Rolls-Royce invented a revolutionary jet engine — cost doubled and the company collapsed

In 1967, Rolls-Royce committed to developing the RB211, a revolutionary turbofan engine for Lockheed's new L-1011 TriStar widebody jet. The engine was unprecedented: it used three concentric shafts (the first production three-spool design) and carbon-fibre composite fan blades called Hyfil, developed at the Royal Aircraft Establishment. The design promised superior efficiency and power-to-weight ratio. Rolls-Royce won the exclusive contract to power the TriStar — a victory that would nearly destroy both companies.

The problems began almost immediately. In May 1970, the Hyfil blades shattered during a bird-ingestion test. Rolls-Royce had to fall back to an untested titanium blade design, adding weight and cost. The chief engineer, Adrian Lombard, had died suddenly in 1967, leaving a leadership vacuum. By September 1970, development costs had nearly doubled to £170.3 million. Each engine was being sold for £230,375 — below the estimated production cost. The engine was also behind on thrust, overweight, and consuming more fuel than guaranteed.

On 4 February 1971, Rolls-Royce was placed into receivership. The British government nationalized the company in May 1971, creating Rolls-Royce (1971) Ltd. Lockheed's L-1011 TriStar — which had no alternative engine — was jeopardized. The US government had to guarantee Lockheed's bank loans to keep the project alive. The RB211 was finally certified on 14 April 1972, about a year late, and the TriStar entered service later that month. But Lockheed never recovered from the delays and cost overruns, exiting the commercial aircraft business entirely in 1983.