ROLLS-ROYCE is nearing a deal for British government subsidies of up to £200 million ($267.9 million) to help fund the development of a new engine for short-haul aircraft, with an announcement possible as early as next week, the Financial Times reported on Friday.
Funding of £100 million-£200 million would help Rolls-Royce develop and test a demonstrator version of its new UltraFan 30 engine, the report said, citing people familiar with the matter.
The company had hoped to secure an initial government commitment for the project in the first half of the year.
In July, Chief Executive Tufan Erginbilgic said if the government backed the project and Rolls-Royce's new engine gained a position on a narrowbody airframe, that would create 40,000 British jobs.
Erginbilgic also confirmed Rolls-Royce held discussions with other governments, including Germany and the US, about support for the program.
For the last 15 years, Rolls-Royce has been absent from the narrowbody market, which is much bigger than the widebody market it is currently focused on.
The company has been developing the next-generation UltraFan with the aim of getting back in the narrowbody market.
