Could we soon be saying goodbye to long-haul flights? One company has taken an important step in making this dream come true.

Oxford's Reaction Engines Ltd (REL) announced it has received a €10m development contract with ESA, so it can work on its revolutionary Synergistic Air-Breathing Rocket Engine (SABRE).

This technology can work both in the Earth's atmosphere and in space - which is crucial to space planes.

The grant will add to the UK Government's commitment to invest £60 million in SABRE.

The project has also seen investment from defence company BAE Systems and the US Air Force.