BAE Systems believes the decision to choose a model with short take-off and vertical landing (STOVL) capability could give it an advantage in its battle against Thales of France to build a new generation of aircraft carrier to accommodate the supersonic jump jets.

Rolls-Royce, provider of STOVL technology for the F35, said the decision would bring revenues of $3bn and secure 3,600 jobs. BAE Systems believed it too would earn "billions" from a 15% stake in the project.

Lockheed Martin, America's biggest defence firm and prime contractor, won the race last year to develop the fighter for the Pentagon in competition against Boeing.

The jets, planned for delivery in 2012, will fly from land bases and the carriers. A £3bn contract, to be announced early next year, involves the construction of two 50,000 tonne vessels, each longer than the Houses of Parliament. They will be built with the flexibility to operate STOVL jets and traditional aircraft that have to be launched by catapult.

The carriers, with a life of 50 years, could also eventually launch unmanned combat aerial vehicles. They will replace HMS Ark Royal, Invincible and Illustrious.

The carrier-borne fighters will take over from ageing Sea Harriers which are to be withdrawn between 2004 and 2006 - up to eight years ahead expectation and at a saving of about £109m. Air defence will be provided by the US until the deployment of the Eurofighter.

Announcing the aircraft contract yesterday, the defence procurement minister Lord Bach said: "This is a critically important decision. We have chosen this variant, which is the one being bought by the US marine corps , because it fully meets our military needs - and it builds on Britain's unique and valuable knowledge of STOVL aircraft acquired during nearly four decades of operations with Harriers on land and sea."

John Rose, chief executive of Rolls-Royce, said he expected more than 750 fighters with STOVL capability would be built.
£10bn jump jet take-off delights UK factories

Terry Macalister and Richard Norton-Taylor
Tuesday October 1, 2002
The Guardian

British defence contractors led by Rolls-Royce and BAE Systems were celebrating last night after the Ministry of Defence announced a £10bn deal to
buy 150 F35 Joint Strike Fighters for the RAF and Royal Navy
"The JSF design embodies world-leading new technologies that will keep Rolls-Royce at the forefront of advanced propulsion development and maintain our leadership in the market," he explained.

Rolls-Royce must still compete with partner GE against Pratt & Whitney to win engine orders for the aircraft. The British group is receiving $400m (£266m) of development money from the US military to help develop the F136 engine for the fighter.