Rolls Royce £30 billion jet engine deal under threat

With the US Government looking for ways to cut its spending, President Obama and the US Defense secretary, Robert Gates, are said (by The Daily Telegraph) to be considering scrapping the jet engine deal with Rolls Royce and its partners. The deal is for a second engine worth £30 billion over the next 20 years, the primary engine is being built by Pratt & Whitney. The fighter plane is expected to be a standard for air forces across Europe, over the coming decades. Critics say the second engine is behind schedule, over budget and it was always a luxury despite encouraging competition between the engine manufacturers. The second engine deal has already survived one effort to cut it by the Pentagon, with Rolls Royce working with General Electric to promise jobs in the US, as well as Britain. Other British firms are involved in the F-35, which is a multi-national project involving eight countries.