Rolls-Royce secures UK backing for new narrowbody jet engine programme
Britain is backing Rolls-Royce with a framework deal worth £2.5 billion to support development of a new engine for narrowbody jets. The multi-decade programme is aimed at next-generation aircraft and defence applications, and is set to support 3,300 jobs.
Highlights
- UK government agrees to support Rolls-Royce's long-term narrowbody jet engine programme, subject to legal and affordability reviews, as announced by Finance Minister John Healey.
- Rolls-Royce targets re-entry into the largest civil aerospace market segment with UltraFan technology, following its 2012 exit from the narrowbody engine market.
- CEO Tufan Erginbilgic's turnaround strategy delivers, with Rolls-Royce projecting underlying operating profit up to £4.9 billion in 2024 after 2021 losses.
Government support and engine development plan
As reported by Reuters, Finance Minister John Healey announces the agreement in his budget speech on Wednesday, describing it as a long-term programme to help develop engine technology for future narrowbody aircraft and defence uses.The government says the funding remains subject to legal, value-for-money, affordability and approval processes. Rolls-Royce says the deal marks a significant step in its effort to return to the largest segment of the civil aerospace market, where it is developing its UltraFan technology.
Chief Executive Tufan Erginbilgic, who says in July that he would prefer British backing even as other countries show interest, calls Wednesday's agreement a landmark moment for the UK's aerospace industry.
Market position and turnaround implications
Rolls-Royce has been absent from the narrowbody engine market since selling its stake in the International Aero Engines consortium to Pratt & Whitney in 2012. That market is currently dominated by CFM International, the GE Aerospace and Safran joint venture, and Pratt & Whitney, whose engines power the Airbus A320 and Boeing 737 families.The agreement comes as Erginbilgic continues a turnaround launched after becoming CEO in 2023, with management changes, efficiency improvements and renegotiated long-term airline contracts. The company expects underlying operating profit of up to £4.9 billion this year, after reporting a loss in 2021.
In our earlier coverage of Chancellor John Healey’s pre-Budget fiscal stance, we outlined his commitment to an IMF-backed deficit-reduction path ahead of the October 28 Budget. We also noted that UK GDP growth of 0.1% in August offered limited but positive evidence of resilience, while political pressure intensified over how far the government should go in raising taxes or pursuing deeper structural reforms to support growth.
Latest Rolls-Royce News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
