A consortium led by the British company, Westland, and Agusta of Italy, has won a £300m contract to supply helicopters to the Canadian government, according to Canadian defence sources.

The Defence Department is expected formally to confirm the contract, worth C$600m, at a press conference.

Defence department sources said the Canadian government is to buy 15 Cormorant search and rescue helicopters to replace aging Labrador helicopters.

In Canada, the winner of the Labrador replacement contract is widely expected to supply 35 more machines to replace the country's 35 Sea King ship-based aircraft.

The Westland Agusta consortium had previously won a contract to supply all 50 helicopters but when Prime Minister Jean Chretien took office in 1993 he cancelled the order.

Other contenders for the helicopter orders are Boeing with its Chinook, Sikorsky with its Maplewood and Eurocopter with the Cougar II.
 

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