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If Boeing concedes the civilian market, the likes of SpaceX could just spin out an aircraft or jet engine business and compete quite well.

How about some engines made with those fancy alloys they've got? Or just a willingness to do an awesome design without all the baggage or need for short term profit.

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The overlap between space rockets and aircraft engines and airliners either zero so.

Also, Boeing isn't buildong aircraft engines.

Do you know if they use Rolls Royce engines?

Short search turned up at least one:

https://en.m.wikipedia.org/wiki/Rolls-Royce_BR700

Rolls Royce is big in big engines. Not so much in smaller single aisle aircraft. Boeing 777 and 787 have Rolls Royce engine options. The Rolls Royce Trent engine family is advanced in having three spools compared to the usual two by competitors.

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