UK Secures Multi-Billion Pound Aerospace Deal

PRIME MINISTER Rishi Sunak has heralded a ground-breaking agreement involving Airbus, Rolls-Royce, and Turkish Airlines, a pact that promises to inject billions into the UK’s economy.

On Saturday, December 15, in Istanbul, a pivotal contract was announced. It sees Airbus supplying 220 planes to Turkish Airlines, with 70 of these featuring Rolls-Royce engines. This major economic boost is set to fortify the UK’s financial landscape significantly, writes Gov.UK.

Boost For UK Manufacturing And Jobs

This collaboration is poised to sustain thousands of skilled jobs within the UK. Wings for the aircraft are designed in Filton, Bristol, and assembled in Broughton, North Wales.

Moreover, the Rolls-Royce engines will be manufactured in Derby. This venture is a significant triumph for the British manufacturing sector.

Innovative Engineering And Environmental Benefits

The A350 aircraft, in particular, will exclusively utilise Rolls-Royce Trent XWB engines, known for their 25 per cent reduction in CO2 emissions compared to earlier models. This technological advancement underscores the UK’s commitment to innovative engineering and environmental sustainability.

In 2022, the UK’s aerospace sector was a major economic contributor, generating £10.9 billion, with exports comprising around 70 per cent of its output. It also provided employment for 108,000 highly skilled individuals, primarily outside London and the South East.

Prime Minister Sunak stated, ‘This landmark deal… demonstrates that the sky’s the limit for the UK’s thriving aerospace sector.’ He emphasised the role of this agreement in creating quality jobs and growth opportunities across the UK, aligning with his five priorities for the nation.

Business and Trade Secretary Kemi Badenoch echoed this sentiment, highlighting the deal’s significance in bolstering the UK’s leading aerospace sector and driving economic growth.

She went on to highlight other successes: ‘This deal is just the latest in a long line of wins for UK manufacturing, following Nissan’s £2 billion investment in electric vehicle production in Sunderland and Tata committing £4 billion in a new UK gigafactory.’

Ongoing Government Support

The UK Government continues to back Airbus and Rolls-Royce through the £1.37 billion Aerospace Technology Institute Programme. This support is vital in maintaining the UK’s position at the forefront of global aerospace innovation.

The Aerospace Technology Institute (ATI) Programme will receive £685 million in grants from 2022-25, with an additional £975 million earmarked until 2030.