The UK government will contribute £1.25bn toward the £2.5bn research and development programme to build and test a demonstrator gas turbine engine. Although the enterprise initially supports 3,300 roles, officials view narrow-body aircraft as the industry's largest manufacturing opportunity over the next 50 years. The funding comes despite the company boasting a £105bn market value and up to £9bn in planned share buy-backs this year. However, commercial returns rely on winning placement on future Airbus or Boeing programmes around 2030 and later securing a production partner.
Key points
Government support is designed to prevent foreign competitors like Germany from securing…: Government support is designed to prevent foreign competitors like Germany from securing key parts of the UltraFan project.
Winning a spot on future narrow-body aircraft programmes represents the sector's most sig…: Winning a spot on future narrow-body aircraft programmes represents the sector's most significant market opportunity for the next 50 years.
Commercial payoff remains uncertain because engine selection decisions by Airbus or Boein…: Commercial payoff remains uncertain because engine selection decisions by Airbus or Boeing will not occur until approximately 2030.
Sources checked by our analysis pipeline: 1
It wasn’t a “nothing” budget for engine-maker Rolls-Royce. The company was handed £1.25bn from public coffers to part-fund the development of a next-generation engine for single-aisle commercial planes.
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