Relief in Britain at Rolls news

Press, Volume CXI, Issue 32531, 15 February 1971, Page 13

Relief in Britain at Rolls news

(N.Z. Press Association—Copyright)

LONDON, February 14.

Scores of British firms breathed easier after the news that Rolls-Royce, though bankrupt, will continue to order and receive raw materials and components they supply.

"In this way the immense value of the good will of the business will be maintained,” the Rolls-Royce official receiver, Mr Rupert Nicholson, said. At the same time, British European Airways announced that its supply of spare parts for the Rolls engines which power its 130 jetliners was “negligible.” “When we start running out of thngs we could have quite a good many problems,” a B.E.A. spokesman said.

Britain’s other State-run airline, British Overseas Airways Corporation envisages no difficulties yet, a spokesman said.

Mr Secor Browne, chairman of the United States Civil Aeronautics Board, was due in London today to discuss the Rolls-Royce RB2II jet engine programme with British Government and company officials.

Production costs involved

in the Rolls contract with the United States Lockheed Aircraft Corporation, to supply the engine for Lockheed’s new Tri-star jetliner led to the British firm’s bankruptcy.