NHIndustries Strives to Stabilize Future of NH90 Helicopter Despite Past Challenges
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Despite setbacks and the withdrawal of three countries from contracts, NHIndustries (NHI) is positioning the NH90 multirole helicopter for a technological and commercial resurgence. During a press conference on October 8, 2024, NHI CEO Axel Aloccio announced a series of measures and enhancements to boost the aircraft’s appeal for years to come. By aiming for a more stable future and opening new sales opportunities, NHI plans ambitious upgrades, increased reliability, and supply chain restructuring to ensure the NH90’s long-term usage. This new strategy leverages the helicopter’s untapped potential and targeted improvements, despite major challenges, including contract cancellations, delivery delays, and high operating costs.
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A Royal New Zealand Air Force NH90 helicopter lands to deploy soldiers from Australia’s 7th Battalion for land clearing and fuel reduction on Brindabella Mountain, west of Canberra, on 20 January 2020 (Picture source: Australian MoD)
The NH90 helicopter, developed to meet NATO’s stringent standards by a consortium comprising Airbus Helicopters, Leonardo Helicopters, and Fokker Aerostructures, is available in two main versions: the Tactical Transport Helicopter (TTH) and the NATO Frigate Helicopter (NFH). It features a fully composite structure and integrated mission systems for complex land and sea operations, day and night. Equipped with advanced technologies such as fly-by-wire controls and a digital cockpit, it reduces pilot workload, enhancing efficiency for autonomous and mixed-team missions.
In terms of armament, the NH90 can be configured for anti-submarine (ASW) and anti-surface warfare (ASuW) missions with anti-ship missiles, torpedoes, sonar systems, and lateral machine guns for maritime security operations. Its modular design and large transport capacity (up to 20 soldiers or NATO-standard pallets) also make it a strategic tool for tactical transport, logistical support, and special operations, including counter-terrorism and disaster relief missions.
Currently used by multiple countries in various operational contexts, including combat missions in Afghanistan, Mali, and Iraq, as well as disaster relief in New Zealand, the Philippines, and Europe, the NH90 combines low radar and infrared signatures with advanced self-protection systems (chaff/flare dispensers, threat detectors). This agile and compact helicopter is built to withstand demanding environments, making it a valuable asset for modern military forces.
Aloccio asserted that the NH90 could remain operational for “at least another 50 to 60 years,” a claim he described as a “fact,” based on the substantial investments already made by current customers. Speaking at an Airbus Helicopters press day in Marignane, France, Aloccio emphasized the company’s commitment to developing a “Block 2” NH90, in discussions with clients for nearly a year. Although the main technologies for this upgrade are still being defined, discussions include increasing payload capacity and integrating drone cooperation capabilities to meet growing demand for joint operations.
Simultaneously, Belgium, Germany, Italy, and the Netherlands approved the “Software Release 3” upgrade for the NH90 last June. This upgrade will integrate the Link 22 datalink, Leonardo’s LEOSS-T electro-optical gimbal, new sonar equipment, and additional armament capabilities, allowing the NH90 to meet modern operational needs and enhance its versatility in the military helicopter market.
An NH-90 helicopter taking off from Bardufoss Air Station during the winter exercise Cold Response 2022 (Picture source: Forsvaret)
On the commercial front, Aloccio revealed numerous current opportunities for the NH90, with sales prospects estimated between “50 and 100” units. The Netherlands’ recent announcement of additional NH90 purchases last September highlights this momentum, as does expressed interest from several Middle Eastern countries. NHI aims to capture new markets by meeting potential customers’ expectations.
Nonetheless, past challenges have not been overlooked. Aloccio acknowledged that supply chain difficulties had long hampered the NH90 program, with delays in part delivery and underestimation of certain client expectations. To address these, NHI implemented specific action plans for each supplier and simplified maintenance processes to improve fleet availability. By increasing critical parts deliveries by 15% last year and targeting an additional 15–20% improvement this year, NHI is working to resolve logistical issues that have impacted its reputation. Aloccio noted that essential parts, including main gearboxes, blades, and mission equipment, are partly manufactured by NHI-associated companies, underlining the consortium’s direct responsibility for some of the issues encountered.
These industrial challenges have had significant financial impacts on NHI, leading Australia, Norway, and Sweden to cancel contracts despite aircraft deliveries. In June 2022, Norway ended its NH90 program, with Defense Minister Bjørn Arild Gram stating that efforts to make the helicopter operational were insufficient to meet the armed forces’ requirements. Consequently, Oslo is seeking compensation of nearly 5 billion kroner ($525 million), while NHI refuted Norway’s claims, describing the contract termination as “legally unfounded.”
The situation between NHI and Norway has escalated into legal proceedings after failed mediation attempts. “They took us to court, and we are also pursuing legal action,” said Aloccio, explaining that the two parties had merged their claims into a single case. The matter will be heard in an Oslo court next year, but for now, Norway’s fleet of 14 NH90s remains in storage, unused since the program’s cancellation.
In Australia, a €250 million buy-back program for MRH-90 Taipan spare parts is underway following Canberra’s decision to retire its MRH-90 fleet prematurely after a fatal accident during Exercise Talisman Sabre in July 2023. Around 300 parts have already been returned to NHI, marking the beginning of a complex process to wind down the program in Australia.
In contrast, Sweden has seen a notable improvement in NH90 fleet availability, with flight hours increasing by 60% between January and August 2022 and the same period in 2023. Nevertheless, Stockholm has shown no indication of reversing its decision to abandon the program, instead moving forward with the acquisition of 12 additional UH-60M Black Hawk helicopters.
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Despite setbacks and the withdrawal of three countries from contracts, NHIndustries (NHI) is positioning the NH90 multirole helicopter for a technological and commercial resurgence. During a press conference on October 8, 2024, NHI CEO Axel Aloccio announced a series of measures and enhancements to boost the aircraft’s appeal for years to come. By aiming for a more stable future and opening new sales opportunities, NHI plans ambitious upgrades, increased reliability, and supply chain restructuring to ensure the NH90’s long-term usage. This new strategy leverages the helicopter’s untapped potential and targeted improvements, despite major challenges, including contract cancellations, delivery delays, and high operating costs.
A Royal New Zealand Air Force NH90 helicopter lands to deploy soldiers from Australia’s 7th Battalion for land clearing and fuel reduction on Brindabella Mountain, west of Canberra, on 20 January 2020 (Picture source: Australian MoD)
The NH90 helicopter, developed to meet NATO’s stringent standards by a consortium comprising Airbus Helicopters, Leonardo Helicopters, and Fokker Aerostructures, is available in two main versions: the Tactical Transport Helicopter (TTH) and the NATO Frigate Helicopter (NFH). It features a fully composite structure and integrated mission systems for complex land and sea operations, day and night. Equipped with advanced technologies such as fly-by-wire controls and a digital cockpit, it reduces pilot workload, enhancing efficiency for autonomous and mixed-team missions.
In terms of armament, the NH90 can be configured for anti-submarine (ASW) and anti-surface warfare (ASuW) missions with anti-ship missiles, torpedoes, sonar systems, and lateral machine guns for maritime security operations. Its modular design and large transport capacity (up to 20 soldiers or NATO-standard pallets) also make it a strategic tool for tactical transport, logistical support, and special operations, including counter-terrorism and disaster relief missions.
Currently used by multiple countries in various operational contexts, including combat missions in Afghanistan, Mali, and Iraq, as well as disaster relief in New Zealand, the Philippines, and Europe, the NH90 combines low radar and infrared signatures with advanced self-protection systems (chaff/flare dispensers, threat detectors). This agile and compact helicopter is built to withstand demanding environments, making it a valuable asset for modern military forces.
Aloccio asserted that the NH90 could remain operational for “at least another 50 to 60 years,” a claim he described as a “fact,” based on the substantial investments already made by current customers. Speaking at an Airbus Helicopters press day in Marignane, France, Aloccio emphasized the company’s commitment to developing a “Block 2” NH90, in discussions with clients for nearly a year. Although the main technologies for this upgrade are still being defined, discussions include increasing payload capacity and integrating drone cooperation capabilities to meet growing demand for joint operations.
Simultaneously, Belgium, Germany, Italy, and the Netherlands approved the “Software Release 3” upgrade for the NH90 last June. This upgrade will integrate the Link 22 datalink, Leonardo’s LEOSS-T electro-optical gimbal, new sonar equipment, and additional armament capabilities, allowing the NH90 to meet modern operational needs and enhance its versatility in the military helicopter market.
An NH-90 helicopter taking off from Bardufoss Air Station during the winter exercise Cold Response 2022 (Picture source: Forsvaret)
On the commercial front, Aloccio revealed numerous current opportunities for the NH90, with sales prospects estimated between “50 and 100” units. The Netherlands’ recent announcement of additional NH90 purchases last September highlights this momentum, as does expressed interest from several Middle Eastern countries. NHI aims to capture new markets by meeting potential customers’ expectations.
Nonetheless, past challenges have not been overlooked. Aloccio acknowledged that supply chain difficulties had long hampered the NH90 program, with delays in part delivery and underestimation of certain client expectations. To address these, NHI implemented specific action plans for each supplier and simplified maintenance processes to improve fleet availability. By increasing critical parts deliveries by 15% last year and targeting an additional 15–20% improvement this year, NHI is working to resolve logistical issues that have impacted its reputation. Aloccio noted that essential parts, including main gearboxes, blades, and mission equipment, are partly manufactured by NHI-associated companies, underlining the consortium’s direct responsibility for some of the issues encountered.
These industrial challenges have had significant financial impacts on NHI, leading Australia, Norway, and Sweden to cancel contracts despite aircraft deliveries. In June 2022, Norway ended its NH90 program, with Defense Minister Bjørn Arild Gram stating that efforts to make the helicopter operational were insufficient to meet the armed forces’ requirements. Consequently, Oslo is seeking compensation of nearly 5 billion kroner ($525 million), while NHI refuted Norway’s claims, describing the contract termination as “legally unfounded.”
The situation between NHI and Norway has escalated into legal proceedings after failed mediation attempts. “They took us to court, and we are also pursuing legal action,” said Aloccio, explaining that the two parties had merged their claims into a single case. The matter will be heard in an Oslo court next year, but for now, Norway’s fleet of 14 NH90s remains in storage, unused since the program’s cancellation.
In Australia, a €250 million buy-back program for MRH-90 Taipan spare parts is underway following Canberra’s decision to retire its MRH-90 fleet prematurely after a fatal accident during Exercise Talisman Sabre in July 2023. Around 300 parts have already been returned to NHI, marking the beginning of a complex process to wind down the program in Australia.
In contrast, Sweden has seen a notable improvement in NH90 fleet availability, with flight hours increasing by 60% between January and August 2022 and the same period in 2023. Nevertheless, Stockholm has shown no indication of reversing its decision to abandon the program, instead moving forward with the acquisition of 12 additional UH-60M Black Hawk helicopters.
