Hopes for hundreds of new jobs dashed as Airbus pulls out of helicopter contract bid

Hopes of creating hundreds of jobs at a new helicopter manufacturing plant at the Broughton Airbus factory, near Chester, have been dashed.

The aircraft manufacturer was bidding to win a Ministry of Defence contract to build New Medium Helicopters (NMH) for the UK Armed Forces, to replace its current fleet of Puma helicopters, from the middle of the decade.

If successful, the contract would have included the provision of training, and a maintenance and spares package.

Airbus expressed an interest in the contract in September 2021 and was proposing its H175M model, a new military variant of a 7.8-tonne rotorcraft that has previously only been sold in the civil market.

When the contract was first mooted Airbus said, if it won the tender, it would build a new assembly line at Broughton, creating hundreds of jobs.

The new line could be in operation within 12 months of a contract being signed.

Airbus already employs around 4,500 staff at Broughton making wings for its commercial aircraft.

But today, Airbus confirmed that it is no longer in the running for the contract, after deciding to withdraw its application.

The international group issued a statement, saying: “Following the release of the ITN (invitation to negotiate) 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.

“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.”

It added: “We continue to believe the H175M is the right helicopter for the UK providing the best combination of cost effectiveness, capability and value to UK society, but have concluded that continued pursuit of the NMH opportunity cannot be justified.

“Reluctantly, we have taken the decision to withdraw from the competition.

“We look forward to continuing to support the Airbus Puma helicopter in service for as long as required, to addressing future UK military requirements as they evolve and to offering the H175M in the global market for some 500 helicopters in the super-medium category.”

Airbus rotary wing aircraft make up the entirety of the UK’s police helicopter fleet, 65% of the air ambulance fleet, and half of the country’s overall civil helicopter fleet.

Airbus is also an important helicopter supplier to the UK Armed Forces, with 100 of its rotorcraft in service with the Ministry of Defence.

These include dedicated helicopters for operations across the globe – including the Puma 2, the workhorse of the RAF, and recently subject to one of the most successful defence upgrade programmes in the UK.

Airbus Helicopters also provides aircraft for the UK Ministry of Defence Military Flying Training System, meaning that for more than half a century, every helicopter pilot in the country has been trained on Airbus Helicopters platforms.