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LONDON—The UK Defense Ministry has made a long-awaited decision to declare Leonardo the winner of the New Medium Helicopter (NMH) contest, in a move that preserves at-risk jobs in the country's rotorcraft industry.
The government formally selected the AW149 platform as the replacement for the Royal Air Force’s Airbus Puma Mk.2 and the British Army’s AS365 Dauphin fleets, ending months of uncertainty and political pressure.
London plans to award Leonardo a £1 billion ($1.35 billion) contract to deliver 23 of the super-medium utility helicopters, securing ongoing work for the company’s Yeovil, England, site and paving the way for the local assembly of AW149s for export.
Leonardo was the sole remaining bidder in the project after Airbus and Lockheed Martin dropped out in the summer of 2024.
Months of delay in announcing a winner generated significant political and industrial tension. Last fall, Leonardo CEO Roberto Cingolani warned that the Yeovil facility could face closure without new UK government orders, arguing the company could not continue subsidizing the site indefinitely.
Ministers had indicated the NMH decision would be included in the government’s Defense Investment Plan (DIP), but its publication has been repeatedly delayed. With Leonardo’s Best and Final Offer set to expire on March 1, local Member of Parliament Adam Dance urged the government to proceed, warning that failure to act could risk job losses in Yeovil or higher costs for taxpayers.
In the end, ministers chose to move ahead with the procurement ahead of the DIP.
After several tense days—including an anticipated Feb. 26 announcement that was abruptly postponed—Yeovil staff were informed on March 1 that the government would proceed with the award.
Alongside the NMH decision, the government said it would increase investment in Proteus, Leonardo’s autonomous rotorcraft demonstrator, which first flew in January. According to the Defense Ministry, technologies developed under Proteus could potentially be applied to the AW149, enabling an optionally crewed configuration.
“This government’s broad deal makes Yeovil the proud home of Leonardo’s global military helicopter production, building world-class helicopters for our forces and allies around the world for many years to come,” said UK Defense Secretary John Healey.
Labor union Unite cheered the outcome for securing jobs. The union added that it now wanted action on other efforts, including a satellite communications program where Airbus and Lockheed Martin are competing and additional purchases of Airbus A400M transport aircraft.
The helicopter order is much smaller than the NMH program originally anticipated. Those plans called for the procurement of up to 44 helicopters. The number dwindled in part because the government purchased additional Airbus H145 Jupiter rotorcraft for overseas garrisons in Brunei and Cyprus. Even so, an order for 23 AW149s only replaces the Puma Mk.2s on a one-for-one basis and does not account for the five AS365s currently flown by the Army.
The government is hoping that the investment in the helicopters will now generate renewed interest in AW149 abroad. It is currently operated by Egypt, Poland and Thailand, but officials say some 20 countries have requirements for new medium-lift helicopters. They suggest international orders for AW149 could generate over £15 billion in exports over the next 10 years.
By declaring Leonardo the preferred bidder, the government has bought itself additional time to finalize the actual contract while preserving the bid pricing.
Without the pending contract, Leonardo officials say Yeovil would have likely been downgraded to a military helicopter maintenance, repair and overhaul center. Such a shift could have resulted in lost design and development competencies that would support the future development of Proteus and other future rotorcraft programs. Among those is NATO’s Next Generation Rotorcraft Capability, which the UK has played a key role in defining, and the Royal Navy’s Future Crewed Maritime Air System.
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