Rolls-Royce warns UltraFan production could shift overseas without UK backing

"This kind of support of industry is not uncommon. Our competitors get two or three times what we get. It is a competitive world and you need to think about that. Narrowbody is the single biggest opportunity in a generation. It is natural for the UK government to support it."

"UltraFan, a more fuel-efficient engine architecture developed over the past decade at a cost of around £1 billion, is central to Rolls-Royce's long-term civil aerospace ambitions. But moving from research and development to full-scale production will hinge on government support, according to Erginbilgic."

"The FTSE 100 engineering group, led by chief executive Tufan Erginbilgic, is seeking to re-enter the highly lucrative market for narrowbody, single-aisle aircraft engines, the fastest-growing segment of global civil aviation. However, it says industrialising the UltraFan platform for this market will require public backing, similar to the subsidies received by competitors in the United States and France."

Rolls-Royce is seeking government financial backing to industrialize its UltraFan engine for the narrowbody aircraft market, the fastest-growing segment in civil aviation. The company has invested approximately £1 billion developing this fuel-efficient engine architecture over the past decade. CEO Tufan Erginbilgic argues that state support for major aerospace programmes is standard globally, with competitors in the US and France receiving two to three times more subsidies. Rolls-Royce has reportedly requested up to £200 million from the UK government and held discussions with the Business Secretary. The company contends that supporting the UltraFan programme aligns with the government's industrial strategy identifying narrowbody engines as a critical growth opportunity.

Read at Business Matters