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01 Apr 2025

Leonardo Bags £165m Maintenance Deal For Royal Navy Merlins

Leonardo Bags £165m Maintenance Deal For Royal Navy Merlins
One of the Merlin Mk4 helicopters covered by the newly extended maintenance contract with Leonardo. Image: Ministry of Defence © Crown copyright 2025

A two-year, £165 million extension deal has been struck between the U.K. Ministry of Defence (MoD) and Leonardo to maintain the Royal Navy’s fleet of Merlin helicopters.

The terms of the Integrated Merlin Operational Support (IMOS) agreement arranged between Leonardo U.K. and the MoD’s Defence Equipment and Support (DE&S) arm cover all 54 AW101 Merlin Mk2, Mk4 and Mk4a helicopters currently being flown by the navy.

As per today’s (Tuesday’s) press statements, the agreement will safeguard around 1,000 jobs, spread between Leonardo’s Yeovil base and Royal Naval Air Stations in Yeovilton and Culdrose.

Minister for Defence Procurement and Industry Maria Eagle commented: “This investment demonstrates our unwavering commitment to maintaining cutting-edge defence capabilities that keep us safe, while utilising defence as an engine for economic growth, supporting 1,000 well-paid jobs across the U.K.”

And Managing Director of Leonardo Helicopters U.K. Nigel Colman added: “Working closely with the Ministry of Defence and Royal Navy, we’re keeping the Merlin fleet supported and available, so it’s ready to fly whenever and wherever it’s called upon.”

The Mk2 helicopters are used primarily for anti-submarine warfare (ASW) and intelligence, surveillance and reconnaissance (ISR) missions, as well as search and rescue (SAR), anti-smuggling, and humanitarian relief duties.

The Mk4 fleet provides a medium-lift capability; it can carry loads of almost 4 tonnes and is largely used for troop transport and casualty evacuation.

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