Defense Cuts Could Cost Rolls-Royce

Posted on: Feb. 2nd, 2006 || Source: washingtonpost.com | E-mail Article | Print Article

During a regularly scheduled video conference with President Bush just before Christmas, British Prime Minister Tony Blair raised a sensitive issue -- a Pentagon budget-cutting proposal that could cost Rolls-Royce PLC, one of Britain's premier companies, billions of dollars.

Word had leaked that the Defense Department was recommending the elimination of one of two engines it is developing for the Joint Strike Fighter, the F-35 jet expected to become the most widely used fighter in the world. The move would save the Pentagon about $1.8 billion over the next several years, according to Loren Thompson, an industry official familiar with the proposal. But it has upset Britain, a close ally that has invested $2 billion in the project and is set to buy more than 100 of the planes.

Read the full article

• Boeing's C-130 AMP Flight Marks Completion of Software Development
• Navy UCAS Demonstrator On Track for First Flight
• Lockheed Demonstrates Intelligent Autonomous Control of Multiple UAVs
• Russian Navy aircraft test new equipment over the Arctic
• Russia may push forward with S-300 sales to Iran
• Boeing, US Navy Offer Super Hornet for Denmark Fighter Competition
• Boeing Awarded US Army Contract for 191 CH-47F Chinook Helicopters
• The Netherlands shows interest in Gripen
• 4th F-35 Lightning II Rolls Out As Production Line Fills Up At Lockheed
• Lockheed Martin C-5m Super Galaxy Completes Flight Test
• Air Guard Predator pilots increase combat air patrols
• Predator passes 400,000 hours
• Future Predator/Reaper Formal Training Unit announced
• Saab/Gripen team completes Hungarian offset contract
• South African Gripen deliveries on track