BAE Systems engineers based across the North to create the first flying combat air demonstrator in a generation.
The group is working with the Ministry of Defence and a number of suppliers in the UK with the aim to get the aircraft flying within the nest five years.
The project, announced by UK Secretary of State for Defence Ben Wallace at the Farnborough International Airshow, is one of a number of technologies being developed by the Tempest team.
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These concepts are designed to demonstrate and test the next generation combat air skills, tools, processes and techniques needed to ensure Tempest, the UK’s Future Combat Air System, achieves in service in 2035.
The Tempest team comprises the Ministry of Defence, BAE Systems, Leonardo UK, Rolls-Royce and MBDA UK.
BAE Systems has northern operations in Lancashire, Cumbria, Yorkshire and in the North East.
Mr Wallace said: "I am delighted that the UK, alongside Italy and Japan are working on similar combat air journeys together. Our work with Japan and Italy on cutting-edge technology like this shows the benefit of our alliances across the world.
"The design and development of the demonstrator aircraft represents an important milestone, showcasing the success and talent of our engineers, programmers and software developers. This programme will go on to attract opportunities for many more great minds and talent from across the UK."
Charles Woodburn, BAE Systems chief executive, added: "We recognise our responsibility in providing trusted sovereign combat air capability.
"We’re partnering with the UK’s highly motivated and skilled supply chain to accelerate the innovation of the nation’s future air power; integrating new technologies so the Royal Air Force and its allies can stay ahead of our adversaries.
"The demonstrator is an exciting once-in-a-generation opportunity providing experienced and young engineers alike a chance to contribute to an endeavour which really matters to our national defence and security."
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