The USMC subsequently decided on new-build rather than remanufactured UH-1Y helicopters and, in February 2008, awarded Bell a contract for the new build of 40 of the proposed 180 AH-1Z helicopters. The new-build AH-1Z will be fitted with the uprated T700-401C engines, also fitted on the UH-1Y.
First flight of the AH-1Z took place in December 2000. The AH-1W entered low-rate initial production (LRIP) in October 2003. Five AH-1W helicopters were remanufactured to AH-1Z standard and took part in flight testing at NAS Patuxent River, Maryland. Sea trials in May 2005 included the first shipboard landing on USS Bataan, Wasp Class amphibious assault ship.
Developmental testing was completed in February 2006 and two test aircraft began Operational Evaluation (OPEVAL) with the USMC in May 2006. The first production AH-1Z helicopter was delivered to the USMC in January 2007. Phase II of OPEVAL began in February 2008. A full-rate production decision is expected in August 2008. Initial operating capability is scheduled for 2011.