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UK Awards Leonardo £1 Billion Contract for 23 AW149 Helicopters

The UK Ministry of Defence awards Leonardo a £1 billion contract for 23 AW149 helicopters, securing jobs and advancing autonomous rotorcraft development.

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This article summarizes reporting by Reuters. The original report may be paywalled; this article summarizes publicly available elements and public remarks.

UK Government Awards Leonardo £1 Billion Contract for 23 AW149 Helicopters

The United Kingdom’s Ministry of Defence (MoD) has officially awarded a £1 billion ($1.3 billion) contract to Leonardo for the delivery of 23 AW149 medium-lift helicopters. Confirmed in early March 2026, the deal marks the conclusion of the long-running New Medium Helicopter (NMH) program and secures the future of the company’s manufacturing facility in Yeovil, Somerset.

According to reporting by Reuters, the agreement is designed to replace the Royal Air Force’s aging Puma HC2 fleet alongside other legacy platforms such as the Bell 212 and AS365 Dauphin. Beyond the hardware, the contracts is framed as a critical industrial intervention, directly safeguarding approximately 3,000 jobs at the Yeovil site and supporting an estimated 12,000 roles across the wider UK supply chain.

The decision follows a turbulent procurement process where Leonardo eventually stood as the sole bidder. As noted in coverage by The Guardian and The Independent, the deal reportedly required last-minute intervention from the Treasury to ensure sovereign manufacturing capabilities were preserved over purely cost-driven alternatives.

Contract Details and Technical Specifications

The core of the agreement involves the procurement of 23 Leonardo AW149 helicopters, a modern multi-role platform manufactured domestically. Leonardo has previously indicated that these “military off-the-shelf” aircraft could be delivered within a 24-month timeframe, though specific delivery dates for the first airframes remain to be finalized.

Aircraft Capabilities

The AW149 is designed for versatility, featuring a large 11.2-cubic-meter cabin capable of transporting up to 16 fully equipped troops. The platform is intended for a variety of missions, including troop transport, casualty evacuation (CASEVAC), search and rescue (SAR), and special forces support.

Technical reporting by FlightGlobal highlights that the UK fleet will be powered by two GE Aerospace CT7 turboshaft engines. The aircraft also features open systems architecture to facilitate future upgrades and a main gearbox capable of a 50-minute “dry run,” a critical survivability feature for military-aircraft operations.

The “Proteus” Demonstrator

A significant component of the funding package is allocated to “Proteus,” a cutting-edge autonomous rotorcraft program. Developed jointly by Leonardo, the Royal Navy, and the MoD, this 3-tonne uncrewed demonstrator conducted its first flight in January 2026. The inclusion of Proteus funding aims to position Yeovil as a center of excellence for future uncrewed vertical lift technology.

Strategic Context and Industrial Impact

The path to this contract award was complex. The NMH program initially drew interest from global aerospace giants, including Airbus Helicopters and Lockheed Martin. However, both competitors withdrew in 2024, citing market conditions and an inability to meet the MoD’s requirements while ensuring adequate returns.

Political Intervention

With Leonardo left as the sole bidder, the negotiation carried high stakes for the UK’s industrial strategy. Leonardo management had previously warned that the Yeovil facility, the UK’s only end-to-end military helicopter manufacturing site, could face closure without the order.

According to reports summarized by the UK Defence Journal and other outlets, the project faced potential deprioritization due to budget pressures. However, Chancellor Rachel Reeves and Prime Minister Keir Starmer reportedly intervened to push the deal through, viewing the loss of the Yeovil plant as unacceptable. UK Defence Secretary John Healey described the outcome as a significant commitment to domestic industry.

“A major vote of confidence in British industry [that] backs British jobs and security today.”

, John Healey, UK Defence Secretary (via Reuters)

AirPro News Analysis

The awarding of the NMH contract to Leonardo represents a clear shift in UK defense procurement priorities, favoring sovereign capability over open market competition when domestic industry is at risk. While the “sole bidder” scenario often raises concerns regarding cost efficiency, the MoD appears to have calculated that the long-term economic damage of losing the Yeovil facility outweighed the potential savings of an off-the-shelf import. Furthermore, by bundling the Proteus autonomous program into the deal, the government is attempting to future-proof the workforce, ensuring that the skills retained today can transition to the uncrewed systems of tomorrow.

Frequently Asked Questions

What helicopters are being replaced?
The AW149s will replace the RAF’s Puma HC2 fleet, as well as the Bell 212, Bell 412, and AS365 Dauphin helicopters currently in service.

Where will the helicopters be built?
The aircraft will be manufactured at Leonardo’s facility in Yeovil, Somerset.

What is the value of the contract?
The contract is valued at £1 billion ($1.3 billion).

When will the helicopters be delivered?
While a specific date was not disclosed in the immediate announcement, Leonardo has previously stated it can deliver the aircraft in less than 24 months from the contract signature.

Sources

Photo Credit: Leonardo

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Defense & Military

RAAF Begins Field Trials for AI Autonomous ISR Drone System

The Royal Australian Air Force is testing an AI-integrated autonomous ISR drone at Salt Ash under its EDGY rapid prototyping program.

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The Royal Australian Air Force (RAAF) has commenced field trials for a low-cost, artificial intelligence-integrated autonomous drone system at the Salt Ash Air Weapons Range in New South Wales.

Announced by the Australian Department of Defence on June 10, 2026, the Autonomous Intelligence, Surveillance and Reconnaissance (ISR) project was developed over a six-month period. The initiative falls under the RAAF EDGY program, a grassroots accelerator designed to rapidly prototype and field next-generation capabilities using 3D printing and agile design methodologies.

Rapid prototyping and field testing

The initial testing phase at the Salt Ash facility will validate fail-safe behaviors and real-time telemetry for the unmanned system. These foundational Test-Flights are designed to pave the way for full end-to-end mission demonstrations in the future.

Data generated during the current flight trials will be used to optimize flight profiles and refine the system’s artificial intelligence detection models. The project represents a direct collaboration between military personnel, including Officer Cadet Declan Jonauskis, and defense contractors.

Defence contractor and project lead Simon Doering stated that integrating artificial intelligence into a low-cost unmanned platform has pushed the development team to the forefront of innovation.

The EDGY program framework

The EDGY program serves as an internal incubator for the RAAF, providing facilities and funding for aviators to translate concepts into practical hardware. Wing Commander Kylie Cimen, the EDGY Program Director, noted that this collaborative approach embeds operational requirements early in the development cycle.

Cimen added that the structure gives Air Force personnel a direct voice in shaping emerging technologies. The program has focused heavily on autonomous systems and rapid deployment capabilities throughout early 2026.

In February 2026, an EDGY team developed a prototype autonomous perimeter breach detection system during Australia’s first Defense Tech Hackathon. The following month, the program supported a rapidly deployable vehicle camouflage project designed to counter aerial drone threats, which received the 2026 Defence Capability Award.

AirPro News analysis

We view the RAAF’s EDGY program as indicative of a broader global shift in military procurement strategies. Traditional defense acquisition cycles often take years or decades, a timeline incompatible with the rapid evolution of artificial intelligence and commercial off-the-shelf drone technology. By empowering personnel to prototype solutions in months rather than years, the Australian Department of Defence is attempting to close the gap between operational needs and technological deployment. The success of these field trials at Salt Ash will likely determine whether this grassroots model can scale to produce combat-ready ISR assets across the wider force.

Sources: Australian Department of Defence

Photo Credit: Australian Department of Defence

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Defense & Military

B-1B Lancer Returns to USAF Service After Tinker AFB Restoration

Tail 86-0115 completed a two-year depot regeneration at Tinker AFB, rejoining the 7th Bomb Wing at Dyess AFB in April 2026.

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A Boeing B-1B Lancer bomber has returned to active service with the U.S. Air Force (USAF) after spending years in desert storage, completing an intensive two-year regeneration process at Tinker Air Force Base.

The Military-Aircraft, bearing tail number 86-0115, departed the Oklahoma facility on April 22, 2026, to rejoin the 7th Bomb Wing at Dyess Air Force Base in Texas. In a press release issued on May 6, 2026, the USAF detailed the restoration effort, which demonstrates the military branch’s capability to restore retired legacy platforms to sustain current bomber fleet readiness.

Extensive depot maintenance

The bomber was originally sent into Type 2000 storage at the 309th Aerospace Maintenance and Regeneration Group at Davis-Monthan Air Force Base in Arizona in 2021. To return the aircraft to operational status, the Oklahoma City Air Logistics Complex led a comprehensive depot maintenance effort.

According to the USAF, more than 200 Airmen and civilian personnel from the 567th Aircraft Maintenance Squadron worked on the aircraft. The restoration required the replacement of over 500 components during system overhauls and structural repairs.

“The maintainers of the 567th support our warfighters at unprecedented levels. They overcome so many obstacles and work together to accomplish repairs that nobody else in the bomber community could do,” said Steven Mooy, Master Scheduler for the 567th Aircraft Maintenance Squadron.

Flight testing and final delivery

Before rejoining the active fleet as the “Apocalypse II” flagship, the B-1B Lancer underwent rigorous testing. On February 26, 2026, the 10th Flight Test Squadron conducted a functional check flight over Oklahoma with the aircraft in a stripped, bare-metal configuration.

Following successful flight testing, the bomber entered a paint facility at Tinker Air Force Base on April 15, 2026, for final exterior restoration. The 567th Aircraft Maintenance Squadron officially marked the completion of the depot maintenance effort on April 20, 2026, clearing the aircraft for its departure two days later.

The project held specific significance for some personnel involved. Jason “JJ” Justice, a Technical Analyst with Tinker’s B-1 Systems Program Office, noted he had worked on this specific aircraft for 32 years.

“I’ve been on this jet for 32 years. To see it come back and still support the warfighter is a great feeling,” Justice said in the release. “We’ve got the right people doing the right work. That’s what makes something like this possible.”

AirPro News analysis

We view the regeneration of tail number 86-0115 as a clear indicator of the operational pressures currently facing the USAF bomber fleet. The military branch is actively balancing the modernization of its strategic forces with the necessary sustainment of legacy platforms. The B-1B Lancer fleet has historically faced structural fatigue issues, prompting the Air-Forces to actively extend the service life of these specific aircraft. Until the Northrop Grumman B-21 Raider arrives in meaningful numbers, complex depot maintenance and boneyard regenerations will remain critical tools for maintaining required operational capacity.

Sources: U.S. Air Force

Photo Credit: U.S. Air Force photo by Courtney Landsberger

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Boeing Withdraws T-7A Red Hawk from Navy UJTS Competition

Boeing exits the U.S. Navy UJTS competition, citing unmet requirements, leaving two teams to replace the T-45 Goshawk.

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The Boeing Company has officially withdrawn its T-7A Red Hawk from the United States Navy competition to replace the aging McDonnell Douglas T-45 Goshawk trainer fleet. The June 12, 2026, announcement leaves only two known industry teams vying for the Undergraduate Jet Training System (UJTS) contract following a similar exit by Lockheed Martin Corporation earlier in the year.

In a press release issued on June 12, 2026, Boeing stated that the T-7A does not meet the specific requirements outlined by the Navy for the UJTS program. The decision comes just weeks after the aircraft was cleared for low-rate initial production for the United States Air Force, highlighting the divergent training requirements between the two military branches.

Boeing’s withdrawal and engine qualification challenges

Boeing’s official statement emphasized a focus on existing commitments and tailoring solutions to customer needs.

After careful evaluation, we have determined the T-7A does not meet the U.S. Navy’s Undergraduate Jet Training System requirements. We have therefore informed the Navy that we will not bid on the current RFP.

While the press release did not specify the exact technical shortfalls, reporting by Breaking Defense and Aviation Week indicates the challenges center on the aircraft’s powerplant. A Boeing spokesperson told the publications that the GE Aerospace F404 engine would require long-cycle development to meet the Navy’s unique engine qualification standards. This development timeline would reportedly prevent Boeing from meeting the Navy’s target for initial operational capability.

Aviation Week highlighted a technical discrepancy in this rationale, noting that variants of the F404 engine already power the Navy’s existing fleet of Boeing F/A-18 strike fighters.

Shifting dynamics in the UJTS competition

The UJTS procurement process has experienced significant turbulence since the Naval Air Systems Command (NAVAIR) released the formal Request for Proposals (RFP) in March 2026. The original RFP established a $1.75 billion cost ceiling for the engineering and manufacturing development (EMD) phase.

Industry feedback regarding the financial constraints led to early casualties in the bidding process. In April 2026, Lockheed Martin withdrew its TF-50N offering. Subsequently, NAVAIR revised the financial parameters. On June 3, 2026, the command stated that the government updated the price cap to reflect a change in the program cost estimate based on new information, raising the EMD ceiling to $2.7 billion.

Remaining industry teams

With both Boeing and Lockheed Martin exiting the competition, the field of potential T-45 replacements has narrowed. According to Aviation Week, two primary teams remain active in the bidding process.

Sierra Nevada Corporation (SNC) has partnered with Northrop Grumman Corporation and General Atomics Aeronautical Systems Inc. to pitch a clean-sheet aircraft design. Competing against them is a partnership between Textron Inc. and Leonardo S.p.A., which is offering the M-346N, a modified version of the existing Leonardo M-346 master trainer.

AirPro News analysis

We view Boeing’s exit from the UJTS competition as a pragmatic pivot for a defense division currently managing multiple fixed-price contract challenges. While the T-7A was long considered a natural frontrunner due to its Air Force selection, the cost of modifying the airframe and engine to meet Navy-specific qualification standards likely outweighed the potential margins of the $2.7 billion EMD phase. The withdrawal leaves the Navy with a stark choice between an entirely unproven clean-sheet design from the SNC consortium and an adapted legacy airframe in the Textron and Leonardo M-346N.

Sources: The Boeing Company

Photo Credit: Boeing

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