Australian navy helicopters sold to Turkish armed forces

Eleven Australian navy helicopters sold to an Aussie company for “humanitarian assistance” and firefighting efforts are at the centre of a $173m spat over their sale to Turkish armed forces.

Eleven Australian navy helicopters sold to an Aussie company for “humanitarian assistance” and firefighting efforts are now at the centre of a $173m international spat over their sale to Turkish armed forces.

The decommissioned Seahawk choppers were sold to Newcastle company Flying Wombats Australia after they were retired from use in 2017.

The helicopters were slated to be modified for firefighting search and rescue efforts and in November 2020, NSW independent Greg Piper MP called on the government to consider the repurposed planes to help “fight fires from the air”.

But a fresh battle in the Supreme Court of Victoria has revealed that the 11 Seahawk helicopters were instead to be sold off to the Republic of Türkiye in 2022 for $114m USD, an estimated $173m AUD.

Eleven Australian navy helicopters sold to an Aussie company are now at the centre of a $173m international spat. (File photo from Australian Defence/AFP)

A department of defence spokeswoman told the Herald Sun that according to the Deed of Transfer when the planes were sold, they were permitted to be used for “humanitarian assistance and firefighting search and rescue”.

Flying Wombats Australia launched court action against Türkiye last month for breach of contract after the nation’s General Manager of the Army Factories İmdat Ersoy sent WhatsApp messages cancelling the deal “due to budget constraints”.

Court documents reveal that Flying Wombats entered into a contract with Mr Ersoy on behalf of the Ministry of National Defense of Türkiye in August 2022 to sell “11 S-70-B-2 helicopters, spare parts and certain additional items and technical documents”.

They were to be delivered at the Port of Newcastle after approval via the International Traffic in Arms Regulations, a US regime to control export of defence technologies.

“The net contract price payable by the Ministry General Directorate to FWA for the Helicopters was US$114,000,000,” documents state, with payment to be made after a letter of credit was opened

The sale has sparked an international spat. Stock image.

But the deal went awry by August 2023 when Mr Ersoy sent Ozan Girgin, for Flying Wombats, a text on encrypted message service WhatsApp.

“Regarding the purchase of the helicopters at this stage we see it fit to cancel them due to budget constraints. …” he wrote, according to the court writ.

Three months later, in November 2023, Mr Ersoy confirmed the decisions to terminate the contract and “purported to seek payment from FWA to the Central Bank of Türkiye of what it described as a ‘penalty amount’ of US$114,000.”

The contract ended in December 2023.

Flying Wombats is now suing Türkiye for loss and damage suffered by a breach of contract, including the loss in the difference between the purchase price and market value or the sale cost to a third party, and for the cost of interest, insurance and storing the helicopters.

The case is now headed to the Supreme Court. File photo.

The Aussie company is seeking damages, interest and costs, along with declarations that Türkiye breached the contract, and that it was terminated due to Türkiye’s “repudiatory conduct”.

The case is set to go to trial before a judge in the Supreme Court of Victoria.

A defence spokeswoman told the Herald Sun that 11 decommissioned S-70-B- Seahawk helicopters and associated inventory were sold by open tender to Flying Wombats on September 17, 2018.

“The permitted use of the decommissioned S-70-B- Seahawk helicopters purchased by Flying Wombats Australia is outlined in the Deed of Transfer as humanitarian assistance and firefighting search and rescue,” she said.

A spokeswoman for law firm Corrs Chambers Westgarth, which is representing Flying Wombats, said “we won’t be providing any commentary on this occasion”.

The Melbourne consulate for Turkey was contacted for comment.

It’s understood Australian export control legislation requires applications for exports to be assessed against national security and Australia’s international obligations.