Rolls Royce Secures Government Backing for £1.6 Trillion Narrow Body Aircraft Engine Market

The British government has thrown its weight behind Rolls-Royce’s ambitious plan to dominate the £1.6 trillion market for short-haul aircraft engines, offering potential taxpayer support for its next-generation jet engine development programme.

Tufan Erginbilgic, chief executive of the Derby-based FTSE 100 engineer, confirmed the company’s strategic pivot towards the larger “narrow body” market, with Labour positioning this move as a cornerstone of its industrial strategy. “This represents the single-biggest opportunity for economic growth for the UK in the next 50 years,” Erginbilgic stated.

The government’s industrial strategy document emphasised that “gas turbines are critical to UK national and economic security,” highlighting the potential for significant growth through collaboration with companies like Rolls-Royce. The strategy specifically prioritises securing “a UK engine position on next-generation single-aisle programmes.”

Rolls-Royce is currently engaged in discussions with various industrial and engineering partners regarding its innovative UltraFan engine, with speculation mounting about a potential revival of its joint venture with US competitor Pratt & Whitney. The £3 billion UltraFan project represents a significant technological leap forward, though securing an agreement with major aircraft manufacturers Airbus and Boeing remains a crucial hurdle.

Beyond aerospace, Erginbilgic revealed plans to expand the company’s nuclear energy programme through the development of advanced modular reactors (AMRs). These compact nuclear units could revolutionise military operations by providing portable power solutions for front-line deployment.

The company’s remarkable transformation under Erginbilgic’s leadership has seen its share price soar by more than 800 per cent since January 2023, establishing Rolls-Royce as the fifth-largest company on the FTSE 100 with a market capitalisation of £80 billion.