Blair failed to save 1bn Rolls-Royce US contract

Posted on: Feb. 4th, 2006 || Source: thebusinessonline.com | E-mail Article | Print Article

TONY Blair has failed to persuade President Bush to save Rolls-Royce's $2.4bn (1.36bn pounds, E2bn) contract to develop a second engine for America's Joint Strike Fighter, the F-35, The Business can confirm.

“The second [engine] is being dropped,” a source close to Rolls-Royce told The Business last week. During 2005, Rolls-Royce and General Electric were awarded the contract to develop the second engine in competition with a Pratt & Whitney engine.The F-35 is a radar-evading single-seater fighter being developed by Lockheed Martin. The Pentagon originally wanted a choice of two engines for the new vertical take-off F-35, which is due to enter service in 2009. It will replace the ageing Harrier Jump Jet.

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