tiprankstipranks
Rolls-Royce Teams Up With Reaction Engines To Develop High-Speed Jets
Market News

Rolls-Royce Teams Up With Reaction Engines To Develop High-Speed Jets

Rolls-Royce Holdings and Reaction Engines announced a new strategic partnership agreement to develop high-speed aircraft engines.

The collaboration aims to enable high-speed supersonic and hypersonic capability for next-generation flights. As part of the partnership, Rolls-Royce (RYCEF) is reportedly making a £20 million ($26 million) investment into Reaction Engines over the next two years after an initial equity investment made in 2018. 

Rolls-Royce, which in the past built engines for Concorde, said it will explore applications for Reaction Engines’ thermal management technology within civil and defence aerospace gas turbine engines and hybrid-electric systems.

“Reaction Engines’ thermal management skills, added to our suite of existing technologies and capabilities, will further assist us as we explore opportunities in supersonic and hypersonic aviation,” said Rolls-Royce’s Mark Thompson said. “Building on our many decades of innovation, we will also explore the use of Reaction Engines’ technology within our aerospace gas turbines and its potential application in future hybrid-electric propulsion systems, as we look to make flying ever more efficient and sustainable.”

The partnership comes after the British jet engine manufacture earlier this month signed a non-binding Memorandum of Understanding (MOU) with Virgin Galactic Holdings to collaborate in designing and developing engine propulsion technology for high speed commercial aircraft for high-speed travel.

Reaction Engines’ technology is backed by the UK Space Agency and European Space Agency, as well as Boeing and BAE Systems. The company’s SABRE – Synergetic Air Breathing Rocket Engine – is a new class of engine for propelling both high speed aircraft and spacecraft.

The almost-complete halt in travel demand during the coronavirus pandemic has hit the airline industry hard sending Rolls-Royce shares down 62% this year.

Meanwhile, the $4.77 average analyst price target indicates 40% upside potential to current levels.

Overall, Wall Street analysts are sidelined on the stock. The Hold consensus shows 4 Holds and 3 Sells versus 2 Buys. (See Rolls-Royce stock analysis on TipRanks)

Related News:
Nio Launches Battery Subscription Service To Lower EV Purchase Price
Tesla or Nio: Which EV Company is Geared to Race Ahead?
Tesla Rises 6% In After-Hours On 5-for-1 Stock Split

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles