Rolls-Royce is in talks with the British government about taxpayer support to help fund the ￡3bn development of an engine to power the next generation narrow-body aircraft, primarily used for short-haul flights.
The FTSE 100 aerospace and defence group has told senior government officials that the project could be a once-in-a-generation opportunity, and has called for state subsidies to help develop a fully-certified engine ready to go into production.
The aviation group claims the project could create about 40,000 skilled jobs, both at Rolls-Royce and in the wider supply chain, and generate as much as ￡120bn for the UK economy over the lifetime of the programme.
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