Leonardo wins major GBP1bn UK helicopter contract

The UK Ministry of Defence (MoD) has awarded Leonardo the GBP1 billion New Medium Helicopter contract to supply 23 AW149 medium multi-role helicopters to the UK Armed Forces, the authority announced on 2 March. 

The award gives certainty to Leonardo and its “nearly 70” UK suppliers contributing to the programme. 

Leonardo was the last company in the running for the MoD’s new medium helicopter procurement programme, following the withdrawal of Airbus and Lockheed Martin in late 2024.  

A decision on the programme and whether it would continue was then expected last year, although it was put on hold partly because of the delayed Defence Investment Plan, which is yet to be released.  

This delay prompted the company’s CEO to write to the UK’s Defence Secretary, John Healey, in November, cautioning that its UK facility in Yeovil would be forced to close without an immediate decision.  

The Yeovil site is the UK’s last remaining end-to-end military helicopter manufacturing site, with many, including unions, calling for a decision  

Now that Leonardo has secured the contract, it will work to deliver the 23 helicopters – 21 fewer than the original 44 envisioned by the previous government when the programme was initially launched in 2022. 

However, the MoD says that “the agreement paves the path for future export orders of the AW149 helicopter to be built in the UK, significantly expanding the UK’s workshare for the aircraft”.