US Navy's helicopters cancellation would cost US$250m

[WASHINGTON] The US Navy's plan to cancel an order for 29 MH-60 Sikorsky helicopters under a current five-year agreement would trigger termination fees of at least US$250 million and raise the cost of Army helicopters covered by the same contract, a top US senator said.

Senate Armed Services Committee chairman Carl Levin, a Michigan Democrat, criticised the Navy's plan to "break" the multi-year purchase agreement during a hearing on the Navy and Marine Corps budget requests.

The cut in MH-60 helicopters is one of a number of controversial proposals sent by the Navy and other US military services to US lawmakers, who have the ultimate control over the Pentagon budget. Navy officials said deep budget cuts agreed by Congress had forced them to make difficult choices across various portfolios in shaping the fiscal 2015 budget.