Rolls-Royce and UTC abandon mid-sized jet engine tie-up

The two firms said following discussions, they had decided not to proceed with the partnership "because of the current regulatory environment".


A320 Airbus B737 Boeing Rolls-Royce UTC


According to news sources, British aero engine maker Rolls-Royce and United Technologies Corp have abandoned plans to form a partnership to develop engines for mid-size aircraft.

In October 2011 Rolls and UTC had announced plans to form a partnership to develop engines for 120-230 seat passenger aircraft that in future years would replace new, revamped versions of the Airbus A320 and Boeing 737 narrow-body planes.

However, the two firms said following discussions, they had decided not to proceed with the partnership “because of the current regulatory environment”.

“Rolls-Royce remains fully committed to this important market segment and will continue to invest in technologies that will enable us to take advantage of opportunities as they arise,” the British company said according to news reports.