Govt Leasing 28 Helicopters To Ease Fiscal Burden Says Azalina

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Law and institutional reform minister Azalina Othman Said said similar leasing models are used in countries like France, Canada, and the UK. (Wikipedia pic)
PETALING JAYA: The government opted to lease 28 AugustaWestland 139 helicopters to optimise its spending by distributing RM16.6 billion more sustainably over 15 years, says law and institutional reform minister Azalina Othman Said.
In a written parliamentary reply, Azalina said the lease agreement covered maintenance, insurance coverage, and training for over 1,300 personnel, with a guaranteed minimum fleet availability of 85% for all agencies using the helicopters.
At the end of the lease, she said the government would have the option to purchase each helicopter for a nominal RM1.
“Under this leasing model, the government does not need to bear any costs during the helicopter procurement phase.
“The concessionaire company will cover all costs, including flight crew training, until the assets are officially received by the government,” she said, adding that similar leasing models were used in countries like France, Canada, and the UK.
Azalina was responding to Mumtaz Nawi (PN-Tumpat), who questioned the allocation of RM16.6 billion for the helicopter lease, comparing it to the RM9.8 billion cost of completing the East Coast Highway Phase 3 (LPT3).
Opposition leader Hamzah Zainudin had also criticised the decision to lease the helicopters, arguing that direct procurement from the manufacturer would have cost only RM3.954 billion.
He cited Poland’s acquisition of 32 AW139 helicopters for US$2 billion (RM3.95 billion), which included an in-country assembly package.
On Mumtaz’s concerns about LPT3, Azalina said both the helicopter lease and the highway project were government priorities, but factors such as security, operational readiness, and financial sustainability necessitated the move to bolster the country’s ageing helicopter fleet.
She said many of the existing government-owned helicopters were between 12 and 32 years old, with some overused for critical missions.
Azalina also said that the LPT3 was still under review by the federal government, in collaboration with the Kelantan and Terengganu state governments.
“This review includes considerations regarding the proposed route and development approach to ensure that it provides value for money and maximised benefits to the people,” she said. - FMT

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