Years in the making: UK signs deal with Leonardo for New Medium Helicopter contract

The search for the Armed Forces' new medium helicopter has finally come to an end after the MOD awarded Leonardo the contract to replace the Puma.

The agreement, which was announced on Monday after reportedly being delayed last week by eleventh-hour financial wrangling inside government, is set to boost the UK Armed Forces' battlefield kit and secure thousands of jobs at Leonardo's factory in Yeovil, Somerset.

It will provide the UK Armed Forces with 23 new medium-lift helicopters, fewer than the 44 which the company had originally bid for.

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Leonardo's AW149 model will replace the Puma, which entered service in 1971 until March 2025. 

It can be airborne in less than two minutes and boasts a variety of autonomous features, such as hover mode and software to help it navigate difficult terrain.

The company says the AW149 is capable of operating in all environments in support of defence operations, from war-fighting to humanitarian assistance and disaster relief – and could work alongside uncrewed aircraft. 

Clive Higgins, Leonardo's UK chair and chief executive, told BBC Radio 4 the company had been working closely with the UK Defence Secretary. 

"John Healey has sought to undertake a massive rewiring of defence in the UK," he said. 

"The release of the Strategic Defence Review, the Defence Industrial Strategy and the awaited Defence Investment Plan to ensure that we've got an affordable roadmap to the future of UK defence.

"Really good news for the team and massive potential in the future for export and future investment in autonomy."

The government says the helicopter will streamline capabilities and improve operational flexibility, as it can undertake defence tasks previously delivered by three different aircraft types.

The agreement will sustain 3,300 jobs at Leonardo's facility in Yeovil; Leonardo had warned that it could lose Britain's last military helicopter manufacturing site if it did not secure the order.

Mr Healey said: "This defence investment works for Britain on every level. It strengthens our Armed Forces, secures thousands of skilled British jobs and sets up big export opportunities." 

There are around 20 countries with requirements for new medium-lift helicopters, and together with Leonardo's other helicopters, international orders could generate more than £15bn in exports over the next decade. 

The government says the deal will also make Yeovil the "centre of excellence" for military helicopter autonomy, as the Ministry of Defence invests further in Proteus, the UK's first autonomous uncrewed air system.