Aerospace bosses are planning a £1bn fund to prop up and take stakes in struggling suppliers.
Trade body ADS has drafted plans for a state-backed fund to help small companies crippled by the collapse in flying. Plane-maker Airbus is believed to have pledged to inject cash into the fund, with the Treasury urged to match the private sector. Manufacturers including Airbus and engine-maker Rolls-Royce have slashed production, leaving an army of small suppliers desperately short of work.
The proposal imitates British Patient Capital, a state-backed-fund spawned two years ago to invest £7.5bn into promising companies.