Pretoria - The future of the Rooivalk, manufactured by defence parastatal Denel, has been thrown into doubt after the decision by Turkey not to purchase the attack helicopter.

Denel was competing against Agusta Aerospace of Italy to supply up to 50 helicopters for Turkey's Atak (armed reconnaissance and attack helicopter) programme. It was one of the largest tenders in which Denel has participated.

Associated Press reported on Friday that Agusta Aerospace had won the tender worth $2.7 billion (R20 billion) to co-produce the attack helicopters.

Shaun Liebenberg, Denel's chief executive, said on Friday that although it was understandably disappointed, Denel's project team and its aerospace technology performed admirably.

"This is clear from Denel's position of being selected as one of only two contenders on the shortlist in the Turkish bid."

However, Liebenberg said the outcome of the tender had implications for Denel's support of the air force's fleet of Rooivalk helicopters, and discussions had already been held with the department of defence, in particular the air force, on the future of the programme.

"Having committed a huge amount of planning, resources and effort to win in Turkey, our Rooivalk programme team and the strategy team, as well as the government deserve our thanks for their endeavours and unstinting support.

"While Turkey has made its decision based on a professional tender process, we still believe the Rooivalk is a world-class helicopter on par with the best available anywhere."

He added that because of the high risks associated with such tenders, Denel had not accounted for Rooivalk revenue into the budget for the future.

The outcome of the tender would therefore not have a direct impact on Denel's current financial position, and Denel's change strategy, on which it progressed well over the past year, remained on track, he said.

But Liebenberg stressed that this was "certainly not the end of the road" for potential business with Turkey.

"We've taken the opportunity to explore many other business options with Turkey. We're looking at collaboration with Turkish industry in areas such as missile development, munitions, artillery technology and land mine clearance."

If Denel had been successful in the tender, it would have been the first Rooivalk sale internationally since the development programme started in the early 1980s. There was speculation when the Rooivalk was short-listed for the Turkey tender that it could save the helicopter programme from being scrapped. The SA National Defence Force has purchased 12 Rooivalk's for about R500 million each.

Major General Otto Schür, the defence department's chief director of operations, told parliament that if Turkey bought the helicopters it would slash the cost of the aircraft.

The cost of the Rooivalk programme, estimated at between R6 billion and R7 billion, raised eyebrows when the defence force appeared before public accounts watchdog Scopa. ANC MP Pierre-Jeanne Gerber said that it was difficult for him as a "proud South African" to question whether the "astounding amount of money" used to develop the Rooivalk was justified, but he had to do so.

With acknowledgements to Roy Cokayne and Business Report.