BAE wins £2bn role on super-plane

BAE Systems is poised to become a partner with Boeing to build the Sonic Cruiser - a subsonic jet capable of flying 250 passengers non-stop from London to Sydney at almost the speed of sound.

An announcement is expected soon, say sources at Boeing. The deal would involve BAE Systems helping the American giant develop high-tech systems for the jet, which could be built by 2008. BAE Systems would be expected to raise the money itself to help in the research.

BAE Systems owns 20% of Airbus, which is a bitter rival of Seattle-based Boeing.

Some industry observers believe Boeing went ahead with its announcement of the Sonic Cruiser only when it failed to win any orders for its superjumbo plane.

If the Sonic Cruiser is built and is a success, the partnership could be worth more than £2 billion for BAE Systems. It would also help the British company cement its 'US credentials' - vital if BAE Systems is to develop its business in the world's biggest aerospace market.

Boeing has already announced a partnership with GKN, based in the West Midlands, to develop hightech materials for the sonic plane.

Last week at the Farnborough Air Show, Boeing signed up BAE Systems to help work on America's top secret anti-missile system.