Germany has postponed plans to award a contract to replace its heavy-lift helicopters because the bids on the table are uneconomical, the defence ministry said on Tuesday. The ministry announced that offers from American firms Boeing and Lockheed Martin for the Chinook and the King Stallion, respectively, too expensive.

Germany decided to replace its ageing fleet of CH-53G transport helicopters in 2017 and launched a tender process in June 2019. Boeing and Lockheed Martin had submitted their initial proposals for the program, in January 2020.

The ministry said the awarding authority had assessed the bids as “uneconomical” and cancelled the tender.

The move comes as the budget implications of the coronavirus crisis are starting to materialize, despite leaders' pledges to keep military spending high.