AIRBUS has pulled out of the race to win a prize Ministry of Defence (MoD) contract to provide a fleet of new helicopters.
The company had hoped to win the MoD’s Medium Lift Helicopter competition to replace the 23-strong Puma 2 fleet in RAF service with Airbus' H175M model.
If Airbus was successful in winning the contract - worth an estimated £1.2 billion - the company would produce hundreds of the H175M which would have been manufactured in Broughton. Airbus said it would have created several hundred new jobs, as well as sustaining thousands more throughout the UK supply chain including in Wales, Scotland and Northern Ireland.
However, the company has said it has now withdrawn from the race - with Leonardo Helicopters now set to earn the contract as the sole remaining contender.
An Airbus spokesperson said: "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.
"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."
Airbus said it continues 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 the company has concluded that continued pursuit of the NMH opportunity "cannot be justified".
The spokesperson added: "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.”
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