Major UK Military Radio Deal: What’s Happening
The UK Ministry of Defence (MoD) has published a transparency notice signalling its intention to award a contract to Leonardo UK Ltd to support avionics communication equipment used across several core military helicopter fleets operated by British forces. This is widely seen as a “major radio deal” for UK military helicopters. (oscar-research.co.uk)
Scope of the Deal
- Systems covered: Elmer Radio and AD120 Avionic Communication Equipment.
- Aircraft affected:
• Boeing Chinook heavy-lift transports (used by RAF)
• AgustaWestland Merlin helicopters (used by both Royal Air Force and Royal Navy)
• AgustaWestland Wildcat helicopters (Army and Royal Navy) - Work: Repair services and post-design support for the communication and avionics gear.
- Length: 5-year base contract with an option to extend for up to 2 more years.
- Estimated value: Up to approximately £8 million (excluding VAT).
- Justification: Leonardo is the Original Equipment Manufacturer (OEM) of the equipment and holds unique technical knowledge and parts needed to support these legacy radio systems in service. (oscar-research.co.uk)
Why This Contract Matters
Support for Critical Helicopter Fleets
- Chinook helicopters provide heavy-lift capability vital for logistics, troop movement, and disaster response.
- Merlin helicopters (AW101) are multi-role maritime and utility aircraft that support naval, amphibious, and transport missions.
- Wildcat (AW159) helicopters serve in reconnaissance, anti-surface warfare, and light transport roles.
These platforms are integral to UK defence operations, and their communications and avionics equipment are essential for safe, secure, and resilient missions — especially in complex environments. (oscar-research.co.uk)
Technical & Industrial Context
Legacy Equipment in Service
The Elmer and AD120 systems date back to earlier generations of avionics in UK rotary platforms. Because Leonardo originally developed these systems, there are no realistic alternative suppliers with equivalent technical access — hence the justification for a direct award. (oscar-research.co.uk)
Domestic Industrial Footprint
Leonardo has a long history of supporting UK defence capabilities:
- The company has maintained support, training, and lifecycle services for Merlin, Wildcat, and other helicopter fleets under long-standing UK MoD support frameworks. (uk.leonardo.com)
- It also plays a key role in the broader Rotary Wing Enterprise approach to integrating helicopter fleet support across multiple platforms. (uk.leonardo.com)
The contract underlines the UK’s reliance on established industrial partners with deep technical insight for avionics sustainment, particularly for equipment that has been in service for decades. (oscar-research.co.uk)
Wider Defence Industrial Ties
Existing Support Programmes
Leonardo already holds major helicopter support contracts with the UK MoD — such as the long-running Integrated Merlin Operational Support (IMOS) arrangement and other maintenance programmes established over many years — reflecting deep integration with British defence infrastructure and sustaining thousands of jobs. (leonardo.com)
Related Procurement (Separate but Relevant)
While this radio support deal is relatively modest in value, it comes amid ongoing discussions over larger UK defence helicopter procurements, including the New Medium Helicopter (NMH) competition, where Leonardo’s AW149 platform is currently the sole remaining bidder for a fleet renewal programme worth around £1 billion. (shephardmedia.com)
That larger contract — if confirmed — would cement Leonardo’s role as a cornerstone UK helicopter provider and could have significant industrial and strategic impact, particularly for the company’s Yeovil helicopter manufacturing facility. (MarketScreener UK)
Industry and Government Perspective
Defence officials, through the transparency notice, have indicated the planned contract is a technical support and sustainment requirement rather than a new manufacturing deal, reflecting the MoD’s priority of keeping existing aviation equipment reliable and mission ready. (oscar-research.co.uk)
Leonardo and industry observers see this as part of a broader pattern where retaining and upgrading legacy systems while planning for future helicopter fleet modernization are both key parts of sustaining UK aerospace industrial capability. (uk.leonardo.com)
Summary: Key Takeaways
The UK MoD intends to award Leonardo UK a major support contract for helicopter avionics communications systems used on Chinook, Merlin, and Wildcat aircraft.
The deal focuses on repair and post-design support of legacy radio and avionics gear.
It’s valued at up to £8 million and spans up to seven years.
Leonardo’s role as the OEM and established support provider makes it uniquely positioned to win this work.
This comes as Leonardo remains engaged with larger helicopter procurement discussions in the UK, including the potential AW149 medium helicopter deal. (oscar-research.co.uk)
Here’s a detailed, case-oriented overview of what’s reported about Leonardo being tipped for a major UK military radio/avionics support deal covering the Chinook and Merlin fleets — with case examples and reactions from industry and analysts: (oscar-research.co.uk)
1. What the Radio/Avionics Deal Is
Contract Details
- The UK Ministry of Defence (MoD) has published a transparency notice indicating its intention to award a contract to Leonardo UK Ltd for repair and post-design support of:
- Elmer Radio systems and
- AD120 Avionic communication equipment
used on the Chinook, Merlin, and Wildcat helicopter fleets.
- The contract is set for 5 years, with an option for two additional years, and is valued at up to £8 million (ex-VAT).
- The notice says Leonardo is the Original Equipment Manufacturer (OEM) with unique access to the technical knowledge and spare parts needed — so no alternative supplier is deemed reasonable. (oscar-research.co.uk)
Why it matters:
This is a “deep sustainment” contract — meaning it helps keep existing helicopter fleets operational by ensuring their communications and avionics systems stay mission-ready. (uk.leonardo.com)
2. Case Studies: Real-World Support and Fleet Importance
Chinook Helicopter Fleet
- The RAF’s Chinook fleet continues modernisation with upgrades — for example, the HC4 to HC6A standard upgrades that include new avionics integration. (Janes)
- Case point: Chinooks are heavy-lift workhorses for logistics, rescue, and battlefield missions, and reliable communication equipment is critical for safe coordination — especially in low-visibility or high-threat environments.
What this contract supports:
By ensuring repaired radios and avionics are promptly returned to service, Leonardo helps avoid groundings that could limit operational availability.
Merlin Helicopters
- The Royal Navy’s AW101 Merlin fleet has a long-running support pact with Leonardo under the Integrated Merlin Operational Support (IMOS) framework, which has helped keep the helicopters flying in maritime and amphibious roles. (helicopters.leonardo.com)
- Merlin helicopters are used for troop transport, anti-submarine warfare, and logistics — all of which depend on robust radios and avionics for navigation, tactical coordination, and safety.
Real-world relevance:
These systems have field-critical functions — so even small delays in repair turnaround can reduce availability, affect training schedules, or force mission cancellations.
Industry and Analyst Comments
MoD / Defence Perspective
Officials have justified the direct award because only Leonardo has:
- Full access to original technical documentation
- Spare parts traceable back to the system’s original design
This makes the company uniquely placed to maintain legacy avionics that remain essential to daily operations. (oscar-research.co.uk)
MoD transparency notices don’t usually provide public commentary, but the underlying message is clear: maintain fleet capability without disruption.
Industry Insight
Defence analysts note that:
- Repair and post-design support contracts like this are often overlooked compared with big procurement programmes, but they’re vital to sustaining readiness.
- Radio and comms gear, while low-volume and high-complexity, can be a bottleneck if parts or expertise aren’t available — especially for ageing or legacy platforms. (uk.leonardo.com)
This kind of work also illustrates why defence OEMs with established UK industrial footprints (like Leonardo at Yeovil) have an edge on certain sustainment contracts: longstanding presence and historical data on systems give them an operational advantage.
Strategic Context: Beyond Just This Contract
Broader Leonardo-UK Defence Links
Leonardo’s involvement in UK defence goes well beyond this support deal:
- It has been the prime contractor on long-term Merlin helicopter support for years. (helicopters.leonardo.com)
- It is currently a key contender for the £1 billion New Medium Helicopter (NMH) programme, remaining the sole bidder for a fleet replacement contract that could sustain UK helicopter manufacturing — particularly at its Yeovil site. (shephardmedia.com)
Industry observers often cite the following:
- Winning small sustainment contracts helps keep capability and workforce continuity ahead of bigger award decisions.
- Strategic work like this contributes to local employment and supply chain stability in UK aerospace — a point stressed by unions and MPs when discussing Yeovil’s future.
Reactions from Defence and Political Circles
Supportive views argue:
- These contracts preserve operational capability for critical rotorcraft that serve both defence and humanitarian roles.
- Smoother sustainment workflows reduce downtime and costly mission delays.
Some industry commentators warn:
- Over-reliance on OEM sustainment for legacy gear can slow modernisation.
- There’s an ongoing debate about balancing short-term sustainment (like radios) with long-term replacement (new helicopter fleets). (shephardmedia.com)
Summary: Key Case Lessons
Operational readiness matters: Even relatively modest support contracts (like radios and avionics) can have outsized effects on fleet availability.
OEM advantage: Leonardo’s role as original designer gives it a technical edge for sustainment work.
Industrial impact: Such contracts contribute to job security and capability retention in the UK aerospace sector.
Strategic context: This deal is part of broader negotiations and future procurement decisions — including the high-value NMH helicopter programme. (oscar-research.co.uk)