£70 Million to Keep UK Military Aircraft Flying. What the Leonardo Contract Actually Covers

UK military aircraft including Typhoon fighter jets and Chinook helicopters on an airfield

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The Ministry of Defence has awarded an initial £27 million contract to Leonardo (UK) Ltd to supply consumable spares across every fixed wing and rotary wing aircraft in the UK Armed Forces. The deal, announced on 19 June 2026, carries a total potential value of up to £70 million and will run for up to seven years.

The contract was awarded by the National Armaments Director (NAD) Group and covers roughly 11,000 NATO Stock Numbers, the standardised catalogue references used across allied militaries to identify and procure military equipment. It encompasses everything from structural fasteners such as blind rivets and washers to operational consumables including cable ties and face masks.

At a glance

  • Initial contract value: £27 million, with total potential investment up to £70 million
  • Contract length: Three years with options to extend for four additional one year periods
  • Scope: Approximately 11,000 NATO Stock Numbers across the entire UK military aircraft fleet
  • Aircraft covered: Typhoon, Apache, Chinook, A400M and C-17
  • Jobs supported: 75 across the UK defence industry

Consumable spares are the parts used in aircraft maintenance that are typically replaced rather than repaired, including fasteners, seals, filters, tubing, protective equipment and similar items. They are not the headline grabbing weapons systems or engines, but they are essential. Without them, aircraft ground.

The contract covers the UK's entire fixed wing and rotary wing fleet, including aircraft currently deployed on live operations in the Middle East. Leonardo will take on responsibility for sourcing, forecasting demand, managing stock levels and handling obsolescence the process of finding replacements when older part specifications are no longer manufactured.

The contract introduces a dual track approach to stock management. High demand, fast moving items will be managed proactively by Leonardo directly against stores availability. Slower moving, low demand parts will be handled through a more traditional model, ordered as and when required rather than held in standing stock.

That distinction matters practically. A consumable used across many airframes and replaced frequently needs continuous availability monitoring. Something used rarely and across only one platform type can be sourced reactively without compromising readiness.

Platforms covered under the contract

  • Typhoon: The RAF's primary multi role combat aircraft
  • Apache: Army Air Corps attack helicopter, currently in AH-64E variant
  • Chinook: The RAF's heavy lift helicopter, used across operations and humanitarian missions
  • A400M Atlas: The RAF's tactical and strategic transport aircraft
  • C-17 Globemaster III: The RAF's strategic heavy airlift aircraft

The previous model supplied consumable spares directly to individual units. The new contract consolidates management at depot level instead. According to the MOD announcement, that shift is intended to deliver a more efficient and cost effective approach by reducing duplication and improving oversight across the fleet as a whole rather than managing spares separately for each unit.

Leonardo will also take on spares modelling and forecasting, analytical work that attempts to predict which parts will be needed, in what quantities, and when. That responsibility previously sat elsewhere in the supply chain.

One of the less visible but practically significant aspects of the contract is obsolescence management. Military aircraft have long service lives. The Chinook has been in RAF service since 1980, and several platforms in the fleet will remain operational for decades more. Parts that were routinely available when a platform entered service can become difficult or impossible to source as manufacturers discontinue production or change specifications.

Leonardo's responsibility for obsolescence management means the company will be expected to identify at risk parts, source alternatives, and manage the transition before shortages affect operational availability.

Luke Pollard MP, the Minister for Defence Readiness and Industry, said the contract would maintain aircraft that "keep the UK safe at home and secure abroad", citing the Russian drone threat to NATO airspace and protection of British interests in the Middle East. He also pointed to the 75 UK jobs supported by the contract as part of the government's argument that rising defence spending should benefit the domestic industrial base.

Lisa Thorne, NAD Head of Support Capabilities and Commodities, described the arrangement as providing "vital services across multiple air platforms" to ensure operational readiness. David Arrowsmith, Vice President of Support and Service Solutions UK at Leonardo, said the company had taken "ownership of the full supply chain, from forecasting and procurement through to obsolescence management."

What the contract delivers

  • Fleet wide coverage: All fixed wing and rotary wing platforms under one contract
  • Long term certainty: Up to seven years of managed supply
  • Consolidated oversight: Depot level management replacing unit by unit supply
  • Proactive forecasting: Leonardo responsible for anticipating demand rather than reacting to shortfalls

What remains to be seen

  • Extension decisions: The four optional one year extensions are at the MOD's discretion
  • Full value: The £70 million figure is the maximum potential, actual spend depends on extensions and demand
  • Operational impact: Whether the depot level consolidation improves unit level availability in practice
  • Obsolescence outcomes: Managing at risk parts across ageing platforms is an ongoing challenge

The Leonardo contract is about the unglamorous but essential logistics that underpin military aviation. A Typhoon grounded for want of a gasket or a Chinook unable to fly because a filter is out of stock represents a readiness failure regardless of how capable the aircraft itself is.

Consolidating management of 11,000 part types across five major platforms under a single seven year framework is a meaningful structural change. Whether it delivers the improvements in responsiveness and efficiency that the MOD is seeking will become clearer over the contract's first three year term.

Key takeaways

  • Leonardo UK has been awarded an initial £27 million contract, with potential total value up to £70 million over seven years
  • The contract covers roughly 11,000 NATO Stock Numbers across the entire UK military aircraft fleet
  • Platforms include Typhoon, Apache, Chinook, A400M and C-17, some of which are on live operations in the Middle East
  • Management consolidates at depot level rather than supplying individual units directly, a change from the previous arrangement
  • Leonardo takes on forecasting, stock procurement, and obsolescence management responsibilities