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Subject: Fuji Heavy may sue over nixed defense deal
maruben    12/25/2009 10:57:21 AM
Friday, Dec. 25, 2009 Fuji Heavy may sue over nixed defense deal Kyodo News Fuji Heavy Industries Ltd. is is nearing a decision on whether to file a lawsuit against the Defense Ministry for ¥40 billion in licensing fees that the company paid to build a U.S.-designed attack helicopter, after the ministry ordered fewer than planned, sources said Wednesday. The ministry, in 2001, ordered 62 AH-64D Apache Longbow helicopters. Fuji Heavy and related parts suppliers began production after paying U.S. aircraft maker Boeing Co. licensing fees totaling over ¥40 billion. The company planned to cover the licensing costs by spreading them over the bill for the 62 high-tech attack helicopters. But the ministry canceled the order after receiving only 10 aircraft, citing budget constraints. Fuji Heavy has asked the ministry to cover the licensing fees because the company had started production of the helicopters anticipating the full order, and because the ministry is the sole buyer of the helicopter in Japan.
 
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