Dispute over awarding of €800m air rescue contract is resolved

High Court Reporters

A dispute over the €800 million contract for the Irish coastguard air search and rescue service has been resolved, the Commercial Court heard on Monday.

CHC Ireland, which had provided the service since 2012, lost out to a rival bidder, Bristow Ireland, when the contract was put up for tender again. Both companies are subsidiaries of US parents.

CHC initially brought proceedings against the Minister for Transport in 2023, claiming there were a number of flaws in the awarding of the contract to Bristow.

That meant there was an automatic suspension on the award pending determination of the main proceedings.

The minister then brought a challenge to the suspension and it was eventually lifted by the High Court. CHC appealed but the the Court of Appeal upheld the High Court decision.

CHC, in 2024, brought further proceedings claiming the decision of the minister to modify the contract awarded to Bristow in 2023 was unlawful and a failure to comply with public procurement law.

Both the main 2023 and 2024 proceedings remained to be heard.

On Monday, Mr Justice Mark Sanfey was told both sets of proceedings had been resolved and could be struck out on consent between the parties.

The judge said he was very glad to hear matters had been resolved.

CHC had been awarded the previous contract in 2012 for 10 years, when it was valued at €500 million. That was later extended to 2025.

The new contract will provide for helicopter services for ten years and five years for fixed-wing services. After five years, the fixed-wing services can be transferred to the Air Corps.

It’s the first time that fixed-wing services have formed part of the search and rescue contract.

It will also provide for the day and night-time operation of four helicopter bases in Sligo, Shannon, Waterford and Dublin.
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