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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

Gripen F Completes Inaugural Flight in Linköping Sweden

Saab and the Brazilian Air Force completed the first flight of the Gripen F two-seat fighter on August 28, 2026.

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Saab and the Brazilian Air Force have successfully completed the inaugural flight of the Gripen F, the two-seat variant of the Gripen E fighter, initiating the airborne test campaign for the jointly developed aircraft.

The aircraft took off from Saab’s airfield in Linköping, Sweden, on August 28, 2026. In a press release issued today, the manufacturer confirmed the milestone advances a comprehensive technology transfer program designed to deliver both pilot training and full operational combat capabilities.

Inaugural flight and test campaign

The flight commenced at 09:40 local time and lasted 40 minutes. Saab Chief Test Pilot Jakob Högberg and Brazilian Air Force Test Pilot Lieutenant Colonel Aviator Abdon de Rezende Vasconcelos operated the aircraft.

Lars Tossman, Head of Business Area Aeronautics at Saab, highlighted the collaborative effort behind the milestone.

“This first flight represents an important step forward for both Saab and the Brazilian Air Force. Seeing Gripen F take to the skies is particularly significant for all the Swedish and Brazilian teams whose years of engineering work have helped turn this aircraft into a reality. It is designed to accelerate pilot training while and enhancing operational performance in advanced combat missions,” Tossman said.

The Gripen F test program will now transition into a progressive envelope expansion phase. Saab stated that upcoming flights will clear performance limits, including speed, altitude, G-load, and angle of attack, while evaluating the tactical systems of the independent rear cockpit.

Design specifications and Brazilian procurement

The Gripen F incorporates specific design modifications to accommodate a second crew member. According to Air Data News, the two-seat variant measures 15.9 meters in length, compared to the 15.2-meter single-seat Gripen E, and has a maximum takeoff weight of 16,500 kilograms. To make room for the rear cockpit, engineers omitted the internal 27 mm Mauser BK27 cannon found on the single-seat model. Despite this change, the aircraft retains full operational combat capability and utilizes the same General Electric F414G engine.

The development of the Gripen F is heavily tied to Brazilian defense procurement. Aviation Week reports that the Brazilian Air Force ordered eight Gripen F aircraft as part of a broader 36-aircraft contract signed in 2014. Saab officially presented the first Gripen F during a rollout ceremony in Linköping on June 2, 2026. The manufacturer noted that more than 350 Brazilian engineers, technicians, and pilots have participated in training and development activities for the program.

AirPro News analysis

We view the successful first flight of the Gripen F as a critical validation of the technology transfer agreement between Saab and its Brazilian partners, including Embraer. The integration of a fully combat-capable rear cockpit ensures the Brazilian Air Force can conduct advanced training while maintaining frontline fleet readiness. Delivering the two-seat variant on schedule strengthens Saab’s position in future export campaigns where dual-role trainer and combat aircraft are required.

Sources: Saab

Photo Credit: Saab

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Neura Defense Systems Rebrands as Volantyx Aerospace

Neura Defense Systems rebrands as Volantyx Aerospace to develop counter-UAS tech targeting RF-silent drone swarms.

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Saint Petersburg, Florida-based Neura Defense Systems, Inc. announced on August 26, 2026, that it has rebranded as Volantyx Aerospace, Inc. to reflect its expansion from a single-product defense developer into a broader aerospace technology platform.

In a press release issued Wednesday, the company stated the original Neura Defense Systems name will be retained for its defense division and current operating business. The corporate restructuring aligns with the company’s focus on developing a distributed edge-intelligence architecture designed to counter autonomous, radio-frequency-silent drone swarms.

Addressing the RF-silent swarm-drone gap

Volantyx Aerospace is targeting a specific vulnerability in current counter-Unmanned Aircraft Systems (UAS) defense networks. Traditional detection and mitigation rely heavily on radio frequency (RF) signals, which are ineffective against pre-programmed or autonomous aircraft that do not emit such signals.

Founder and Chief Executive Officer Sam Talari explained the limitations of legacy systems in the company’s announcement, noting that the new architecture is built on the assumption that any single sensor can be degraded or absent.

An RF sensor cannot detect a signal that is not there, and a jammer cannot sever a control link that does not exist. We start from the aircraft’s physical signature instead — radar return, sound, heat, visual — and combine those into one track and one decision picture for the operator.

The company has filed 13 United States provisional patent applications covering multi-modal sensor fusion, distributed networking, cognitive command, and the detection of non-emitting aircraft. The resulting intelligence layer is designed to make decisions at the edge without cloud dependency while preserving a record of system observations.

Development timeline and market positioning

The rebranding occurs as federal investment in counter-UAS technologies accelerates. Volantyx Aerospace remains in the development stage, with its core capabilities currently undergoing hardware integration and field evaluation following initial tests in a controlled environment.

The company clarified in its release that it does not yet claim a fielded deployment, operational performance metrics, or a contract award. Volantyx Aerospace plans to begin manufacturing or supplying effectors in early 2027. The corporate name change is a structural adjustment for the Delaware corporation and does not alter existing agreements, obligations, or ownership.

AirPro News analysis

The transition from Neura Defense Systems to Volantyx Aerospace signals a strategic pivot to capture dual-use commercial and defense markets. As autonomous UAS capabilities proliferate, the reliance on RF jamming and detection is becoming a recognized vulnerability in airspace security. By focusing on multi-modal physical signatures, we view Volantyx’s approach as a necessary evolution in counter-UAS architecture. The company’s explicit acknowledgment that it lacks fielded deployments or contract awards underscores the significant gap between conceptual architecture and operational validation. The early 2027 target for effector manufacturing will be a critical milestone to monitor as the company attempts to transition from a development-stage startup to an active aerospace supplier.

Sources: Neura Defense Systems, Inc. (via PR Newswire)

Photo Credit: Neura Defense Systems, Inc.

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Lockheed Martin Offers Peru $1.8B F-16 Block 70 Offset Package

Lockheed Martin proposes a $1.8B industrial package for Peru’s F-16 Block 70 program, including UAS assembly and MRO expansion.

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Lockheed Martin has outlined a $1.8 billion industrial and social collaboration package for Peru, designed to integrate local firms into the global aerospace supply chain as part of the country’s F-16 Block 70 procurement program.

Announced in a press release on August 26, 2026, the offset proposal follows the Peruvian government’s April 2026 decision to acquire an initial batch of 12 F-16 Block 70 aircraft. The comprehensive package aims to position Peru as a regional hub for advanced unmanned systems and aerospace services.

Expanding Peru’s aerospace industrial base

The proposed industrial agreement focuses heavily on technology transfer and domestic manufacturing. Key components include the domestic assembly of an Unmanned Aircraft System (UAS) tailored for the Latin American market, the establishment of joint research hubs, and the creation of a UAS Technical Institute. The package also outlines plans to expand Peru’s high-tech maintenance, repair, and overhaul (MRO) footprint.

“As we collaborate with the local industry, we aim to deliver tangible, high-value opportunities that build a skilled workforce, enable knowledge transfer and create lasting economic impact on both sides of the partnership,” said Tara Lause, Vice President of Business Development for the Integrated Fighter Group at Lockheed Martin.

Lause added that the procurement creates enduring alliances and industrial collaboration opportunities with the United States and other partner nations.

Fleet modernization and electronic warfare capabilities

Peru is currently working to replace its aging fleet of Soviet-era MiG-29s and French Mirage 2000s. The F-16 Block 70 was selected over competing bids from Saab and Dassault. To equip the new fleet, the government of Peru selected L3Harris Technologies to provide its AN/ALQ-254(V)1 Viper Shield all-digital electronic warfare suite, a decision announced on August 17, 2026. The Viper Shield system provides advanced radar warning and jamming capabilities.

Lockheed Martin noted that the F-16 is currently operated by 29 countries, with a global fleet of 2,800 aircraft. Mike Shoemaker, Vice President of the Integrated Fighter Group at Lockheed Martin, stated that the selection highlights the aircraft’s operational performance and ability to meet pressing defense requirements.

AirPro News analysis

The announcement of a $1.8 billion industrial offset package is a strategic move by Lockheed Martin to solidify the F-16 Block 70 sale amid a complex political environment in Lima. While the Peruvian government selected the aircraft in April 2026, regional defense reporting indicates that the procurement process has encountered delays linked to ministerial resignations and defense budget debates. By offering substantial domestic manufacturing opportunities, including UAS assembly and MRO expansion, Lockheed Martin is providing Peruvian leadership with a strong economic justification to finalize the state-to-state contract. We view this comprehensive technology transfer as a critical lever in moving the procurement from selection to a finalized, funded agreement.

Sources: Lockheed Martin

Photo Credit: Lockheed Martin

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