Originally Posted by
Easy Street
If R-R reduces or cuts its ties to the UK then it risks losing its guaranteed flow of defence investment, which is only justifiable on the basis of preserving domestic jobs, expertise and industrial capacity
Agreed, however the civil aerospace is the issue. They can keep the defence bit as its profitable and well run. The challenge is a 'new operating model' for civil aerospace and sadly a big chunk of dead weight is in Derby. I know its not nearly as simple as my suggestion, however shrinking Derby on future engine generations and building in Singapore might offset the dea weight. In RR the belief that Derby is the hub of the world is at the heart of the problem.
Take 'Digital' as an example - a large potential opportunity for data based revenues and services. Derby staff were literally giving it all away 'free with the engines' rather than treating it as a revenue stream for the future - because people in Derby only knew how to sell big spinning hunks of metal as they have done for decades. If you could have seen the Digital hub in Deby you would hav laughed. First, having a digital hub in Derby is like having a beach ball stand in the middle of the country. Few 'digital' experts will relocate to Derby - its not exactly a Silicon Glen or Valley. Then if you saw the building it was based in, your eyes would be out on stalks. I had the pleasure of a visit a few years ago and while the inside was very 'modern', the outside was literally a rotting brick building complete with leaking gutters and downpipes - and it HAD to be in Derny. Nobody would let it be in somewhere high tech, digital with a world class reputation - like Singapore !.
Defence makes money and can survive, as could the power business but it is repeated failures to break the Derby dead weight of civil that is at the heart of its issues. Make Derby competitive and RR have a chance. And it needs to start with the top 2 layers with the first line as they all need to go and no longer be shuffled around as 'its their turn'.