Britain Awards £1bn Leonardo Helicopter Contract, Safeguarding 3,300 UK Aerospace Jobs

AW149 CSX81848 17st Italian Air Force

Aviation News – The UK government has awarded a £1 billion contract to Leonardo to supply 23 new AW149 medium-lift military helicopters, protecting 3,300 jobs at its Yeovil production site and strengthening Britain’s domestic aerospace industry.

The deal, announced in London on March 2, secures the future of the helicopter manufacturing facility in Yeovil, southwest England, long considered Britain’s last remaining military rotorcraft plant. More than 40% of the programme’s work will be carried out locally. The government said the selection not only maintains skilled employment but also positions the site for future international export orders after concerns that production could cease without new contracts.

The new medium-lift helicopters are designed to operate alongside uncrewed systems, transporting troops, equipment and supplies in contested environments. Their payload capacity and range are expected to improve rapid deployment, disaster response and battlefield mobility, giving the British armed forces greater flexibility across missions while modernising an aging fleet.

Defence Secretary John Healey said the agreement delivers both military and economic benefits, describing it as “a contract that strengthens our armed forces, secures thousands of jobs and creates significant export opportunities for British manufacturing.”

Looking ahead, the government believes anchoring production in the UK could attract overseas customers seeking European-built helicopters, potentially expanding output beyond the initial 23 aircraft. Leonardo has indicated the Yeovil line could become a hub for future variants and support services, reinforcing Britain’s role in the global defence supply chain.

The contract underlines a broader push to bolster UK defence manufacturing and safeguard sovereign capability. By pairing new aircraft with emerging autonomous systems, Britain aims to field a more agile and resilient force while sustaining a critical industrial base for decades to come.