The Indian government has begun the process to cancel its contract with AgustaWestland (AW) for 12 AW101 VIP transport helicopters. On Friday, the country's defense ministry gave AW seven days to respond to its its formal "show cause notice" seeking contract cancellation. The move follows the February 12 arrest in Italy of Giuseppi Orsi, chairman and chief executive of its parent group Finmeccanica (and former AW chief executive). Late on February 13, the Finmeccanica board appointed the group’s COO and CFO Alessandro Pansa to serve as chief executive and has named senior board member Admiral Guido Venturoni as vice chairman. On Friday afternoon Finmeccanica announced that Orsi has resigned as chairman and as a board member. As of press time, no announcement had been made about the future of AgustaWestland CEO Bruno Spagnolini, who was placed under house arrest on February 13.
