The Kamov affair - Everjets claims €40 million for breach of contract

fireforestAviation maintenance company, Everjets, has hit back at the Ministry of Internal Affairs, saying it was the company that terminated the current Kamov helicopter maintenance contract, not the government, and has issued a claim for €40 million in damages.
 
Minister Eduardo Cabrita said on Monday that the State would, "denounce the contract with Everjets, to which it delivered the operation and maintenance of three Kamov helicopters," since "the aircraft have not been in operation since January and the company already has been fined €5 million for breach of contract."
 
Questioned on Monday by journalists, the minister explained that the company's non-compliance justified his decision to hire other helicopters to undertake firefighting duties this summer.
 
Without actually mentioning the name ‘Everjets,’ Eduardo Cabrita stressed that the Government will sack the current supplier for non-compliance, as advised by the National Civil Aviation Authority.
 
Everjets today issued a statement, "It should be clarified that Everjets has not received any communication from the Portuguese State that it intends to terminate the contract and it is manifestly false that Everjets has been notified of any penalties."
 
The note adds that, on 27 April, the company "already had sent a letter to terminate the contract with the Portuguese State,” due to the State’s non-compliance.
 
Far from the government having the upper hand in this contract, Everjets points out that it is indemnified for, “all damages incurred, loss of profits, and offences to the good name and reputation of Everjets, arising from the breach of the obligations and duties” and claims €39,876,100.00 as a result.
 
The aviation company decided to exercise its right that the matter be taken to an Arbitration Tribunal and that the State has 30 days to respond.
 
Everjets already has stated that it was unable to complete the terms of its contract as only three of the six Kamov helicopters were useable and it was still obliged to supply air cover as if there were six in operation.
 
The company also cites the forced closure of the Ponte de Sor maintenance hangar, “which seriously damaged the continuation of the aircraft maintenance work."
 
The PSD opposition party already has demanded a hearing in parliament, calling for the chairman of the National Civil Protection Authority and Everjets to appear so MPs can hear both sides of the increasingly expensive Kamov debacle.