Rolls-Royce is reportedly urging the UK Government to commit taxpayer support to a £3bn ($4bn) programme to develop a new aircraft engine with it aiming to re-enter the narrowbody market, according to a Financial Times report.
The FT reported that the company is seeking funding commitment in the first half of the year and is requesting an initial £100 million to £200 million to support development and testing of its UltraFan 30 demonstrator engine.
The demonstrator is designed to be 25% more efficient than previous iterations of Trent engines and could power next-generation narrowbody aircraft.
According to the report, Rolls-Royce CEO Tufan Erginbilgic has been in discussions with UK secretary of state for business and trade Peter Kyle in recent weeks.
Additionally, the company is reportedly expected to announce a £1.5bn ($2bn) share repurchase programme during its annual results this week, according to a Sky News report.
Rolls-Royce has declined to comment on both reports.
“The [UK Government’s] Industrial Strategy has said that securing a UK engine position on next generation single aisle programmes is 'the single biggest opportunity in aerospace over the next 50 years', so we are in constructive discussions with the Government about how we can work in partnership to realise that opportunity,” said a Rolls-Royce spokesperson.
"It requires a multi-year, multi-billion pound investment that will unlock a $1.6 trillion market for the UK, creating thousands of jobs across the supply chain alongside substantial economic growth."
The company will present its 2025 full-year results on Thursday (February 26).