Blow for Broughton as Airbus pulls out of race to supply new UK military helicopter

Airbus has withdrawn from the £1 billion competition to supply a new helicopter to the UK military, a move that significantly impacts the region.

The aerospace giant had proposed building an assembly line at its Broughton site to produce up to 44 H175M helicopters, a plan that promised to create around 500 jobs and boost the local economy through substantial investment and skills development.

Bids for the UK Ministry of Defence’s (MoD) New Medium Helicopter (NMH) requirement were due to be submitted by Friday, 30 August.

There had been speculation over the past few weeks that Airbus along with other rival Sikorsky were on the verge of pulling out of the contest.

With Airbus and Sikorsky out, Leonardo Helicopters is now the sole remaining contender for the NMH programme, which aims to streamline the military’s helicopter fleet.

Airbus’s withdrawal follows a careful review of the MoD’s requirements.

An Airbus spokesperson explained that the company ultimately concluded these requirements were not feasible within the parameters of a responsible bid.

“Following the release of the ITN for the UK New Medium Helicopter (NMH), we have been able to review the requirements in detail. Together with our partners, we have concluded that we are unable to formulate a responsible bid that would in parallel satisfy the customer’s requirements and provide adequate long-term returns to the business while implying a reasonable prospect of winning,” the spokesperson said.

The company further stated: “We believe that the outcome of this procurement as it stands would not be able to deliver on current defence industrial strategy objectives, particularly its ambition for long-term new jobs, opportunities for the UK supply chain and sovereign capability.”

Despite this, Airbus maintained its confidence in the H175M as the right choice for the UK, noting its “cost-effectiveness, capability, and value to UK society.” However, the spokesperson added, “We have concluded that continued pursuit of the NMH opportunity cannot be justified and have reluctantly decided to withdraw from the competition.”

A Shift in the Competition Landscape

The NMH programme, launched in May 2022, is designed to consolidate multiple types of helicopters into a single platform to enhance operational flexibility and replace ageing aircraft within the UK military.

[Head of Airbus Broughton plant Jerome Blandin (left) Alyn and Deeside MP Mark Tami (right) take a look at an H175M helicopter at Broughton]

Initially, the MoD shortlisted Airbus, Leonardo, and Sikorsky for the final stage of the competition, with each company presenting different models: the H175M, AW149, and S-70M Black Hawk, respectively.

With Airbus and Sikorsky withdrawing, Leonardo’s AW149, which the company plans to assemble at its Yeovil, remains the sole contender.

Economic and Strategic Implications

The decision by Airbus to pull out has broader economic and strategic implications.

The proposed H175M production facility at Broughton was more than an assembly line; it represented a significant economic opportunity for North Wales, where the local aerospace manufacturing sector has long been a vital part of the community.

The MoD’s decision-making process is under scrutiny as the newly elected Labour government conducts a Strategic Defence Review.

Given the tight budget environment, there is speculation that the NMH programme could be shelved to achieve cost savings, a move that would prolong the service of the Royal Air Force’s existing fleet of Puma HC2 transports and AS365 Dauphin 2s, among others.

Airbus currently holds a support contract for the Puma fleet until 2028, suggesting a possible extension of their operational life if the NMH programme is cancelled.

Airbus reaffirmed its commitment to supporting the Airbus Puma helicopter in service for as long as required and expressed readiness to meet future UK military needs as they evolve.

“We look forward to offering the H175M in the global market for some 500 helicopters in the super-medium category,” the statement concluded.