Rolls-Royce Plans Brexit Workaround to Maintain Engine Handovers

(Bloomberg) -- Rolls-Royce Holdings Plc has outlined a workaround that would enable it to continue seamless production of jet engines after Brexit even if the U.K. were to find itself outside the remit of the European regulator responsible for signing off on each turbine delivery.

The “technical measure” involves shifting the approval process to Rolls-Royce’s business-jet facility in Dahlewitz, Germany, it said in a statement Monday. The move wouldn’t affect jobs, but would allow Rolls to continue to get endorsement for its engines from the European Aviation Safety Agency.

Contingency measures in preparation for Brexit “may in the future include the transfer of the design approval for our large jet engines from the U.K. to Germany,” Rolls-Royce said by email. A final decision hasn’t yet been made.

Prime Minister Theresa May last month acknowledged the concerns of U.K. aerospace companies about remaining within EASA, saying the government would be prepared to make a financial contribution to the agency. Rolls wants Britain to retain formal membership and says an associate partnership like that of Switzerland would prevent it from contributing to decisions.

The Daily Telegraph reported on the plan earlier.

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