Safran To Pay Dassault $280M in Silvercrest Engine Settlement
Safran and Dassault Aviation have reached an amicable settlement regarding the Silvercrest engine dispute, Safran disclosed recently in its first-half financial results. Dassault canceled the Falcon 5X program on December 13 and subsequently scrapped its contract with Safran over the troubled Silvercrest turbofan that was to have powered the super-midsize twinjet. In February, Dassault launched a new super-midsize business jet, the 6X, powered by a pair of Pratt & Whitney Canada PW812D engines.
The indemnity to be paid to Dassault over the next three years as a result of termination of the Silvercrest engine for the Falcon 5X amounts to $280 million. Other conditions of the program that were applicable to the Silvercrest contract—in particular, the cash contribution already paid by Safran—remain unaffected
"This agreement will have a positive impact on Dassault Aviation’s 2018 results," Dassault told BJT, declining to comment further. Safran confirmed that this agreement will not change its profitability and cash-flow- generation outlook.
According to Safran, several of its subsidiaries are partners on the Falcon 6X, and they have already signed contracts with Dassault. In fact, Zodiac, which Safran acquired in March, would be its most-involved subsidiary in the 6X program, followed by Safran Power Units for the Auxiliary Power Unit (APU) . First delivery of the 6X is scheduled for 2022.