In 1959 the British Government, seeking to cut costs, decreed that the number of aircraft firms be lowered and set forth their expectations for mergers in airframe and aero-engine companies. By delaying or withholding access to defence contracts the British firms could be manoeuvred into mergers. Fairey, then the helicopter division of Bristol, and Saunders-Roe were incorporated with Westland.
The larger Rotodyne design could be developed to take from 57 to 75 passengers which with the Rolls-Royce Tyne turboprops (5,250 shp) would have a cruising speed of 370 km/h. It would be able to carry nearly 7 tonnes of freight and British Army vehicles would fit into its fuselage. Government funding of some 5 million pounds was promised. The expected order from the RAF did not appear - they had no particular interest in the design with the issue of nuclear deterrence to the fore at the time. The Tyne engines were starting to appear underpowered for the larger design. Rolls Royce were told that they would have to fund the engine development itself.
However the end came when the interest shown by BEA did not provide an order and a request for an order by the military was turned down. The funding for the Rotodyne was cut in early 1962. The corporate management at Westland decided that further Rotodyne development towards production status was not worth the investment required.
After the program was terminated, the Rotodyne, which was, after all, government property, was dismantled and largely destroyed in the same way as the Bristol Brabazon.