London, May 1, 2026, 16:02 BST
BAE Systems plc is facing a £120 million lawsuit from Kenya-based EnComm Aviation over the British defence group’s decision to end support for Advanced Turbo-Prop aircraft used to move humanitarian cargo in Africa. EnComm says the move grounded aircraft that had been flying aid into crisis-hit countries including Somalia, South Sudan and the Democratic Republic of the Congo.
The case lands at an awkward moment for BAE. The company is benefiting from a surge in defence demand, with 2025 sales of £30.7 billion and a record order backlog — contracted work still to be delivered — of £83.6 billion.
EnComm alleges BAE’s withdrawal of support forced the cancellation of humanitarian contracts, including a United Nations programme covering 12 destinations in Somalia. The ATP aircraft could operate from short airstrips and carry 8.2 tonnes of cargo; EnComm’s fleet delivered 18,677 tonnes of aid between March 2023 and September 2025, according to the report.
In its UK High Court claim, EnComm says BAE’s action left the fleet with little value beyond scrap. A pre-action letter cited by the Guardian referred to emails and meetings that EnComm says led it to believe BAE would keep supporting the aircraft for at least five years. EnComm director Jackton Obuola said the firm had been forced to seek “BAE’s explanation in court”; BAE said it does not comment on ongoing litigation. The Guardian
A type certificate is the regulatory approval that underpins an aircraft model’s airworthiness. EnComm’s argument, in plain terms, is that once BAE surrendered support tied to the ATP, the aircraft could no longer serve the purpose for which the cargo operator had invested in them.
BAE shares were quoted at 2,021 pence on the company’s investor site on Friday afternoon, using London Stock Exchange data that BAE said may be delayed by at least 15 minutes. The stock had risen 2.07% on Thursday to close at £20.43, outperforming the broader London market, MarketWatch reported.
The company’s core business remains far removed from the ATP dispute. BAE reported 2025 underlying EBIT — earnings before interest and tax, a common operating profit measure — of £3.32 billion, up 12%, and order intake of £36.8 billion. Chief Executive Charles Woodburn said in February that a “new era of defence spending” was supporting demand. BAE Systems
That wider defence trade is no longer moving in a straight line. Reuters reported last month that MSCI’s Europe Aerospace and Defence Index fell 9.2% in March, its biggest monthly drop in five years, as investors reassessed valuations and the role of cheaper drones in modern warfare. Rheinmetall, Renk and Saab were among peers whose shares had weakened since the Iran conflict began.
Hargreaves Lansdown equity analyst Aarin Chiekrie told Reuters that part of the pullback reflected sector growth expectations “getting ahead of themselves.” Ciaran Callaghan, Amundi’s head of European equity research, pointed to a shift in the “future of warfare” debate as lower-cost technologies challenge demand for older, expensive platforms. Reuters
But the lawsuit’s financial risk is not the only issue. The court fight may turn on whether EnComm can prove BAE owed a duty, gave binding assurances or caused the claimed losses; BAE may contest all of that. A loss could add reputational pressure around how the group exits legacy civil-aircraft obligations, while a successful defence would leave the dispute as a narrower legal matter against a much larger order book.
