Rolls-Royce chief executive Tufan Erginbilgic has urged the UK Government to back the company's narrow-body jet engine project, warning that jobs will be lost if the decision is delayed. Speaking to the media, Erginbilgic stated that talks with the Government were progressing, but a decision was yet to be made.
The project, which is worth an estimated £1 billion, aims to develop a new narrow-body jet engine that will be used in commercial aircraft. Rolls-Royce has been in discussions with the Government for several months, and the company is seeking financial support to help bring the project to fruition.
Erginbilgic warned that if the decision is delayed, jobs will be lost, both in the UK and abroad. The company has already begun to look at other options, including partnering with international companies to complete the project.
The UK aerospace industry is a significant contributor to the country's economy, with the sector generating an estimated £30 billion annually. The Government has previously stated its commitment to supporting the industry, and a decision on the project would be seen as a key test of that commitment.
The Labour Party has been critical of the Government's handling of the aerospace industry, with Shadow Business Secretary Ed Miliband stating that the decision on the Rolls-Royce project was a 'test of the Government's ability to support British industry'. The Conservative Party has yet to comment on the matter.