The 60 CH47 transport helicopters ordered from the United States for the German armed forces are becoming significantly more expensive. According to reports, the initial planning costs have increased by 631 million euros. This brings the total price for the helicopters, ordered in 2023, up to approximately 7.187 billion euros.
The Ministry of Defence notified the Bundestag budget committee last Friday evening about these additional expenses for the project, which is being financed by the 100-billion-euro special fund for the Bundeswehr. The first of these 60 CH47 helicopters are expected to arrive by 2027, replacing the aging CH53 fleet.
According to the Ministry, led by Boris Pistorius, the cost escalation is due to higher prices set by the manufacturer, Boeing. The US company is claiming an additional 360 million dollars, citing increased costs for suppliers, wage hikes amounting to roughly 230 million, and 29 million designated for configuration and integration adjustments.
The Ministry emphasizes in its report that such cost increases are normal. It points out that the budget figures mentioned in 2022, which were approved by the Budget Committee, were merely estimates. Now that the final contract is being prepared, a price adjustment is taking place. The report asserts that the increase in cost is unavoidable, and the acceptance of this higher budget framework is a prerequisite for finalizing the main contract between the US government and Boeing.
The German government is purchasing the helicopters directly from the US government through Foreign Military Sales. This process is intended to prevent cost explosions, as the US government, rather than the German procurement agency, negotiates the prices for the weapon systems with the industry.
