Aeralis Enters Administration, Cutting 30 Jobs as Red Arrows Jet Bid Collapses
Updated
Updated · BBC.com · May 15
Aeralis Enters Administration, Cutting 30 Jobs as Red Arrows Jet Bid Collapses
1 articles · Updated · BBC.com · May 15
Aeralis filed for administration on Friday, costing about 30 jobs and derailing the British startup’s push to build a UK-made replacement for the RAF’s Hawk trainer fleet.
Cashflow pressure intensified after delays to the UK Defence Investment Plan, the loss of backing from main investor Barzan Holdings amid the US-Israeli war with Iran, and a French jet deal that failed to materialise.
The Ministry of Defence said the fast-jet trainer programme is still ongoing and no procurement decision has been made, with BAE Systems, Leonardo and other suppliers still in contention.
Aeralis had argued its programme could create 4,000 UK jobs and £600 million in annual exports, but its aircraft remained only a digital design and still needed government backing to reach production.
The collapse adds pressure on Prime Minister Keir Starmer to publish the delayed defence investment plan as Britain weighs lower-risk trainer options that could be delivered before Hawk retirement in 2030.
A British jet firm collapsed over a 'paper plane' design. Was this a major blow to UK industry or a narrow escape for taxpayers?
As a key foreign investor fled due to war, is the UK's sovereign defence ambition fatally undermined by its reliance on foreign cash?