Airbus, Lockheed Martin Exit UK New Medium Helicopter Deal
The United Kingdom’s New Medium Helicopter (NMH) procurement program has encountered a significant setback as two major contenders, Airbus and Lockheed Martin, have announced their withdrawal from the competition. This unexpected development leaves Leonardo as the sole remaining bidder for the £1 billion ($1.3 billion) contract.
Airbus and Lockheed Martin Bow Out
Both Airbus Helicopters UK and Lockheed Martin UK cited challenges in meeting the program’s requirements as reasons for their withdrawal. Airbus expressed concerns about formulating a responsible bid that would satisfy customer requirements while ensuring long-term business returns. The company also questioned the procurement’s ability to deliver on current defense industrial strategy objectives, particularly in creating new jobs and opportunities for the UK supply chain.
Lockheed Martin echoed similar sentiments, stating that they could not meet the minimum requirements under current market conditions.
Impact on UK’s Defense Industrial Strategy
The double withdrawal raises questions about the future of the NMH program and its alignment with the UK’s defense industrial strategy. Airbus had previously committed to establishing an H175M super medium helicopter production line in Broughton, Wales, while Lockheed Martin planned to partner with StandardAero in Gosport, England, for Black Hawk production.
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Leonardo Remains in the Race
Despite the setbacks, Leonardo has confirmed its continued engagement with the Invitation to Negotiate (ITN) process. Adam Clarke, Managing Director of Leonardo Helicopters UK, stated that the company has submitted a fully compliant bid meeting the UK Ministry of Defence’s requirements on budget, number of platforms, and timeline.
Future of the NMH Program
The contract award, initially scheduled for 2025, may face potential delays or reshaping. The UK’s upcoming Strategic Defence Review, set for release in the first half of 2025, has the power to influence the procurement process.
Replacing the Aging Puma Fleet
The NMH program aims to replace the Airbus Puma HC2 aircraft, which have been in service since the 1970s. With next-generation helicopters not expected until around 2040, there remains a strong case for selecting an in-production platform to fill the capability gap.
As the situation evolves, stakeholders in the UK defense industry and international observers will be closely monitoring the Ministry of Defence’s next steps in this crucial procurement program.
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