UK Awards Leonardo £1 Billion Contract for 23 AW149 Helicopters

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

• Reuters