Declassified documents from the UK National Archives reveal that in 1990, Margaret Thatcher's government considered cancelling the domestic Merlin patrol helicopter program in favor of purchasing American Sea Hawk helicopters for the Royal Navy.
As UK Defence Journal highlights, the Merlin project "nearly collapsed under the weight of its own ambition" and was only saved by "a combination of operational needs, the UK Ministry of Defense's stance, and a lack of viable alternatives."
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According to the publication, when the program began in 1983, the estimated total cost for developing and producing 50 Merlin helicopters was £1.1 billion (at the time's exchange rate).
However, by 1990, £900 million had already been spent just on development, with an additional £1.8 billion in unexpected costs projected for the program. Complicating matters further, the project had already fallen four years behind schedule — prompting doubts about its feasibility.
As the Cold War was still ongoing in 1990 and the Royal Navy urgently needed an anti-submarine helicopter to counter Soviet subs, discussions began in the UK government about potentially scrapping the Merlin and opting for the U.S.-made Sea Hawk.
Among competing options — Sea King, NH90, or Super Puma — the Sea Hawk appeared attractive in both performance and price. Buying 50 U.S. helicopters could have cost around £1.1 billion, seemingly cheaper than continuing with the Merlin program.
However, the UK Ministry of Defence put forward a strong case for keeping the Merlin program. The Sea Hawk didn't meet the Royal Navy' requirements for data processing autonomy, and the British military was reluctant to give control of such a strategic capability to a U.S. contractor.
In layman's terms, despite the compelling argument for cost savings, the operational needs of the Royal Navy carried more weight. Ultimately, a political decision was made to continue with the Merlin program.
That long-term thinking eventually paid off — the Merlin helicopter became a successful export product, used not only by the UK but also by Italy, the U.S., Canada, and Japan.
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