Govt inks deal with Weststar to lease helicopters for military, agencies

Govt inks deal with Weststar to lease helicopters for military, agencies

Published: Dec 23, 2024 4:36 PM


Summary

• The government signs a 15-year leasing agreement with Weststar Aviation for helicopters to be used by military and government agencies.

• The deal, which includes Leonardo helicopters suited for various tasks, is awarded after a request for proposal process, with the option to purchase the helicopters for RM15 million each once the lease expires.

The government has signed a deal with Weststar Aviation Sdn Bhd to lease helicopters for use by the military and government agencies.

The deal was inked in a low-key ceremony on Dec 19, with Chief Secretary to the Government Shamsul Azri Abu Bakar signing on behalf of Putrajaya.

Shamsul and the Royal Malaysian Air Force posted about the signing ceremony on their social media.

The deal is believed to be the 15-year leasing agreement that the government had awarded to Weststar, which will serve to provide helicopters for the army and air force, as well as for the police, Fire and Rescue Department, Malaysian Maritime Enforcement Agency, and one chopper for the Prime Minister's Department.

Prime Minister Anwar Ibrahim had said in Parliament on Nov 28 that the government had requested a proposal out of which only four companies had met the government's criteria in terms of capital and licences among others.

Of these four companies, Anwar said Weststar was chosen. He indicated that this was partly due to the company's relationship with Italian helicopter manufacturer Leonardo.

Leonardo had picked Malaysia as its maintenance and repair hub for Southeast Asia and the Far East.

Under the leasing deal, the government will get Leonardo helicopters that are suited for the specific use case for each department such as being able to be used to put out fires.

Anwar said the leasing deal will also see maintenance and repair costs be borne entirely by the provider.

This, he said, would save the government billions each year.

The prime minister added that Singapore, Indonesia, and the Philippines are also using a leasing model.

Once the 15-year lease is over, Anwar said the government will have the option of purchasing each helicopter for cheap, at around RM15 million each.