Louisiana terminates Bell Helicopter manufacturing agreement as it pulls out of Lafayette

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Louisiana terminates Bell Helicopter manufacturing agreement, says it's entitled to $16 million, plus damages

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The state has terminated an incentives agreement with Bell Helicopter in Lafayette, saying the company failed to live up to manufacturing and job commitments at a $26.3 million state-funded facility designed for aerospace assembly operations.

State officials said that under terms in the agreement allowing termination for cause, the state is entitled to a $16 million payment from Bell Helicopter and expects to separately pursue additional damages.

Louisiana Economic Development Secretary Don Pierson said the company first proposed assembling 505 JetRanger X helicopters and later proposed substituting that with 525 Relentless helicopter subassembly operations at the Lafayette facility.

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Hastings said Bell on Monday started closing its Lafayette Assembly Center and moving 525 cabin subassembly work to Amarillo. Without the economic incentives provided in the CEA, Bell cannot continue operations at the facility, he said.

Employees in Lafayette were notified Monday, and Bell is working with them to find positions within the company that fit their skills and interests or help them in finding work in the local community.

“Despite LED’s efforts to accommodate Bell Helicopter, the company never identified a path forward for meeting its obligations to the state of Louisiana. The state of Louisiana has met its obligations for the project; Bell Helicopter has not,” Pierson said.

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