The British government is exploring the possibility of leasing military transport helicopters as a route to easing pressure on its procurement budget.

The British Defense Ministry is examining military helicopter requirements under its Future Rotorcraft Capability (FRC) program. The FRC effort has a budget of $8.47 billion and is intended to address what ministry officials admit is a "long-standing capability gap," particularly in terms of battlefield lift.

As part of the assessment phase for the FRC, the ministry is looking not only at interim options for extending the life of in-service type helos, but also at a contractor-owned, military-operated approach that would allow it to acquire new-build helicopters, says one Defense Ministry procurement official involved in the FRC. He added that "industry is serious" about the potential for a contractor-owned, military-operated approach.

The Defense Ministry is also looking at options to extend the life of either some of its Eurocopter Puma or Westland Sea King helicopters that are currently in service. A considerable number of Sea King helicopters are being held in storage and could be refurbished.

Eurocopter is working on a number of upgrade options for the Puma medium-lift helicopters to further extend their service life. The Royal Air Force's Puma Mk1 is set to be retired from operational service in 2010, and the Sea King Mk 4 in 2012.

The Puma would benefit from an engine upgrade, given the weight growth of the platform over the years. Eurocopter is developing several upgrade options because there is uncertainty over how much funding will be available. The heart of the program would likely be an engine upgrade, introducing the Makila engine already integrated on Pumas overseas, to replace the Turmo fitted to the RAF helicopters. Upgrade option proposals are due to be submitted in early June.

The first major program to emerge under the FRC is the battlefield utility and maritime rotorcraft program, almost certain to be met by the AgustaWestland Future Lynx. But selection of a Lynx derivative to meet army and navy requirements is caught up in wider negotiations over a partnering agreement between the Defense Ministry and AgustaWestland. While defense ministry officials suggest an agreement may still be weeks away, industry sources indicate an accord may emerge within the coming days.

The exact nature of the strategic partnering agreement has raised concerns among other helicopter manufacturers.