with the cost blowing out to be many millions of dollars over budget, when Defence Minister Joel Fitzgibbon scrapped the project earlier this month.
Mr Fitzgibbon said by axing the project Australia had saved $150 million that would have been spent on the Seasprites, but which would be available for other defence projects.
Mr Fitzgibbon said he was pleased the early resolution had removed any uncertainty surrounding the Seasprites.
He said the negotiated result was the best outcome for the government and
personnel affected by the decision.
The government was assisting Kaman with personnel transition in a sector that was short of qualified and experienced personnel, Mr Fitzgibbon said.