Rolls-Royce Holdings (LON:RR) has filed a patent for a new breed of electric engine that could shape the future of air travel, The Times reports. The news comes after the British engine maker unveiled plans to slash 4,600 jobs as it looks to cut costs and free up resources to invest in new technologies.
Rolls-Royce’s share price has fallen deep into the red this morning, following the previous session’s rally, prompted by the company’s update that it expects to surpass its free cash flow target by 2020. As of 08:43 BST, the shares were changing hands 2.11 percent lower at 930.00p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.07 percent lower at 7,628.25 points.
Rolls-Royce files electric engine patent
The Times reported this morning that Rolls-Royce’s research team in Indianapolis had devised a ‘turboelectric distributed propulsion system’ which would power a ‘blended wing body aircraft’. The patent, filed in October, is one of a string of possible designs which the company believes will one day allow planes to be powered by electrons rather than jet fuel.
Hargreaves Lansdown weighs in on group
Today’s news follows the engine maker’s updates last week when the company said that its ongoing restructuring will see 4,600 jobs go over the next two years. Citywire quoted Hargreaves Lansdown’s analyst Nicholas Hyett as commenting that “a slimmer, more efficient Rolls-Royce is good for UK aerospace in the long run”.
“Improved cash generation following the restructuring should strengthen the group’s financial position going forward, but there’s no getting away from the fact that Rolls is still a capital intensive business in a pretty competitive industry,” the analyst pointed out, as quoted by the newswire.