Denmark-based aerospace, defense and security group Terma has ceased the $30m contract with Polish Armaments Inspectorate (IU), the Ministry of National Defence of Poland.
The terminated contract scope included the supply of aircraft survivability equipment for the Polish helicopters of the Mi-17 and Mi-24 types.
As a result of contract termination, Terma has issued a summons against the Polish Ministry of National Defence.
Terma had been contracted by IU to equip 22 Polish helicopters of the Mi-17 and Mi-24 types with aircraft survivability equipment in June 2010.
The dispute between Terma and IU related to contractual matters, as the firm and IU interpret the contractual requirement on false alarms very differently, according to the company.
Terma defense and security senior vice-president Steen Lynenskjold said the legal action has been considered very thoroughly and is regarded as a last resort by the company.
Lynenskjold said, "We have never previously experienced a customer’s refusal to receive an Aircraft Survivability Equipment despite the fact that Terma’s solutions are installed on 2,000+ aircraft platforms in 20 countries around the globe.
"IU has not been willing to accept the commonly used de-facto standard to such tests based on the extensive experience Terma has with similar deliveries to allied partners."
Terma has provided aircraft survivability equipment for 20 different fighter aircrafts, transport aircrafts and helicopter platforms in 20 Nato countries and Nato collaborative countries.