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The Ministry of Defence has announced a £1.8 billion deal to buy 50 of the latest generation Apache attack helicopters for the British Army.

The new Apache AH-64E helicopters, built by Boeing and already in service with the US Army, can carry more weapons and also boast greater fuel efficiency, allowing them to operate in more demanding conditions for longer. Defence Secretary Michael Fallon said:

When details of the deal became known earlier this year, there was criticism of the decision to buy the new helicopters from the US government rather than produce them in the UK, with fears that the move could put the future of 600 aeronautical jobs in the UK at risk.

Italian aerospace manufacturer Leonardo, which was known as Finmeccanica until recently, had been fighting to land the deal, which would have seen the new helicopters built at its base in Yeovil, Somerset, where 3,700 staff are employed.

The original fleet of 67 British Apaches, produced by Westland, now part of Leonardo, cost around £44 million per helicopter, whilst the new versions are reportedly to be acquired at a knockdown price of £8.5million per helicopter.

Boeing offered the new helicopters at the much lower price by tacking them on the end of a larger Apache order for the US military.

The MoD say, however, that the new Apaches will bring benefits to the UK, with companies in Gloucestershire, Hampshire, Bedfordshire, Cheshire and Gwent being awarded subcontracts by Boeing that collectively represent around 5% of the global Apache supply chain.

It added that UK suppliers could benefit from support and training contracts for the new Apache AH-64E helicopters, which will be finalised over the next year.

Leonardo will continue to lead the arrangements to support the existing Apache helicopters until they are retired from service in 2023/24, and it's thought the MoD will hand the business support contracts for the new Apaches, although the manufacturer is believed to have enough work to support its Yeovil staff until 2018 without winning further orders.

"In the longer term, I want these new Apaches to be maintained in the UK, and for UK companies to do most of the work. This includes Leonardo Helicopters, who have developed substantial knowledge and experience in the support of our current Apache fleet over the last decade and will continue to support the helicopters until their eventual retirement in around eight years' time."

The Chief of the General Staff, General Sir Nick Carter, said:

"The new Apache fleet will provide the British Army with a highly potent fighting element of its Future Force 2025.

"The Apache has already proved its worth on operations in Libya and Afghanistan, supporting UK and coalition troops, and this new model will give our pilots an attack helicopter that is faster, more responsive and more capable. These improvements will give us the edge on operations as we work to protect the UK and our interests both at home and abroad."

Systems from the current Apache fleet, such as the Modernised Target Acquisition & Designation System, and the Longbow Fire Control Radar, will be reused and incorporated into the new helicopters where possible.

The deal with the US government includes an initial support contract for maintenance of the new helicopters, along with spare parts and training simulators for UK pilots.

The MoD also says the new helicopter's improved computing capacity and updated sensors means it will be receptive to upgrades in the future.

The first UK helicopters are due off the US production line in early 2020 and will begin entering service with the British Army in 2022, being flown by Army Air Corps pilots from the Joint Helicopter Command.

Role: Attack helicopter
National origin: United States
Manufacturer: Hughes Helicopters (1975-1984)
                     McDonnell Douglas (1984-1997)
                     Boeing Defense, Space & Security (1997-present)
First flight: 30 September 1975
Introduction: April 1986
Status: In service
Primary users: United States Army
                       Israeli Air Force
                       Egyptian Air Force
                       Royal Netherlands Air Force
Produced: 1983-present
Number built: 2,400 as of April 2020
Unit cost: AH-64A: US$20 million (2007)
AH-64D: US$33M (2010)
AH-64E: US$35.5M (FY2014)

Variants
AgustaWestland Apache

Note: A spokesman for the MoD insisted that the UK will still order all 50 Apaches, to be delivered by 2025, and splitting the order “will secure the best value for money for the taxpayer as we secure a vital capability for the UK.”
An earlier contract modification detailed by the US Department of Defense in June last year indicated that Boeing had been awarded $411 million for 38 Apache aircraft for the UK. A 9th of June contract notice read:

“The Boeing Company, Mesa, Arizona, was awarded a $410,916,893 modification (P00008) to foreign military sales (UK) contract W58RGZ-16-C-0023 for 38 Apache aircraft, three Longbow crew trainers, and associated spares. Work will be performed in Mesa, Arizona, with an estimated completion date of Feb. 28, 2023. Fiscal 2010 other funds in the amount of $201,349,276 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.”
The AH-64E Guardian features improved digital connectivity, the Joint Tactical Information Distribution System, more powerful T700-GE-701D engines with upgraded face gear transmission to accommodate more power, capability to control unmanned aerial vehicle, full IFR capability and improved landing gear.

The updated Longbow radar has an oversea capacity, potentially enabling naval strikes. The E model is fit for maritime operations, much like the British variant being replaced.